ARAJET

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So, only about 10% of their passengers go on to PC? If they move to PC, they'll lose 90% of their revenue.
Not necessarily, those who wanted to go directly to PC already got a direct flight from another airline. Those Arajet could have if they flew to PC.

I don’t think tourists with a 1-2 week holiday in PC would enjoy an extra bus trip when they can go directly.

From Europa many Dominicans do fly to PC but mainly because there are few direct flights to SDQ and these are more expensive.
 

Riva_31

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I'm just using the percentage that was posted. Do you have a better one? What are the 90% of passengers that are not going to PC going to do if Arajet is no longer based in SDQ?
If they will make also connections in PUJ you can add the % of pax in transit. I watched an interview where Arajet said with thir flights from Buenos Aires they got passengers in Transit, Santo Domingo and Punta Cana by bus.
 

cavok

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No matter how you slice it, it still boils down to what percentage of their passengers don't go to PUJ. If they move their hub to PUJ, they will have to be able to make up for that lost revenue there.
 

cavok

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If they will make also connections in PUJ you can add the % of pax in transit. I watched an interview where Arajet said with thir flights from Buenos Aires they got passengers in Transit, Santo Domingo and Punta Cana by bus.
There will be in transit passengers that won't care if they connect in SDQ or PUJ and some might not have the option to connect in SDQ but will in PUJ.
 

MariaRubia

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I'm just using the percentage that was posted. Do you have a better one? What are the 90% of passengers that are not going to PC going to do if Arajet is no longer based in SDQ?

The business model for an airline is that they have a very expensive fixed asset called a plane. They try to maximise the revenue for each plane by a) filling it and b) getting as much per seat as they can. Other than that, the airline doesn't much care where it flies. At present 90% of Arajet's customers don't go by bus to Punta Cana. But if Arajet stopped flying to Santo Domingo entirely and started all of its flights in Punta Cana, this doesn't mean they would lose 90% of their customers, seats on the flights from Punta Cana would sell or not sell depending on the level of demand for that route.

As traffic numbers show, Punta Cana is by far the most popular destination in Dominican Republic.
 

MiamiDRGuy

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Friend of mine told me that Arajet proposed few cities they want to fly to:

Boston, MA
Newark, NJ
Philadelphia, PA
New York City (JFK)
Miami, FL
Atlanta, GA
Dallas, TX
Orlando, FL
Tampa, FL
Ft. Lauderdale, FL
San Juan, PR
Charlotte, NC

To be continued ....
 
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cavok

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The business model for an airline is that they have a very expensive fixed asset called a plane. They try to maximise the revenue for each plane by a) filling it and b) getting as much per seat as they can. Other than that, the airline doesn't much care where it flies. At present 90% of Arajet's customers don't go by bus to Punta Cana. But if Arajet stopped flying to Santo Domingo entirely and started all of its flights in Punta Cana, this doesn't mean they would lose 90% of their customers, seats on the flights from Punta Cana would sell or not sell depending on the level of demand for that route.

As traffic numbers show, Punta Cana is by far the most popular destination in Dominican Republic.
An airline, like any other business, is in business to make money. If they lose more money by leaving SDQ than they can make in PUJ, they'll stay in SDQ. If they can make more money in PUJ, that's what they'll do. So far, there are not known statistics to even begin to reasonably speculate which is the best option for them.
 

Riva_31

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An airline, like any other business, is in business to make money. If they lose more money by leaving SDQ than they can make in PUJ, they'll stay in SDQ. If they can make more money in PUJ, that's what they'll do. So far, there are not known statistics to even begin to reasonably speculate which is the best option for them.
Fly into PUJ its not the same as flying into any other airport in DR, as I said all those flights are filled by companies that prepaid Thousands of room, Air Canada has Aircanada Vacations, Airtransat has Airtransat Vacations and Sunwing its Sunwing vacations, then you have travel agencies that sells some extra rooms and also they have contracts with airlines, all those airlines has the capacity to double the seats that Arajet can place to Canada, if you look to the south you have big airlines with big hubs that can secure prepaid sellers seats, and they also can double the seats in one single fly. To fly to Punta Cana its not so simple that Hello Im here opening flights. Yes Punta Cana its the mayor airport in Dominican Republic, yes they catch most of the tourist, but things to fly there its not that simple. But we will see how they can perform.
 

Riva_31

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Some advances and Arajet didnt even its selling Punta Cana:





 

keepcoming

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Friend of mine told me that Arajet proposed few cities they want to fly to:

Boston, MA
Newark, NJ
Philadelphia, PA
New York City (JFK)
Miami, FL
Atlanta, GA
Dallas, TX
Orlando, FL
Tampa, FL
Ft. Lauderdale, FL
San Juan, PR
Charlotte, NC

To be continued ....
Dallas I doubt as well as possibly Atlanta. Charlotte would be tough with AA there. I guess it would depend on the demand.
 

cavok

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Fly into PUJ its not the same as flying into any other airport in DR, as I said all those flights are filled by companies that prepaid Thousands of room, Air Canada has Aircanada Vacations, Airtransat has Airtransat Vacations and Sunwing its Sunwing vacations, then you have travel agencies that sells some extra rooms and also they have contracts with airlines, all those airlines has the capacity to double the seats that Arajet can place to Canada, if you look to the south you have big airlines with big hubs that can secure prepaid sellers seats, and they also can double the seats in one single fly. To fly to Punta Cana its not so simple that Hello Im here opening flights. Yes Punta Cana its the mayor airport in Dominican Republic, yes they catch most of the tourist, but things to fly there its not that simple. But we will see how they can perform.
Like I said in an previous post, I can see the possibility of Arajet having some flights on select routes out PUJ. I think that's more likely that moving their entire operations there.
 

Riva_31

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Like I said in an previous post, I can see the possibility of Arajet having some flights on select routes out PUJ. I think that's more likely that moving their entire operations there.
I understand that but in the actual moment you haven't build you hub strongly, to make that move its very risky when you are increasing frequencies to give more potential to your hub and make possible more connections between flights, we just have to make a look at Copa,
 

cavok

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I understand that but in the actual moment you haven't build you hub strongly, to make that move its very risky when you are increasing frequencies to give more potential to your hub and make possible more connections between flights, we just have to make a look at Copa,
I'm not saying to do it now, maybe sometime in the future(?).
 

Riva_31

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I'm not saying to do it now, maybe sometime in the future(?).
May be, but if you keep in mind that all flights landing in PUJ those seat are already prepaid for companies that also buy thousands of rooms will be very hard to fill one airplane alone without thinking about it first and the strong competition there. Maybe now you got my point of view. They have landing 7 planes in SDQ with 1,300 seats and only send 3 buses o PUJ with like 150 seats.
 

cavok

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May be, but if you keep in mind that all flights landing in PUJ those seat are already prepaid for companies that also buy thousands of rooms will be very hard to fill one airplane alone without thinking about it first and the strong competition there. Maybe now you got my point of view. They have landing 7 planes in SDQ with 1,300 seats and only send 3 buses o PUJ with like 150 seats.
Yes, I understand. That's why I don't think they'll start any flights out of PUJ any time soon - if at all(?).
 

MariaRubia

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Some advances and Arajet didnt even its selling Punta Cana:






Exactly, PUJ is where the most of the demand is, or at least where most of the money is. A lot of the traffic coming in and out of SDQ is VFR related (visiting friends and relatives) and that's way more price sensitive than people going on vacations.