PEOPLExpress

Delta is already adding 2 flights a day later this year to co head to head with peopleexpress. PE wont work in ATL.
 
Kingairer said:
Delta is already adding 2 flights a day later this year to co head to head with peopleexpress. PE wont work in ATL.
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You never know, it could depend on how Delta prices their flights. Some people will choose to fly any carrier based on ticket prices alone. PE is advertising $76 one way fares with $25 for a carry on and $20 for a checked bag. I just checked Delta for an August flight (PHF-ATL-PHF) and it is $362. Assuming someone books early on PE and checks their bag, they could fly roundtrip for under $200. There are plenty of people who will opt for the startup to save that kind of money.
 
guywhoflies said:
You never know, it could depend on how Delta prices their flights. Some people will choose to fly any carrier based on ticket prices alone. PE is advertising $76 one way fares with $25 for a carry on and $20 for a checked bag. I just checked Delta for an August flight (PHF-ATL-PHF) and it is $362. Assuming someone books early on PE and checks their bag, they could fly roundtrip for under $200. There are plenty of people who will opt for the startup to save that kind of money.
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agreed...Southwest proved this model worked. I want to say there is a whole chapter in the book "Death of the American Dream", explaining how the public will choose a 5$ cheaper fare and loyalties(essentially) don't exist among airlines.

I wish PE the best!!!
 
guywhoflies said:
You never know, it could depend on how Delta prices their flights. Some people will choose to fly any carrier based on ticket prices alone. PE is advertising $76 one way fares with $25 for a carry on and $20 for a checked bag. I just checked Delta for an August flight (PHF-ATL-PHF) and it is $362. Assuming someone books early on PE and checks their bag, they could fly roundtrip for under $200. There are plenty of people who will opt for the startup to save that kind of money.
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Filling planes up isn't hard. Making a profit may prove to be more difficult. Is people express operating with vacation packages etc like allegiant?
 
Kingairer said:
Filling planes up isn't hard. Making a profit may prove to be more difficult. Is people express operating with vacation packages etc like allegiant?
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I have not heard anything about them trying to offer vacation packages. Everything I have read says that they are trying to be just like Spirit, start with bargain basement fares and then charge for every single thing besides the seat. Their CEO claims they will be different by offering the highest level of service along with the crazy cheap fares. We all know that depends on the people that they employ (i.e. gate agents and FAs)
 
guywhoflies said:
You never know, it could depend on how Delta prices their flights. Some people will choose to fly any carrier based on ticket prices alone. PE is advertising $76 one way fares with $25 for a carry on and $20 for a checked bag. I just checked Delta for an August flight (PHF-ATL-PHF) and it is $362. Assuming someone books early on PE and checks their bag, they could fly roundtrip for under $200. There are plenty of people who will opt for the startup to save that kind of money.
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What you're missing is that Delta has billions of dollars of earnings that they can use to absorb losses on individual flights in order to put upstarts out of business. They can drop their fares to $5 if that's what it takes to undercut PE, and they'll barely notice the loss, while PE will be deeply wounded from the fare war. Look into what American did to kill Legend.
 
ATN_Pilot said:
What you're missing is that Delta has billions of dollars of earnings that they can use to absorb losses on individual flights in order to put upstarts out of business. They can drop their fares to $5 if that's what it takes to undercut PE, and they'll barely notice the loss, while PE will be deeply wounded from the fare war. Look into what American did to kill Legend.
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They could definitely absorb losses better than PE or any other startup aside from maybe Branson's billions. They may drop fares as soon as the routes start and that would definitely hurt PE. However, when Vision started flying into ATL from SDF and VPS, Delta (surprisingly) didn't lower their fares. Maybe they didn't feel threatened by Vision, but I know people who flew a couple times a week between SDF and ATL and they loved Vision because of the cheaper fares. I heard a lot of comments about how Delta gouged the pax on that route and how happy people were to have another (cheaper) option.

I'll admit I don't know a thing about Legend so now I am off to google to see what the heck you are referring to.:)
 
Personally I don't see how Delta would feel the least bit threatened by PEOPLExpress going into ATL only a few times a week.
 
ATN_Pilot said:
Delta got burned by thinking that ValuJet wasn't a threat. Not sure how much of that institutional knowledge remains now that the place is Anderson's baby, but seeing as he's damned smart, I doubt he'll let anyone get much of a foothold.
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Oh I see! That definitely makes sense. Delta be should fine though, they're still the big dogs in ATL even with Airtran there. No need to worry about little ol' PEOPLExpress. :)
 
SmoothLanderJ said:
Oh I see! That definitely makes sense. Delta be should fine though, they're still the big dogs in ATL even with Airtran there. No need to worry about little ol' PEOPLExpress. :)
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AirTran will be gone soon enough and then the PE plan to takeover ATL will be put in to action. Yes...YESSS...YEEEESSSSSSSSSSS!!!!!!!
 
It's probably important to note that currently there are no pilots working for PeoplExpress. It's a brand and they sub contract their flying. Very smart (IMO) business model, why spend all that money setting up a 121 carrier when you can just lease one. Your out of pocket costs are just paint related. Which incidentally, they obviously didn't spend much money on either :D.
 
guywhoflies said:
However, when Vision started flying into ATL from SDF and VPS, Delta (surprisingly) didn't lower their fares. Maybe they didn't feel threatened by Vision, but I know people who flew a couple times a week between SDF and ATL and they loved Vision because of the cheaper fares. I heard a lot of comments about how Delta gouged the pax on that route and how happy people were to have another (cheaper) option.
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But they're not flying those routes anymore, are they. Maybe Delta didn't feel threatened because they knew that the fares Vision was charging weren't sustainable. Everyone thinks they're being gouged when there is a cheaper option, but sometimes that cheaper option just isn't economically viable.
 
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