Competition at DFW

January 13, 2013 on 1:00 am | In Airline Service, Airports | 2 Comments

About a year ago, a few airlines started to enter the DFW market and that made me thrilled.  For all too long, American Airlines has dominated virtually all routes from Dallas / Fort Worth to all other destinations.  It’s even been able to manage keeping its pricing up on intra-Texas flights against Southwest.  The last time a truly competitive fare was found in Dallas was when Delta was still here operating a hub.

I saw the entrance of Virgin America on routes between DFW and LAX/SFO as a great start and American Airlines clearly didn’t like the competition because it did what it always does and tried to scare away the airline.  Virgin America CEO David Cush has never said anything but glowing things about VA’s performance to and from DFW.

JetBlue came to town as well with 3 flights to and from Boston.  Boston is a route that is, again, dominated by American Airlines and which had very high fares and by all reports, those flights do very well, too.

Spirit Airlines has come as well and they’re killing it.  Spirit has been adding routes and now is adding a crew base in Dallas because it’s discovered an untapped demand that is the result of very little competition in Dallas.  Hey, folks who live here like a good deal as much as anyone when it comes to a leisure destination.

But a year later, I see two airlines (JetBlue and Virgin America) maintaining their status quo.  I wonder what it is about the middle of the United States and Texas that scares these two airlines so much.  Particularly when you have a major legacy carrier sitting here airling and another LCC carrier (Southwest) raising fare prices in this market considerably.  There is some low hanging fruit.

If I had been Virgin America, I would have targeted Dallas for routes on LAX and SFO for sure.  I would also have laid on flights to New York City and Washington D.C.   I would have opened up a gate in Chicago and connected LAX, SFO, NYC, Washington, D.C. and DFW to Chicago in a heartbeat.

If I had been JetBlue, I would have added flights to New York City, not just Boston and I would have looked at some point to point flying to its Caribbean destinations as well.  We’re as close to the Caribbean as anyone in the Northeast and it’s a popular vacation destination for this area.

But it hasn’t been done.  A year later, these two airlines sit with their timid schedule into and out of Dallas from their strongholds while AA prepares to come out of bankruptcy as a cost competitive airline that potentially is mated with US Airways.  I would have spent the last year building loyalty on routes that those airlines could serve well by offering the fares people want here and getting them just a little too addicted to excellent service on modern aircraft.

It’s disappointing to me, the consumer, because I think that DFW is a destination where a lot of “upstart” airlines could succeed more.  The fear towards AA and SWA defies my imagination at this point.  And there is Spirit Airlines who is taking advantage of the moment and growing like crazy.  Go figure.

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