Ideas on what we can do to cut costs at US airways …or generate revenue 2

[freedom]

Ideas on what we can do to cut costs at US airways …or generate revenue .

First of all , if your going to post in this thread , please make it an intelligent post , be it a critique or an idea … there are plenty of other threads where you can post childish ,snide remarks , so please go there …


To those of you who aren’t caught up on current events within the airline industry , all the major carriers in the united states are falling apart financially due to one issue and one issue alone , the cost of jet fuel… This industry was never constructed to deal with the types of gas prices that we’re witnessing today … Everyone in this country is feeling the pinch of gas , from fortune 500 companies to folks like yourselves .. As far as airline profit goes, the only company projected to turn a buck this year is southwest airline .. Everyone else is going to be taking hit’s in the hundreds of millions to the billions …

Our balance sheet is strong , for now , but when I say strong I’m still speaking about it in the terms of yesterdays economy , as the CEO of ford said in a recent interview concerning industry trends in the automotive sector "It seems to us we reached a tipping point.".

It appears our speculated merger with united isn’t going anywhere , so we need to focus on US and see what we can do to outlast the coming slug fest between the major carriers … As I understand it ,after reading as many economic reports about our airline as I can get my hands on , we don’t have enough in investment or capital to survive a long term slug fest the way we are today .. This can only mean one thing for us airways , and that is we must think our way out of the situation we now find ourselves in , we MUST innovate our way to profitably .

It’s going to take each of us working and thinking in concert to find those ideas and business practices that will allow us to remain standing after the dust settles .. While I’m of the personal opinion that we have some great upper management , I feel that the collective intelligence of our employee’s is a great and untapped resource that we must employ , I know that those of you with 20,30 ,40 years in the business can come up with some great ideas .

What we need and what we don’t need …. We need ideas that are going to help us cut our everyday costs , ours is a simple mission , to transport Americans from point A to point B with their luggage and on time .. If you’ve got an idea on how to do this in a more cost effective manner lets hear it … If you’ve got an idea on how you should be getting paid more because your union is sucking in negotiations with this company , or you have an idea on how to better merge the two pilot groups , then please put that in a company/labor thread .. We’re talking about our companies near to long term survival here , not your extra week of paid vacation .


I guess I’ll go first …

Now too many of you , I’m going to sound like the scab devil himself , but if someone sat me in a room and threw down all of our companies expenditures and profits ect and said to me , find costs savings .. The very first thing I would do is start charging non-revs for flying ..first I want to say that I’m not the first nor only one on here to suggest this , secondly I want to remind many of you that it’s going to take more than the discontinuation of PEANUTS aboard the A/C to maintain our position ..

We could start out slowly with limited increases , say 5 dollars one way and then another 5 back , or we could jump it to the necessary level (whatever that might be not to exceed 50 dollars ) …personally I see a 10 dollars one way charge and a ten dollars another way charge for the starting rate , we could determine the amount charged reflected on the price of oil or against what a full far ticket is in today’s market .. I think many of you get the drift of my idea so I’m not going to go into unnecessary detail , but I want to add that I don’t think we should be charging more for boarding priority or F/C etc …just a simple flat rate ..and we should do it sooner rather than latter , yes there will be a blow to morale , oh well people will live .. Best to get it done long before the holidays .

Now to justify my position .. Many of you have been through one, two or more Bankruptcies , would you prefer that we at this company take EVERY measure possible to try and avoid BK’s and the wage cutting that occurs when that happens or not ? Raise your hands…

Is the idea I’m suggesting inconvenient ? It sure is ! Is 3.50 unleaded inconvenient as well ?yep… tough times call for tough measures …


I want to close by giving props to international Shannon , your original thread on how to save or generate revenue was a good idea and this is a subject that we’re going to need to confront as time goes by .. i believe in taking action before it’s too late rather than after the train has left the station .

 

[Itestwell]

Right.. generate revenue on the backs of employees... there's something that's never been considered...

Did you think this idea up all by yourself?

 

[Dog Wonder]

Charging non revs would be a drop in the bucket, and create a lot more bad will.

Sounds like a winner.

 

[freedom]

Right.. generate revenue on the backs of employees... there's something that's never been considered...

Did you think this idea up all by yourself?

I was prepared for this kind of response , so let me be CLEAR ….

WHATEVER IT TAKES….

There is NO ONE with a gun to your head telling you that you need to take that trip up to LAS for lunch ….

Free flying is a convenience , but if you hadn’t noticed these are inconvenient times .

Do you have a better idea ? Lets hear it , I’m all ears ….

 

[EastUS]

Ideas on what we can do to cut costs at US airways …or generate revenue .

First of all , if your going to post in this thread , please make it an intelligent post , be it a critique or an idea … there are plenty of other threads where you can post childish ,snide remarks , so please go there …

Well..very seriously; How about obliterating executive salaries, stock options and ridiculous, even obscene bonuses/parachutes/etc for starters? That'd save many millions, and no one can tell anyone that equivalent or superiour staffing couldn't reasonably and readilly be found for FAR less compensation. It's a fantasy to even imagine, but; Consider the employee motivation that arises from such as an Iacocca, going with a dollar a year and stock options to start. If a company tanks? = management should also be fully invested in the failure...and not made multi-millionaires from engineering any such failure.

Pricing the product according to it's actual costs would be the most logical eventual step, but would/will require some newly generated intelligence within the collective industry leadership.

"WHATEVER IT TAKES….There is NO ONE with a gun to your head telling you that you need to take that trip up to LAS for lunch …. Free flying is a convenience , but if you hadn’t noticed these are inconvenient times .Do you have a better idea ? Lets hear it , I’m all ears ….

OK..Instead of attacking one of the very, very few perks attendant to airline work: How about start by seeking ways by which to positively motivate the work force?..and then actually supplying the required tools for them to do their best and most productive work?..Say..in example..instead of routinely, system-wide, wasting literally TONS of fuel while awaiting a jetway driver..How about adequately staffing those GA positions to start with?..instead of stripping them away for a few pennies supposedly saved?/etc.

 

[hp_fa]

Before you start charging for non-rev travel you need to go look at the existing labor contracts and ascertain whether or not the company is allowed to impose such a charge under the contracts. Recently the company lost an arbitration involving the West FA's, working under their pre-merger contract, said contract not allowing any diminishment in benefits during the term of the contract.

Next, the company needs to take the lead and change to charging an all-inclusive rationale fare structure that eliminates the nickel-and-dime extra charges and allows for the free inclusion of soft drinks and snacks (such as the pretzels) as well as two free checked bags. Don't nickel-and-dime customers. Charge them a fair fare that includes a reasonable amount of service for that fare. Allowing for the fare to include up to two free checked bags will save all kinds of problems down the line, such as people just taking their bags to the plane and needing to gate check them there or being denied the ability, at the last minute, to get their bag onboard the flight and not having the money or charge card to make any required transaction at the gate. The way American Airlines is planning on charging for a first checked bag is a prescription for an operational disaster as well as a customer relations disaster.

Under the theory that when you have lemons (the current airline/fuel problems) you make lemonade, the airline can actually make lemonade from this situation by showing some leadership and forward thinking. If the fare structure is too volatile under the current conditions, stop selling tickets 330 days out. Cut it to 90 days maximum. That will have the negative effect of decreasing revenue in the short term, but takes out the problem of having sold seats for below the price under which the transportation must contractually be delivered. Let's face it, a passenger may be a fool for buying tickets 330 days out at this point since all the airlines are potentially looking at bankruptcy and their ticket makes them, potentially, an unsecured creditor in any bankruptcy.

 

[ua767fo]

Freedom,

Why would you want to help a management that has nothing but contempt for you as an employee? And why would you want to pay for benefit. Frankly, you should be paid a lot more than you are, have better benefits, and working conditions.

If they want your advice, which I'm sure you and many could give, let them pay you for it. And don't make it on the backs of any employees. The airline pays consultant fees all of the time. Your information and ideas are of great value. Don't give them something for nothing.

Denver, CO

 

[hp_fa]

I don't know Freedom, but based on past posts I postulate that he/she is a member of management at some level and capacity. Just a guess...

 

[freedom]

I don't know Freedom, but based on past posts I postulate that he/she is a member of management at some level and capacity. Just a guess...

I agree with you hp- fa on the operation disaster of a first bag fee .. There are going to be so many delays cause of the PAX trying to get their bags into the overheads …


As for me being or having been management , I’m not , I just have absolutely NO problem bringing up unpopular views … I’m a baggage handler BTW …and my only idea isn’t just charging non revs , but I figure, might as well start with the most unpopular idea first ..,


I don’t think what I’m suggesting is unreasonable at all considering what we’re in today , and If you think it IS , then please prove to me how our OIL prices don’t matter and how our PAX won’t flee in droves to another airline when faced with even a fare of 5 dollars more than the other guy ..

 

[Itestwell]

There is NO ONE with a gun to your head telling you that you need to take that trip up to LAS for lunch ….

People do this?

 

[LD3]

Maybe someone from maintenace could answer this, all the aircraft that are in for maintence(CLT) always have their APU's running, would it be cheaper to use ground power. Last week I took a ride to the hangar at night and of the 8 aircraft on the ramp only one used a gpu, is the apu able to power more of the aircraft? If they are able to power the aircraft equally you would think the gpu would be a cheaper to run..Just wonderin....

 

[giantfan]

Just an idea I thought I would throw up....

What about bringing back the shipping of pets/animals...we did this for years at US then when we merged with HP...gone went the animals. If I recall correctly we got a pretty good premium for shipping those animals. There cannot possibly be that much liability expense to offset the revenue brought in for transporting animals. If you take into account the "goodwill" factor that we could receive b/c many other carriers won't ship Fido that could put us a step ahead of others.

Plus I miss the animals....that sometimes was the best part of my day...

 

[orioleman]

Just an idea I thought I would throw up....

What about bringing back the shipping of pets/animals...we did this for years at US then when we merged with HP...gone went the animals. If I recall correctly we got a pretty good premium for shipping those animals. There cannot possibly be that much liability expense to offset the revenue brought in for transporting animals. If you take into account the "goodwill" factor that we could receive b/c many other carriers won't ship Fido that could put us a step ahead of others.

Plus I miss the animals....that sometimes was the best part of my day...

GF,
to add to your post . I'm not sure exactly what kind of pups they were but we had pups sent from breeders in the carolina's

out on our LAX flts as PDQ for many years usually 5 to 6 a week . Pure profit .

 

[hp_fa]

The AWA experience with animals in the cargo hold was, as I recall, not a positive experience.

Think about this scenario:

1. Ramp temperatures that routinely exceed 130 degrees;
2. Reliablility issues with aircraft
3. Minimum ramp staffing resulting in crews being moved to different gates, especially during irregular ops

Result? Animals dying in the heat when they are stuck or left on the ramp during unscheduled plane swaps, change of gauge, weather problems, etc. This was a lose/lose scenario for AWA.

 

[gaucho99]

In the early 90's, HP started charging employees to travel. $5.00 each way for employees and $10 each way for dependents. It added up if you had a spouse and a few kids. It's not a good idea, in my opinion. If anything, maybe charge a one time fee of $30 for unlimited travel for the year.

I like the idea of charging customers a fee for unlimited travel for a year. This would bring in a tremendous amount of money all at once and would create loyalty. I don't know how much the amount would have to be but say for example it was $20,000. Anybody already paying that much or more would jump on the opportunity but instead of spreading it out over several carriers, it would all come to US. You are not going to buy an occasional $400 ticket on DL for example just because their flight is more convenient when you have already paid for unlimited travel on US.

Other customers who don't spend that much might look at the offer and say...why not??? Let's go for the offer and fly till we're exhausted. So this will encourage more people to travel more often with us which is what you want when the economy is slumping. Some people will use it to death and get more value than they paid, but others will have things come up and will not travel nearly as much as expected. The fee would be non refundable so we would not refund it if you only took 2 flights then quit.

There would have to be some restrictions imposed like no booking more than 14 days in advance and the flight would have to be less than 90 percent booked so we would not risk these pax bumping someone who would have paid a high fare at the last minute but couldn't because the flight was sold out.

Or another thought is to sell a package for less money...say $5,000 per year...then you can fly unlimited segments for $99 each way domestic and $199 international and Hawaii. You could also restrict it to a few intl flights per year.