Dave want''s your $$$$

cat 111

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Aug 25, 2002
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Maybe,he should reward his management team again. Give them another $6 Million bonus.That $6 Million really paid off Dave.This won''t be the last time he comes back for $$$
 
UAL777flyer - why won't any airlines try to restructure revenues along with seeking cost cuts? Seems to me that by the time all the cost cuts have been made, U will be flying one daily flight between PIT and CLT. AWA has adopted a change in the revenue model, and lo and behold, their losses appear to be decreasing. Meanwhile, U hemmorages while managment appears to do little more than say the gummint says we won't get the money unless you guys give up more. Why drag it out...why not just liquidate the airline if they do NOTHING to address the revenue issue.
 
Do you honestly think he's looking for more cuts because he wants to? Your company's fate is being dictated by the ability to secure the ATSB loan guarantee. With the continued worsening industry revenue environment, US' new business plan no longer meets the ATSB's requirements. So more cuts are required unless the ATSB lowers it's requirements. And that isn't going to happen. Wake up people and see the situation for what it is. Think! Investigate the situation for yourselves instead of simply joining the see, Dave is after more $$$ from us afterall.....we can't trust him mantra. US is in bankruptcy, and therefore, has lost control of their destiny and company's direction. The only other alternative is to throw in the towel and shut the place down for good. Would you respect him more if he did that?
 
KCFlyer,

Because airlines are stupid, for the most part. They realize that the fare structure must change, yet when one airline attempts to do it, they CMI that carrier to death and force them to pull the fare changes. It's ridiculous.

But it is not so easy to simply restructure revenues. There are reasons why HP has been successful in their fare restructure. As I keep pointing out, their CASM is 3 cents lower than US Airways. That is a HUGE difference. So it's easy for them to offset the net fare change by increasing load factor. With US Airways costs still north of the 10 cent range, there is no way they'll achieve enough load factor increase to offset the net fare reduction. They'd lose revenue, not increase it. It drives me nuts when people say just increase revenue. Do people realize how hard it is to do that? It's not like all of these airlines are simply sitting on their hands and doing nothing. They are trying things each and every day. But the big problem with changing fares is getting everybody to play along. NW is the prime example of an airline that has been unbelievably aggressive in driving back other airline fare changes. They fire off CMI's constantly! Why do they do it? Because their situation is much better relative to US, UA, AA and others. So they can afford to play hard-ball, even if what the other airline is attempting to do is good for the industry as a whole. That is but one insane way that this business is run.

US is going after more cost because it's about the only thing they have control over. They have no control over revenue. Their CASM simply isn't low enough to generate increased revenue with a revamped fare structure.
 
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