"In a Class of our own"

[wopr21]

US Airways now defines itself as a unique carrier in a class of its own. US Airways is not a large carrier, and it is not a small carrier. We are neither a high-cost carrier nor a low-cost carrier. Incredibly, we were informed that we are a different type of hub carrier because our hubs are poorly positioned. PHL is too close to EWR; CLT is too close to ATL; PHX has very little business traffic, and it goes on and on. US Airways now officially designates itself as a predominately leisure traveling, “SMALL NETWORK CARRIERâ€￾ -- a class of our own!

 

[Black Magic]

I am really afraid of the future of US Airways. I wonder if management only sees the results of low bookings because of the economy or because of the harsh nickle and diming and bad service of this airline. I'm sure that the economy has something to do with it but people are shifting their business away from US at an alarming rate, more so than other carriers. I feel this airline has no idenity as it's fares aren't the lowest for the Kettles to stay and the service/product is very lacking so the FF are leaving.

 

[RowUnderDCA]

It's NK with hubs.

 

[galley princess]

Class of our own? Hmm. More like "educating the consumer to be wary" company.

How long can US surprise people before they modify their buying behavior?

86% of the American dollar is spent/controlled by women. Women are used to comparison shopping.

Okay, so they click on the cheapest fare X 4 (family) get to the airport and then get hit for their 6 bags that they need for the family cruise.

4 X 15 =$60
2X 25+ $50

If you don't think Mom's adding it up think again.

Inflight: Water X 2= $4.

Repeat on the way back.

Mom just added $228 to the family's tickets and realized she should have looked harder at the fineprint.

Now, fast forward to any other reason to fly and guess who's going to look harder at what's included?

Believing that people are stupid / trapped is never a good idea. Especially in this economy.

 

[Travelpro72]

To big to act regional and to small to act global. It's a tough position to be in. It was hard getting the ship right in good times (which still isn't right). Good luck in the bad times. Keep sellin' those drinks and improving the customers overall experience. 🙄 What passenger is going to care if you are the WORLDS most on time airline if they HATE their experience dealing with your airline? 🙄

 

[Onestep2flt]

I find this very interesting considering the full page advertisement in the USA Today just the other day. It was bragging about how you are number one in on-time performance among the major hub and spoke carriers. Wish I would have kept that as I can't quote the exact statement.

I realize the info that the ad is based on is from an outside source, however they sure where not going to share the "Unique airline" secret to the public. I feel this has been a major source of problems for a while. Nobody in your management team can come up with an idea of what kind of airline you are and then write a business plan to match.

I also wonder at what price the top on time thing cost. Seems by closing the door 10 minutes early is how this was achived, would leave a few people behind in Philly. I guess since your company is now catering to the leisure crowd as they have told you they could care less.

 

[nycbusdriver]

At the risk of torpedoing this entire thread, the self-definition quoted in the first post was presented to the USAPA negotiating committee by the company in a egregious, farcical and disingenuous attempt to fend off demands for "industry standard" compensation. By proclaiming themselves in a "class of their own," management says it will not countenance paying their pilots (and likely every other labor group) what the "Big Airlines" and/or "Southwest" pays...since there is no "industry standard" for an airline in a "class of its own."

Of course, management, in an 8-K filing just last April, had this to say about executive compensation standards, and who they themselves determined their "peer group" to be"

Form 8-K for US AIRWAYS GROUP INC, April 3, 2008:

For determining the cash awards under the program, the Committee adopted a peer group consisting of the following companies: AirTran Holdings, Inc., Alaska Air Group, Inc., AMR Corporation (the parent company of American Airlines), Continental Airlines, Inc., Delta Air Lines, Inc., Frontier Airlines Holdings, Inc., Hawaiian Holdings, Inc. (the parent company of Hawaiian Airlines), JetBlue Airways Corporation, Northwest Airlines Corporation, Southwest Airlines Co. and UAL Corporation (the parent company of United Air Lines). In addition, the Committee approved the following award pay-out schedule for the 2008-2010 performance cycle:

They got NO BRAINS, but lots of CHUTZPAH!

 

[Real tired]

Thanks for posting. I wondered when someone was going to post those "8-K" facts.

Makes me want to puke in my $7 Chinese blanket.

 

[Travelpro72]

Well considering we have seen so many changes (downgrades) at Usairways I think it's safe to say that we'll continue to see various changes as management tries their hardest to define just WHAT or WHO US Airways is. It's quite evident that they wanted to be innovative in cost cutting as thats what they do best. Well to their dismay other airlines have not followed suit when it comes to certain tactics. We've seen US reinstate the 500 mile minimum to FF's. Don't be surprised if US doesn't go "back to basics" so to speak. Like I sorta said earlier, it won't mean a hill of beans if your the entire worlds most on-time airline if passengers really detest you as a carrier.

 

[nycbusdriver]

it won't mean a hill of beans if your the entire worlds most on-time airline if passengers

and your employees

really detest you as a carrier.

 

[freedom]

i think we were a fantasic airline , i enjoyed working here and still do (for what little time is left to us ) ... we had a culture unlike any other .. i will always treasure the memories...

the company is right when they explained our weak footing by describing us as a small , AKA weak airline ... our days are numbered ..


it's been a great ride!!!

 

[Art at ISP]

First of all, I think you have to take the comment in the context in which it was offered--as a bargaining strategy at a labor negotiating session. That was the first mistake--not thinking about how it would be perceived OUTSIDE the negotiating room.

So now we know--the identity crisis should come to an end. Maybe they finally realized they can't be everything to every type of customer.

Now there is an opportunity to really define US Airways--for better or worse. If this is what they really believe, they would need to go with the leisure traveler model and follow the Ryanair or Spirit mold, where you pay for EVERYTHING. Unfortunately to do that, you have to have rock bottom fares to begin with, which they don't.

If they did that I could justify keeping the $2 beverage charge and I would accept the nickel and diming policies which have driven off their most loyal customers. I wouldn't fly them but I would accept their decision.

I honestly think that a tremendous opportunity was squandered at US Airways. They had an amazing opportunity to redefine the airline, and in my humble opinion they made all the wrong choices.

You have to look beyond the $2 beverage charge or the $25 booking or bag fee. It's great to pick up an extra $20, but what does it COST you in the long run in lost future revenue?
My total airline spend last year was just shy of $37K. US Airways got about $400 of it. They had a chance to retain my business, but their actions, policy and fee changes, and comments made by Doug and Scott at Town Hall meetings (disparaging remarks made about Elites and Chairmans' in particular) showed me how they really feel about formerly loyal business travelers. As someone else stated, they have removed the value from their product.

Although I do see some encouraging signs coming from Tempe, I am not sure if it's too little too late.

My BEST to you all......

 

[NCFL]

To big to act regional and to small to act global. It's a tough position to be in.

It's been this way for US since the dawn of time.
US/PI/PS created "America's Most Frequent Flyer." That went away pretty quickly, others grew and US shrunk itself back into its comfy East Coast "franchise," as it became known. The net from the PSA purchase was a lot of very nice and talented people and a fleet of MD-80s, IMO.

For a while there, US had hubs and hubettes (nobody had been smart enough to coin the phrase "focus city" yet) that "cannibalized" each other. Having PIT/PHL/BWI/CLT/DCA/LGA/SYR/CLE/DAY/IND all as connecting complexes caused them to fight with each other.

This struggle of "should we figure out how to grow, or should we shrink and retrench" just keeps happening. US grows, then others outgrow US leaving it in exactly the same position scratching it's head, with an empty dance card, and needing to shrink its way into profitability.

Hypothetically, I wonder where they'd retrench TO if they had to.

 

[Pacemaker]

It's been this way for US since the dawn of time.
US/PI/PS created "America's Most Frequent Flyer." That went away pretty quickly, others grew and US shrunk itself back into its comfy East Coast "franchise," as it became known. The net from the PSA purchase was a lot of very nice and talented people and a fleet of MD-80s, IMO.

For a while there, US had hubs and hubettes (nobody had been smart enough to coin the phrase "focus city" yet) that "cannibalized" each other. Having PIT/PHL/BWI/CLT/DCA/LGA/SYR/CLE/DAY/IND all as connecting complexes caused them to fight with each other.

This struggle of "should we figure out how to grow, or should we shrink and retrench" just keeps happening. US grows, then others outgrow US leaving it in exactly the same position scratching it's head, with an empty dance card, and needing to shrink its way into profitability.

Hypothetically, I wonder where they'd retrench TO if they had to.

Great post. It points up how in this industry, more than many, you make a few strategic decisions and end up prisoner of those decisions for decades. The rewards for guessing right can be huge, guess wrong and you dig a hole you may never climb out of. This airline didn't have to end up this way. The 1980's were a fork in the road, so to speak. Colodny & Co. went the way they did & here we are.

 

[SS255]

This struggle of "should we figure out how to grow, or should we shrink and retrench" just keeps happening.

Shrinking and retrenching in California after swallowing PSA enabled WN to write its own ticket.