DH Employees Blame the Customer...

[Ch. 12]

Washington Post Article

This article states that the employees that the writer came into contact with said that they felt it was the customers' unwillingness to pay more for a ticket rather than management that doomed the carrier. I would say that for many carriers, this is currently the issue but DH did not simply match the fares in the markets...they slashed them to large percentages below what ANYBODY else was charging. They took already low fares and made them MUCH lower. I agree that for other carriers, the inability to raise fares is an issue but in DH's case...their pricing was WAY out of line. It's nice to offer a bargain to the consumer but when they are charging 20% less on markets that are already very low (i.e. IAD-FLL, etc), that is just pricing ineptness.

Just my two cents. Again...I do want to say to everyone at flyI that I wish you the best and hope you find success over the next few months.

 

[AstroLounge]

Can you believe this utter nonsense.....this would be something that would have been leaked by the corporate bandits at the old USAirways. Now it is the customer that MADE THEM lower the fare. Skeen was a bad executive, was foolish to sever ties with UA and DL and then sank the ship as soon as UAL flexed its muscles.....and WHO didn't expect it. I feel for the employees, Skeen is an egomanic idiot!

 

[HPearlyretiree]

The customer is always going to look for the cheapest fare, even though they say they want big seats and full service and are willing to pay for it.

Independence shouldn't have come out on day one with unrealistic fares that they knew wasn't going to cover expenses.

You can't lose money on every customer and try to make up for it with volume.

 

[whlinder]

As high as DH's CASM was and as low as some of their fare were, I honestly think they sold a lot of seats below even the marginal cost of their seats.

Their management was a joke, and the worst part is how Skeen blamed the failure on fuel and competition. Fuel killed them sooner, but the airline is out of business for a plethora of reasons, all of which are 100% the fault of management.

 

[ngneer]

I don't think there were a plethora of reasons, I think there was one main reason: DH consistently sold their product at below cost. Sometimes way below cost. But the strange thing is that, as it became apparent that their plan wasn't working, they didn't change it. They shrunk themselves, but otherwise didn't fundamentally change their plan.

But, Skeen said he has no regrets.

Securities filings show the company contributed more than $2.8 million over the last decade to his deferred compensation plan.

If I could shovel 2.8 million samolians into my 401K, I wouldn't have any regrets, either.

 

[Ch. 12]

Yeah...I could see mentioning low fares as a culprit if DH actually just matched the low fares out there but not when they decided to take them down an extra 20-40%.

It is a shame that an airline that was among the top of the industry in employee morale and customer service was doomed by utter incompetence and apparently mgmt was also successful in their propaganda to get the employees to believe that it was not mgmt at fault.

I do not believe that the views in the original article posted were the concensus as one reporter asked the crew on one flight what their views were.

 

[AstroLounge]

Well said Bob......everyone has financial responsibilities and needs to shop around.....loyalty to an airline, a retailer, brand of automobile is a TWO way street. Anyone who doesn't agree with this DOESN'T understand free enterprise and the freedom to choose.(Now I for one would NEVER choose swa......NO WAY, NO HOW....under ANY circumstance).

 

[HPearlyretiree]

Bob, what I am saying is lots of customers say "if only an airline served me good food and gave me a wide seat, I'd pay more" That is nice, however, history shows otherwise.

Talk to Legend, Ultrair, AirOne, MGMGrand, National, or McClain employees. We have reached the age where the vast majority of fliers are going to go online and find whatever is the rock bottom cheapest fare and book it, even though there may be a better product for $20 more.

Its just how the market is. Independence tried to offer high quality service at a very low (too low) price, and they couldn't sustain it. Midwest couldn't sustain the high service levels they used to have, Alaska couldn't sustain the high levels (good food) they used to have. Maybe someday, some airline will find the magic equation of good service, good food, and good price and be able to make money on it, but its going to be a hell of a tightrope walk.

 

[whlinder]

The 'plethora' of reasons they are gone is that their pricing was horrible, their marketing was horrible, and their fare distribution was horrible until they joined the GDS. Add in that they had the wrong aircraft type in the beginning and didn't fly the most efficient route system to the 'fuel' issue, and IMHO you have a plethora.

 

[lpbrian]

Anyone read that pathetic diatribe editorial in the usatoday? People are out of work and all the editorial staff at the usatoday can do is rail against the "old line legacy airlines",while praising the LCC's as "thriving" (they are not) while implyimg they have a superior product, which they do not, all they have is a simpler product.

 

[HPearlyretiree]

About what I expect from USA Today.

They have no idea that the big moneymakers are going to be the legacies, nor will they have a clue why.