Dl/nw Bk Will It Help Wn?

[skyguy25]

DL/NW BK will it help WN?

 

[KCFlyer]

DL/NW BK will it help WN?

[post="300935"][/post]​

I doubt it, just as it won't help AA or CO or Airtran or JetBlue. Those airlines will still have to compete while paying their bills. What I expect is to see the "bankruptcy operating strategy" that has proven so successful for UAL and US...offer flights for even lower fares than they were offering pre-bankruptcy (in order to maintain that all important "butts in seats" number) and force a couple of more airlines into bankruptcy court.

 

[skyguy25]

you say "to force a couple more airlines into BK" who is left really?

 

[KCFlyer]

you say "to force a couple more airlines into BK" who is left really?

[post="300968"][/post]​

American and Continental. Do they have enough cash on hand to survive the bankruptcy fare wars that the bankrupt airlines who are "leveling the playing field" are offering? I swear, I would hope that eventually a bankruptcy judge will ask why, if you were losing money charging $250 before bankruptcy, are you selling the same ticket for $180 while under bankruptcy protection.

 

[WNjetdoc]

Good point skyguy, IMO its a scam by corporate America to screw everyone except those at the top, ie: part of the good ole' boy network, which has gotten very sophisticated.

 

[skyguy25]

I think that WN, being the #1 carrier at MSY should petition the government for relife funding due to the hurricane for lost revenue. I think they should ask for at least 50,000,00 million...that would be about revenue lost over 6months there....... 😉

 

[WNJETFIXER]

I doubt it, just as it won't help AA or CO or Airtran or JetBlue. Those airlines will still have to compete while paying their bills. What I expect is to see the "bankruptcy operating strategy" that has proven so successful for UAL and US...offer flights for even lower fares than they were offering pre-bankruptcy (in order to maintain that all important "butts in seats" number) and force a couple of more airlines into bankruptcy court.

[post="300959"][/post]​

It might help in PHL and airports like that. WN is always looking for gates.

 

[Ch. 12]

American and Continental. Do they have enough cash on hand to survive the bankruptcy fare wars that the bankrupt airlines who are "leveling the playing field" are offering? I swear, I would hope that eventually a bankruptcy judge will ask why, if you were losing money charging $250 before bankruptcy, are you selling the same ticket for $180 while under bankruptcy protection.

[post="300969"][/post]​

It's just not that simple to name a higher fare and charge it. The consumer isn't willing to pay higher fares so how can an airline increase the fare w/o driving away their business? The "if they would only raise their fares" argument is a simplistic view of a complex issue. If only it were that easy...

 

[KCFlyer]

It's just not that simple to name a higher fare and charge it. The consumer isn't willing to pay higher fares so how can an airline increase the fare w/o driving away their business? The "if they would only raise their fares" argument is a simplistic view of a complex issue. If only it were that easy...

[post="301245"][/post]​

Yeah...I know it's hard to raise prices when people pay $400 to fly from Atlanta to Greece and want to know how to upgrade to first class for $100 (actual request from a consumer advocates website), and think they are doing the airline a favor by flying them in the first place. But what I am saying is this...bankruptcy scares the general public...on that same consumer website, a ton of folks are concerned about buying tickets on Delta in November...so to overcome that concern, the bankrupt airlines seem to be REDUCING fares from what they were pre-bankruptcy. How in the hell is an airline supposed to make money by filing bankruptcy, then starting a fare sale??? And how in the hell are NON-bankrupt airlines supposed to avoid bankruptcy court themselves when they have to compete with these idiotic fare sales?

FWIW, I base my assumptions on travelocity searches between cities....who's offering the lowest fares on any given route? 9 times out of 10 it's been US and UAL. Now I expect to start seeing Delta and NWA adopting that "winning" strategy.

 

[Ch. 12]

Yeah...I know it's hard to raise prices when people pay $400 to fly from Atlanta to Greece and want to know how to upgrade to first class for $100 (actual request from a consumer advocates website), and think they are doing the airline a favor by flying them in the first place. But what I am saying is this...bankruptcy scares the general public...on that same consumer website, a ton of folks are concerned about buying tickets on Delta in November...so to overcome that concern, the bankrupt airlines seem to be REDUCING fares from what they were pre-bankruptcy. How in the hell is an airline supposed to make money by filing bankruptcy, then starting a fare sale??? And how in the hell are NON-bankrupt airlines supposed to avoid bankruptcy court themselves when they have to compete with these idiotic fare sales?

FWIW, I base my assumptions on travelocity searches between cities....who's offering the lowest fares on any given route? 9 times out of 10 it's been US and UAL. Now I expect to start seeing Delta and NWA adopting that "winning" strategy.

[post="301292"][/post]​

You do have a point about consumer confidence. I believe (and this is just my opinion) that the consumers view DL more favorably than they did UA and US when they entered BK. I don't think it will be as much of a necessity to lower fares to keep pax in DL's case. If you see them go down on travelocity, that is simple...we have moved out of the summer travel season and are now in the duldrums of fall. Nothing decent until Thanksgiving now. Now is the time for the leisure traveller!!

 

[ngneer]

According to Pete McGlade at WN, they are closely watching what happens with DL and NW to see if it presents new opportunities to expand. Southwest Eyes Delta and Northwest.

 

[FWAAA]

You do have a point about consumer confidence. I believe (and this is just my opinion) that the consumers view DL more favorably than they did UA and US when they entered BK. I don't think it will be as much of a necessity to lower fares to keep pax in DL's case. If you see them go down on travelocity, that is simple...we have moved out of the summer travel season and are now in the duldrums of fall. Nothing decent until Thanksgiving now. Now is the time for the leisure traveller!!

[post="301494"][/post]​

I agree. Many so-called analysts will proclaim that NW and DL are slashing fares, but that happens at this time each and every September, so distinguishing between slow fall sales (and corresponding fare cuts) and discounting to counter book-away may be very difficult.