Southwest Airlines launched additional services from Denver International Airport to destinations including Los Angeles, Detroit, Indianapolis, Las Vegas, Minneapolis/St Paul, Phoenix, San Francisco, St Louis, Tucson and Washington Dulles on 16-Aug-2010 (Business Journal of Milwaukee, 16-Aug-2010) – see Route Changes Table for more information.
Southwest Airlines launches additional services from Denver International Airport
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Alaska and Delta: the end of a partnership, but the start of new competition on the US west coast
A decision by Alaska Air Group and Delta Air Lines to dissolve their codesharing partnership in late 2016 was not surprising, given that the demise of their relationship began about four years ago when Delta opted to build Seattle into a strategic trans Pacific hub. Since that time the financial benefit Alaska has enjoyed from the relationship has dwindled as Delta has built up its own network in Seattle to feed its long haul flights, rather than rely on passengers from Alaska.
After the two airlines formally announced their split: through the planned launch of seven new markets from the airport in 2017 Delta sent a clear message that it had no intention of backing down in Seattle, breaking an Alaska monopoly in several of those markets. However, Delta’s international expansion from Seattle appears to be on hold until the airport completes a new customs facility at the airport in 2019.
Even as their relationship officially ends, competitive dynamics between Alaska and Delta will intensify on the US west coast as Alaska embarks on its merger integration with Virgin America. Alaska will find itself competing with Delta and numerous other airlines in the strategic and fragmented Los Angeles market, and the merged entity retains a solid presence on numerous key routes from the airport.
Frontier to celebrate ULCC transition with an IPO: intensity grows in the US competitive landscape
After toying with the idea of engaging in an initial public offering for more than year, the US ULCC Frontier Airlines now intends to go public as its major shareholder, ULCC specialist Indigo Partners, sets its sights on Argentina. Frontier has arrived at and passed many ULCC milestones, including producing unit costs excluding fuel below the USD6 cent benchmark for the ULCC model, placing it on par with its fellow ULCCs Spirit Airlines and Allegiant.
Frontier markets its product differently from other US ULCCs, giving passengers the options to purchase product in a bundled form or a la carte, but it still maintains ultra low fares. However, Frontier couldn’t escape the pricing pressure that permeated the US market in 2016, joining the majority of the country’s airlines in posting distinct yield and unit revenue declines.
Obviously, despite the pricing pressure and changing dynamics in the US market, Frontier remains bullish on the opportunities for ULCCs in the market place, concluding that numerous markets exist for it to operate profitably with low fares.
During the past several years Frontier’s network focus has been somewhat murky. Now Frontier’s network strategy is targeting high fare, underserved routes. And like its rival Spirit, Frontier also singles out medium sized markets that offer some protection from larger competitors.