Alaska's New Fare Structure

[Dont call me Shirley]

A senior US Airways official told me not long ago that he thought UAIR's best hope was to become the "Alaska Airlines of the East" Meaning a full service, mature carrier being able to compete effectively against bruising competition.


Well, AS has taken the plunge and radically reformed its fare structure. Does UAIR have the guts to emulate this move? What nice way it would be to welcome to WN to PHL.

Yes, Dave S. has said it would be cash negative to this before our costs come down (yet he has also said that the era of the $2000 transcon fare is gone). But WN and B6 are not waiting for "the plan" to come into being. Imagine UAIR being a leader. Imagine UAIR being the innovator. Image not having 17 different fares form ALB to MCO.

Let the flames begin! (Just kidding. Let's stay civil).

 

[Light Years]

Alaska/Horizon seem to be holding thier own against Southwest "out there".

Isnt it kind of odd to see an Alaska plane and a US Airways plane at the same time? Only at a few airports..

 

[BoeingBoy]

Alaska is the third carrier that I know of that has simplified their fare structure - AWA, Air Canada, and now Alaska. Somehow, I think Dave likes to "lead" from the back of the line.

Jim

 

[Dont call me Shirley]

Alaska/Horizon seem to be holding thier own against Southwest "out there".

Isnt it kind of odd to see an Alaska plane and a US Airways plane at the same time? Only at a few airports..

That reminds me of the F-28 that (then) USAir sold to Horizon in the mid 1990's. I think some flew in basic USAir colors before being repainted.

I think AS flies now to more "UAIR airports" than the other way around!

We now return to our topic..

 

[javaboy]

perhaps revamping UAIR's fare structure is part of the new ultra secret plan, won't it look like copy catting instead of inovating,just like 400rjs ? when jblu announced its own emb-190 plan....

LEAD, follow , or get out of the way

 

[DCAflyer]

There's more to Alaska's plan than simplifying fares. Read this article.

Alaska ground crews take up the Tango

After 32 years in the airline business, Alaska Airlines vice president Ed White thought he knew how airlines should best board passengers: by rows starting from the back of the plane.

http://www.tribnet.com/business/story/4737...p-4684895c.html

 

[Dont call me Shirley]

Does anyone have information about Alaska's CASMs and hoiw muxh of their costs are labor?
(Yes. I know I should ask this on the AS baord, but thought I'dgive it a shot here. The AS baord can be a lonely place)

 

[BoeingBoy]

DCMS,

It took a little digging but here's the rough numbers for 4th quarter:

Wages & Benefits = 38.8% of Total Operating Expense
CASM = 10.08 cents (8.56 cents excluding fuel)

Jim

 

[Dea Certe]

DCAflyer,

Thanks for the post. Interesting article.

Dea

 

[TJoe]

Jim,
I don't have the latest numbers right in front of me, but I think the latest CASM ex fuel is about 8.25 and forecast to be 8.00 by the end of the year. According to AW&ST, as the year goes on Alaska becomes more hedged on fuel.( I think up to 40%). The goal is to squeeze the employees and get down to 7.25. If they can keep their CASM within one cent of SWA, they believe they can go head to head in any market. This new fare structure is kinda scary, but I guess they have done their research. It seems to be working very well for America West. We'll see. Joe

 

[TJoe]

Jim,
I don't have the latest numbers right in front of me, but I think the latest CASM ex fuel is about 8.25 and forecast to be 8.00 by the end of the year. According to AW&ST, as the year goes on Alaska becomes more hedged on fuel.( I think up to 40%). The goal is to squeeze the employees and get down to 7.25. If they can keep their CASM within one cent of SWA, they believe they can go head to head in any market. This new fare structure is kinda scary, but I guess they have done their research. It seems to be working very well for America West. We'll see. Joe

 

[BoeingBoy]

TJoe,

I'll gladly accept your numbers over mine. I just took a quick look at quarterly report & didn't dig for any detail.

Thanks,

Jim