Ua/u Spring Fare Sale

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UAL_TECH

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United, 2 other airlines cut fares

"I love how two bankrupt airlines are lowering prices at the same time oil prices are surging upwards," Harteveldt said.

If they are going to achieve economic solvency, carriers should be willing to charge more and accept that planes won't carry as many people, he said.

"The airlines are just continuing to commit economic suicide," Harteveldt said. "Fare cuts are the airline's version of bulimia. Every time they take money in, they stick their finger down their throats with fare cuts."

B) UT
 
This will just accelerate the demis of someone. It's pure stupidity on UA/US's management part. All the rest have seen the need to raise fares to at least try and cover the cost of fuel and these idiots come along and lower them again. It just lets you know who really needs the cash. Let's hope that the shakeout happens sooner rather than later so the rest of the industry can get healthy again.
 
Borescope said:
It's pure stupidity on UA/US's management part.
Not when you need the cash quickly. Also, lest you forget, an airline in bankruptcy has additional risk, from the passengers' perspective, which reduces yields for those airlines.
 
casual rat said:
There's alot of 'successful' crack addicts who use that very same strategy!
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I agree that it's not a good long-term solution. When one has the luxury of the ability to think long term and act strategically, it's a good idea to do so. UA and US hardly have that luxury.
 

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