It is not unusual for an airline to cut a single domestic route. But, I would argue that this is an exception.Alaska closes key transcon route from October 6According to the ever-smart Cranky Flier Alaska Airlines will cease flying between New York (JFK), and Los Angeles (LAX) effective October 6, 2021. Although this was not a route Alaska Airlines used until Virgin America took over, it has been maintained since then.We've seen the frequency of the market decline over time. Currently, Alaska Airlines operates the flight twice daily. The plan was to operate the flight once daily in fall. However, it is being cut completely.As it is served by United, Alaska, Delta, JetBlue and United, the market between New York City and Los Angeles is undoubtedly the most competitive in the United States. This market is premium and Alaska Airlines has not been competitive in this area. Alaska Airlines is the only airline that flies between these two airports and does not offer flat beds.Alaska Airlines' first classAlaska Airlines executives stated in the past that they are happy with the product offerings. Alaska's Chief Commercial Officer stated earlier this year that flat beds were not a priority.It is a great feeling. We are grateful that we did not lie flat. Our first class seats were very appropriate for the environment.Alaska may be fine with this decision but that doesn't mean it works in all markets. It is clear that the best route to the United States is the one that doesn't work.JetBlue Mint business classAlaska will focus its resources where it is most competitiveAlaska Airlines will be reducing its route between New York City and Los Angeles but it isn't leaving the NYC area. Alaska Airlines currently has 12 roundtrips per day from JFK. These will continue to be used. Alaska Airlines will fly to New York (JFK), from:Portland (PDX), 2x dailySan Diego (SAN), 2x dailySan Francisco (SFO), 4x dailySeattle (SEA), 4x dailyThis decision is described as follows:We are focusing our efforts on areas where we can be most competitive and offer the best, consistent, and superior service to our customers. Our core markets along the West Coast include San Francisco, Portland, Seattle and San Diego.Alaska Airlines will fly from Newark (EWR), in addition to the JFK service.Los Angeles (LAX), 4x dailyPortland (PDX), 1x dailySan Diego (SAN), 1x dailySan Francisco (SFO), 3x dailySeattle (SEA), 4x dailyAlaska offers up to 25 roundtrips daily to New York City, as you can see.Alaska Airlines has a lounge in JFKMy view on Alaska's strategy shiftMany of us have known for some time that Alaska's presence in New York to Los Angeles was a problem. United's recent launch of flights between New York City and Los Angeles was a major blow to Alaska's service.However, Alaska's logic makes perfect sense.Alaska could not compete in the New York-to Los Angeles market and the airline did not want to have the inefficiency of a subfleet that had flat beds.Alaska does not view Los Angeles as a core market, or at the very least as a competitive advantage.Alaska would be more competitive if it offered service between New York City and San Diego, or Portland. This is exactly what we were seeing.Although Alaska's product isn't as competitive in the New York-San Francisco market, I believe that Alaska is keeping the route because it has a more loyal following in the Bay Area and is more integral to Alaska's overall network.United Polaris business classMany have speculated that Alaska would essentially give this route to American due to their close partnership (beyond oneworld membership). But that is not the case. The codesharing between New York City and Los Angeles is prohibited by both airlines, so Alaska has no revenue upside from having passengers booked on American.It is still interesting to me that Alaska not only maintains the Newark-to Los Angeles route but also operates it four times a day. Are there less competitors in the market? Although JetBlue and United operate the route with flat beds, is this to spite United or is there a lower chance cost since Alaska doesn't believe it can operate other Newark routes profitably?Bottom lineAs of the fall, Alaska Airlines will cease flying between New York City and Los Angeles. This route was inherited by the Seattle-based airline from Virgin America, but it has been maintained since then. This will change.Instead, Alaska will be focusing its efforts on flying from New York JFK into its core West Coast markets. This includes expanding service to Portland or San Diego. Alaska is a more competitive option in these markets.What do you think of Alaska's withdrawal from this transcontinental premium market?
