On another thread, a poster repeated the "we need to reduce capacity and consolidate the industry because fares are too low" mantra. He used as proof the fact that he could purchase a BOS-MIA ticket for $84 two weeks prior to departure, and the cab fare to Logan airport from not very far away was $30. I admit that I, too, have been a believer in the philosopy that the reason air fares are so low is that there are too many seats going after too few behinds.
But, is this true? And, would mergers help the situation. Since 2001, there have been 3 major airline mergers--AA/TWA, US/HP, and DL//NW. And, I know in my airline (AA) there has been a severe reduction in both capacity and staff. Yet, someone can buy an $84 BOS-MIA ticket still. When are all the pricing advantages of mergers, industry consolidation, and capacity reductions going to kick in?
When I started as a flight attendant with AA in September, 2000, my freshly minted seniority number was over 23,000--that's flight attendants on the then current seniority list, and that was almost a year prior to the purchase of TWA. Today, my seniority number is a little over 16,000, and even with the numerous flight attendants that either don't fly at all or fly a minimum number of hours, there is not enough flying for all of the "active" flight attendants. I flew 39 hours in January, and the only reason I will approach guarantee in February is because I have two weeks of vacation hours to throw into the equation. If it weren't for a temporary no-furlough agreement between the company and my union, I would be out on the street right now.
Though it doesn't seem to be as true right now as in the past, whenever one of us tries to reduce capacity on a route, another one of us increases capacity on that route, and announces a sale to introduce the service. And, it's not all WN doing it.
Will mergers actually return any of us to profitability? Maybe air travel should become a government service like Amtrak--i.e., we know there ain't no way to make a profit; so, let's not pretend that there is.
You know...this is not a new issue. One of the founders of British Airways once said, "If you have to tighten your belt, it's a recession. If you don't have a belt, it's a depression. If you lose your trousers, you're in the airline business."
I hear from people who have been at AA a long time about "the good ole days" when the government set fares and determined who could fly particular routes. But, were they? The good old days, I mean. The airlines were among the major proponents of deregulation. If regulation was industry nirvana, why did everyone push to end it?
Discuss. I'm verklempt.
But, is this true? And, would mergers help the situation. Since 2001, there have been 3 major airline mergers--AA/TWA, US/HP, and DL//NW. And, I know in my airline (AA) there has been a severe reduction in both capacity and staff. Yet, someone can buy an $84 BOS-MIA ticket still. When are all the pricing advantages of mergers, industry consolidation, and capacity reductions going to kick in?
When I started as a flight attendant with AA in September, 2000, my freshly minted seniority number was over 23,000--that's flight attendants on the then current seniority list, and that was almost a year prior to the purchase of TWA. Today, my seniority number is a little over 16,000, and even with the numerous flight attendants that either don't fly at all or fly a minimum number of hours, there is not enough flying for all of the "active" flight attendants. I flew 39 hours in January, and the only reason I will approach guarantee in February is because I have two weeks of vacation hours to throw into the equation. If it weren't for a temporary no-furlough agreement between the company and my union, I would be out on the street right now.
Though it doesn't seem to be as true right now as in the past, whenever one of us tries to reduce capacity on a route, another one of us increases capacity on that route, and announces a sale to introduce the service. And, it's not all WN doing it.
Will mergers actually return any of us to profitability? Maybe air travel should become a government service like Amtrak--i.e., we know there ain't no way to make a profit; so, let's not pretend that there is.
You know...this is not a new issue. One of the founders of British Airways once said, "If you have to tighten your belt, it's a recession. If you don't have a belt, it's a depression. If you lose your trousers, you're in the airline business."
I hear from people who have been at AA a long time about "the good ole days" when the government set fares and determined who could fly particular routes. But, were they? The good old days, I mean. The airlines were among the major proponents of deregulation. If regulation was industry nirvana, why did everyone push to end it?
Discuss. I'm verklempt.
