Ted is by no means a mistake to United. The mission of Ted is to gain back market share
from Low cost competitors, which it has accomplished in the past months.
Ted registerd a load factor of 87%
from March to July.
Local market share in Denver for Ted has increased by eight points
, while Frontier has decreased by nine points
. Note that even a two or three percent difference is an extremely large fraction when talking about market share.
In Denver, Frontier will pull down two daily flights to Ontario (Ted market)
Spirit will take down its twice daily service from DEN
to FLL (Ted market)
Ted has an all A320 fleet with the same configuration, keeping costs
The Ted fleet has outperformed all maintenance reliability goals
even though these planes have been flying 15% more than the mainline A320s.
There are more than 9,000 seats in Ted markets than last year (18 more seats per plane), yet Ted achieves outstanding load factors
Modifications to transform UA
A320s to Ted A320s were completed 'in house'20% faster
than anticipated saving time and money
Ted A320s have been testing various smart
ideas such as flying at mach.78 rather than mach.80 to save fuel while not jeapordizing on time stats. All A320s will now adhere to this, saving 2 to 6 million dollars annualy
Ground crews position power cords before the plane lands so pilots can shut down the engines earlier. This will save as much as 9 million
Ted has six simplified fares, capped at 299 dollars.
Cargo will increase by 250 pounds of mail per flight, revenue will increase by 4.2 million dollars.
Premium customers are taking advantage of Ted. Mileage Plus flying is up 7 %, and on Ted is up 27%.
Marketing in ORD
area and DEN
area was relitavely cost efficient. Before Ted was flying, UA
spent only $200,000 on advertising Ted in the Denver area.
Ted has and continues to exceed its goals while defending United's domestic leisure flying. How can this not be called a success so far?
The opinions expressed here are mine and not necessarily those of Delta Air Lines.