California Pacific Airlines, a start-up based in San Diego county, has included a Las Vegas route in its plans when it launches services in early 2012 (Las Vegas Journal Review, 21-Jun-2011). The carrier plans to operate four daily services using E-170 equipment however it is still going through the certification process with the FAA. California Pacific Airlines will compete with Southwest Airlines on the San Diego-Las Vegas route. Southwest currently has a monopoly on the route after US Airways pulled out in late-2009.
Start up California Pacific Airlines plans Vegas route
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US airlines: a turnaround in unit revenue just as cost pressures rise in 2017
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Delta and Southwest have both publicly cited a bump in demand since the US presidential election in Nov-2016. Delta has expressed cautious optimism that the US revenue environment has turned a corner, and the positive momentum is driving the company’s confidence of climbing out of a negative unit revenue performance in 1Q2017.
Key to sustaining unit revenue momentum is keeping capacity in check over the course of 2017. American, Delta, United and Southwest have all declared their intentions to lower capacity growth in 2017, and show no intentions of revising those targets upwards. Rising fuel cost and non fuel cost inflation are the major headwinds for US airlines in 2017, which has resulted in Delta declaring margin compression for the year.