tphuang wrote:crownvic wrote:tphuang wrote:Unlike BUR, this is actually a really profitable route for WN. I don't see how WN can keep ignoring NK building a hub at LAS. There has to be some retaliation coming.
Like others are saying, WN fares out of LAS are too high and they have been taking advantage of LAS pax for too long now. They deserve a good kick in their butt. DL had the best shot of building up LAS, but they chose not to for several reasons. AS, in my opinion, was "sleeping at the wheel" and let an opportunity slip by. NK saw an opportunity in LAS and is now going after it. I don't think at this stage, NK really fears anyone and is willing to take on even the giants at WN, AA, DL and UA, regardless of the city pairs.
Let's get one thing out of the way. There is no chance of DL or any other legacies building up in LAS. The yields are too low and point of sale is always on the side.
The only one with the cost structure to really challenge this type of mostly leisure destinations dominated by WN is NK. That's why you see them building up in MSY/MCO also.
Again, this depends on which LAS route you are referring to.
average fares from Q1 to Q3 + yields for WN. Remember, WN fares have to be higher due to the free luggage and no change fees
BUR $154 $108
LAX $104 $83
SNA $163 $133
ONT $154 $120
LGB $73 $54
SMF $184 $139
I would agree that SMF is a little high, but the LA basin airport (with the exception of SNA) are all below average in margin for the system. WN is not milking BUR and ONT. That's not matched in reality. If you want to complain by comparing ONT/BUR to LAX, I can tell you that LAS-LAX is one of the biggest money losers in WN system. Airlines who are willing to loose money to support their LAX hub aren't willing to do it the secondary airports.
Reviewing all your latest posts, I’m simply guessing we have another SoCal hater. Reviewing last T100 route and yield data, most WN BUR routes are in their top 100, not the highest, but all top 100. RASM are higher than most routes nationwide so contrary to your post regarding BUR being money losing, research! WN opened the station on 4/16/90 with flights to LAS/OAK, if markets since were performing as you claim, wouldn’t WN discontinue?
And to be honest, I have yet to pull data on the recently launched HOU/MDW flights, but I am guessing if a money loser, SWA would have already decided.
And, ummmmmm, last thought, hasn’t Delta already built up LAS in last years? Mmmmmmm, once again, please research! No, but they have BOS/DTW/JFK/ATL/MSP/SLC/SEA/SJC/LAX/SAN/SNA plus .........