Aa, Dl, & Nw Join Co's 3rd Fare Increase

[USA320Pilot]

American Air, Delta, Northwest join Continental's fare increase

NEW YORK (Bloomberg News) - American Airlines, Delta Air Lines Inc. and Northwest Airlines Corp. joined Continental Airlines Inc. in raising some fares for the third time since Feb. 24, bringing the total increase to as much as $50 round trip.

See Story

Regards,

USA320Pilot

 

[USA320Pilot]

It's my understanding US Airways will match this increase too, except in GoFare markets.

Regards,

USA320Pilot

 

[whlinder]

You better hope that your comment 'US will match too' is your opinion since releasing information regarding what fare action US Airways or any airline will take is illegal. Is it your opinion, or did one of your contacts tell you that US was in the process of matching fares?

 

[JS]

You better hope that your comment 'US will match too' is your opinion since releasing information regarding what fare action US Airways or any airline will take is illegal. Is it your opinion, or did one of your contacts tell you that US was in the process of matching fares?

[post="257541"][/post]​

Good point! From the way it was written, it sure doesn't sound like an opinion. :down:

You can get into some serious doo-doo for releasing information yourself before the press release.

 

[ClueByFour]

The LCCs won't do it, so any route with any kind of low cost competition will remain as-is.

Of course, now that the LCCs have decent route maps domestically, this is a suicide spiral for the majors.

 

[funguy2]

Not so fast there....

Continental Airlines says rescinds $5 fare increase

 

[USA320Pilot]

According to today's Wall Street Journal, "over the weekend, UAL Corp.'s United Airlines and US Airways Group also matched the increase, according to an industry analyst."

Whlinder, I can use "public sources" too.

Also noteworthy, "if the increase sticks, it means airlines will have succeeded in raising fares as much as $50 round trip on many domestic routes this month," the Journal said.

USA320Pilot comments: I would like 700UW, DellDude, ClueByFour, BoeingBoy, Funguy2, and Lark (maybe that "mystical" 25-year vet can help too), to do a quantitative analysis in what the fare increases mean for US Airways' future revenue.

Best regards,

USA320Pilot

 

[whlinder]

Whlinder, I can use "public sources" too.

[post="257554"][/post]​

If they are "public sources" (I don't understand why that got put in quotes, I didn't think there was a gray area as to what a public source is, but whatever) why don't you tell us what they are.

Because there is no type of source, public, "public", or private, that can legally release forthcoming fare changes to the world (except for those with legal privileges within US Airways and elsewhere in the industry who can see them but can't say anything about them except to others with those same privileges) before they are actually implemented.

I find it interesting that you didn't say it was 'your opinion' or 'your belief' that US would match. If US had already matched you would have said that, right? Sounds to me like an email to the DOT might be in order, unless you can reveal what allows you to reveal US Airways' pricing intentions on this website before they are implemented.

So, who/what are these "public sources?"

 

[whlinder]

Sorry, I pulled the USA320 trick of not reading everything. I missed this:

According to today's Wall Street Journal, "over the weekend, UAL Corp.'s United Airlines and US Airways Group also matched the increase, according to an industry analyst."

Did you read/know this before your original post? If you did, why did you not mention that US and UA had matched in that original post?

 

[USFlyer]

CO just rescinded.

 

[EyeInTheSky]

Continental Airlines says rescinds $5 fare increase
Mon Mar 21, 2005 02:48 PM ET
NEW YORK, March 21 (Reuters) - Continental Airlines Inc. (CAL.N: Quote, Profile, Research) has rescinded a fare increase of $5 per one-way flight, a spokeswoman for the carrier said on Monday.
Houston-based Continental had raised fares on Friday in a latest bid to offset some of the cost of skyrocketing fuel prices.

The spokeswoman did not explain the reason for the decision to reverse the fare increase, which would have been the third such move in recent weeks.

 

[ClueByFour]

USA320Pilot comments: I would like 700UW, DellDude, ClueByFour, BoeingBoy, Funguy2, and Lark (maybe that "mystical" 25-year vet can help too), to do a quantitative analysis in what the fare increases mean for US Airways' future revenue.

[post="257554"][/post]​

A net loss of traffic, since CO rescinded it. Generally speaking, you should at least wait until the money is in the coffers, first. Of course, perhaps CO is just trying to screw with US revenue projections (you don't have to get up that early in the morning to fool CCY, unless you are an ALPA "advisor").

But let's say for the second that CO does not rescind it--it'll only stick where US does not have LCC (notably Southwest in PIT and Aitran in CLT) competition in city pairs. Since that list is getting smaller (and will shrink even further come May 4th), I reiterate my comment about "suicide spiral."

Besides which, US seems to toss a fare sale after every fuel surcharge that actually sticks.

So, in short, US won't be able to make the surcharge stick in markets with competition. Those markets are, in very short order, going to include a large percentage of the domestic base out of both current and one former hub. It's not the fuel costs. It's not the labor costs. It's the "other" portion of the CASM, and no amount of butt smoochy to the folks in CCY or hurling junior/other labor groups under the bus is going to fix that.

 

[LGA Fleet Service]

Associated Press
Latest Round of Air Fare Hikes Stumbles
Monday March 21, 5:00 pm ET
By David Koenig, AP Business Writer
Latest Round of Airline Fare Hikes Stumbles for Now, but Fate of Increase Remains Uncertain

DALLAS (AP) -- Another round of airline fare increases faltered Monday as two carriers backed down, including Continental Airlines Inc., which had started the price hikes of $10 per round trip on many U.S. flights to offset rising fuel costs.


The fate of the increase -- it would have been the third in less than a month -- was uncertain, however.

Several other carriers still had the higher fares in effect Monday afternoon, and analysts said Delta and Continental could still reinstate their increases.

Continental launched the latest increase last Thursday night, and over the weekend, it was generally matched by AMR Corp.'s American Airlines, UAL Corp.'s United Airlines, Delta Air Lines Inc., Northwest Airlines Corp. and US Airways Group Inc.

However, Atlanta-based Delta retreated on Monday morning. "We're trying to remain competitive," said Benet Wilson, a Delta spokeswoman.

Jamie Baker, an analyst with J.P. Morgan, said Delta saw a change that Northwest made in the terms of some of its prices and misinterpreted that as a fare reduction, then dropped its price increase in response.


Story

 

[diogenes]

Cx4,

Once again, you slay me!

 

[diogenes]

USA320Pilot comments: I would like 700UW, DellDude, ClueByFour, BoeingBoy, Funguy2, and Lark (maybe that "mystical" 25-year vet can help too), to do a quantitative analysis in what the fare increases mean for US Airways' future revenue.

Best regards,

USA320Pilot

[post="257554"][/post]​

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Typical old school, alpha male ALPA thought. Any 'lesser being' who questions you makes the enemies list.

You would do well to remember what paranoia did to Nixon.