Moderators: jsumali2, richierich, ua900, PanAm_DC10, hOMSaR
LotsaRunway wrote:This topic has seen some chatter specific to BOS, but I'm interested in taking a larger view of the Eastern New England region. WN first came to PVD and then MHT and generated a strong following. When they started BOS, they moved some flights from PVD and MHT to BOS as part of a regional strategy. WNs success at BOS is questionable given the strong popularity of B6 and their broad offerings of nonstop destinations. It has been said WN flights at BOS appeal more to loyal WN flyers than local, but this cuts growth potential way down. It appears to me that their last couple of attempted adds have been duds and what I thought was a slam-dunk, BOS-PHL couldn't withstand the competition.
Where can WN grow at BOS that actually have a good chance to succeed? Should WN return more focus to the regional airports where there is less competition and a stronger following?
SWADawg wrote:I know I'll get hammered for this as usual, but WN and B6 will probably be merging in the next few years, so BOS should take care of itself eventually.
VS4ever wrote:LotsaRunway wrote:, but clearly work to do in plenty of areas, particularly CMH, MCI, MKE and STL.
VS4ever wrote:LotsaRunway wrote:This topic has seen some chatter specific to BOS, but I'm interested in taking a larger view of the Eastern New England region. WN first came to PVD and then MHT and generated a strong following. When they started BOS, they moved some flights from PVD and MHT to BOS as part of a regional strategy. WNs success at BOS is questionable given the strong popularity of B6 and their broad offerings of nonstop destinations. It has been said WN flights at BOS appeal more to loyal WN flyers than local, but this cuts growth potential way down. It appears to me that their last couple of attempted adds have been duds and what I thought was a slam-dunk, BOS-PHL couldn't withstand the competition.
Where can WN grow at BOS that actually have a good chance to succeed? Should WN return more focus to the regional airports where there is less competition and a stronger following?
This an interesting one, in terms of gate space, I am not sure they are going to get a lot more even if they move from A to B at Logan, maybe 1-2 more gates total, that kind of limits the growth prospects they have and certainly the competition is tough for them. Now if they are getting good yields from their current crop of flights, then I could see some additional places coming on line, like SAT, which is crying out for non-stop service as one of the largest markets not yet served on that basis.
As for their current portfolio, again if you use T-100 data (which i know is not perfect) here are the % loads for their main routes (for the whole of 2015 - combined direction
ATL - 83%
AUS - 88.6% (only started end of October)
BNA - 87.4%
BWI - 86.2%
CAK - 63.6% (stopped October)
CMH - 62.5% (Aug-Dec only) - but not pretty
DAL - 87.7% (Aug-Dec only)
DEN - 94.3% - best overall
HOU- 81.1%
MCI - 73.4%
MDW- 89.5%
MKE - 75%
STL - 75.1%
so on that basis, where they are strong, they are strong, but clearly work to do in plenty of areas, particularly CMH, MCI, MKE and STL.
The question then becomes would they do better than those numbers if flying from PVD and MHT, given they bailed from those markets originally when BOS became an option, the answer is probably no, hence why they haven't backfilled even now.
Longer term, I can see PVD as an option for BOS traffic, given the constraints on gate space they have and I could definitely see some route adjustments given a couple of the weaker performers on the list. But the competition out there is tough, so I truly wonder just how well a BOS station is doing. PVD and MHT are likely cheaper to operate out of, but can they attract the numbers as a result. Past history as noted above says no, but I am not sure there is a growth opportunity in BOS just yet, unless the yields are up there..
chrisnh wrote:It would be a marketing coup of sorts for JetBlue if they started service at MHT before WN went to BTV because then B6 could claim service to all six New England states while WN only serves five.
chrisnh wrote:WN opened with 12 daily flights in 1998 and this winter, for the first time ever, they will shrink below that...to nine. With no competition from B6 and apparently no sign that they will come, WN shrinking MHT is a head-scratcher. The demographics with respect to population, businesses, and income levels are certainly robust enough to support more service than nine daily flights. Indeed, the proof of that is already in the books if you look back to before 2005...when MHT traffic from all sources fell off a cliff.
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MIflyer12 wrote:The OP asks the wrong question. A better question: What routes or added frequencies will yield the highest ROIC for Southwest. Or, much, much more narrowly, What routes from BOS will achieve a hurdle ROIC of XX%?
It's not a game of connecting points on a map... the goal is to fill planes at a high average fare per seat per stage-length-adjusted mile.
MaxxFlyer wrote:SWADawg wrote:I know I'll get hammered for this as usual, but WN and B6 will probably be merging in the next few years, so BOS should take care of itself eventually.
No hammer, but that ain't gonna happen. Ever.
LotsaRunway wrote:MIflyer12 wrote:The OP asks the wrong question. A better question: What routes or added frequencies will yield the highest ROIC for Southwest. Or, much, much more narrowly, What routes from BOS will achieve a hurdle ROIC of XX%?
It's not a game of connecting points on a map... the goal is to fill planes at a high average fare per seat per stage-length-adjusted mile.
Perhaps that is more of a question for the long term. WN is still fighting for market at BOS and is obviously willing to take on some losers to grow. In time, they will keep what gives the best return and maybe also some losers that are key for some reason.
But since you propose a variation to the original question, do you want to offer an opinion? I find your question equally interesting.
tlecam wrote:I generally hear people preferring B6 due to many non-stop flights and there is a general sense that the onboard product is a slight upgrade - TV's etc... Families also like the ability to assign seats on B6.
airzona11 wrote:With DEN having the best load factor, I would hazard a guess that a lot of West Coast WN flyers 1 hop via DEN to BOS. The stage lengths OAK/LAX/PHX/LAS/SAN, all airports/metros with large WN FFs, to BOS is just too far for WN. Maybe when more 738s come online, but this coast to coast long haul is not in WNs wheel house.
tomaheath wrote:With DL starting Nashville in November and B6 start Atlanta in March will this really eat into WN flights? WN will be competing the two biggest carriers at BOS.
georgiabill wrote:The way WN treats MHT passengers they should close the station. They keep down sizing when markets exist.
georgiabill wrote:The way WN treats MHT passengers they should close the station. They keep down sizing when markets exist.
enilria wrote:If they let the largest domestic airline merge I think I'd prepare for a future Ameriflot.
JBAirwaysFan wrote:It was mentioned earlier that WN arrived in BOS much later than other carriers. Let's not forget having WN in major primary airports such as BOS and LGA and DCA is relatively new in the grand scheme of things, especially when you consider how long WN has been in service. Entering BOS is an uphill battle for them because they have to go in against carriers that are well established there. WN's main strategy for many decades was secondary airports, so while you saw DL and B6 flourishing in BOS, WN was doing the same at PVD and MHT. Let's face it, DL and B6 have the upper hand, and WN is on their turf.
Rdh3e wrote:WN is not the largest carrier domestically.
BobPatterson wrote:Rdh3e wrote:WN is not the largest carrier domestically.
Am I somehow misunderstanding the May numbers for Revenue Pax enplaned?
JetBlue Airways...........................2,700,059
United Air Lines Inc......................6,450,082
American Airlines Inc..................10,391,012
Delta Air Lines Inc......................10,745,799
Southwest Airlines Co.,,,,,,,,,,,,,,,,12,996,806
georgiabill wrote:My point is WN keeps down sizing MHT! Nothing to do with their great employees. At one point MHT had nearly 30 daily flights and now is back to the original # of flights. I believe if WN had started MHT- ATL they would have been very competitive with DL. 2X daily would have been good. FLL 1x daily connected with their new routes would be good and a return of DEN 1x daily. Also RSW seasonal would be good especially with sox spring training.
Just my 2 cents
Rdh3e wrote:BobPatterson wrote:Rdh3e wrote:WN is not the largest carrier domestically.
Am I somehow misunderstanding the May numbers for Revenue Pax enplaned?
JetBlue Airways...........................2,700,059
United Air Lines Inc......................6,450,082
American Airlines Inc..................10,391,012
Delta Air Lines Inc......................10,745,799
Southwest Airlines Co.,,,,,,,,,,,,,,,,12,996,806
Capacity does not vary based on load factor. Size is not a measure of usage. A table that holds 10 for dinner but only 3 people use it is not a smaller table than a table of 4 which has 4 people eating at it.
I also cannot match the numbers you've posted, where are they from? Did you exclude AK/HI?
For all of US to all of US (which includes territories) T100 shows both AA and DL ahead of WN on your usage metric. On all capacity metrics they are both larger than WN as well.
BobPatterson wrote:
I consider the largest domestic airline to be
tlecam wrote:Two quick anecdotes from a born and raised Bostonian. WN is generally not viewed as the default least expensive option like it used to be.
I generally hear people preferring B6 due to many non-stop flights and there is a general sense that the onboard product is a slight upgrade - TV's etc... Families also like the ability to assign seats on B6. Again, all anecdotal.
BobPatterson wrote:Rdh3e wrote:WN is not the largest carrier domestically.
Am I somehow misunderstanding the May numbers for Revenue Pax enplaned?
JetBlue Airways...........................2,700,059
United Air Lines Inc......................6,450,082
American Airlines Inc..................10,391,012
Delta Air Lines Inc......................10,745,799
Southwest Airlines Co.,,,,,,,,,,,,,,,,12,996,806
Rdh3e wrote:BobPatterson wrote:
I consider the largest domestic airline to be
Respectfully, what you consider doesn't matter. Capacity is not measured by passengers, and using passengers to determine size is inconsistent with not only industry standard but with logic.
Which restaurant is larger:
Restaurant A seats 800 people and is 40,000 sqft but served only 500 meals.
Restaurant B seats 600 people, is 25,000 sqft and served 550 meals.
If you think that restaurant B is the "bigger" restaurant, I can't help you, that is logically inconsistent. It is "busier" but not larger.
I still don't see which page you pulled those numbers from, but my guess is that it doesn't include the Express passengers for AA/DL/UA and shows only the mainline numbers for them.
BobPatterson wrote:
By the way, I think what you consider does matter. I don't dismiss your opinion out-of-hand.
Thanks for your responses, and for the forthcoming link to T100.
MaxxFlyer wrote:Aside from the comments on WN/B6 merging - why does Southwest HAVE to grow? They can likely eek out a few more flights, but do they need to become a significant player at BOS?
tomaheath wrote:georgiabill wrote:The way WN treats MHT passengers they should close the station. They keep down sizing when markets exist.
I'm going to have to disagree with that statement. What kind of issues have you had with the way you were treated by the WN employees at MHT? I've always found them very friendly and never had any issues there.
airliner371 wrote:Yes, I'm sure they "treat" you all terribly.![]()
Give me a break, MHT is lucky to have the WN service it does today, ...
MaxxFlyer wrote:Wasn't WN downsizing at both MHT and PVD a given once they entered Boston? Depending where you live in the area, the alternative airports may be more convenient. That doesn't mean WN would keep the same number of flights and destinations. A lot of people still feel WN should go back to the now ancient idea of serving secondary airports/cities. They are making much more $$$ with the new business model.
Rdh3e wrote:BobPatterson wrote:
By the way, I think what you consider does matter. I don't dismiss your opinion out-of-hand.
Thanks for your responses, and for the forthcoming link to T100.
T100 is the name of the underlying dataset you are citing, available with just a few clicks from the link you posted. It has maket level data by airline. I said I can't match your numbers because I went to the link and nowhere did your numbers appear at any of the various views.
The airlines buy a version of the data that has been post-processed to parse through the regional carrier data and assign them to the correct Major. There are some small discrepancies to reality because they cannot tell which Major a carrier is flying for when the same regional is flying for both carriers within the same market, to my understanding thus is largely an issue with Skywest since they fly for almost everyone.
You are skewing this argument towards what you define as the "largest" what I'm saying is that it doesn't matter what you think because Enilria's comment is not using your definition and neither would the DOT.
Finally, it's a moot point because as has been explained, even on your chosen metric Southwest is third largest when a proper accounting is done.
LotsaRunway wrote:MaxxFlyer wrote:Aside from the comments on WN/B6 merging - why does Southwest HAVE to grow? They can likely eek out a few more flights, but do they need to become a significant player at BOS?
Why does WN have to grow at BOS? The simple answer is that they don't. They can sit back and let others dominate a very large market. Obviously, WN is a competitor and they want more of the Boston pie and I believe they are willing to take losses for a while in an attempt to grow. I think there is room to push AA, DL and UA, but B6 is the gorilla in the room and has a very loyal following.tomaheath wrote:georgiabill wrote:The way WN treats MHT passengers they should close the station. They keep down sizing when markets exist.
I'm going to have to disagree with that statement. What kind of issues have you had with the way you were treated by the WN employees at MHT? I've always found them very friendly and never had any issues there.
I understand the frustration felt by georgiabill. I try to travel MHT when coming to New England, but with all the schedule trimming and reduced options, you almost feel punished for your loyalty. But MHT is very fortunate to have WN and needs to support it the best they can.airliner371 wrote:Yes, I'm sure they "treat" you all terribly.![]()
Give me a break, MHT is lucky to have the WN service it does today, ...
I don't agree with this. With few exceptions WN carefully picks large enough markets to sustain their service. Even accounting for the massive leakage from New Hampshire to Logan, there is plenty of demand to sustain, otherwise you would see a token 3 flights a day to BWI and lots of talk about it being cut. WN loads at MHT are very good. WN is just trying to squeeze up the yield on those flights. Besides, you need a good market like MHT to counter-balance the losses WN must be taking on some routes at BOS.
MaxxFlyer wrote:Wasn't WN downsizing at both MHT and PVD a given once they entered Boston? Depending where you live in the area, the alternative airports may be more convenient. That doesn't mean WN would keep the same number of flights and destinations. A lot of people still feel WN should go back to the now ancient idea of serving secondary airports/cities. They are making much more $$$ with the new business model.
Actually, there were quotes in the New Hampshire newspapers from WN saying their Boston service would complement their MHT (and PVD) services. Read that as you may, but is gives the impression they wanted people to think MHT would not be cut down. I don't think that WN intended to cannibalize PVD or MHT by starting BOS and offering lower fares there, and I don't think they cut service to DEN and LAS directly because of BOS. But I do think in WN's desire to compete and grow BOS, there are fewer airplanes to go around and unless long-haul O&D from MHT/PVD to DEN/LAS is really stellar, they would rather connect those markets through MDW or BWI to free up planes. Yes MHT and PVD filled up those long-hauls, but WN wants then to be full of O&D do do connections elsewhere.
Will WN keep throwing assets at BOS to grow the market like they did with SEA, PDX, DEN, etc, or will they stabilize and settle back like the did with PHL? That is up for debate.
VS4ever wrote:[
Gate 15-Jul 14-Jul
A18 10 11
A19 9 9
A20 11 10
A21 5 5
A22 4 4
Rdh3e wrote:BobPatterson wrote:Rdh3e wrote:WN is not the largest carrier domestically.
Am I somehow misunderstanding the May numbers for Revenue Pax enplaned?
JetBlue Airways...........................2,700,059
United Air Lines Inc......................6,450,082
American Airlines Inc..................10,391,012
Delta Air Lines Inc......................10,745,799
Southwest Airlines Co.,,,,,,,,,,,,,,,,12,996,806
Capacity does not vary based on load factor. Size is not a measure of usage. A table that holds 10 for dinner but only 3 people use it is not a smaller table than a table of 4 which has 4 people eating at it.
I also cannot match the numbers you've posted, where are they from? Did you exclude AK/HI?
For all of US to all of US (which includes territories) T100 shows both AA and DL ahead of WN on your usage metric. On all capacity metrics they are both larger than WN as well.
LotsaRunway wrote:Having just returned from a west coast run and seeing how WN has grown to "own" the Los Angeles basin to San Francisco Bay area shuttle type service, and it got me wondering. WN does really well in the high frequency, high demand services. Look also at Dallas/Houston/Austin/San Antonio. Why wouldn't WN take a try at the Northeast Shuttle? OK, maybe not yet due to slot restrictions, but that can change in time. WN has a bunch of BOS-BWI flights, but no BOS-DCA. Given the demand and fares, that would be a natural place to grow with a shuttle type of service. A tough one to crack due to the competition, but then again, so was the west coast service.