First Step?

[chipmunn]

Could US Airways new pricing initiative set two new standards?
Maybe the airline will implement Delta's rumored idea of "high density large aircraft" and will replace all or most of the first class configuration on its B-757, A-321, and A-320 aircraft. Then the company could somewhat lower its fare structure, squeeze other major airlines while in bankruptcy and after emergence with a lower CASM, but still have perks greater than Southwest.
Why not match a high density B-757 or A-321 in hyper-competitive markets like Florida with higher passenger loads?
Next simplify the fare structure, which at Southwest does not seem to have prevented the business traveler from using Kelleher's airline.
I suspect there is more to Baldanza and Siegel's story regarding this initiative.
Chip

 

[TomBascom]

They're going to reward the high fare busines traveler by eliminating the first class cabin?

Have they forgotten that even those people take the family to Disney World?

 

[chipmunn]

Two years ago I heard Stephen Wolf speak and he said that US Airways' FFP program generated $48 million per year in annual revenue.

Chip

 

[oldiebutgoody]

----------------
On 8/28/2002 9:18:32 PM

They're going to reward the high fare busines traveler by eliminating the first class cabin?

Have they forgotten that even those people take the family to Disney World?
----------------

Yea,
for free, once they accumulate enough miles.[:0]

 

[TomBascom]

----------------
On 8/28/2002 937 PM

----------------
On 8/28/2002 9:18:32 PM

They're going to reward the high fare busines traveler by eliminating the first class cabin?

Have they forgotten that even those people take the family to Disney World?
----------------

Yea,
for free, once they accumulate enough miles.[:0]
----------------

Is there something wrong with that?

Those trips aren't really "free" you know -- our employers and customers paid for them by way of higher ticket prices.

You shouldn't resent them -- in the micro picture they look like a loss but at the macro level they're generating revenue for you.

 

[Old PSA]

Hey Chip,

Heard the same talk over the years about the value of FF programs. The problem arises in how you account for cost. As an example, The Dividend Miles Representatives are included in the cost of the FF program, however the various special reservation services are not. Also, agent time spent in the airport processing upgrades or issuing free tickets is not included. So how much does the FF program cost-no one really nows. How much customer loyality does it inspire? Nobody really knows. Many studies and papers have been written about it, but it is at best an intangible.