JAFA,
I hope you're not a pilot because you would have flunked math.
Also if you read, I am talking LGA-CLT, which is 538 miles. At 11.83 cents which is an aggregate CASM, the trip would cost $63.64 in round numbers. Add PHL to the mix, ISP-PHL is 130 miles, PHL-CLT is about 440. Allow for a 15 cent CASM due to commuter flying and PHL, the trip still only costs about $85.00. The point is that the airline is entitled to make money, but not to gouge the customers.
Qwerty you're dead wrong, the number of people willing to pay those fares is dwindling to a precious few. Again you miss the main point. Even if they can sell those few seats, those people will probably feel hosed and will look elsewhere for their next trip. Just because there's no competition is not justification for airway robbery (term used generically). There is a compounded risk of losing that customer's future business, which, while it can't be totally quantified, is substantial. Refer to my Airtran example. A less loyal customer than myself would wonder how much he wasted and if he had a satisfactory experience with Airtran might not be back. Why would I pay US $800 when I can get there on Airtran for $450? OR why would I pay US $700 for a transcon, while UA has a product geared for the business traveler, and charges the same if not less (not even thinking about PS right now)?
Sure there is differentiation, but the advantages offered by US in service, amenities etc. are dwindling. As far as the club, WE PAY FOR THAT. The main reason we stayed is thanks to your colleagues, who are the best in the business. Tie their hands, remove more options and their ability to solve problems for us, and that's one more piece of the puzzle gone.
If the airline RATIONALIZED fares, which means RAISING the low end to sustainable levels, so perhaps only 10% of your inventory prices below cost, and lowering the high end to TOLERABLE levels, you will see a ripple effect--more people flying because of the tolerable fares, and higher AVERAGE fares which translate directly to more revenue overall. Delta could not sustain their pricing because of their costs--they did confirm that overall revenue went up as a result of simplifares. ALSO, HP became profitable after simplifying their fare structure--the question is why they haven't spread their pricing to East--and the answer just may be greed. It won't last. With Jet Blue coming into CLT and RDU, if the attitude is hose them now while we can, that will come around to bite you later...
The business traveler is sick and tired of subsidizing Ma and Pa Kettle who want to fly cross country for $69. As Bob and I have said, Ben Baldanza told me to my face once that if he could raise bottom fares by only $20, he could lower top fares by $300. With the price of oil, I could see raising $25 and lowering $200, but it's a start.
You really don't know your customer, and that sir or madam is the underlying problem in a nutshell. Tempe has yet to reach out to the customer group to find out what we expect, or what's important to us. Keep cutting services and perks while maintaining high prices, and you'll be back before the judge in no time at all.....remove VALUE from the proposition and lo and behold, there will be no customers--except for Ma and Pa Kettle. Good luck with that.
To the wonderful front line employees of Airways, you are still the best, but it has to make financial and practical sense for us to stay around. Let's hope the Sand Castle gets that message soon...
My best to you all....
So which airline has a CASM of 5.6 cents?? 
