Delta as competition

I'm a famous skeptic, so I'll just wait and see who wants to do the bleeding - Delta or St Joe? Delta bled AirTran out of Tallahassee but at considerable cost and no St Joe backstop. Southwest has no risk other than mis-estimating their worst case and finding themselves really empty, down in the below-40% zone. That is possible in the intra-Florida and west-to-Texas markets, but unlikely northward. Delta's recent domestic traffic is a story of capitulating unless there is an international or corporate discounting tie-in.

One more comment about "Low Cost Airlines" and I'll go to the bench until we see some fare info around January. The difference between "LCC's" and "legacy" airlines is not as great as in the past because of the bankruptcy adjustments. Southwest pilots, for example, are paid 30% more than legacy pilots, and the absolute cost of "low fares" is not bus-fare cheap - SW's "average fare" of $113 is ONE WAY and does not include all fees. The out-of-pocket cost of a round trip is about $250 per person, higher to high-fee places like Denver and New York.

in reference to:

"I'm a famous skeptic, so I'll just wait and see who wants to do the bleeding - Delta or St Joe?  Delta bled AirTran out of Tallahassee but at considerable cost and no St Joe backstop.  Southwest has no risk other than mis-estimating their worst case and finding themselves really empty, down in the below-40% zone.  That is possible in the intra-Florida and west-to-Texas markets, but unlikely northward.  Delta's recent domestic traffic is a story of capitulating unless there is an international or corporate discounting tie-in.One more comment about "Low Cost Airlines" and I'll go to the bench until we see some fare info around January.  The difference between "LCC's" and "legacy" airlines is not as great as in the past because of the bankruptcy adjustments.  Southwest pilots, for example, are paid 30% more than legacy pilots, and the absolute cost of "low fares" is not bus-fare cheap - SW's "average fare" of $113 is ONE WAY and does not include all fees.  The out-of-pocket cost of a round trip is about $250 per person, higher to high-fee places like Denver and New York."
- The News Herald (view on Google Sidewiki)