CEO: National Airlines not a target
Friday, July 5, 2002 | 11:14 a.m.
Is part of America West Airlines' strategy to become Las Vegas' hometown airline and put Las Vegas-based National Airlines out of business?
"Of course not," America West Chief Executive Officer W. Douglas Parker says emphatically.
"That's ridiculous," adds airline analyst Mike Boyd of the Boyd Group, Evergreen, Colo. "It's called competition."
National officials are purposely quiet about the issue, considering any formal accusation against America West would likely wind up in court.
But more than a few eyebrows were raised when America West announced it was entering the Seattle market from Las Vegas a few days after National began serving the route.
The Las Vegas-Seattle market already has some heady competition with Alaska Airlines battling discount leader Southwest Airlines. When National announced it was going in, Alaska removed one of its flights. And then, America West announced it would put three flights into the market with its new pricing strategy that removes many ticket purchase requirements, such as a Saturday night stay.
In America West's press releases, it called itself "Las Vegas' hometown airline," a tag that quickly disappeared on subsequent releases after National complained it had registered the phrase.
"Our strategy is to compete," Parker said. "We'll do what's necessary to the extent that certain competitors fly to places that we don't fly. You may see us add services because we want to be the preferred airline of Las Vegas. It's hard to be that when some of your competitors fly to places we don't fly."
National officials are waiting anxiously to see if America West adds service to Washington, D.C.'s, Dulles International Airport or to Reno from Las Vegas -- two destinations National will add later this year. Parker said America West has no plans to add those markets.
"It's understandable that National would be a little nervous," said Robert Mann of R.W. Mann & Co. Inc., Port Washington, N.Y. "If I'm an airline CEO and someone is taking resources out of my rice bowl, I will always claim it's predatory."
"Predatory pricing" is often the cry of the small competitor against the giant. It occurs when a company reduces its prices below its costs in an effort to steal a competitor's customers.
The theory is a large competitor can flood a market with cheap seats to force a smaller foe to eventually give up and, better yet, bow out of the market. A larger airline has deeper pockets and time on its side.
Mann said companies such as United and American have been accused by smaller airlines of being predatory in some markets. When it was flying, Reno Air often accused American of being predatory on its Reno routes.
"It's an easy claim to make and a hard claim to prove," Mann said. "American and United haven't been convicted of anything at the end of the day."
archive
- Most Read
- Discussed
- Most E-mailed
- Wynns agree on ‘amicable’ split of assets in divorce
- Golden Nugget opens $150 million, 500-room tower
- Could the game be partly to blame for addiction?
- Sluggish starts plague Rebels in early games this season
- Hundreds mourn slain Metro officer, denounce violence
- Report: LV home prices fall despite increases nationwide
- Funeral procession for slain officer includes Las Vegas Strip
- Boyd Gaming sues man over Internet domain name
- General Growth moving subsidiaries out of bankruptcy protection
- Bellagio sues company over alleged trademark infringement
Blogs
Politics: The Early Line
Meeting of GOP governors draws challengers, not Gibbons (1 Comment)
Politics: Ralston's Flash
Oscar loves forcing developers to sign labor peace agreements, Culinary loves the city's downtown plans and all is forgiven (1 Comment)
Now and Then
Underdog is open on a post pattern
Miech Again
Kruger contract altered in September (1 Comment)
Robin Leach's Las Vegas Celebrity Watch
Photo Gallery: Donny Osmond brings DWTS trophy to Las Vegas
High School Sports Scene
Prep Football: State Semifinals Picks (2 Comments)
Shark Bytes
Sharing some Thanksgiving traditions (3 Comments)
Calendar »
- 25 Wed
- 26 Thu
- 27 Fri
- 28 Sat
- 29 Sun
-
Food drive at LAX
LAX Nightclub | 10 p.m. to 11:59 p.m.
-
Judge Jules at Godskitchen
Body English | 10:30 p.m. to 11:59 p.m.
-
Univision TV hosts at Blush
Blush Boutique Nightclub | 10 p.m. to 11:59 p.m.
-
Mischieve Wednesdays at T&T
Tacos and Tequila
The Sun
Locally owned and independent for more than 50 years.
Technorati













