Industry Leading Load Factors!

[crushed]

/US AIRWAYS LEADS INDUSTRY IN MAINLINE LOAD FACTORS

US Airways last week led the industry with the highest
mainline load factor among major carriers
participating in the Air Transport Association's
weekly exchange. US Airways recorded a domestic load
factor of 83.4 percent for the week 0.8 points
higher than the next closest carrier. On flights to
transatlantic destinations, US Airways also led the
industry with a 92 percent load factor, 2.5 points
higher than the next closest carrier. In total,
US Airways' 84 percent load factor topped the next
closest carrier by 1.3 points. "Last week's
performance was made possible by the hard work of our
front-line employees and their dedication to meet the
needs of our customers each and every day. I commend
them for their efforts," said Executive Vice President
Operations Al Crellin.

OK, I know it's just one week but......
This coupled with the Philly newspaper article that says that agents at US make $6,000 a year less than Southwest.....How dare they come back and ask for more $$$ !!

 

[USFlyer]

US is currently paying most passengers to fly them, hence the high load factor. Siegel was right that you are basically handing almost every passenger that boards your planes $15 (or whatever the figure was that he used).

 

[mweiss]

Exactly. We have all heard all too many times that high LF does not mean profitability. The correlation is not guaranteed to be any higher than zero.

Let's see the CASM and RASM reports. Then we can establish whether or not they can "dare" to ask for more money.

 

[LaBradford22]

As the other posters pointed out, load factor is only half the story. High load factors don't mean much when you're practically giving seats away.

 

[Phoenix]

Exactly. We have all heard all too many times that high LF does not mean profitability. The correlation is not guaranteed to be any higher than zero.

Let's see the CASM and RASM reports. Then we can establish whether or not they can "dare" to ask for more money.

In addition to looking at CASM RASM it would be valuable to look at Actual Seat Miles flown as a percentage of ASM that can be flown within the contraints of Labor Contracts, FAA regs, and realistic marketing projections where people will buy. (Hey who wants to fly from LGA to Raleigh at 3:00AM!)

 

[crushed]

I understand the whole casm and rasm thing.
I what I meant was.....
If the planes are full and I've taken a pay cut.....I've done my part. They need to look at why a full plane isn't making a profit....It's not my fault and I won't keep bailing out the ones responsible.

 

[bobcat]

crushed,

You are exactly right!

Enough tickets are sold everyday to fill, and in a lot of cases overfill, flights, the credit cards are charged and itineraries sent out, all passengers are checked in and boarded, the passengers are flown as safely and comfortably as possible from point A to point B, their bags are loaded and unloaded and the aircraft are well maintained.

Thus we are all doing our part so, where do you think the problem lies? It surely is not us.

 

[mweiss]

Would that it were that simple, bobcat.

Let's say US flies a 734 on a 1000-mile route, and the only way they can fill the plane is by charging $100 per person. So they get 144 people on that 734, and collect $14,400. Now they spend 10.2c in CASM, and there were 144,000 ASMs on that flight, so they just spent $14,688 to get them to their destination. In other words, they just paid each passenger $2 to take them on the flight.

Now let's say AS flies the same 1000-mile route, and collects the same fares, though for 138 passengers (they have better pitch behind the exits, thus one fewer row). They collect $13,800. They spend 8.6c in CASM, which comes to $11,868. In other words, they just made $14 per passenger on the same flight. With fewer seats.

Everyone did their part in both scenarios, but one of the two airlines made money and the other one lost money.

 

[insp89]

Mr. Weiss, How does "stage length" play into an airlines CASM ? Is it true that Usairways problem with CASM is that it flies shorter routes than it's competitors ? Management's reluctence to address this "stage length problem" UNTIL it gets ANOTHER round of concessions is no secret to employees of this company.

 

[bobcat]

The point was... that we do our jobs to the best of our abilities with what we are given. We do as we are told and use the tools that we have. The problem is the way this airline is run. Management doesn't have a clue! I bet if the employees were given full reign we would have this airline making money in within 6 months.
I'm sure each work group have many many cost saving ideas that could bring us back to profitability WITHOUT employee concessions.

 

[CLT-Douglas]

I am sure there are lots of ideas to bring costs down with out employee concessions. However, with all these ideas, could it bring the CASM in the 6 cent 7 cent range with out giving up to many ammenities that passengers can find on a LCC already?

You may strip the airline down to bare bones, in order to not take another pay cut, but then would passengers really want to fly with you if the service is lacking because of it?

 

[lindy]

Let's say no group is required to take any W-2 reductions. Absolutely, no money taken out of the take home pay. How do we achieve the necessary reductions?

Following are some suggestions:

a. Give up the bid sheet for pilots and flight attendants. What will this cost? A whole department in Crew Scheduling would be eliminated. How much is that worth?

b. F/A's picking up trash and crossing seatbelts ala Southwest. What will this cost? Significant reduction, possible elimination of the Utility group.

c. Lower paid ramp service responsible for all push backs. What will this cost? Significant reduction of the line maintenance personnel who could be re-deployed to the hangars which would probably result in layoffs.

d. Reduction in vacation allowance. Maximum amount to be accrued would be five weeks. Once again, layoffs would be necessary.

I know there will be a hue and cry from the die hard Unionistas on these boards that layoffs are unacceptable. "We must protect our brothers and sisters," they will say. Do we sacrifice a few to save the many?

Now, for Mr. Lakefield.

a. Reach out to the employees and be honest and truthful. Accept our ideas and implement them if they result in cost savings.

b. Rationalize the fares. Make it easier for our passengers.

c. Advertise. Tell people why they should fly USAirways!! We are a proud company with proud employees. We do a great job.

Lindy

 

[Phoenix]

Would that it were that simple, bobcat.

Let's say Yadda yadda yadda....

Everyone did their part in both scenarios, but one of the two airlines made money and the other one lost money.

Since USAir has spent about a gazillion bucks in the last year or two on their famed trio of mgt stars you would think that would be evidence of a successful plan...

But oh that it were that simple...

If planes are over-booked and passengers are being denied boarding (happening) then the famed trio of stars has made two mistakes. 1)They didn't charge enough for the tickets, and 2)they are paying for someone’s hotel or for Delta to transport said “denieee.â€￾

So charging more for tickets would reduce crowding and reduce costs linked to denied boarding, and increasing available seat miles by 5% would increase revenue and reduce CASM.

But everyone forgets....

COMAIR is a slave labor camp that operates as a virtual airline for DELTA.

Jealousy is driving this Mgt. And only the top 51% of the seniority in each union has to be sufficiently influenced by personal greed to have Mgts jealous desires succeed.


Respectfully,

Phoenix

 

[mweiss]

Mr. Weiss, How does "stage length" play into an airlines CASM ?

The short answer is this: ascent and descent are less efficient than cruise, due to ATC routing, more air congestion, and the 250kias limit below 10,000 ft msl. Thus, the smaller the percentage of time an airplane spends at cruise, the fewer miles it travels per minute. The slower the average travel, the more you pay per mile (at normal air travel speeds).

For short-stage flights (<500 miles), CASM is generally about twice as high as it is for long-stage flights (>1,500 miles).

I just got some stats for average stage length this evening.

In 1990, US Airways' average stage length was 592 miles. Among major airlines, only WN was lower (452). The industry average was 978, and the legacies' average was 1,039.

In 2002, the most recent year for which I was able to obtain data, US's average stage length was 849. AS, FL, and WN were shorter. The industry average was 1,060, and the legacies' average was 1,244.

 

[crushed]

Here's my question.....
If the flights are full and the (ground) crew (that's all I know..don't mean to step on toes) is making less than the LLC then where is the fat? Is it my fault that I've put in 20 years vs. the start ups young guns? At what point do you say "Oh, this was just a summer job?" I know that flight crews think that rampers are expendable and can be "summer help".
But ask "Valuejet" if it makes a difference what your ground crew knows!!