5 Responses

  1. whakojacko
    whakojacko at |

    Its also worth mentioning that Southwest brings in low introductory fares into markets but then generally raises them afterwards-I wouldnt expect $59 each way to last for long

  2. Wandering Aramean
    Wandering Aramean at |

    The $59 fares won’t last forever but I would not at all be surprised to see the average fare hover surprisingly close to the $100 price point.

    It is also worth noting that the $59 intro fare isn’t really all that low compared to what they could have come in with. If they really wanted to piss US Air off they could have started at $29 or $39 and had a lot of fun. The $59 fares are actually probably close to the point they need to be to hit break-even on operational costs.

  3. Phudnik
    Phudnik at |

    It’s pretty clear that total traffic will grow on the PHL-BOS route; the current O&D figures are a third of what they were before US started charging outlandish fares. That will mitigate the losses somewhat, though the maximum fare WN is charging is about $150 each way (vs. a $600 each way refundable fare before WN).

    Also, much of the traffic that US carries is going BOS-PHL-XXX, at much lower fares than BOS-PHL. Some of this is likely to be replaced by BOS-PHL O&D traffic at relatively higher fares.

    US is still going to take a hit, though.

  4. Wandering Aramean
    Wandering Aramean at |

    Indeed, traffic is going to grow on the BOS-PHL route but that traffic will come from the other cities that currently have the loads. So they’ll be losing business in other areas as they gain on the O/D traffic.

    Certainly I have no way to know the exact amount that US Air is going to suffer by but the idea seems pretty solid – they’re going to hurt from this. A lot.

  5. J. Rowland
    J. Rowland at |

    US Airways SUCKS.

    I have a $646.19 credit for a flight. I want to use my $646.19 credit towards a new flight that only cost $300. I was told that I would be stuck with a $150 change fee but my credit was large enough to cover that. US Airways now wants me to pay an additional $150 on a credit card and forfiet the remaining balance. How does that make sense? A $300 flight is now going to cost $800.

    Now I know why I prefer to fly Southwest.