Price of oil dropping

[Fixed Wing]

The airlines are implementing some additional revenue policies to react to the increased cost of jet A.

Does anyone actually believe that these policies will be rescinded when oil goes to the proper market level? I don't.
In my opinion US Airways is positioning it's self for some banner quarterly profits if it can make it through this downturn. Passengers will get used to the checked bag fee etc and will most likely not complain when airlines start making profits again.

Just ask Michael O'Leary from Ryanair.
Michael O'Leary

 

[Elevation]

These guys don't think so.

Moody's downgrades US Airways to 'Caa1'; outlook negative

ARTICLE

 

[nycbusdriver]

The airlines are implementing some additional revenue policies to react to the increased cost of jet A.

Does anyone actually believe that these policies will be rescinded when oil goes to the proper market level? I don't.
In my opinion US Airways is positioning it's self for some banner quarterly profits if it can make it through this downturn. Passengers will get used to the checked bag fee etc and will most likely not complain when airlines start making profits again.

Just ask Michael O'Leary from Ryanair.
Michael O'Leary

The paradigms are shifting. Airlines should provide transportation of people from point A to point B. When I go out to dinner at the local steak house, they don't provide taxi fare or even gas money. They're not in the transportation business. A decade ago airline food was the butt of comedians' jokes all the time; now that it's gone, passengers are screeching like stuck pigs.

In many cities if you hire a taxi cab, it will take you from the point of pickup to your destination. Bring somebody along, and there's an extra fee. Put some luggage in the trunk and you pay even more.

The models for a la carte pricing have been there all along. It's finally coming to the airlines. It was inevitable as the WalMart-ization of the industry evolved. 9-11 gave the process a huge push. Now oil prices are giving the process a hard kick in the butt. The flying public has brought all of this on themselves, and SWA is their poster child for the process.

 

[Garfield]

I wonder if Moodys competitors bought at 1.71 and sold at 5.06?

in other words who cares what they think

 

[trvlr64]

Put some luggage in the trunk and you pay even more.

HUH !?!

Let's see. I put my luggage in the trunk to go to FLL every week. I put my luggage in the trunk when I arrive at LGA. I've put in the trunk when I've arrived in ORD, I've put it in the trunk when I've arrived in YVR. And I could continue to list many other cities. But for the sake of bandwidth I'll refrain.

Would you care to let us all know which city you pay extra for putting luggage in the taxi's trunk?

:blink:

 

[nycbusdriver]

HUH !?!

Let's see. I put my luggage in the trunk to go to FLL every week. I put my luggage in the trunk when I arrive at LGA. I've put in the trunk when I've arrived in ORD, I've put it in the trunk when I've arrived in YVR. And I could continue to list many other cities. But for the sake of bandwidth I'll refrain.

Would you care to let us all know which city you pay extra for putting luggage in the taxi's trunk?

:blink:

Our Nation's Capital: Washington, D.C.

From Wikipedia (okay, not the most reliable source, but in this case it's probably right)----

Washington, D.C.

The District of Columbia recently changed from an antiquated, zone-based fare system to a conventional meter-based fare system beginning May 1, 2008.[7] The rates are a $3 flag drop rate and 25 cents for every one-sixth of a mile after the first sixth of a mile traveled. There also will be a 25-cent charge for every minute spent stopped or traveling less than 10 mph. The snow emergency rate will be the regular fare plus 25 percent.

Additional passengers will add $1.50 each to the fare, and there are various other typical surcharges for luggage, dispatch, etc. The maximum fare for all trips within the city is $19.


You can stop blinking now....there are probably others.

 

[Gilding the Lily]

Our Nation's Capital: Washington, D.C.

From Wikipedia (okay, not the most reliable source, but in this case it's probably right)----

Washington, D.C.

The District of Columbia recently changed from an antiquated, zone-based fare system to a conventional meter-based fare system beginning May 1, 2008.[7] The rates are a $3 flag drop rate and 25 cents for every one-sixth of a mile after the first sixth of a mile traveled. There also will be a 25-cent charge for every minute spent stopped or traveling less than 10 mph. The snow emergency rate will be the regular fare plus 25 percent.

Additional passengers will add $1.50 each to the fare, and there are various other typical surcharges for luggage, dispatch, etc. The maximum fare for all trips within the city is $19.


You can stop blinking now....there are probably others.

 

[CosworthII]

Fuel may come down a bit but it is not going back to $3 a gallon. The airlines are/will be paying more for fuel than they were a year ago. There is no reason the actions taken to counter act the high fuel cost should stop. They are still paying a fortune for fuel and that is not changing.

 

[trvlr64]

You can stop blinking now....there are probably others.

That's a charge when you OVER STUFF the trunk, not putting 1 or 3 pieces of luggage in the trunk. Most taxi's have that already.

 

[delldude]

Funny....W gets the Saudi's to increase production,then deletes the executive order on offshore drilling and the price drops quickly......and now Pelosi and company are doing everything they can to stop drilling....wheres this party's head at?

 

[KCFlyer]

Funny....W gets the Saudi's to increase production,then deletes the executive order on offshore drilling and the price drops quickly......and now Pelosi and company are doing everything they can to stop drilling....wheres this party's head at?

I agree with Cosworth...American's are an adaptable lot...we got used to $2 a gallon gas after it went up from a buck fifty to two fifty, then "settled back" to $2. The same with $3 gas. I believe the price of gas will drop to about $3.80...and hold. Doesn't it give you the warm fuzzies to know that our leader got the Saudis (who attacked us) to increase production for us so that we don't have to sacrifice? Until the next attack.

 

[Gilding the Lily]

That's a charge when you OVER STUFF the trunk, not putting 1 or 3 pieces of luggage in the trunk. Most taxi's have that already.

In Chicago, we have a fuel surcharge. If gas is over a certain average amount in chicago, the cabbies get to charge an extra dollar to every fare. Thus far, cabbies have been able to charge that extra dollar to every fare since the fuel surcharge was introduced.

Who knows, perhaps airlines will do that based off the price of oil. OK, maybe not.

 

[KCFlyer]

Who knows, perhaps airlines will do that based off the price of oil. OK, maybe not.

They won't. Here's part of a post on an Atlanta consumer activists website in response to my comment that the days of the $200 transcon roundtrip are a thing of the past:

If I can't get to Denver for $200 round trip, per person, perhaps we won't go....what do the airlines think of that ?!

Logic would dictate that the airlines would be pleased as punch if those folks didn't fly...but as long as the "something is better than nothing" mindset in airline management persists...there will be a lot of $200 ATL-DEN round trips.

 

[777 fixer]

They won't. Here's part of a post on an Atlanta consumer activists website in response to my comment that the days of the $200 transcon roundtrip are a thing of the past: Logic would dictate that the airlines would be pleased as punch if those folks didn't fly...but as long as the "something is better than nothing" mindset in airline management persists...there will be a lot of $200 ATL-DEN round trips.

Sometimes I wish I knew what people who make that sort comments do for a living. Then I could make ignorant, uniformed and down right assinine comments about their industry.

 

[KCFlyer]

Sometimes I wish I knew what people who make that sort comments do for a living. Then I could make ignorant, uniformed and down right assinine comments about their industry.

Well...here's some other examples from that board of round trip fares that they consider "too high"...and in fact have other posters urging them to "wait for a sale":

ATL - HPN - $279

ATL - JAC (February 09) $550. In some justice, while questioning the fare, this one went up a hundred bucks

ATL-DTW (over labor day)$219 - they are hoping for $180

ATL-LAS $200 was "too much because they had to change planes". I pointed out that for those same dates of travel, SWA out of Birmingham was $411...$200 more than what they were wanting to pay

ATL-HNL $750

ATL - Edinburgh Scotland...$400

ATL-STL - $200

And these are "too much". In two of those cases, I cited SWA out of BHM to get the absolute lowest fare that they will charge. In both cases, the fare on Southwest out of BHM was $50 to $200 MORE than the fares that these folks found "too high". The sad thing is - most airline management seems to still be chasing that "it's better than nothing" passenger and will usually end up meeting their demands.