[jimworcs]

I said..

mmm.. not really Phx. I think you will find there is a significant difference in the average fare of say Delta or Continental and a low cost.

Phx... you said...

mmm...not really, Jim. I think you'll find where they compete the legacies more often than not match the LCCs on their lowest and their highest fares. Now the mid-level fares can be just about anything in-between...but that's an entirely different conversation.

For example Southwest has a major presence here in PHX. They are the second largest in terms of passenger numbers and number of flights operated. PHX is probably their 4th or 5th largest "hub" even though Southwest avoids using that term. With every major fare sale announced by Southwest I have been able to find tickets at the same price on Continental. This is because Southwest now flies to LaGuardia in New York and Continental considers them as competition on their Phoenix to Newark route

The standard industry measure to determine the position of a company in terms of price, is to compare the average fare per passenger. This allows a comparison which cuts across market differences.

In 2008, Continental had an average fare of $232.26 as reported in their annual report. Southwest, in their annual report, reported an average fare of $119.16. That is close to double. It is a crude indicator and should be read alongside Revenue per Passenger Mile, but to suggest that the legacy carriers and the LCC's are close in terms of prices is highly misleading. The legacies may well provide competitive headline prices where they compete head to head with an LCC, but the number of seats available at that price, and the average fare paid are significantly different and remain so.

The most telling elements of your riposte was the "where they compete"... the legacies have developed fortress hub models designed to squeeze out competitors except for marginal, leisure travellers that purchase solely on cost. The other was the statement that "mid level fare can be just about anything in between". All fares count towards an average.. and I think you will find that my contention is simply this... the average paid by a consumer for an LCC seat compared to a legacy carrier is considerably less.