PanAm747
Topic Author
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WN And HP Routes In The West Question

Thu Apr 21, 2005 8:11 am

I guess I am trying to combine two threads into one question here. Bear with me...

While reading the thread about Busiest Domestic Air Routes, I noticed that here in the west, routes to PHX and LAS are dominated by two airlines - HP and WN. Not so unusual in and of itself, but it was recently reported that HP is posting a first quarter profit, and of course WN is doing its usual amazing job at staying solvent (to say the least).

Is there a reason both airlines are competing so successfully and mutually profitable on these routes? Is this simply a matter of the nature of a duopoly? Or do both airlines have extraordinarily good yet different business models? And if so, is this a model that could somehow be duplicated elsewhere in the U.S./world?

Thanks in advance!!
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RDUDDJI
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RE: WN And HP Routes In The West Question

Thu Apr 21, 2005 8:18 am

Well WN has very low costs. HP actually had a small loss before special items were included, but they are also a LCC. B6 made money last quarter, they are an LCC... hmmm...I see a trend here. I don't have time to pull up FL's most recent report, but IIRC they are very close to profitability too.
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DfwRevolution
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RE: WN And HP Routes In The West Question

Thu Apr 21, 2005 8:18 am

Quoting PanAm747 (Thread starter):
Or do both airlines have extraordinarily good yet different business models?

HP's buisness plan isn't radically different than WN's. They are like most LCCs with minor tweaks on the book WN wrote, they are more alike than they are different.

Quoting PanAm747 (Thread starter):
Is there a reason both airlines are competing so successfully and mutually profitable on these routes? Is this simply a matter of the nature of a duopoly?

PHX and LAS (especially) have lots of traffic, and there are pleanty of markets that support multiple airlines. Chicago (UA, AA, WN) comes to mind, though only WN is making money. WN has twice the market share as HP in LAS, and WN only has 36% of the market.
 
stirling
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RE: WN And HP Routes In The West Question

Thu Apr 21, 2005 8:29 am

Quoting DfwRevolution (Reply 2):
They are like most LCCs with minor tweaks on the book WN wrote, they are more alike than they are different.

The two biggest exceptions being seat assignments and a first class cabin.
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Bridogger6
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RE: WN And HP Routes In The West Question

Thu Apr 21, 2005 8:39 am

Oh, and also and allowing pets, in-flight entertainment, and a buy on board meal program.

Quoting Stirling (Reply 3):
The two biggest exceptions being seat assignments and a first class cabin.
 
cactusTECH
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Joined: Sun Apr 03, 2005 12:11 am

RE: WN And HP Routes In The West Question

Thu Apr 21, 2005 11:14 pm

and very soon all leather seats in coach courtesy of HP look out for a/c 675AW and 676AW they already have them