Ted---another Mistake

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opsmgmt

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Nov 17, 2003
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So in previous post the reactions are mixed but most want this TED to do well. But has anyone really sat down to think about it? Evidently there is something missing in the whole loop.
1. Low fairs
those are fine as long as everything else that comes with running an airline is low cost.
2. Who is going to flying the airbus? UA pilots, who even though they took a pay cut still are not lcc type of pay pilots.
3. What ramp rats are going to work the flights? UA ramp rats, still higher cost than WN, F9 and the rest of the lcc
4. what galley hags are going to be dishing out they bad service? the same high cost ones that are working now.
5. who is checking in the pax? who is taking their res on the phone? who is dispatching the flights? who is doing the crew sched? who is doing the crew allocation every month? who are their managers going to be?

Hello people, you all need to wake up, CO lite, DL express, and even The Shuttle by UA is proof that you can just throw 40 planes on routes and say here is our low cost carrier. Why have all the other airline in an airline failed? You might as well change the entire policy of the main line. Dump the fairs to rock bottom prices, keep paying people the high wages that way you will end in chp 7 quicker and with less pain.

Take the words of Richard Anderson, CEO of NW, every major airline in this country except UA, would have posted anywhere from 50 - 100 million more per airline in profits if their labor cost where the same as Southwest or Jetblues.

So explain to me how flying they same planes with the same crews, the same mgmt, the same work groups doing the same work is going to make UA or even TED profitable? It just cant be done.

And dont start the spam about me being negative, a nay sayer, and just a bad person. I am not, I am just looking for the HONEST, correct answers. This little adventure is something to get the employees spirits lifted, it wont work, it will die a slow.......drawn out death.
 
You're new, so I'll be nice...
Just who the he11 do you thik you are refering to UAL's professional F/A's as "galley hags"?
UAL (along with pretty much everybody else) is ALREADY a Low fair carrier.
The routes UAL chose, where chosen for a REASON, they all had very LITTLE "premium" (First class) passengers.
UAL added 18 seats per jet. Do the math, that alone lowers CASM by approx 15% for those seats.
UAL posted an operating profit while in BK with the new pay rates and work rules. UAL even took back (YOY) pacific market share from NWA (despite being in BK).
It takes 2 FRNT pilots to fly one 132 seat A319 (or 114 seat A318)
It takes two UAL pilots to fly one 156 A320 (that actually has MORE legroom...)
UAL's FF program is far superior
The additional revenue base more than outweighs the higher UAL wages.
 
Busdriver, we've all been sidestepping Ted's real purpose. That is, simply, to put the hurt on Frontier while trying to not appear predatory. Frontier made significant tactical blunders during this downturn; they chose to rapidly expand and steal UAL's market share. They could get away with it when UAL was severely wounded and on life support.
Now that the economy is showing signs of improvement, you can bet the TED will be flying on many of Frontier's routes. At lower prices.
This will continue until Frontier shrinks its market share back to or below what it was pre-911.
Frontier really crossed over the line when they pushed to get additional A concourse gates from UAL. That management maneuver may have ticked off UAL management enough to put enough hurt on Frontier that Frontier will WANT to surrender the 3 gates that they stole from UAL.
If Frontier III's not careful, they could easily go the way of Frontier I and II.

So, opsmgmt, it's not always about making immediate money. It's about ensuring market share, protecting your turf, and ensuring long term profitability.

And FWIW, I wouldn't be surprised to see TED go gunning for JetBlew. Song is already planning transcons; it could easily turn into a matter of all of the majors piling on until JetBlew becomes another name in aviation history.
 
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