How do concessions stop this?

RV4

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Aug 20, 2002
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Delta Air Launches Summer Fare Sale
Monday April 7, 8:06 pm ET


ATLANTA (AP) -- Delta Air Lines launched a fare sale on Monday designed to stimulate summer travel as the industry grapples with war-depressed traffic and continuing financial losses.
The tickets -- some as low as $44 one-way -- require a week''s advance purchase, with the lower fares unavailable for most holiday periods. The fares are valid for travel Monday through Thursday and on Saturday April 14 through Oct. 1. Tickets must be purchased by April 16.
 

FWAAA

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Jan 5, 2003
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I didn''t know the concessions were supposed to stop competitors from having fare sales.

Fares are set by passengers, the same way the market sets the price for many of the products we buy. Passengers signal to the airlines how much they are willing to pay. Each minute, the airlines can assess just how willing the pax are. If not enough tickets are sold, fares are lowered until pax will buy them. What does this have to do with the concessions?

The concessions simply help AA get to a neutral cash flow position. Right now the negative cash flow is at least $5 million each and every day.

Do you have any concept of just how bad it is when the cash you spend each day exceeds the cash you take in by at least $5 million?? That''s about $35 million each and every week.

That''s enough to buy a brand new 737 each week.

A brand new 767 each month, with change to spare. Poof. Gone.

In about 5 weeks at this rate of cash burn, AA could have bought a new 777.

This has been going on for over 18 months.

How long do you think AA can spend $5 million daily that it does not have?

I know, AA is a big mean corporation - they can afford it.
 
Aug 20, 2002
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On 4/7/2003 9:29:34 PM FWAAA wrote:

I didn''t know the concessions were supposed to stop competitors from having fare sales.

Fares are set by passengers, the same way the market sets the price for many of the products we buy. Passengers signal to the airlines how much they are willing to pay. Each minute, the airlines can assess just how willing the pax are. If not enough tickets are sold, fares are lowered until pax will buy them. What does this have to do with the concessions?

The concessions simply help AA get to a neutral cash flow position. Right now the negative cash flow is at least $5 million each and every day.

Do you have any concept of just how bad it is when the cash you spend each day exceeds the cash you take in by at least $5 million?? That''s about $35 million each and every week.

That''s enough to buy a brand new 737 each week.

A brand new 767 each month, with change to spare. Poof. Gone.

In about 5 weeks at this rate of cash burn, AA could have bought a new 777.

This has been going on for over 18 months.

How long do you think AA can spend $5 million daily that it does not have?

I know, AA is a big mean corporation - they can afford it.

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__________________________________________________________

"" ***K AA" !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
 

PORKCHOP

Member
Apr 2, 2003
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0
This will pass by 70% of the 50% that usualy vote.
AMFA boyz until line stations out number the maintenance bases you will always be looking in from the outside.
 

Bob Owens

Veteran
Sep 9, 2002
14,274
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----------------
On 4/8/2003 6:17:03 PM eolesen wrote:

Love it or leave it, Bears.

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Could that(***k AA) be construed as a love act?
 

Bob Owens

Veteran
Sep 9, 2002
14,274
6,112
----------------
On 4/7/2003 9:29:34 PM FWAAA wrote:

I didn''t know the concessions were supposed to stop competitors from having fare sales.

No. but concessions were supposed to stop losses. Instead all concessions will do is allow the airlines to charge $44 fares.

Fares are set by passengers, the same way the market sets the price for many of the products we buy.

Yea, its as simple as that.

The concessions simply help AA get to a neutral cash flow position. Right now the negative cash flow is at least $5 million each and every day.

Will that neutral cash flow figure shift in a fare war? Who will be expected to make up the difference?

Do you have any concept of just how bad it is when the cash you spend each day exceeds the cash you take in by at least $5 million?? That''s about $35 million each and every week.

On a relative scale, yes. And if this contract passes even more so for many years into the future. Hey, I have to worry about my cash flow, why are we paying all these jerks big bucks if WE have to worry about AA''s cash flow?

That''s enough to buy a brand new 737 each week.

Its also more than I would earn in 700 years, so what? What percentage is it compared to total revenue?

A brand new 767 each month, with change to spare. Poof. Gone.

I know the feeling. The thought of buying a brand new car to replace my 14 year old 254000 mile wreck, poof, gone.

In about 5 weeks at this rate of cash burn, AA could have bought a new 777.

About 5 minutes could have gotten me a new car.

This has been going on for over 18 months.

How long do you think AA can spend $5 million daily that it does not have?

Dont know, but I dont have it either. Perhaps they need to stop spending money to have their name on sports arenas and movies theaters, get rid of the leased cars and country club memberships for the executives, cancel the new airplane orders and the construction projects.

I know, AA is a big mean corporation - they can afford it.

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WXGuesser

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Aug 20, 2002
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----------------
On 4/8/2003 10:59:26 PM Bob Owens wrote:




----------------
On 4/7/2003 9:29:34 PM FWAAA wrote:

I didn''t know the concessions were supposed to stop competitors from having fare sales.

No. but concessions were supposed to stop losses. Instead all concessions will do is allow the airlines to charge $44 fares.

Fares are set by passengers, the same way the market sets the price for many of the products we buy.

Yea, its as simple as that.

The concessions simply help AA get to a neutral cash flow position.  Right now the negative cash flow is at least $5 million each and every day.

Will that neutral cash flow figure shift in a fare war? Who will be expected to make up the difference?

Do you have any concept of just how bad it is when the cash you spend each day exceeds the cash you take in by at least $5 million??  That''s about $35 million each and every week.

On a relative scale, yes. And if this contract passes even more so for many years into the future. Hey, I have to worry about my cash flow, why are we paying all these jerks big bucks if WE have to worry about AA''s cash flow?

That''s enough to buy a brand new 737 each week.

Its also more than I would earn in 700 years, so what? What percentage is it compared to total revenue?

A brand new 767 each month, with change to spare.  Poof.  Gone.

I know the feeling. The thought of buying a brand new car to replace my 14 year old 254000 mile wreck, poof, gone.

In about 5 weeks at this rate of cash burn, AA could have bought a new 777.

About 5 minutes could have gotten me a new car.

This has been going on for over 18 months. 

How long do you think AA can spend $5 million daily that it does not have?

Dont know, but I dont have it either. Perhaps they need to stop spending money to have their name on sports arenas and movies theaters, get rid of the leased cars and country club memberships for the executives, cancel the new airplane orders and the construction projects.

I know, AA is a big mean corporation - they can afford it.

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Yeah, Bob, it''s all about screwing you and you alone... Give me a (bleep)ing break.

This fare war is Delta tryng to administer the coup de grace to someone, be it AA or UAL. Time will tell as to who it is...

TANSTAAFL
 

FWAAA

Veteran
Jan 5, 2003
10,251
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Two things, Mr Owens:

Your harping about executive salaries, country club memberships and arena naming rights is sorta sad and must be embarassing to even your union brothers. They realize (I''m sure they do) that these items don''t amount to a hill of beans. Stop whining already.

This sale by Delta ain''t no FARE WAR - it''s just a garden variety fare sale designed for summer. Sales like this have happened every several weeks since deregulation. "Low as $44" refers to short flights, not transcons. Relax - nobody is offering $88 coast to coast round trips. Not yet, that is. After AA files Chapter 11, I expect AA to cut prices like crazy.

And the airline will charge the fares it takes to put butts in the seats regardless of the wages paid to the hired help.

You don''t honestly think that AA could raise fares (and make it stick) but is refusing to do so, do you?? You do realize that customers like me set the prices, don''t you? Or are you lost in some fantasy world where airlines set the prices as high or low as they want to regardless of customer willingness to pay?

Good luck in your decision.
 
OP
R

RV4

Veteran
Aug 20, 2002
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On 4/9/2003 2:10:33 AM FWAAA wrote:

Mr Owens:

Your harping about executive salaries, country club memberships and arena naming rights is sorta sad and must be embarassing to even your union brothers. They realize (I'm sure they do) that these items don't amount to a hill of beans. Stop whining already.

Good luck in your decision.

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I am far more embarrased that AAmangement types are on the internet using many forms of alias, instead of using the last 18 months to work towards correcting our direction.

How do you consider it sad that an employee "harps" about unneccasaary expenses when he is bieng asked to volunteer the destruction of his profession? The only thing sad about what Bob is posting is that his livelyhood is being placed in jeopardy and those expenses are going to continue being paid at his expense.

Oh that's right, you are probably one of those 22% they claim to have already cut back? Give me a break.
 

texflyer

Advanced
Feb 26, 2003
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RV4,Bears,and Owens give me a break. Its that same elitist stuck in the past attitude thats going to lead to the down fall of AA. Nobody,not even the corporations are going to pay the high Y fares that allowed you have the nice paycheck from the past.

The naming of arenas and the like is called ADVERTISING! Maybe you guys are right,maybe they should take the AA off the new Dallas Arena and instead have SWA,or JetBlue.

You employees want to be pissed,then be pissed at me,the pax. I am the guy that pays your paycheck,but thanks to the internet have found ways of not having to pay the Y fares,and fly cheaper now. The 90s are gone,and the LCC are better financed,managed and here to stay. The new reality.

By the way,the airline industry is not the only ones feeling the pinch. Where I work we have had to let some go too.
 

WXGuesser

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Aug 20, 2002
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Jeez, your record is stuck even worse than bagsmasher''s was about TWA.

What are you afraid of, RV4?

You''ve never made that clear. All you spout is rhetoric and cliches. Your statements are full of sound and fury and signify very little. Cards on the table; what do you stand to gain or lose?

TANSTAAFL
 

AAviator

Veteran
Nov 12, 2002
1,385
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RV4 is probably being paid a mechanics wage while not being a mechanic. He will probably be bumped from his position and pay rate. Just a guess.
 

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