The Changes to Come

[N965VJ]

Wow.

 

[BuffaloJoe]

"US Airways Accelerates Business Model Transformation..."

http://biz.yahoo.com/bw/080612/20080612006180.html?.v=1

That's smart, cancel 2 leases of A330's. International is the money maker for US. They would be better off retiring 2 767's and put A330's on those routes. I am quite sure the higher lease rates would easily be absorbed by fuel costs. What losers Parker and Kirby are! :down:

 

[GorgeousGeorge]

That's smart, cancel 2 leases of A330's. International is the money maker for US. They would be better off retiring 2 767's and put A330's on those routes. I am quite sure the higher lease rates would easily be absorbed by fuel costs. What losers Parker and Kirby are! :down:

Of the 5 A330's coming in 2009, 2 were former Swiss Air and the other 3 new aircraft. It was the two Swiss Air air craft that the leases have been sold.

 

[jimcfs]

Here's what I've found as the key points (from the FF point of view) on the first pass.... :down:

- charging for non-alcoholic bev's ($2) and increasing in alcoholic bev's (+$2 to $7) effective Aug. 1. Shuttle and FC/Envoy still complementary.
- RDU and BWI clubs to close, arrival lounges in some European locations close
- $15 first checked bag fee EXCEPT for elite and military
- cuts in LAS flights
- ALL award tickets subject to a minimum $25 "award redemption fee" beginning Aug 6
- no more elite bonus miles... "US Airways is also eliminating its bonus miles program for Preferred status Dividend Miles members. Preferred members currently receive mileage bonuses based on their status level. The Preferred bonus program will be discontinued for tickets purchased on/after Aug. 6, 2008."

 

[BuffaloJoe]

Of the 5 A330's coming in 2009, 2 were former Swiss Air and the other 3 new aircraft. It was the two Swiss Air air craft that the leases have been sold.

Still more fuel efficient than the 767's. The costs of the leases should be made up there, plus having more a common fleet. What are they going to do when PVG comes up in 2010? Still its the Int'l growth that they need to continue. That is where the money is at, why tie your hands by not getting any widebodies? Just doesn't make sense.

 

[hp_fa]

For $2.00 do you get the whole can, or are they planning on pouring and getting two drinks per can?

 

[BuffaloJoe]

For $2.00 do you get the whole can, or are they planning on pouring and getting two drinks per can?

Probably those 3-liter plastic bottles of Coke they sold in the 1980's! Carbonation ran out 10 years ago.

 

[mrman]

This is another nail in the coffin. I feel for the employees

Your competitions response is the following full page Wall Stree Journal add:

http://home.sprintmail.com/~beckley/SouthwestCoupon.pdf

 

[hp_fa]

I like that ad and believe the rest of the industry deserves it.

Let's think about this for a second. While the rest of the industry was paying it's executives and managers relatively large sums, especially considering their performance, to essentially force wages lower and get employees in a tither, Southwest was keeping it's employees much happier and following a well though out business plan. While other airlines were falling all over themselves to go through bankruptcy restructuring and dumping employees, suppliers and lessors contracts, Southwest was keeping their credit rating very high and using that leverage to purchase fuel hedging contracts.

Is it any wonder that Southwest is now telling the public that the rest of the industry is "#$*!%" (Southwest's term from the ad) them over and has been for years with flawed business plans from even further flawed executives?

 

[zethya]

IMO, this could potentially be a Fatal mistake:
- no more elite bonus miles... "US Airways is also eliminating its bonus miles program for Preferred status Dividend Miles members. Preferred members currently receive mileage bonuses based on their status level. The Preferred bonus program will be discontinued for tickets purchased on/after Aug. 6, 2008." I do hope they rethink this before the stock is hopelessly destroyed.

I do not understand how they plan to increase International ASMs by an average of about 5% in Qtr 4 and FY08, without additional widebodies, unless they are assuming the majority will be Caribbean. The cancellation of the 2 to be leased Swiss aircraft, which I believe were originally for PHL-TLV and then, with very poor advice (IMO), diverted to the now postponed PHL-PEK route, won't be a signficant show stopper. However if they are planning on also delaying delivery of any 2009 332 orders (ref: "The airline is also planning to reduce additional aircraft in 2009 and 2010), I cannot see how their stated international growth plan is achievable.

 

[UPNAWAY]

Still more fuel efficient than the 767's. The costs of the leases should be made up there, plus having more a common fleet. What are they going to do when PVG comes up in 2010? Still its the Int'l growth that they need to continue. That is where the money is at, why tie your hands by not getting any widebodies? Just doesn't make sense.

Yes it does there is a large cash outlay to take possesion and they would rather not be commited to that now, cash is king.

 

[700UW]

The two are lease cancellations, not plane purchases, big difference.

And I bet they had to pay a penalty to ILFC.

 

[signals]

I like that ad and believe the rest of the industry deserves it.

Let's think about this for a second. While the rest of the industry was paying it's executives and managers relatively large sums, especially considering their performance, to essentially force wages lower and get employees in a tither, Southwest was keeping it's employees much happier and following a well though out business plan. While other airlines were falling all over themselves to go through bankruptcy restructuring and dumping employees, suppliers and lessors contracts, Southwest was keeping their credit rating very high and using that leverage to purchase fuel hedging contracts.

Is it any wonder that Southwest is now telling the public that the rest of the industry is "#$*!%" (Southwest's term from the ad) them over and has been for years with flawed business plans from even further flawed executives?

I've seen the dr. LUV ads, but are they really what they seem? Perhaps we won't know immediately, and the end result may not be seen until about 2009, but it will justify the means. Since I don't know WN, I have to ask those who fly it frequently, has LUV increased FARES in any way, shape or form? Even by a few seemingly affordable dollars. Many car dealers tell you they give you great deals and are better than others, but in the end they are ALL the same.

If WN raises fares, it means it is giving the ILLUSION of a deal, when in reality it is charging for future revenue. If you charge everybody for what a few use, you can make it look like a deal. I know I don't know anything about your cut-throat industry, but I do work in Corporate America. The model for mom, apple pie, and back-stabbing at its best.

 

[Art at ISP]

This announcement proves that they have no clue. And again, while they spared the Preferred DM members some pain (baggage charges), they are killing their recovery and inviting the rest of their Preferred Members to leave by slapping them in the face by cancelling the mileage bonuses for Elite Levels.

Why don't they just close the doors now?

Or better yet.....R A T I O N A L I Z E F A R E S...........

This is a new low for nickel and diming, and I bet they have not figured the cost of collection of these fees, and the errors and confusion it will cause.

They just took AA's mistake and made it 10 times worse!!!

I'll tell you what. If I were a customer of US I would refuse to pay ANY new fees until Dougie and Scottie forego their compensation for the rest of the year.


They really ARE trying to kill this airline.

I am not opposed to SOME of the fees, but they went too far.

 

[Furloughd4now]

I've seen the dr. LUV ads, but are they really what they seem. Perhaps we won't know immediately, and the end result may not be seen until about 2009, but it will justify the means. Since I don't know WN, I have to ask those who fly it frequently, has LUV increased FARES in any way, shape or form? Even by a few seemingly affordable dollars. Many car dealers tell you they give you great deals and are better than others, but in the end they are ALL the same.

If WN raises fares, it means it is giving the ILLUSION of a deal, when in reality it is charging for future revenue. If you charge everybody for what a few use, you can make it look like a deal. I know I don't know anything about your cut-throat industry, but I do work in Corporate America. The model for mom, apple pie, and back-stabbing at its best.

I played today and on June 18 for 5 days you can fly on US for $250 +/- RT NYC/FLL! LUV wanted $348 EACH WAY from Islip.... So yea, they don't charge for yadda this and yadda that, but they ARE charging a higher fare (NYC to FLL is a hugh competitive market). I also researched some other long haul cities and they are higher.

Also consider this ... the only way to check a SWA fare is to go to their webstie. Whereas Travelocity, Orbitz, et al, show most if not all the other airlines (the ones that subscribe to it). I'm speculating that we insist on keeping the fares lower so we get the most attractive idiots to buy our tickets (all those "other" charges for bags, etc, are not included in the total costs, so the initial cost is quite cheap. Makes sense, but I still don't like it when my brothers and sistas (myself included!) may be out of job, because of that stupid scenario.