Wednesday, March 25, 2009

muni muck

Bloomberg is out with what is an almost routine update on the sorry state of municipal finance.. Note that the PWSA issue here is mentioned. See: Municipal Market Regulator Regrets Enabling Losses .


and after my brief look at this... and then some coverage in the news, take a look at the latest PR from Delta which now shows an even cheaper Pittsburgh to Paris cost of $329 each way. Great for us, but it is a sign they are having problems filling the seats.. My question is that I wonder how that deal works that they are reimbursed if they do not fill enough seats. There must be verbiage in there on what fares they have to offer. Otherwise, what incentive do they have to cut the fare to the bone vice keeping prices a big higher and then demanding reimbursement via their agreement. Just asking, I have to believe the lawyers have it worked out somehow in the details.

and I just noticed..... that Pittsburgh to Paris cost is tied for the cheapest (whoops... Denver to Shannon is the cheapest at $299 each way, but the main point I think is still valid) European airfare Delta is advertising in that press release. What could that mean? low demand? Big supply? The core factoid put out on the Delta flight that 170 or so people in Pittsburgh originate a trip to Europe daily comes to mind. I don't dispute it at all... sounds right although I have no info on that. But is that really enough to support a flight. I am not sure its reasonable to think such a flight would ever capture all or even most of that demand. I flew to Europe a lot even when the Pittsburgh to Frankfurt and even the Pittsburgh to Gatwick flights were around, but I think I only took the USAirways to Frankfurt flight once. For scheduling or cost reasons it would often no be what I got to take even if I might have liked the idea purely on convenience. And that 170 number must be calibrated to a pre-recession world. I wonder what it really is these days if it's a knowable number.


Anonymous Anonymous said...

I mentioned this last week, but here goes again.

The statistic cited by Delta was that 350, not 170, persons a day begin European trips at PIT. As I understand it, that number is actual traffic, not estimated, as least as it stood in the fall. And, as I've noted here before, Delta only needs to capture 36% of the weekly travelers to be completely full--and I'm sure that they make a profit on smaller load.

So, I just don't understand your un-"realistic" comment. Someone's got to capture the demand--why not Delta? You avoid connecting at the disasters called PHL, JKF, and EWK.

Additionally, the WSJ reported that advance international bookings fell off a cliff in January and February--down by 25-35 percent at Delta and United. It's unfair, then, to extrapolate micro trends when the macro situtation is also poor.

I continue to be amazed by the negative outlook that seems to pervade the denizens of this region to their core. Time and again Pittsburgh manages to find the sow's ear in the silk purse.

Thursday, March 26, 2009 12:01:00 AM  

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