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Itest,

I think you always worry...anything can happen in the airline business and it usually does. Point one-things appear headed in the right direction...yes they do. We see what appears to be a sustainable profit, at least for now. We saw a commitment to invest in the product, which is always good.

I also admitted that other airlines are in a similar position in which the ancillary fees collect equal or exceed the amount of profit...which DOES indicate a fundamental problem with the current pricing structure...no need to rehash that.

I don't meant to rehash this, but in effect, you are contradicting yourself here, which is cause for worry. In the first paragraph, you say that things are headed in the right direction". In the next paragraph above, you say that there is a "fundamental problem in the current pricing structure", which to me, says "DANGER!" going forward.

How can you say that things are headed in the right direction if, in fact, this thread was created to point out that the only way US (and now you've added other airlines) was profitable was from ancillary revenue?


[quote/]With regard to FT and other sites, I have been plenty vocal there and on FFOCUS, in particular changes to UA/CO's programs and pricing policies. Very few customers of those airlines post here, so I don't feel the need to rehash. I discuss US issues here because most of this board is in fact US employees, and there are some frequent customers who still post here.[/quote]

I've searched your FT posts back to Jan 2010, since I thought I may have missed something, and I did not find one that criticized any other airlines Frequent Flyer Program devaluations, with the exception of US. You made slight references to CO, but nowhere near as passionate or as informative as you've been with US. I certainly may have missed some posts; maybe you can direct me to them via PM?

[quote/] Some of my discussions with the management team at the other carrier are in fact confidential, however. Their willingness to listen has more to do with their realizing that those who fly almost every week spend considerably more than those who fly once or twice a year, and that a productive dialog and honest discussion of what can and cannot be changed is actually a good business practice. They also use revenue as a metric when measuring customer loyalty by the way. In short, they respect their customers -- and their employees I might add.[/quote]

Fair enough. Management at US was disrespectful towards you. I don't doubt that.

You still didn't answer my question in my previous reply: Do you believe that US' lack of strong revenue generating hubs, as compared to other legacies, has any direct affect on what they can/ cannot offer? Doug Parker has put that revenue disparity between US and others at a pretty large percentage, as compared to DL/ AA/ UA. Do you believe that this revenue disadvantage is indeed smoke and mirrors to compensate for running an inferior airline with a substandard product, or do you truly believe that US can't offer everything the "big boys" can?

Another question: Have executives at US flat out told you, to your face, that they do not "use revenue as a metric" when measuring customer loyalty? Revenue is not a consideration whatsoever? Troublesome, to say the least.

[quote/]My dissatisfaction with my meetings with US had little to do with not hearing what we wanted to hear, it had more to do with a condescending attitude, an obvious perception that they really didn't know what was going on (if it wasn't on a spreadsheet they couldn't get it), and the fact that on at least three issues, they outright lied to me. That was the primary reason for me moving on - lack of trust, and a belief that they really don't care about their customers OR their employees--which manifests itself regularly. It is obvious talking to front line folks that morale is lower at US than almost any other carrier, with the possible exception of AA at the moment.[/quote]

I'lll agree here with the employee relations references, to a point.

I'll disagree with a complete blanket statement, such as they "didn't know what was going on", since they were, shockingly, able to keep US from closing it's doors during the unprecedented recession/ revenue drop off/ fuel sky rocketing year that was 2009. Hardly surprising that Choice Seats, plastic glassware (continued) , baggage fees (increased), charging for soda, etc, solidified themselves in that year. Was it all consumer/ Elite friendly? Clearly not. No argument there!

With regard to DOT, I said that things have gotten significantly better, and I cannot answer your question regarding the stats. Most of the folks I speak to on and off line, however, are very frustrated with their limited ability to help in some case.

I have heard from countless Customer Service Agents that our version of SHARES is indeed weak, yet you make it sound like US' employees have their hands 100% tied behind their backs, and that may be true. I don't profess to know the system US uses. Still makes no sense to me on how we were able to raise our DOT complaint metrics in the last year, and if and when you find more information to support your accusations, please pass it along.

[quote/]At this point, I just want to say that I had a very positive experience this week, despite the weather foulups, and I would like to commend EVERYONE in CLT for doing an outstanding job the past two days....[/quote]

Glad to hear it! It's a shame, but employees here, systemwide, have learned to do so much more with so much less than their counterparts. Here's looking forward to a successful 2011, with improved contracts for all, and improvements to service that positively affects our customers.

Thanks for the debate.
 
I wonder if Parker could do it all over again, he would have just tried to merge America West with Delta instead of US Airways. I heard at one time Delta tried to merge with America West?
 
I wonder if Parker could do it all over again, he would have just tried to merge America West with Delta instead of US Airways. I heard at one time Delta tried to merge with America West?

If Delta wanted America West, what would have stopped it? That conjecture makes no sense. They may have looked at it, but I think all the big carriers are constantly looking at each other to see if a merger makes sense, i.e. could it line our pockets, and if it is doable.
 
If Delta wanted America West, what would have stopped it? That conjecture makes no sense. They may have looked at it, but I think all the big carriers are constantly looking at each other to see if a merger makes sense, i.e. could it line our pockets, and if it is doable.

From what I remember Delta wanted a westcoast hub for their network. They went after America West, I don't know the details on why it didnt happen though. After the fact Delta merged with Western Airlines to make Salt Lake Utah their westcoast hub. Someone please explain if I'm wrong.
 
So, Arts basic problem with US Airways is management hurt his feelings! Art has it occurred to you that they were not being condescending but brutally honest about their business and that the other Airlines are blowing smoke to make you feel good? This management team has been nails with regards to the industries financial issues and US Airways place in that. In fact they are so well regarded if there ever was a merger with AA for example the investors would insist that this team would be the surviving management. While your complaints are individually valid we know the exact same or similar ones can be made about any airline, your beef seems personal.

Up,

Time to stop drinking the Kool Aid. It's not personal at all. It has to do with integrity. Were you there with me when I met with them? Did you hear what they told me? Were you able to measure what they said vs. what they did? I was. Has to do with honesty and integrity, not my feelings. There are specific items which they told me to my face they would do X and either did Y or nothing at all. There's nothing personal about being lied to.

In the case of the other airlines, our discussions are frank, open and honest. Where change is promised it happens. Where it can't happen, they contact me and explain why. They don't ignore customers they listen. That's all we ask.

With regard to Tempe being respected in the industry, perhaps to the investment community and bean counters, but not much further. They basically have an incomplete merger on their hands.

As I said, you can believe what you want to believe, and we can believe what we want, but the truth is most likely somewhere in between.....

My BEST to you all...
 
Up,

Time to stop drinking the Kool Aid. It's not personal at all. It has to do with integrity. Were you there with me when I met with them? Did you hear what they told me? Were you able to measure what they said vs. what they did? I was. Has to do with honesty and integrity, not my feelings. There are specific items which they told me to my face they would do X and either did Y or nothing at all. There's nothing personal about being lied to.

In the case of the other airlines, our discussions are frank, open and honest. Where change is promised it happens. Where it can't happen, they contact me and explain why. They don't ignore customers they listen. That's all we ask.

With regard to Tempe being respected in the industry, perhaps to the investment community and bean counters, but not much further. They basically have an incomplete merger on their hands.

As I said, you can believe what you want to believe, and we can believe what we want, but the truth is most likely somewhere in between.....

My BEST to you all...
Art,

Very good post. Bottom line with this management is to watch what they do vs what they say. As far as this management being respected by the financial /investment community that says a lot. Pretty much everything that is wrong in the industry and for that matter this country is a result of one part or another of the financial industry.

Regards,

Bob
 
I don't meant to rehash this, but in effect, you are contradicting yourself here, which is cause for worry. In the first paragraph, you say that things are headed in the right direction". In the next paragraph above, you say that there is a "fundamental problem in the current pricing structure", which to me, says "DANGER!" going forward.

How can you say that things are headed in the right direction if, in fact, this thread was created to point out that the only way US (and now you've added other airlines) was profitable was from ancillary revenue?

I don't want to rehash it either. Operational reliability has improved markedly. Service is better than it was. For whatever reason, the airline had a profitable year, despite the fact that the profit was derived from ancillary revenue. My comments regarding this price structure do apply to most legacy airlines, by the way. The risk for ALL of them is to continue to rely on nickel and diming for profits. In the long term it is not sustainable. PLUS I fear that the price of oil is going to zoom in particular due to the unrest in Egypt right now, which could throw some short term curves at the industry as a whole.


I've searched your FT posts back to Jan 2010, since I thought I may have missed something, and I did not find one that criticized any other airlines Frequent Flyer Program devaluations, with the exception of US. You made slight references to CO, but nowhere near as passionate or as informative as you've been with US. I certainly may have missed some posts; maybe you can direct me to them via PM?

I have commented on DL and CO as well, although not with the frequency of commenting on US. The bulk of my other airline posts are on our FFOCUS board.

Fair enough. Management at US was disrespectful towards you. I don't doubt that.

Not so much disrespectful, dishonest and deceitful...while both are undesirable there is a difference.

You still didn't answer my question in my previous reply: Do you believe that US' lack of strong revenue generating hubs, as compared to other legacies, has any direct affect on what they can/ cannot offer? Doug Parker has put that revenue disparity between US and others at a pretty large percentage, as compared to DL/ AA/ UA. Do you believe that this revenue disadvantage is indeed smoke and mirrors to compensate for running an inferior airline with a substandard product, or do you truly believe that US can't offer everything the "big boys" can?

I can't address the hub revenue question as I haven't really considered it until now. I think they are offering a substandard product by design...the original intent was to be a "hybrid" carrier - a supposed LCC with legacy service--but we can all see they failed significantly at that. I think there is still an identity crisis at US-they can't decide whether they want to be a legacy or LCC--and they are doing neither very well at the moment.

Our surveys indicate that people are ticked off over fees--but in the case of our members, they are most bothered high level elites being charged for things like choice seats. All airlines charge fees, but NONE other than US charge their best customers for better coach seats, which do NOT offer the extra value of seats like E+.

Another question: Have executives at US flat out told you, to your face, that they do not "use revenue as a metric" when measuring customer loyalty? Revenue is not a consideration whatsoever? Troublesome, to say the least.

My conversation with Doug and the question I asked at the meeting has been stated previously. He a-didn't seem to be aware that Chairmans were being charged for choice seats, and b-when asked if he'd prefer the $15 he gets today over the $15K he might get over the year, he did say no.
That said, their programs, services, and attitude toward high yield customers counterindicates their supposed sensitivity to revenue per customer.
Both Doug and Scott have been quoted at town hall meetings that they intend to "go after" Chairmans' and other preferred members for more fees, and Scott once said that he didn't care that they were perceived as having an inferior product (namely the first product). Track record indicates that wherever possible they will step over dollars to pick up nickels, and that appears to be continuing.


I'lll agree here with the employee relations references, to a point.

I'll disagree with a complete blanket statement, such as they "didn't know what was going on", since they were, shockingly, able to keep US from closing it's doors during the unprecedented recession/ revenue drop off/ fuel sky rocketing year that was 2009. Hardly surprising that Choice Seats, plastic glassware (continued) , baggage fees (increased), charging for soda, etc, solidified themselves in that year. Was it all consumer/ Elite friendly? Clearly not. No argument there!

The "not knowing" comment had more to do with Doug not being aware that top level flyers were being charged for choice seats...he got ALOT of pushback at the meeting when he made that statement. As I said before, we are more or less resigned to bag fees, change fees, etc., but charging for soda and water was a mistake they admitted to (almost they only time they admitted to being wrong), and while they waive many fees for their highest level flyers, the choice seats issue will eventually need to be addressed....IF they eventually decide that 100K mile flyers are indeed important..



I have heard from countless Customer Service Agents that our version of SHARES is indeed weak, yet you make it sound like US' employees have their hands 100% tied behind their backs, and that may be true. I don't profess to know the system US uses. Still makes no sense to me on how we were able to raise our DOT complaint metrics in the last year, and if and when you find more information to support your accusations, please pass it along.

I would say they have their hands almost 100% tied behind their backs. It's often more important to close a flight 10 min prior to departure despite connecting customers inbound from late arrivals, and managers enforce that. It's impossible for agents to assign choice seats to ANYONE without charging, and I have heard of agents being dinged by their managers for giving out meal vouchers to misconnected customers when the vouchers were completely justified. I will repeat, what I saw this week in CLT reaffirmed my faith in the FRONT LINE folks, whom I have ALWAYS supported....part of my efforts with Tempe were to get them some tools to do their jobs...



Glad to hear it! It's a shame, but employees here, systemwide, have learned to do so much more with so much less than their counterparts. Here's looking forward to a successful 2011, with improved contracts for all, and improvements to service that positively affects our customers.

Agreed completely....

Thanks for the debate.
 

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