"the Worst Is Yet To Come"

[High Iron]

Yeah, that strike worked out great, didn't it? Pray tell, when was the last time USAir(ways) posted a profit? I know it's a foreign concept, but airlines do need money to pay wages.

[post="291679"][/post]​

"I know it's a foreign concept, but airlines do need money to pay wages"

Unless of course it is executive largesse...in which case there's ALWAYS money available, whether it's there or not....hell, especially if it's not; Gotta "..keep talent.." et.al. "Oh Ju-udge!............."

 

[JS]

"I know it's a foreign concept, but airlines do need money to pay wages"

Unless of course it is executive largesse...in which case there's ALWAYS money available, whether it's there or not....hell, especially if it's not; Gotta "..keep talent.." et.al. "Oh Ju-udge!............."

[post="291697"][/post]​

Of course, the usual reply. The executives gave themselves $1.1 billion in salary last year, right?

 

[JS]

So the money should come off the backs of the backs of labor at every turn?

Why not raise the price of the ticket in relation to cost of operation.

You won't have any passengers if you price yourself out of the market.

Why not pay fo the fuel just like you do at the pump. The price goes up or down with supply and demand.

[post="291684"][/post]​

For one thing, an airline ticket is not a bucket of fuel. Fuel is only part of the equation.

Secondly, most travel is discretionary. Charge more than what people are willing to pay (even if fuel is going up), and the seats go empty ==> zero revenue.

 

[JS]

US posted a profit in the second quarter of 2004 and US posted profits after the stike, I remember getting my profit sharing of 100% of my concession that I gave in 92-93 at the end of 93 and another 100% in 94.

Gee 200% return on my investment, not bad.  US posted profits on an off till 01.

[post="291688"][/post]​

 

[MCI transplant]

Yeah, that strike worked out great, didn't it? Pray tell, when was the last time USAir(ways) posted a profit? I know it's a foreign concept, but airlines do need money to pay wages.

[post="291679"][/post]​

<_< Like who's? The CEO's???? :angry:

 

[High Iron]

Of course, the usual reply. The executives gave themselves $1.1 billion in salary last year, right?

[post="291718"][/post]​

Really? What reference was made for you to pull the 1.1bil strawman out of thin air?

Anyway, let's see a composite of the US airline industry has shown us the last few years:

-"Retention" bonuses ( repeated requests for same from BK Judges ) from the coffers of airlines with half-inch holes in their aortas

-Requests for sequestered guaranteed pensions for execs as they bleat the need to cut everyone else's to save their dying carrier

-Departing execs taking out multiple millions as they leave faltering carriers

Rousing successes all.

 

[MCI transplant]

You won't have any passengers if you price yourself out of the market.
For one thing, an airline ticket is not a bucket of fuel. Fuel is only part of the equation.

Secondly, most travel is discretionary. Charge more than what people are willing to pay (even if fuel is going up), and the seats go empty ==> zero revenue.

[post="291719"][/post]​

<_< So cut the salaries of the "Board of Directors!!"

 

[insp89]

Let those management bastards at NWA CHOKE on mel's!!!

Hang tough valliant AMTs!!! Those birds will start stacking up like cord wood. I saw it happen at UAIR in CLT during our strike in 1992 when supervisors, planners and alike were forced to work on aircraft because they were non-union.

NWA as well as the media will soon find out just how great everything really is.......all at the cost of $176 Million times seven!!!! Way to go you financial geniuses!!! Go stick your college degrees up your ass!!!

What's up insp89? Say hey to the guys for me.

[post="291594"][/post]​

Hey E-TRONS, Good to here from you !!! It's sure going to get interesting in a week or two over at Northwest..

I wonder what the stockholders will think when they see that this mis-management team wasted $ 176 Million Dollars on SCABS and other union busting activities...It's great to see the Mechanics Of Northwest continue to Hold the Line...

I hear the mechanic's are beginning to get help from "inside" the company....

 

[Red Tail Bear]

<_< So cut the salaries of the "Board of Directors!!"

[post="291733"][/post]​

 

[Buck]

You won't have any passengers if you price yourself out of the market.
For one thing, an airline ticket is not a bucket of fuel. Fuel is only part of the equation.

Secondly, most travel is discretionary. Charge more than what people are willing to pay (even if fuel is going up), and the seats go empty ==> zero revenue.

[post="291719"][/post]​

If the people do not want to pay what it costs to fly then they can drive. Wait that is affected by fuel also. I guess if the people do not wan to pay for the cost of jet fuel and they do not want to pay the cost of gasoline, then they can spend their money on neww shoes.

The consumer will pay for the fuel. Are you attempting to tell me that if the airlines price their product at a certain level to compensate for fuel cost increase that they will avoid flying like the plague? Yea, I see where all of the cars are parked and everyone who is driving are driving electric cars.....

Discretionary? How about the public is used to flying.

Is this industry deregulated or not?

Gov't in or Gov't out?

 

[Hopeful]

Just watched a CNN report about the strike. It seems that many passengers are complaining about the delays and cancellations contrary to what NWA is saying. They claim they are being left in the dark and some were given bus rides to their destinations.

The longer this goes on the more NWA will have to come clean about its operation.

 

[Borescope]

The consumer will pay for the fuel. Are you attempting to tell me that if the airlines price their product at a certain level to compensate for fuel cost increase that they will avoid flying like the plague?

[post="291867"][/post]​

If you raise the fare $10 dollars accross the board, say $190 to $200 and you have a 150 seat airplane, all it takes is 8 pax's to book elsewhere and your losing money and market share.

 

[eolesen]

If the people do not want to pay what it costs to fly then they can drive. Wait that is affected by fuel also. I guess if the people do not wan to pay for the cost of jet fuel and they do not want to pay the cost of gasoline, then they can spend their money on neww shoes.

Probably not... there was a woman on the radio today who said that the cost of fuel for commutting to/from work was forcing her not to buy her daughter new shoes for the school year.... Not going to work isn't an option. Wearing old shoes is.

Plus, with the level of petrochemicals used to produce shoes and other consumer products, you're going to start paying more money for those as well.

The consumer will pay for the fuel. Are you attempting to tell me that if the airlines price their product at a certain level to compensate for fuel cost increase that they will avoid flying like the plague? Yea, I see where all of the cars are parked and everyone who is driving are driving electric cars.....

Discretionary? How about the public is used to flying.

[post="291867"][/post]​

The public may be used to flying, but they also need to be able to afford it.

The average family is now spending another $100 per month to put into the gas tank just to get to work, and another $50 per month for their utility bill (about what ours has gone up in the past few months due to natural gas price increases), plus grocery prices going up another few cents per item.

Add all those incremental costs up, and the $2000 required to pay for a trip to WallyWorld just shrank to what it would cost to maybe go to the state fair for two days including a couple of Cokes and chili dogs...

So, yes, Buck, flying most certainly is discretionary for many of our customers.

 

[Buck]

Probably not... there was a woman on the radio today who said that the cost of fuel for commutting to/from work was forcing her not to buy her daughter new shoes for the school year.... Not going to work isn't an option. Wearing old shoes is.

Plus, with the level of petrochemicals used to produce shoes and other consumer products, you're going to start paying more money for those as well.
The public may be used to flying, but they also need to be able to afford it.

The average family is now spending another $100 per month to put into the gas tank just to get to work, and another $50 per month for their utility bill (about what ours has gone up in the past few months due to natural gas price increases), plus grocery prices going up another few cents per item.

Add all those incremental costs up, and the $2000 required to pay for a trip to WallyWorld just shrank to what it would cost to maybe go to the state fair for two days including a couple of Cokes and chili dogs...

So, yes, Buck, flying most certainly is discretionary for many of our customers.

[post="291907"][/post]​

It is not decretionary yet nor is driving, for the masses, but it will be.

 

[eolesen]

It is not decretionary yet nor is driving, for the masses, but it will be.

[post="291910"][/post]​

I agree it will be, and some of us have already put the brakes on discretionary spending to save it for what will be a very rainy day.

Our weekend hobby is RV'ing, and that type of driving is entirely discretionary, especially when you have 7,000lbs of trailer bringing fuel economy into the single digits.... Instead of going to a lake four hours away twice a month which we'd like to do, we're going somewhere within a shorter driving distance once a month, and leaving the trailer parked the rest of the time. And we're not alone -- places like Yellowstone and Grand Teton are usually impossible to get a campsite at during the summer months, unless you've reserved in advance or arrived before 11am. This year, they rarely filled up the major campgrounds.

I haven't really paid attention to how the cruise lines are handling oil prices, or how hotel chains are feeling the pinch, but I'll do some digging on that. I'd be shocked if they're not some reduced demand.