Having the most legroom in Y and Y+ helps them generate revenue premium in BOS and JFK. They'd risk loosing that revenue premium if they back away from it.
They may generate a revenue premium on some routes but they certainly don't systemwide.
B6 PRASM, 2Q18, $.1227
U.S. industry, $.1467 (and that's including the bottom-feeders)https://seekingalpha.com/article/420860 ... ine?page=2
US3 will always have a revenue advantage over B6 due to their network advantages. It's more relevant to compare routes where they have similar network situation. Being a young airline, they are left with the network that they have. They don't have a choice of getting fortress hub at CLT. Also, their domestic stage length is longer than most airlines, which reduces PRASM numbers.
Southwest I think can hold out. They have such a fan base and people know they get more for the fares. It's hard for any other airline to do that. I know so many people who will only fly Southwest , they are just sick of the us3 and lcc way of being treated. Southwest gets higher fares on alot of routes is rarely see them being the lowest. You just know your getting alot more for the price.
i think so too. Being the only airline that doesn't charge for bag fees, change fees and basic economy allows you to stand out. If there are 2 or 3 airlines like that, the less well known one looses out.
But B6 tries to have it about 4 different ways
From Even More Space, to Mint, to B6 Economy with equal or better legroom to the legacies' "premium domestic economy"... they can't make up their mind. And then they've got two very different forces pulling on them: Boldanza and Wall Street, and the loyal and amenity-demanding customers.
You're right, they're going to have to pick one side or another... not 4 at once
The influence of Ben is overrated again. They were going to go this way regardless. They talked about how they are studying it for several quarters now. And then AS said they were introducing BE also. Unfortunately, the writing was on the wall. Remember, this is the same management that started baggage fees and cabin densification project. They introduce one major customer unfriendly movement per investor day.
As for the rest, their goal is pretty clear. To have a better experience than legacies while having lower cost. That's why mint is printing money. That's why they do well at competitive places like BOS/JFK/FLL. They don't have the low cost to try to match ULCC despite what people are saying here. They can't go ULCC route. They'd die that way.
1. Not first class, but I do believe a reduction in seat pitch is probably necessary. 12 more seats might not seem like a lot, but at least that slightly narrows the yield gap created by the FC product on the legacies. Even if they added just one row, that’s still better than nothing imo.
they are adding 12 to A320, which keeps their pitch as industry leading while improves the cabin quite a bit. Pretty good way to go.
2. Mint is no doubt more valuable, but FC isn’t selling for cheap either - what that creates is a much smaller yield value creation for B6 based on Mint. 33 less seats to have a space consuming premium product isn’t worth it on most all routes. I have little doubt 192 seats with 20 FC on DL’s 321 is much better yielding than 159 w 16 Mint on JBLU
In the long run, I’d expect B6 to wake up and smell the coffee. 33-34 standard pitch unfortunately won’t cut it in today’s price driven industry. That could at least reduce both problems I see: they keep Mint but add a row or two of extra seats (or 2-3 on non mint confirms) - it still creates a gap, but it at least narrows it. They’re a great company to fly on, but I for one would doubt it remains status quo for much longer
Mint is making boat load of money. They are generating yield premium on routes where legacies have huge network advantage over B6. Remember, one of the reason mint has 159 seat is because they can get away with just 4 FAs. On similar premium configured flight like DL B757, DL has 5 FAs.
Why do you want to kill the golden goose?