Re: destination versus routing pricing

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Having lots of planes makes more point-to-point service possible, which
could be a blessing in disguise.

There's no question that long range narrow-body jets (737-700/800s,
A319/320s) have been great, and 2,000+ nm range RJs are changing the
landscape.

But I sense that airlines, and their currently artificially distorted
labour costs which provide a per-seat-mile cost on RJs that are
unsustainable, are going to swing the pendulum to far the other way.

Can someone name an airline that uses a balance of hub-n-spoke,
point-to-point and RJ flying and does it successfully & profitably?

Lufthansa?

Matthew

On Friday, September 19, 2003, at 03:04  PM, kurtzke@xxxxxx wrote:

> Matthew & list:
> You hit the nail on the head, namely the two factors that have to be
> played off each other. The answer is not all point to point service or
> all hub service, but a mixture. Big city pairs should get lots of point
> to point, and so forth down to small to small almost all by hub. Having
> a lot of planes makes lots of point to point service possible for large
> carriers. But even large carriers need to realize they can't go
> everywhere.
>
> john
>
> Still a Fan of Non-Stops
>
> On Friday, September 19, 2003, at 01:57 PM, Matthew Montano wrote:
>
>>> Why does Airline U insist on having so little point to point
>>> service and so much traffic through it's hubs?
>>
>> The idea was that an airline could do two things with a Hub/n/Spoke
>> system, that with the same # of planes one could:
>>
>> a) Serve more destinations
>> b) Serve them more frequently
>>
>> ... and that by using a hub it would be cheaper than running
>> point-to-point and avoid suffering poor aircraft utilization, and
>> possibly lots of empty seats.
>>
>> Of course, it's a traditional marketing and pricing problem that
>> people don't value their time very well. Folks will spend 10 minutes
>> in line to save 1/4 cents a litre (about 13 cents per average fill-up)
>> on gas. Compounded with the fact that flights are listed side by side
>> in reservation and web-sites they appear as equivalent commodities.
>>
>> It's obvious why airlines attempt to fill their seats, because they'll
>> go empty anyways. But it begs the question the more specific question,
>> how did these 'seats' come about anyways?
>>
>> And how does Air Tran do it?
>>
>> Matthew

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