lowecur
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US Airways Lowers LGA/BOS - $100 R/T

Thu Aug 03, 2006 9:36 pm

The gloves have come off. US Airways, fresh from their splendid 2Q, has decided to put pressure on fellow competitors into the NYC market from BOS. Chief antagonist, Jetblue will surely feel the yield pressure. I'm sure this is just a probing at this point, but if successful, look for US Airways to go after the other Jetblue shuttle service to the Washington market.

http://www.prnewswire.com/cgi-bin/st...story/08-03-2006/0004409510&EDATE=
 
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deltadawg
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RE: US Airways Lowers LGA/BOS - $100 R/T

Thu Aug 03, 2006 11:18 pm

I smell a fight coming on. With B6 announcing more Florida flights for next year I think B6 is going to start seeing more aggressive competition from DL, HP, FL & even WN.

Yields and profits are going to suffer for B6 as well as others if something does not change in the next year or so. As usual time will tell.
GO Dawgs, Sic' em, woof woof woof
 
John
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RE: US Airways Lowers LGA/BOS - $100 R/T

Fri Aug 04, 2006 12:07 am

Those fares, 54.00 each way ( plus applicable airport fees and security taxes), are NOT last minute type fares, they must be purchased roundtrip at least 14 days in advance, are nonrefundable and carry restrictions. That's Ok for the leisure traveler, but the bulk of shuttle revenue is generated from the higher yield walk up type fares.
 
jetbluefan1
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RE: US Airways Lowers LGA/BOS - $100 R/T

Fri Aug 04, 2006 12:11 am

Very interesting move on US' part. JetBlue's fares were already low without the competition, so I don't think that they'll move lower. But we'll see...with US as a more lean competitor, this could get interesting. But on another note, this clearly implies that JetBlue was really hurting them with the JFK service - thereby showing that many people decided to go to JFK over LGA.

Does anyone think DL will respond and lower its fares as well?

JetBluefan1
 
DAL767400ER
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RE: US Airways Lowers LGA/BOS - $100 R/T

Fri Aug 04, 2006 12:37 am

Quoting JetBluefan1 (Reply 3):
Does anyone think DL will respond and lower its fares as well?

Most probably. After all, as has been said, the most money to be made is off the more spontaneous bookings. Business travellers in this market don't book 14 days in advance, it's more like 14 hours, or in extreme, 14 minutes in some cases. These new fares are more aimed at filling additional seats than lowering prices on already-filling seats.
 
ejmmsu
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RE: US Airways Lowers LGA/BOS - $100 R/T

Fri Aug 04, 2006 12:41 am

I wonder, on the B6 JFK-BOS service, if they are taking away more leasure pax from US (rather than business pax). This would make sense as far as lowering the advanced purchase fare.
"If the facts do not conform to the theory, they will have to be disposed of"
 
ScottB
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RE: US Airways Lowers LGA/BOS - $100 R/T

Fri Aug 04, 2006 1:32 am

Quoting JetBluefan1 (Reply 3):
But on another note, this clearly implies that JetBlue was really hurting them with the JFK service - thereby showing that many people decided to go to JFK over LGA.

I don't think the traffic numbers bear this out; US Airways' LGA-BOS traffic was flat or up year-over-year in January through March; they only saw a decline in April versus 2005.

This is definitely an interesting move on the part of US Airways; I wonder if one of the goals is to boost Shuttle traffic on some of the frequencies with less demand. The Shuttle flights tend to operate with very low average load factors (though certain frequencies are always full).
 
toltommy
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RE: US Airways Lowers LGA/BOS - $100 R/T

Fri Aug 04, 2006 3:41 am

Has there been any change in the walk up fare?
 
supa7E7
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RE: US Airways Lowers LGA/BOS - $100 R/T

Fri Aug 04, 2006 4:54 am

Quoting ScottB (Reply 6):
I wonder if one of the goals is to boost Shuttle traffic on some of the frequencies with less demand. The Shuttle flights tend to operate with very low average load factors (though certain frequencies are always full).

Yes, that's clearly it. As long as walkup is higher priced, even an $80 RT fare is useful to US and DL, since there is empty space galore on the shuttles.

The demand between bos-nyc-dc is nearly infinite. If cheap enough, you start drawing from the pool of people who (1) drive or (2) take the bus. Big pool there. Carrying proper amounts of that low yield traffic can boost the bottom line.
"Who's to say spaceships aren't fine art?" - Phil Lesh
 
sspontak
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RE: US Airways Lowers LGA/BOS - $100 R/T

Sat Aug 05, 2006 3:56 am

Delta Shuttle matches the $100 R/T on LGA-BOS.
Go Delta!
 
DAL767400ER
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RE: US Airways Lowers LGA/BOS - $100 R/T

Mon Aug 07, 2006 5:47 pm

Quoting Sspontak (Reply 9):
Delta Shuttle matches the $100 R/T on LGA-BOS.

Well, didn't take them too long to follow US, though it only was a matter of timing anyway.