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Author Topic: overflowing  (Read 2345 times)

jchaves

  • Former member
overflowing
« on: January 14, 2010, 04:42:38 PM »
How do you convince a competitor that this is also very bad for him?
Demand is 3280/day, I'm supplying approximately 50%, getting around 30% of the share.
The rest of the seats come from just one company. Any ideas?


ucfknightryan

  • Former member
Re: overflowing
« Reply #1 on: January 14, 2010, 05:34:08 PM »
I believe that between corp image and pricing it's possible to get quite a bit more pax than the stated demand.  It's possible that they have a really high CI and/or are discounting a bit, and it's not very bad for him.   :-\  Also, if they were on that route before you arrived, and it's a big airline, they might not have even noticed.  Or they might be hoping that the losses force you to leave before they force them to.

Someone with more experience please correct me if I'm wrong.

Edit: Also, if you haven't been flying the route that long, you probably have a lower route image then they do, which also gives them an advantage in attracting pax.  If this is the case, as you fly the route more and run a route marketing campaign, your route image will improve and you'll be able to compete better.

I just looked at the route.  Davvair is a very big airline.  I'd now bet that it's most of the above.  They've probably got higher LFs then you because of high CI, may not have even noticed the competition, and if they have noticed, probably don't even really feel whatever losses they may have and therefore feel no need to cede capacity to the competition. 
« Last Edit: January 14, 2010, 05:51:26 PM by ucfknightryan »

jchaves

  • Former member
Re: overflowing
« Reply #2 on: January 14, 2010, 05:47:41 PM »
I believe that between corp image and pricing it's possible to get quite a bit more pax than the stated demand.  It's possible that they have a really high CI and/or are discounting a bit, and it's not very bad for him.   :-\  Also, if they were on that route before you arrived, and it's a big airline, they might not have even noticed.  Or they might be hoping that the losses force you to leave before they force them to.

Someone with more experience please correct me if I'm wrong.

Yes, I guess you're right. Unfortunately. Initially I had a total of 4 destinations, all with the same "problem". Had to concentrate in just one, to reduce losses. But it seems not enough.

Offline Sigma

  • Members
  • Posts: 1920
Re: overflowing
« Reply #3 on: January 15, 2010, 01:06:41 AM »
At just 10-50% over demand, I would hardly consider that an issue.  In fact, if I were your competitor, I'd be throwing at least 1000 more seats per day on the route.

jchaves

  • Former member
Re: overflowing
« Reply #4 on: January 15, 2010, 06:06:52 AM »
At just 10-50% over demand, I would hardly consider that an issue.  In fact, if I were your competitor, I'd be throwing at least 1000 more seats per day on the route.

 :) I believe you would. Good to know, as a newbie player.

Thanks

carloscarlos

  • Former member
Re: overflowing
« Reply #5 on: January 26, 2010, 07:59:03 PM »
im not good at this....in fact im not a gd player at all...wouldnt that be considered flooding the route!?! uhm....confused...now i know...i will not share a route with you!

Offline alexgv1

  • Members
  • Posts: 2184
Re: overflowing
« Reply #6 on: January 27, 2010, 01:46:41 AM »
im not good at this....in fact im not a gd player at all...wouldnt that be considered flooding the route!?! uhm....confused...now i know...i will not share a route with you!

There is potential demand for up to 5250 (3500 x 1.5) pax because the route demand can actually fluctuate by 50% either way dependent on a number of factors. So even with 5000 seats offered they could be getting good load factors on all flights.
CEO of South Where Airlines (SWA|WH)

 

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