wnflyguy wrote:gaystudpilot wrote:wnflyguy wrote:As for WN buying anyone? This is not the right time because this pandemic fallout going to give WN a lot of organic growth opportunities for a easy 2 to 3 yrs.
Agree re WN not acquiring another airline.
However, how is WN going to go after “a lot of growth opportunities”? Where are these growth opportunities? As traffic comes back, what is WN going to give up to serve all these opportunities? Where are the aircraft coming from? What in the pre-COVID-19 network gets left behind so that these new opportunities can be served?
I do not buy into this “We were flying when no one else was, so now come fly with us” strategy that people on here are touting. WN will be opportunistic in frequencies and new routes just like any good competitive company should be. If they see a competitor underserving a market they will go after it as long as it doesn’t displace another one. And they will have an eye to the future. They are not going to go into a market selling $39 fares if they know the market in two years will not be able to achieve higher fare price points. WN is no longer the company it was. Low fares are a teaser; it wants to offer just as many seats at those low price points as it has to to 1) support the brand image and 2) fill any seats it statistically believes would otherwise go out empty. Ultimately, WN wants to attract higher fare Y customers just like their competitors and since they give up revenue on change and baggage fees they have even more incentive to tightly manage that revenue stream (as well as the cost side).
WN’s focus on maintaining a simple business model and relentless cost efficiency will position itself to take advantage of unique opportunities. But the notion that WN is going to take over and put everyone else out of business is just nonsense.
I think WN with the covid 19 recovery will follow something along the lines of hurricane Katrina aftermath. Instead of building up MSY. They grew it gradually with used extra aircraft to expand other market opportunities.
Much easier to redeploy aircraft serving one market within a network to replace lost revenue by building up existing markets with frequency or entering a new market or two than attempting that with every market within your network. The scale and complexity and risks are completely different.
I’m not suggesting WN will not try to capitalize on some opportunities. That’s just smart. But it will not be done on a large scale as some in here suggest.