Gofares

USA320Pilot

Veteran
May 18, 2003
8,175
1,539
www.usaviation.com
Most airline analysts believe the U.S. airline industry is nearing the revenue/pricing peak for this economic cycle. There are further signs the extremely high walk-up fares that have historically driven revenue premiums for the major carriers will come down in the not-too-distant future. The reduced fare structure will negatively impact revenue and earnings for the industry, including low-fare carriers.

Last week US Airways introduced a simplified, reduced fare structure for both coach and first class domestic fares called “GoFares†in selected Philadelphia markets, which will begin on May 9. This is a "toe in the water" approach to pressures to reduce unrestricted airfares in response to Southwest Airlines entrance into US Airways’ principal and most profitable hub.

The Arlington-based carrier has had Southwest "match fares" in its CRS for a while and last week’s announcement is more of formality than anything else. The US Airways Sales Department has signaled this and a much broader initiative to its key corporate clients, but to be successful the company must have a much lower cost structure.

The simplification of “GoFares†includes removing the Saturday night stay and round trip requirements, both important historical major airline pricing "fences". Price levels on the highest fares are down by 40-60 percent, but still well above available Southwest price points.

If US Airways greatly expands the initiative, which is expected according To Bruce Lakefield’s weekly message (800-873-2459, prompt 4), it could have a significant impact on industry revenue going forward.

The marketing bonanza surrounding the change is somewhat odd given its limited scope. Philadelphia customers can only enjoy this new structure in markets where Southwest competes or will compete in July. US Airways’ press release indicated a permanent change, but for now only in a very small number of markets. Therefore, it’s clear that the public nature of last week’s announcement will make it difficult for US Airways not to eventually include all of its major markets during the pricing restructuring.

US Airways is now the third large airline, along with American West Airlines and Alaska Airlines, that have or will begin a transition from a traditional to simplified fare structure similar in a scope similar to a LCC and the Arlington-based carrier undoubtedly faces a difficult period ahead.

When this initiative is implemented system-wide it will dramatically lower revenue, therefore, to be successful costs must be brought down more than the reduction in revenue. The company’s route network touches enough revenue from the other majors, particularly Delta, to increase the chances of a collapse of the highest walkup fares for every major airline. The implications of a complete collapse is likely to be most profound on the major airlines, but LCCs will surely feel the
impact as well with less of a price umbrella.

Here is the route network exposure to US Airways by other large airlines:

AirTran – 43.3%
JetBlue – 41.4%
Delta – 31.6%
Continental – 24.7%
Northwest – 20.8%
United – 16.9%
American – 16.6%
Southwest – 12.5%
America West – 7.9%
Alaska – 0.6%

Respectfully,

USA320Pilot
 
USA320Pilot said:
If US Airways greatly expands the initiative, which is expected according To Bruce Lakefield’s weekly message (800-873-2459, prompt 4), it could have a significant impact on industry revenue going forward.
Respectfully,
USA320Pilot
Hmm, you know giving out the # to USDAILY is againt corporate policy, wonder what your buddy Jerry or wanna be buddy Bruce would say about that?
 
USA320Pilot,

A very strangely worded article. There are two possibilities for this, neither of which make you look very good. Either you copied it from a particularly clueless news source ("American West Airlines"), or you just wrote the article yourself in a faux-journalistic style ("The Arlington-based carrier"), with mildly non-public information ("800-873-2459, prompt 4") for some value-added flavor. What gives? Are you some kind of pompous amateur analyst wannabe or just a plagiarist?

If you did write it yourself, you are misleading readers with the false third-party journalistic style, since you are obviously an employee. Or if it's assumed that you're an employee, since everyone here takes it for granted, then you're just a pseudo-intellectual blowhard who writes in a lofty style to lend false weight to what should be clearly labeled as non-objective opinion.

It's really too bad, since you obviously have a grasp of the material. It's just very difficult to see past your style, or to judge how unbiased you really are. Are you trying to be objective third party or not? If you're an employee, you can't be, so don't try to pass yourself off as such.
 
blue dude, you hit the nail right on the head, I usually call him the Fabricator of Facts!
 
A little levity,

I saw the GOFARES tagline and could not help but think about Bill Murray in "Caddyshack" being told he needs to "kill all the gofares" by the Scottish guy.

Murray thinks he is saying "golfers" and the scott ment "gofers" but it comes out as "gofares"

Maybe you had to be there.......
 
These GoFares are a joke.

USAirways PIT-LGA:

As of this morning, the advance purchase fare PIT-LGA is 292.70

3 day advance purchase PIT-LGA 769.20

Walkup PIT-LGA 869.20


Southwest Fares LAX-OAK:

Advance purchase LAX-OAK 98.20

7 day advance purchase LAX-OAK 174.20

Walkup LAX-OAK 214.20


PIT-LGA = 331 Miles

LAX-OAK = 329 Miles

All WN needs to do is initiate a few flights PHL/PIT/MDW daily and US is toast.
 
"The implications of a complete collapse is likely to be most profound on the major airlines, but LCCs will surely feel the
impact as well with less of a price umbrella."

Not sure about that, the LCC's seems to be humming along nicely and there comes a point, where the legacies will be completely unable to service their debt payments, even if the employees works for free.

Interesting to note, that U is still pricing higher than SWA. Must be hoping for last minute spill from SWA. Other than wrestling even more concessions from the work force, U must either lower fares below SWA to drive them out or make it so the passengers choses U, with service and amenities, so that U can extract higher fares. If U only matches, without doing anything else, U will continue to lose money and that will lead to oblivion. Lakefield sure has his work cut out for him!

With an unlimited war chest, like the 90's, sure the legacies can force new entrants out by matching or lowering fares to way below breakeven, but as of this moment, no one legacy carrier has excess capital to spend. One would hope, that this will slowly lead to some sort of a balance between the two "warring" factions.
 
700UW said:
Hmm, you know giving out the # to USDAILY is againt corporate policy, wonder what your buddy Jerry or wanna be buddy Bruce would say about that?
Does anyone else get sick of this guy constantly bashing the same ole sanme ole? Why dont you try to be like this guy and put some meaningful news out there instead of constantly stalking the guy? He contributes more in one day than you have since you signed on. Give us a break!
 
usfliboi said:
Does anyone else get sick of this guy constantly bashing the same ole sanme ole? Why dont you try to be like this guy and put some meaningful news out there instead of constantly stalking the guy? He contributes more in one day than you have since you signed on. Give us a break!
If you don't like it don't read it.

And when this person who constantly puts out wrong, fraudulant, and false information I will point it out everytime and put out the right information.

He has been proven wrong more then he has been proven right, and when you call him out he says "don't shoot the messenger" and when you ask him to provide facts or post facts to disprove him, he ignores it.

So if you don't like leave the boards and it seems you are the one doing the stalking.
 
usfliboi maybe you should try to be honest and earn some integrity back. I still have a big problem with the times you lied to us all here and was caught at it. It is hard to know when you are being truthful.
 
USA320Pilot said:
Last week US Airways introduced a simplified, reduced fare structure for both coach and first class domestic fares called “GoFaresâ€￾ in selected Philadelphia markets, which will begin on May 9.

The Arlington-based carrier has had Southwest "match fares" in its CRS for a while and last week’s announcement is more of formality than anything else.

The marketing bonanza surrounding the change is somewhat odd given its limited scope. Philadelphia customers can only enjoy this new structure in markets where Southwest competes or will compete in July. US Airways’ press release indicated a permanent change, but for now only in a very small number of markets.

US Airways is now the third large airline, along with American West Airlines and Alaska Airlines, that have or will begin a transition from a traditional to simplified fare structure similar in a scope similar to a LCC and the Arlington-based carrier undoubtedly faces a difficult period ahead.
What a load of crap.

Does it seem odd yo anyone else that US320Pilot notes that this GoFares is an highly touted matching of Southwest fares, then goes on to talk about how US is the third major to restructure fares!

1. US Airways has restructured its fares in a number of markets I can count on my hands.

2. What if some other major drops a big announcement next week... Then I guess US Airways would not be the third, since this is hardly implemented, and by admission of the author "more of a formality than anything else."

And Yes, USA320Pilot often writes his posts in a semi-journalistic style. The dead give-away is the lack of a URL source and overuse of the phrase, "the Arlington-based carrier" which appears in almost every post of his of any length.

And by the way, where was the "analysis". I saw only fluff and a some stats on the US Airways primary competitors.
 
Ill continue to read and Ill continue to point out where i wanna point out , right or wrongs. Theres nothing contructive here, 320 gives his opinions and backs them up with documentation. Do you agree with where it came from or who wrote it, ?? Doesnt matter its an opinion.
 
usfliboi said:
Ill continue to read and Ill continue to point out where i wanna point out , right or wrongs. Theres nothing contructive here, 320 gives his opinions and backs them up with documentation. Do you agree with where it came from or who wrote it, ?? Doesnt matter its an opinion.
usfliboi, its one thing to post "documentation" - it's another to post long-winded diatribes and personal thesis after thesis on the Internet. When it comes to 320pilot's "documentation" I am often half asleep in the first paragraph because the prose is the same old "Ground Hog Day" scenerio that's never been factual or correct.
 
usfliboi said:
Ill continue to read and Ill continue to point out where i wanna point out , right or wrongs. Theres nothing contructive here, 320 gives his opinions and backs them up with documentation. Do you agree with where it came from or who wrote it, ?? Doesnt matter its an opinion.
If he posts documentation then please have him provide the following

1. The IAM painful clause
2. Why do the mechanics have to learn another language?
3. Where is the proof of a prepackaged BK filing?
4. Proof the the CRJ-700s are sitting in DAY collecting dust when we see them flying revenue flights.
5. PSA being sold
6. IAM losing the arbitration
7. Dave and Jerry or his inside sources showing proof.
8. UCT/ICT with UAL or Virgin or his airline of the week.


Do I need to continue?
 
9. Specific broken DIP covenants by United
10. Specific broken ATSB covenants by America West
11. Details on plans to "Go west"