The real problem with LCC

May 9, 2004
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LCC is run by finance people (Kirby & Parker) not operational people. At US Air's best, Wolf was at the helm and as much of an arrogant prick he was, he knew how to operate an airline. Airlines need to be run by operations guys to have a chance to survive, not marketing (ala branson) or finance guys.

An Airline is operating entity, not like a bank which is mostly service. You wont see an operations guy running an investment bank, why have two clowns running a freakin airline who really don't know jackshite about operations?

Hopefully the rumor is true, and DP will be just another black eye on the face of LCC, just another robber barron CEO who raped countless millions from USAir cofferrs then split like paul bunyan.
 
LCC is run by finance people (Kirby & Parker) not operational people. At US Air's best, Wolf was at the helm and as much of an arrogant prick he was, he knew how to operate an airline. Airlines need to be run by operations guys to have a chance to survive, not marketing (ala branson) or finance guys.

An Airline is operating entity, not like a bank which is mostly service. You wont see an operations guy running an investment bank, why have two clowns running a freakin airline who really don't know jackshite about operations?

Hopefully the rumor is true, and DP will be just another black eye on the face of LCC, just another robber barron CEO who raped countless millions from USAir cofferrs then split like paul bunyan.

I am sending him my email responses from Customer Relations. I hope he is around long enough to read them.
 
Usairbegins,

I agree with you but there is more to it. You are right that the finance guys are in charge--which is at best dangerous. With little or no operational knowledge they delegate that part of it to others, who may or may not know what they are doing. BUT being money guys means that even assuming the operations managers ARE competent (which we are not sure about in the new US??) they may not get the money to do the job right. The airline is losing elite flyers at a record pace...why? It started off being that they couldn't compete with the other major airlines in product and service....then the reliability of the operation and customer service hit bottom, and customer relations was no more than complaint resolution. All the vouchers and press releases on how the performance was over the recent holiday won't fix the inherent operational problems, which to the best of our knowledge are still being ignored.

The fundamental issue, and the MAIN cause for the current state of the airline, is the priorities of current management, which relate directly to your theory. It is a generally acknowledged principle that in order to have a successful business (not just airline), you need to prioritize as follows:

1. Employees--give them the tools they need to do their jobs quickly and efficiently, and to resolve issues as they arise...basically ENABLE them to take care of the customer.

2. Customers--if you take care of 1, you have a much easier time of handling 2--it is much less expensive to keep customers you already have than to get new ones...but as we know US is currently doing NEITHER very well.

3. Shareholders (and by extension management)--take care of 1 and 2 and 3 takes care of itself. It's a PROVEN fact.

Unfortunately, the current team thinks that only number 3 matters and the first two are liabilities, rather than assets. Until there is a paradigm shift in this fundamental belief, I don't think this company has any chance of long term success.

When the yields (and loads) begin to plummet, and I DO believe they will, perhaps they will see the light, but I don't think so.

The new program of selling Elite Status shows that they just want the money--things like this add revenue, but hide the real issue--they do NOT know how to run an airline of the size of the new US Airways. It is my understanding that one can now PURCHASE Chairmans status, or even the new Executive Status....at best a mistake, at worst a disaster waiting to happen. Nothing like ticking off the best customers, who have EARNED those privileges.

There are hundreds, if not thousands of people like me, who used to provide tens of thousands of revenue per year to US, who have just given up and moved on. I have spent over $20K in air over the last few months, and not one penny went to US. I let my club membership expre, and am in the process of cancelling my Bank of America VISA. Until things change, and US realizes that customers and employees are a critical part in the formula, they will not see a dollar of revenue from me.

That said, my biggest wish would be to see positive change and an incentive to come back--but then again, most of the people I was so close to at US and who are the reason I stayed around as long as I did are also gone....sad indeed.

As stated in the other thread, from the mouths of US management themselves, we get a glimpse of how they really feel. They are good at spin, but not substance. All the press releases in the world don't fix the fundamental problems--which continue to be ignored.

It's time for Tempe to see the light......and for now I'd be glad to hold the flashlight, but the batteries are running down.......

My best to you all........
 
BRAVO ART !!!!!!!

Very well stated, unfortunately the sandcastle can't comprehend what you just wrote so let me explain it so it is easier understood by "TEMPE".

OK TEMPE ARE YOU LISTENING?

1 + 2 = 3
 
Art, if you think about it, the people to whom they are peddling status-for-purchase are most likely the elites (or former elites, or soon-to-be-non-elites) who have already found greener pastures and elysian fields elsewhere. I highly doubt most of these people will do anything more than delete the e-mail while cursing under their breath.

The only people I can see purchasing elite status or "buying up" are the people who may have lost or dropped their status due to a change in job/travel patterns (but not airlines), but who will perhaps be traveling more in '08 and thus would benefit from a juiced up elite level. I think this faction makes up a very small percentage of the pool of elites who will not be re-qualifying, or will be re-qualifying at a lower level. So....you are absolutely correct that they are trying to treat the symptoms instead of curing the disease.
 
Bravo! That sums it up pretty good.

As long as people keep buying tickets to fly on us, there is no problem with the customer.
As long as the employees keep working here, there is no problem with employees.

Its much easier to skip 1 and 2 and go right to 3.

wopr21
 
The company has recently added new "executive service managers". They are essentially cold calling elite/frmr elites etc and offering them status for cash. Not just status but super status above those elites who have actually earned it by flying and spending money. To the vp's in Tempe it is all about the money. However this approach is extremely short sighted. Based on what we presently offer versus the competition they might get someone to pay once but it is doubtful they would do it twice. I guess they figure that there will always be another group of suckers out there.
 
You guys should get in touch with the Wharton School of Business, they could learn a ton from your cutting edge insight!
 
LCC is run by finance people (Kirby & Parker) not operational people. At US Air's best, Wolf was at the helm and as much of an arrogant prick he was, he knew how to operate an airline. Airlines need to be run by operations guys to have a chance to survive, not marketing (ala branson) or finance guys.

An Airline is operating entity, not like a bank which is mostly service. You wont see an operations guy running an investment bank, why have two clowns running a freakin airline who really don't know jackshite about operations?

Hopefully the rumor is true, and DP will be just another black eye on the face of LCC, just another robber barron CEO who raped countless millions from USAir cofferrs then split like paul bunyan.

An airline is driven by marketing... it's the sizzle, not the steak that you buy.
 
The company has recently added new "executive service managers". They are essentially cold calling elite/frmr elites etc and offering them status for cash. Not just status but super status above those elites who have actually earned it by flying and spending money. To the vp's in Tempe it is all about the money. However this approach is extremely short sighted. Based on what we presently offer versus the competition they might get someone to pay once but it is doubtful they would do it twice. I guess they figure that there will always be another group of suckers out there.


Oh, God. Yet another layer of management. These Tempe whack-jobs couldn't figure out cheap if it lived in a birdcage.
 
I keep hearing how great Wolf was at running an airline but remain boggled. When Wolf was at the controls he certainly had great vision and created the airline he wanted.....TO SELL. People, Wolf didn't make for a great environment whatsoever. When Wolf and the rest of senior management at Usairways were involved with the merger with United this place was not managed at all. We had no direction, vision and were headed down a dark path. He screwed this place over and am amazed to this day how he never found his A$$ in jail. There was no Plan B remember that one? Yeah he sure left a legacy. :rolleyes: As for Rakesh he was more of a people person but was under Wolf's thumb.
 
I keep hearing how great Wolf was at running an airline but remain boggled. When Wolf was at the controls he certainly had great vision and created the airline he wanted.....TO SELL. People, Wolf didn't make for a great environment whatsoever. When Wolf and the rest of senior management at Usairways were involved with the merger with United this place was not managed at all. We had no direction, vision and were headed down a dark path. He screwed this place over and am amazed to this day how he never found his A$$ in jail. There was no Plan B remember that one? Yeah he sure left a legacy. :rolleyes: As for Rakesh he was more of a people person but was under Wolf's thumb.


The team, Wolf and Rakesh were hired to sell USAir. They had a line on 120 cheap narrow-body airbusi( and other never intended to be exercised options - though it worked great to convince gullible pilots) that Air France could not take delivery on (guess where W & R) came from.

When the EU got sued, all consolidation temporarily fell apart. Wolf stayed true to his charge and Rakesh split, saying, hey, we got a great airline here to make a go of, leading to the W split with R.

ALPA did not want US to survive, hence the constant concessions. The lure of commuter dues proved irresistible and, well, here we are.

Vote for ALPA and accept oblivion. Vote USAPA and at least make ALPA work for a living, for once.
 

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