Fuel prices way high!

[FWAAA]

Its amazing to me that when they try to raise fares by 5 dollars, it won't stick because LUV didn't do it.
If the planes are full RAISE THE DAMN FARES!!!!!

aaaahhhhhhh
wopr21

Like many airline employees, it sounds like you assume that flying is mandatory among your customers and that your customers will gladly pay more. I apologize if that's an incorrect characterization.

Your planes are full only because the fares are so cheap. Raise the fares and fewer people will fly. Sometimes, if you raise prices, you lose a lot of customers, and total revenue drops a lot.

If this problem (low fares and net losses) affected only one airline, then I'd blame management.

But it affects nearly every airline in the USA. Even Southwest hinted a few weeks ago that a first quarter loss was not out of the realm of possibility.

Overall, I agree with you. Fares need to go up. Flying has to be more expensive if jet fuel is $3+/gal. And fares will go up when fewer seats are available for sale. It's all about supply and demand. When there's a glut, prices are cheap. When there's a shortage, prices go up.

 

[WCT]

The east pilots could do a great deal to reduce fuel consumption. They have been asking for wage parity with the west for two years. Management response has been "blow it out your tailpipe". So......thats what they do.

Even with all the mess going on, I think mgmt should do the right thing and give both East and West contract employees pay parity, or equal on all contracts withstanding. Flight attendants, rampers, and pilots should be equal pay at this point. Regadless of all the sacrifices we continue to make in this merger, the Sandcastle continues to screw us on a daily basis. So sad.

 

[nycbusdriver]

Like many airline employees, it sounds like you assume that flying is mandatory among your customers and that your customers will gladly pay more. I apologize if that's an incorrect characterization.

Your planes are full only because the fares are so cheap. Raise the fares and fewer people will fly. Sometimes, if you raise prices, you lose a lot of customers, and total revenue drops a lot.

If this problem (low fares and net losses) affected only one airline, then I'd blame management.

But it affects nearly every airline in the USA. Even Southwest hinted a few weeks ago that a first quarter loss was not out of the realm of possibility.

Overall, I agree with you. Fares need to go up. Flying has to be more expensive if jet fuel is $3+/gal. And fares will go up when fewer seats are available for sale. It's all about supply and demand. When there's a glut, prices are cheap. When there's a shortage, prices go up.

USAirways, under the Tempe management team, has been consistently degrading their product and alienating the business traveler at every opportunity. They have a leisure-traveler mentality. That works as long as airfares can remain low and they can fill airplanes. But now the chickens are coming home to roost. Fuel prices have skyrocketed, and the only segment of travelers who might be willing to withstand the necessary airfare increases have moved on to other carriers who appreciate their business by offering a higher quality product than USAirways has been willing to provide.

When USAirways raises fares (as they definitely will have to do), their load factors will plummet and the red ink will flow like water down the Colorado River after a Hoover Dam bust. There will be little high-yield business traveler revenue around this property to stem the massive losses. It may be too late to head off yet another bankruptcy filing unless by some miracle oil drops back to $70/barrel.

 

[twoturnin]

Anyone remember when the Wolfe man called pilots the "PROFIT CENTER"--might be coming back again---naw I doubt it.

 

[autofixer]

Anyone remember when the Wolfe man called pilots the "PROFIT CENTER"--might be coming back again---naw I doubt it.

The only thing coming back, again, will be bankruptcy. It is likely fuel prices drop quickly, but only as a result of the economy coming to a screeching halt and plummeting demand. The double edged sword Tempe is swinging, is the near total loss of revenue due to the same economic conditions and their idiodic insistance on leisure travelers as this airlines sole source of revenue. Any small business operator knows you need at least 3 revenue streams at any given time. I guess they don't teach that at Harvard.

 

[wopr21]

Even with all the mess going on, I think mgmt should do the right thing and give both East and West contract employees pay parity, or equal on all contracts withstanding. Flight attendants, rampers, and pilots should be equal pay at this point. Regadless of all the sacrifices we continue to make in this merger, the Sandcastle continues to screw us on a daily basis. So sad.

I agree, If Management gave them pay parity then I think the pilots would participate in a fuel savings program. When there is no incentive to help ,there will be no help.

wopr21

 

[NYGiantsFan90]

US Airways Group Q1 08 50 heating oil collars: weighted avg
(LCC.N: Quote, Profile, Research) range $1.98 to $2.18/gallon (or $68.79 to $77.19/barrel of crude oil); forecast jet fuel price $2.74-$2.79/gallon FY 08 22 collars: weighted avg heating oil range $2.05 to $2.25/gallon; weighted avg crude oil equivalent range $72.04 to $80.44/gallon

 

[cynic]

The east pilots could do a great deal to reduce fuel consumption. They have been asking for wage parity with the west for two years. Management response has been "blow it out your tailpipe". So......thats what they do.

Gee the company doesn't want to give away the one thing the one card they have to use when negotiating a new contract, what a shock. Agree to a joint contract and you'll get your money. The assholes burning fuel and running APUs in flight, just to make some point should be fired.

 

[dariencc]

The assholes burning fuel and running APUs in flight, just to make some point should be fired.

Oh, if only you were King for a Day! :down:

 

[freedom]

The rising fuel prices are definitely a serious concern , not to mention that the economy is heading into a serious recession the likes of which haven’t been seen since the 70’s . Does anyone here remember what the business model is for travel during a serious economic downturn ? Our stock has been trading around 8 something , surely not a good sign .

 

[Singleflyer]

The business model in an economic downturn is to rely on the high yield business traveler.

Too bad for all the dedicated employees at US, Tempe has alienated many of those travelers.

 

[nycbusdriver]

The assholes burning fuel and running APUs in flight, just to make some point should be fired.

So then, we shouldn't be burning fuel in flight?

 

[YVINTERN]

I believe he meant running APUs inflight consuming more fuel...

 

[UPNAWAY]

For those of you that think everything is just a negotiation ploy you are not living in the real world. We could very easily see every US Airline in BK in 2-3 years. Oil could still double in that time and if a 70's like recesion is at hand we are all doomed. The unions would then be begging for mergers but it would be to late. If no major consolidation happens we will see some of the big 6 back in BK by this time next year. I loved the AA FAs Union head that just said the other day that they are demanding a return of all pass consecions. That folks is not the real world. She should agree to any kind of increase now and lock it in quick!

 

[aredeeyou22]

For those of you that think everything is just a negotiation ploy you are not living in the real world. We could very easily see every US Airline in BK in 2-3 years. Oil could still double in that time and if a 70's like recesion is at hand we are all doomed. The unions would then be begging for mergers but it would be to late. If no major consolidation happens we will see some of the big 6 back in BK by this time next year. I loved the AA FAs Union head that just said the other day that they are demanding a return of all pass consecions. That folks is not the real world. She should agree to any kind of increase now and lock it in quick!

Just what the company loves to hear. They have you right where they want you.