On 10/29/2002 10:55:12 PM willnotworkforfree wrote:
could or would U show a profit? I say not, now you answer why.
OK, Heres the awnser, As I have stated openly..and even in a recent private e-mail to our esteemed friend Captain Munn.
USAirways will continue to fail..regardless of Employee's working for nothing..or any amount of Loans we recieve from the ATSB and DIP financing , If we continue to fail to address the holes in our operation that not only weeps money loss..it pours it.
This topic is better addressed in the thread that Chip has started about Cost Cutting Measures. This will more than illuminate the failures we are making...and you will see classic examples from every aspect of our business structure.
AOG-N-It, I respectfully disagree. It is a REVENUE problem ONLY. Management would love for it to be a cost problem...then it is the employees fault, not management's fault for not bringing in sufficient cash to cover costs[it is their job and they have failed miserably]. Operational expenses minus operating cost=operation profit/loss. It really is that simple. JMHO
[BLOCKQUOTE][BR]----------------[BR]On 10/31/2002 2:08:43 AM pitmech wrote:
[P]autofixer... I agree with you, this is a revenue problem. [BR]Too much supply, not enough demand low prices win. We need more people wanting the seats we sell. [BR][BR][/P]----------------[/BLOCKQUOTE]
[P]It is a revenue problem in large part. You need more people wanting the seats you sell, try this:[/P]
[P]1. Reduce the number of fares to no more than 5.[/P]
[P]2. Eliminate restrictions and penalties[/P]
[P]3. Cut your highest unrestricted fare in half[/P]
[P]Then I believe you'll find that more people want the seats you sell. The key is to make the customer feel like you want their business. Right now, with restrictions, penalties, and everything else, it's almost as if the airline is daring a business to buy anything but a full fare, unrestricted ticket. For those in airline managment who might not have noticed, this down cycle in the economy has affected other businesses (your customers) as well. They too are looking at cost cutting measures. That means they aren't willing to pay $2,000 to send their employees on a 500 mile round trip flight somewhere. Make flying more attractive than web conferences and you'll get more business customers willing to pay for an unrestricted ticket. [/P]
On 10/31/2002 9:37:12 AM KCFlyer wrote:
... Right now, with restrictions, penalties, and everything else, it's almost as if the airline is daring a business to buy anything but a full fare, unrestricted ticket.
Bingo! And, being in business and all, we can do the math and realize that even if we lose that bet on every other trip we come out ahead. So guess which fares we buy?
Heck, if we squeeze the road warriors we can come out ahead on 3 out of 4 or more lost bets...
On the cost side, US's cost structure is so far beyond the rest of the industry that US cannot compete. Even when times were good (late 90's), US never made the kind of profits that they should have largely because of US's bloated cost structure and of course poor management.
On the revenue side, revenues simply stink for everyone. Even carriers with far lower cost structures than U are getting squeezed. As KCFlyer has promoted, U might help itself some by fixing the out of whack pricing structure. However, regardless of pricing, all the majors will likely struggle until either the economy bounces back or significant capacity is removed.