An Interesting Look back at 1999--Same ole same ole

[Art at ISP]

Here is an old quote from The Tactical Traveler from years ago (thanks to Joe Brancatelli for permission to use it):

Due to a series of management blunders, the operational performance of USAirways in 1999 was nothing less than atrocious. During some months, in fact, the airline canceled an average of 186 flights a day. Did the carrier's long-suffering customers notice? Absolutely, admits USAirways president Rakesh Gangwal. In fact, the airline's most profitable customers--full-fare business travelers--have taken their business elsewhere. Talking to security analysts last week, Gangwal reflected on the airline's inability to win back frequent travelers. "The biggest shortfall is in the walk-up customer," he said. "That customer has now found Continental and Delta to be a better option for them because of the misery we caused last year."

At least once upon a time, SOMEONE in charge got it. I am not saying they were able (or willing) to do anything about it, but they understood the ramifications of a poor operation. The first step in solving a problem is realizing you have one.

Amazing how history repeats itself though.......

My best to you all........

 

[Bear96]

So fly CO and DL.

If LCC has chosen to market to the "kettles" (as you so disparagingly and arrogantly call them) and can still make money, you'll just have to deal with it.

 

[PHL]

Art - you bring up a good point that is further underscored now. Putting the market conditions of 1999 and 2007 aside, the difference between Doug and Rakesh is that Rakesh at least understood the value of the frequent business traveler, no matter how bad things got. Doug clearly doesn't.

 

[Art at ISP]

PHL,

You are right on the money--and that, unfortunately was my main point. I thought it was a very telling quote.

Bear, not that it's any of your business, but I am dealing with it. At least I do more than just complain.

 

[Bear96]

Bear, not that it's any of your business, but I am dealing with it.

If you are still spending your time digging up eight-year-old articles critical of an airline you don't even fly anymore, it suggests you are not dealing with it all that well.

 

[Art at ISP]

Bear,

I am dealing very well with things. Regardless of who gets my business these days, I am still committed to our cause--that of instituting change. And for what it's worth, I didn't spend any time looking up old posts--that one was sent to me.

It appears we will never agree on anything, so why don't you keep your remarks to yourself and move on?

 

[RowUnderDCA]

I wonder with the recent developments in the 'credit markets' if takeover financing from hedge funds and private equity (I really don't know what that means) and other souces of financing will mean that the short term plan of ditching the USAirways brand through a merger will be less likely and that eventually, LCC management will have to invest in the future of this brand. Honestly, I kind of think it's too late. Also, I kind of think that this credit crunch is a little overblown. However, isn't it likely that financing acquisitions will be more expensive because of the 're-pricing' of risk in the credit markets?

 

[AstroLounge]

There is ALWAYS good money around to do good deals. So the question really is this. Is US Airways in it's current condition a "Good Deal"?

I'm thinking that until US cleans up its Labor and Operational issues it's not all that attractive right now. Six months from now with done labor deals and strong profits then I think the picture changes, possibly in a dramatic way with US being the aquirer as opposed to being aquired.

NOW THAT'S A SCARY THOUGHT! To think that those grimey arrogant b*stards would get their hands on ANOTHER airline and turn it into a B-I-G-G-E-R Clusterf*ck!? Holy sh*t........where will it end. The current regieme isn't capable of changing a babies diaper let alone Managing an Airline........let alone ACQUIRING ANOTHER ONE.

 

[GoldenRam94]

It is interesting that you reference the great Rakesh Gangwal. Looks like some of you can follow him in his career footsteps:

http://www.forbes.com/finance/mktguideapps...PersonId=936472