Another Slam At Usairways.

OTSmyth

Member
Aug 19, 2002
19
0
Sunday, Jan. 02, 2005
The good news for airlines over the holidays: passengers are back in force. The bad news: they actually want to get to their destination on time and want to take their bags with them. But over the past two weeks, thousands of flyers saw their flight canceled and their luggage lost as some airlines were on their worst behavior in years.

http://www.time.com/time/magazine/article/...1013209,00.html
 

ggu23311

Member
Aug 17, 2004
55
0
Just another chapter - Delta's Cincy hub is what PIT was, a basically rural, pleasant place to connect, and call home. Just like when UAIR bailed out west and Soutwest picked up the pieces. Martha S. and the Rigases shouldn't be alone in the block huh!
 

javaboy

Senior
Dec 23, 2003
394
0
make no mistake, DAL needs cash, lots of it and fast. hence the "new pricing strategy" if UAIR stops flying DAL avoids bankrupcty if UAIR can continue to operate (i'm guessing at least thru march) DAL will be forced to file. at that point DAL will slash probably 12-18% of its schedule which could benefit UAIR cash flow situation (if still flying). It seems to me (interested outside observer and thus my opinion only) UAIR simply by hanging on even just a few more weeks can radically determine whether or not it is operating years from now. while it seems every few months a "gotta have" situation continually pops up this time it is my opinion that this is THE crunch time. not based on UAIR situation alone but viewing the industry somethings can play out in UAIRs favor and change the fiscal picture quickly and in a very short time frame. Mind you i am not saying UAIR becomes profitable overnight, but rather the absolute need to maintain a certain revenue level (obviously damaged due to the PHL Holiday meltdown) now gest some relief. and if that happens and UAL continues reducing some of its flights pressure is drastically increased on Independence Air. If they are also forced into BK the first step will be to reduce service which again could benefit UAIR's top line revenue. of course a UAIR shutdown might save FLYI and DAL or delay it to a point that summer travel begins bringing with it increased cashflow, again relieve pressure on their respective balance sheets. Now would be the time to make the move by UAIR, all out assualt to force the hand of the other 3. as opposed to making it easier on them. Good luck to you all. God bless, Thanks for working, thanks for working during the holiday season, thanks for working post 9/11, thanks for working under conditions that no normal employees should or would be asked to work in (as a company not just an airline). Good luck in 2005!

:ph34r:
 

RowUnderDCA

Veteran
Oct 6, 2002
2,123
1
www.usaviation.com
Isn't IndyAir already in Ch. 11? Also, if DAL goes forward with an easyfare system, it might not be detrimental to U. U going forward with easy pricing with other carriers using yield management to undercut 'up-valuing' by U's pax.
 

SKY HIGH

Veteran
May 22, 2004
1,789
54
Trip Confirmed said:
This was definitely a portside cannonball into USAir.


Delta May Cut Fares Up to 60 Percent
Delta Air Lines Will Reportedly Cut Fares As Much As 60 Percent To Try to Lure Back Customers

The moves would make Delta, the nation's No. 3 airline, more like low-cost airlines that have remained profitable in recent years while bigger, older airlines have struggled to survive. An industry analyst said the simpler fare structures of budget carriers like Southwest Airlines Co. are likely to be adopted by more of the older airlines.

"The whole sector domestically is moving in that direction," said airline analyst Ray Neidl of Calyon Securities. "People like to feel they're getting cheapest fare, that there's not this huge discrepancy of fares and it's hard to find the best one."

The report comes as Delta continues to fight to stay out of bankruptcy. The airline got a $1 billion concession from pilots, and a big loan from American Express, to avoid bankruptcy last October, but analysts have warned deep changes are needed to make Delta viable in the long term
 

jcw

Veteran
Aug 12, 2004
2,053
2,716
This is not a swipe at US Airways - It's reconginition that the fare structure has to change. Until United, AA, CAL, NW, US get with their fares rationalized they are going to continue to loose money. The legacy need to fix both the revenue and cost sides of their business.
 

usfliboi

Veteran
Aug 20, 2002
2,070
270
Usair has already implemented these fares in some markets. Were ahead of u !
 

usfliboi

Veteran
Aug 20, 2002
2,070
270
Just saying, Usairways implemented GO FARES, in markets. The resaon it wasnt implemented across the board, was the cost structure didnt allow it, but this is where the industry is headed, across the spectrum!
 

ual777fan

Senior
Dec 6, 2003
357
2
The point of kick dropping the most expensive fares is that people aren't buying them anyways. If you are able to rationalize business fares you would...

a) Be able to generate more money because their would be more high paying passengers flying on the lower prices. For example you could have 3 biz travelers flying on a $700rt. fare where you may have had one passanger flying on the same fare that used to cost $1100, net change is an extra $1000 in revenue. To make it even better, because you have more people flying at $700, there are fewer seats that have to be sold at a very low price helping to increase yields.

B) The easier you make flying the more people will want to fly on your airline. By making these moves Delta is going to increase customer satisfaction and increase its rate of return business. Happy customers, generally, make return customers. And a loyal customer base is something that is very hard to come by in the airline industry.

So, if it is done properly, it is a win-win for both the consumer (in this case the business traveler) and the airline.
 

lowfareair

Advanced
Aug 20, 2002
109
0
usfliboi said:
Just saying, Usairways implemented GO FARES, in markets. The resaon it wasnt implemented across the board, was the cost structure didnt allow it, but this is where the industry is headed, across the spectrum!
[post="235348"][/post]​

It wasn't implemented across the board because they are only meant for routes with Southwest or AirTran directly competing with them... Most airlines have something similar, such as Delta's fares in AirTran markets.