East Coast, West Coast, Mid-West
There is a reason there is a lot of focus on the near mid-west and east coast when it comes to airlines. That’s where people are. The population density in our eastern half far exceeds that of our western half. Even LCC carriers “get it” and if you think otherwise, look at the focus of jetBlue, Airtran and Southwest Airlines.
But I think the opportunity of the west and mid-west is getting ignored. All one has to do is take a look at routes flown from the DFW, Houston, Kansas City, Salt Lake City and, yes, Las Vegas area and wonder at the possibilities. Yes, the flights are a bit longer in length and time but they also fly in and out of airports that are far less congested and far less affected by weather.
Southwest ignores routes from DFW while it waits to fly unrestricted from Love Field in 2014 and I think that is a mistake. jetBlue has ignored the Dallas market despite the fact that it connects an amazing number of people to areas where it already has a strength: the east coast and west coast.
Airtran has game in the east and even in the upper-Midwest now but it has ignored the west so far and that puzzles me. It’s an airline that is clearly ready to go to the next level and be a real national player. Frontier is playing some in the west via Denver but take a look at the fares it is charging on those western routes. I think Frontier is more vulnerable than it thinks.
More importantly, I don’t think there has been the same LCC stimulus in many western markets that we’ve seen elsewhere. Many LCC’s operating routes in the west seem to have come to some tacit agreement with legacy airlines on competition. With the exception of the west coast, we don’t see much LCC stimulus going on past 150 miles east of the west coast.
There is opportunity there and the airline that figures out how to build a better network there is potentially set to earn a great deal of money. Sure, Southwest is out there and they do have pretty good coverage but even they could stand a little competition these days. At least outside of California and Arizona.
Airtran has game in the east and even in the upper-Midwest now but it has ignored the west so far and that puzzles me.
AirTran hasn’t ignored the west coast – there are several non-stops from SFO, LAX, SEA, SAN, PHX, &c. to ATL, ORD, and DTW. Do they have the same coverage density as the eastern half of the country? No, but as you point out, the country doesn’t have the same density, either, and other LCCs have game in that region, too.
I suspect AirTran thinks they don’t need or want to compete against SWA in that region for a limited number of seats, especially in the BizClass level, since they’re doing just fine east of the Mississippi.
-R
(Wichita?)
Airtran tried some west coast stuff out of DFW for a bit…I think DFW-LAX and DFW-LAS. AA clobbered them. I think Jetblue will be coming to DFW soon though as they and AMR are becoming friends.
It will be very interesting in 2014 when Southwest is free to fly around the country.
Airtran did try a few DFW-Western destinations. Not enough and not enough frequencies. In addition, it was a different world when they were last tried. Back then, AA had a warchest of money and resources to make any airline miserable on a route. They’re being a lot more careful these days.
I do think they (Airtran) could compete very nicely against SWA especially since they do have a Business Class product and assigned seating.
I think jetBlue will stay away from DFW in light of their new love-fest with AA. It’s a relatively high margin route (DFW-NYC) and I would expect AA has found a way to warn them off from DFW.
Prove me wrong jetBlue.