Art at ISP
Veteran
A friend of mine forwarded me some interesting information regarding food costs per passenger mile for major airlines in the 3rd quarter of 2006.
After reading PHL's comments on the first (?) class product on his recent transcon, I thought it appropriate to share with you all....
U.S. Carriers Food Expense, Third Quarter 2006
Network Food CASM TotalCASM %CASM 3Q2005 Change
------------------------------------------------------------------
American (AA) $ 130,307,000 0.29 2.3% 0.30 -0.9%
Continental (CO) 60,673,000 0.25 1.8% 0.25 -1.0%
Delta (DL) 82,307,000 0.24 1.8% 0.23 8.5%
Northwest (NW) 47,236,000 0.21 1.6% 0.22 -5.1%
United (UA) 104,832,000 0.28 2.2% 0.28 2.5%
US Airways (US) 15,352,945 0.12 0.8% 0.15 -19.6%
Network $ 440,707,945 0.25 1.9% 0.25 0.6%
You will note that US Airways spends little more than half of their closest competitor, and it shows in the product.
Yet the fares remain among the highest in the industry (they have the highest yield of the majors, mostly on the backs of the East Elites I might add).
It's okay to make money--we are not asking for stupidly low fares, but we do want them to be competitive--VALUE for a dollar spent--and the perception of value is where the disconnect appears to be. Tempe thinks the West way, which does not work in the East. East customers have a different set of expectations, which are more and more not being met.
Now for all of you who think we're whiners, think again. We have recently opened a line of communication to Tempe, and I would like to think we had a little something to do with the adjustment to the A320 reconfigurations. Our comments are constructive, and offer a way to improve performance, increasing both revenue AND customer satisfaction. All they have to do is listen, and there are signs they are going to do that.
We don't want everything for nothing, but it has been all take, with little or nothing given to the VFF's in return.
I just thought you'd find the food stats interesting.
My best to you all........
After reading PHL's comments on the first (?) class product on his recent transcon, I thought it appropriate to share with you all....
U.S. Carriers Food Expense, Third Quarter 2006
Network Food CASM TotalCASM %CASM 3Q2005 Change
------------------------------------------------------------------
American (AA) $ 130,307,000 0.29 2.3% 0.30 -0.9%
Continental (CO) 60,673,000 0.25 1.8% 0.25 -1.0%
Delta (DL) 82,307,000 0.24 1.8% 0.23 8.5%
Northwest (NW) 47,236,000 0.21 1.6% 0.22 -5.1%
United (UA) 104,832,000 0.28 2.2% 0.28 2.5%
US Airways (US) 15,352,945 0.12 0.8% 0.15 -19.6%
Network $ 440,707,945 0.25 1.9% 0.25 0.6%
You will note that US Airways spends little more than half of their closest competitor, and it shows in the product.
Yet the fares remain among the highest in the industry (they have the highest yield of the majors, mostly on the backs of the East Elites I might add).
It's okay to make money--we are not asking for stupidly low fares, but we do want them to be competitive--VALUE for a dollar spent--and the perception of value is where the disconnect appears to be. Tempe thinks the West way, which does not work in the East. East customers have a different set of expectations, which are more and more not being met.
Now for all of you who think we're whiners, think again. We have recently opened a line of communication to Tempe, and I would like to think we had a little something to do with the adjustment to the A320 reconfigurations. Our comments are constructive, and offer a way to improve performance, increasing both revenue AND customer satisfaction. All they have to do is listen, and there are signs they are going to do that.
We don't want everything for nothing, but it has been all take, with little or nothing given to the VFF's in return.
I just thought you'd find the food stats interesting.
My best to you all........