EADSYABSOB73857 wrote:tphuang wrote:the margins at BOS is definitely currently lower than SEA. One could argue that's expected since they are at an earlier stage in the buildup. Either way, it's a huge bloodbath up there. RDU really has very low margins too.
People keep making DL out to be geniuses and everyone else out to be stupid. That's not the case, every airline has to build to its strength. UA doesn't need new hubs when it's existing hubs are all at great locations. They said it themselves in earning calls.
I haven’t been on this forum long, but I’ve consistently noticed that; while you post very valid data that gives much insight to route profits, you have a strong bias and continuously bash DL, more than anyone else. You tend to focus on one station (mostly BOS) and base your opinion of DL on that and for their actions in that market- I’ve followed your posts. The truth is; DL is the most profitable airline in the world (above AA, UA, AS, and B6- and there’s concrete data to back that up). And, data has shown that BOS has actually become more profitable for DL- which aligns with their goal from the onset. You like to focus on 5-6 regional markets out of BOS and state that BOS’ DL operation is ‘tanking’ from a profitability standpoint. Now I am agnostic; I’m actually a Wall Street industry analyst and you can see in my history I’ve written and defended other airlines (including B6).. but the fact of the matter is that: a) when any airline builds a new hub, they will take hits against their profitability for a multitude of reasons- most common historical reasons are they are either flooding a market in order to build their position, and/or other airlines are defending their share- every major US airline has been in this situation, I can pull industry data and show you if you’d like- it’s not only consistent with DL, BOS, and SEA..
One recent example- B6 BUF-BOS is down to 3x daily- 1 year ago it was 5-6x daily.. so yes, BOS-BUF may be one of DL’s worst performing routes, the point is, B6 has reduced flights (from 6 down to 5, then from 5 down to 3)- simple wisdom is that if BOS-BUF wasn’t so poor performing this would not be the case (a reduction in flights).. plain and simple. Looks like DL won the battle here and set out exactly what they were trying to achieve (cut into frequencies and reduce route frequencies from existing carriers/routes- plain and simple).
I am simply reporting on the numbers. I am also simply stating obvious point that delta is running a very low margin operation in Boston since it's at the beginning of a buildup. I have also looked at the numbers and have concluded that they have turned things around in NYC after many years of losses. I don't see why I would state the later if I am not basing things on numbers. So when delta turns Boston around in a way that's verifiable, I will admit to that. And it simply hasn't done that in Seattle either. I follow that market closely too. It's simply more interesting to look at competitive markets.
If delta won Boston buffalo, JetBlue would be out of that market. But it's simply running the same number of flights it runs in winter time due to the urgent need to deploy aircraft to JFK due to slot usage issues. It seems to me the corporate clients are looking for better schedule from JetBlue to larger markets and that's where they are adding to.
I don't see why I need to think delta knows everything or does everything better than everyone else when there are quite a few well run airlines around. And no, JetBlue is not one of them.
If you would like to continue this conversation, I would glad entertain it over pm.