Fuel prices way high!

[UWCactus]

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.

When the economy slows down, business gets hit hard too. You should think about the benefit US has by being in a position to appeal to business travelers with lower fares (no comparisons necessary Piney, just allow the point to be made). Businessess in a slower econony will also search for lower prices when they must travel, US business model is geared for that (the old hp).

 

[nycbusdriver]

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

Whew! For lack of a comma, we were going to make a lot of passengers swim.

 

[YVINTERN]

Whew! For lack of a comma, we were going to make a lot of passengers swim.

No kidding...

 

[BoeingBoy]

Businessess in a slower econony will also search for lower prices when they must travel, US business model is geared for that (the old hp).

The old HP was geared for that with lower costs than the legacies. Unfortunately, the new LCC has costs right up there with the other legacies so can't afford the lower fares that HP could. But don't let me spoil the "living in the past" moment.....

Jim

 

[legacy-to-LCC]

When the economy slows down, business gets hit hard too. You should think about the benefit US has by being in a position to appeal to business travelers with lower fares (no comparisons necessary Piney, just allow the point to be made). Businessess in a slower econony will also search for lower prices when they must travel, US business model is geared for that (the old hp).

so, what i hear you saying is that, enter a recession, businesses will seek the lower fares, right?

and, in addition to denying another poster the opportunity to fairly and accurately compare the absolute lack of disparity in fares despite an enormous disparity in service level between swoosh and real airlines' f/c service, suggest that businesses during a recession are willing to pay more for less? and this positions america west's version of usair well for the pending recession and concommitant evaporation of disposable incomes and therefore leisure travel revenues?

 

[Be Careful What You Wish For.]

According to Vantheman there is no recession coming.

 

[UWCactus]

The old HP was geared for that with lower costs than the legacies. Unfortunately, the new LCC has costs right up there with the other legacies so can't afford the lower fares that HP could. But don't let me spoil the "living in the past" moment.....

Jim

Much of those higher costs currently underway are part of the plan to improve performance, but will also be retracting some of these costs over the next few months.

 

[jimntx]

According to Vantheman there is no recession coming.

The majority of economists in the latest WSJ poll feel the recession is already here. Have they not talked with Van?

Most Economists Say Recession Has Arrived as Outlook Darkens

 

[BoeingBoy]

Much of those higher costs currently underway are part of the plan to improve performance, but will also be retracting some of these costs over the next few months.

To tell the truth, if anyone else said that I'd believe they were being sarcastic. 1-2% higher cost due to "improvements" to PHL ($100-200 million annually) won't magically drop the CASM by 10-20% ($1-2 billion annually) when they come out. Especially if fuel is adding 10%+ to costs annually. But if the koolaid is that good, have another glass.....

Jim

 

[US1YFARE]

Much of those higher costs currently underway are part of the plan to improve performance, but will also be retracting some of these costs over the next few months.

Why? Figure that the airline sucks so just let the suckfest continue?

 

[sharktooth]

Question: What carrier has a CASM of 16.09 cents?
Answer: US Airways

Question: What happens to an airline with a RASM below their CASM?
Answer: They lose money

Question: What happens to an airline that loses money for a prolonged period of time?
Answer: They go Bankrupt or merge

Question: During an economic downturn historically who are the travelers to be affected last?
Answer: Business travelers and the very wealthy

Question: What type of travelers has US Airways apparently set its sights on?
Answer: Leisure Travelers

Question: Which Travelers are the most sensitive to price?
Answer: Leisure Travelers

Question: With fares rising and recession looming which travelers historically stop flying first?
Answer: Leisure travelers

Anyone a little worried about the path US is taking?

Your communication skills are tops today. All the beating around the brush earlier by others was giving me a headache. Thanks for a concise and cogent analysis and projection.

 

[NYGiantsFan90]

It has started, watch US be next

UAL to shrink Fleet

 

[autofixer]

And there is more...

http://timesofindia.indiatimes.com/World/B...how/2875972.cms

Delta announced today that they would reduce their capacity by 5% and offered 30,000 employees an early buy-out to reduce costs. http://www.foxbusiness.com/markets/industr...t_525236_8.html

Of course, we know that LCC does not do business like that, they will just come in like a drive-by-shooting and start spraying bullets everwhere.

 

[wopr21]

With the retirement of the older 737's I think they will just let it happen naturally. Also the hiring of employees may be put on hold.

Just a thought...

wopr21