What they have to remember is that above all else, it has to be about value for the dollar. I am not going to pay $800 plus for a one way ticket and then tolerate being nickel and dimed for add ons like a reserved seat, exit row, or basic beverages.
The easiest solution would in fact be modeled on the AC or even the WN model. Have no more than 3 or 4 categories, with no more than 2 or 3 fares in each. Limit the buckets to 6-7 in each market and change the yield management algorithms to make some sense. Offer value for the extra fare collected, but limit the delta between the categories...
Example--WN ISP-MDW.
The most expensive fare is about $252 one way for business select. It is $20 more than the "anytime" fare, and the "getaway fares range from $69 to $169, and are capacity controlled. For me it's a no brainer. When compared to traditional pricing, which can range from about $175 to $350 or MORE one way, with ALL restrictions intact, which do you think has the better value? I am going to (and have ) taken the business select fare.
Setting realistic price points which make economic sense will result in a greater percentage of customers migrating to the higher fare categories. While the highest fare will go down as much as 50%, the AVERAGE fare paid will actually go UP. When spread around the system, such a plan would result in greater yields without resorting to the confusing pricing policies which are still prevalent today.
By having "traditional" or legacy carriers adopt simplified pricing as this, you would see the ACTUAL fares perhaps a small bit higher than WN or FL, but you would retain some degree of flexibility thanks to existing interline agreements.
On the other side of the equation, there need to be changes made on an operational basis. Why can WN turn a flight in under 30 minutes, while few if any other carriers can do the same thing? Simple--everyone helps. Simple concept--unions are confident enough to work together. I have seen pilots help clean, even agents help out when a short turn is required.
As we are seeing in the financial market place, the old "standard way of doing business" is a thing of the past. It's a new reality virtually everywhere, and those who can adapt successfully will survive, those who can't or in this case won't (US), will not be around much longer.
A final thought--as the credit markets continue to tighten, the credit card processors are likely to call in the holdbacks, which will affect the cash position of many airlines, but particularly US, which could be in violation of its liquidity covenants if the CC companies do what they have the right to do. I think this is why US stock is down much more than others.
I sincerely hope for my friends still working at US that things work out. But the magnitude of change which will need to happen to make this a more viable company may not be possible without quantum change in both labor leadership and executive management at US.
My BEST to you all.......