Wednesday, March 01, 2006

More Festival Airlines News

More news on Festival can be found here. And the homepage went live tonight.

A few comments:
-We disagree with the quoted consultant in the article about being nervous about a d/b/a arrangement for Festival to get started quickly. As a matter of fact, we think that if they use a good airline like Ryan International it could be a quick and cost effective way to get up and running.

-We have never liked Rockford as Chicago's third airport. It's too close to O'Hare's primary catchment. RFD's 30 mile radial touches on to too much rural area for our comfort. As a matter of fact, our records show only 600,000 people live in that 30 mile radial. Ouch.

-Of course the devil is in the details. We need to see the schedule to determine whether this is viable. A slightly expanded Allegiant-type of operation might be feasible. But if you put a gun to our head right now without having knowledge of the details we would say it's not going to work. Midway? Yes, Mayor Dayley will bend over backwards to get more LCCs in there, but there is too much competition at MDW to lesiure markets. Detroit? NW and Spirit are both going to Flordia now. Cleveland? CAL out of CLE and Air Tran out of Akron are serving the market well. What's the plan to fend off against competitive response? Flying a 757 could certianly help in that area, but can the volume that the plane has bring fares down low enough to avoid being matched? Probably not. Speaking of fares...

-Fares starting at $150? Is that one-way or roundtrip? Let's hope it's round trip. If not it would be a big concern and we'd love to see their models that built up to that fare. The majors wish they could fetch $150 as an average one-way coach fare to Orlando or Las Vegas. Even if it starts at $75 each way...that's still about double what they should start with.

We definitely like the secrecy that Festival has been working under. We also like what we have seen of the certification strategy (though we reserve the right to change our minds on that one), but we think their revenue strategy needs work....at least from what we have seen so far.

1 Comments:

At 12:24 PM, Blogger Emerging Airlines said...

The press conference occured this morning. This report was released a few minutes ago.

http://www.rrstar.com/apps/pbcs.dll/article?AID=/20060302/BUSINESS04/103020046

 

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