Us Airways Ceo Aims To Finish Labor Negotiations

[funguy2]

Sorry. Poorly worded on my part. Star touts itself as an alliance for the global traveller. What I should have said is that US Airways can fly you non-stop from its main hub in PHL to SOMEWHERE that will allow you to connect to the Star partner of your choice. ANY Star partner.

In addition to its hubs, many of the larger non-hub cities US serves are also serviced by Star carriers. So the business traveller based in BOS and who normally flies the Shuttle to DC can now earn miles on his LH flights from BOS-FRA-CPT.

While that is true, that is uncompetitive on many routings...

BUF-PHL-MIA-GRU (Sao Paulo, Brazil) on US Airways/Varig or BUF-ATL-GRU on Delta?

BDL-PHL-LAX-NRT on US Airways/ANA or BDL-DTW-NRT on Northwest?

CMH-PHL-EWR-CPH on US Airways/SAS or CMH-ORD-CPH on United/SAS?

RDU-PHL-FRA-MUC on US Airways/Lufthansa or RDU-ATL-MUC on Delta?

See... that's my point... US Airways, even in Star, requires an extra stop for many markets that are better served one-stop by competitors, and even within the alliance.

So if US Airways is to enhance coverage to the Eastern USA and Caribbean for Star... exactly how does that work? If its a two-stop coverage, it may be uncompetitive relative to other networks.

I do agree that it will help create and use miles, and will help keep people loyal to US Airways by keeping them loyal to Star... But US Airways only profits when more people get on US Airways metal... And I see a lot of ways to bypass that.

 

[Tim Nelson]

Don't count on the IAM being there. There are no plans as of 4PM today to even meet with the company.

See you in court.

In my conversations, I would have to say that perhaps over 90% of IAM members agree with your opinion and I think the IAM knows of this support also and that is why they aren't aparently taking the stance that ALPA has on yet a 3rd round of concessions to bail management out.

regards,

 

[geo1004]

While that is true, that is uncompetitive on many routings...

BUF-PHL-MIA-GRU (Sao Paulo, Brazil) on US Airways/Varig or BUF-ATL-GRU on Delta?

BDL-PHL-LAX-NRT on US Airways/ANA or BDL-DTW-NRT on Northwest?

CMH-PHL-EWR-CPH on US Airways/SAS or CMH-ORD-CPH on United/SAS?

RDU-PHL-FRA-MUC on US Airways/Lufthansa or RDU-ATL-MUC on Delta?

See... that's my point... US Airways, even in Star, requires an extra stop for many markets...

To some degree this is true. Star, however, is more interested in connecting major business centers. Note that each of your scenarios have a destination of a major city. The reverse issue certainly applies to to passengers in Nagasaki, Stuttgart, Florence, Brisbane or Zagreb - they too will need multiple connections to get to their major destination in the USA. These global alliances are quite honestly less concerned with places like CMH and BDL and more concerned with major cities like BOS, NYC, PHL, DC, MIA. US is a major player in those markets and MUST offer this functionality.

Also note that in your scenarios there is not one single airline that offers a better set of connections just that in some scenarios, better options can be found. However, I do wonder why you would not route your hypothetical RDU passenger RDU-CLT-MUC (LH has non-stop service CLT-MUC on a nice comfy Airbus)???

 

[funguy2]

geo1004:

I guess I didn't realize that LH flew CLT-MUC!

I understand your point about connecting major biz centers too... US Airways entrance into Star will give Star members better access to VFF's in major USA markets, like BOS, NYC, PHL, and DC, and it gives US some improved access to VFF's in FRA, NRT, LHR/LGW, and others, this only creates a bigger Frequent Flyer program (more opportunities for DM members to use their miles on other airlines and vice versa). US Airways profits from this relationship when it puts more people on US Airways metal (at relatively higher fares). Will the PHL guy who flies to Moscow on LH fly US Airways any more/less because of Star? Probably not (in the short term). Will US Airways access to ANA pax in NRT put some folks on a NRT-LAX-CLT routing? Probably. But it is just as likely that they will fly a UA or ANA/UA routing.

All I want to see is this: Is US Airways just going to be a part of this alliance and take the pax it is given? Or will US Airways develop a strategy to maximize the pax generated from the alliance?

 

[ITRADE]

geo1004:

I guess I didn't realize that LH flew CLT-MUC!

I understand your point about connecting major biz centers too... US Airways entrance into Star will give Star members better access to VFF's in major USA markets, like BOS, NYC, PHL, and DC, and it gives US some improved access to VFF's in FRA, NRT, LHR/LGW, and others, this only creates a bigger Frequent Flyer program (more opportunities for DM members to use their miles on other airlines and vice versa). US Airways profits from this relationship when it puts more people on US Airways metal (at relatively higher fares). Will the PHL guy who flies to Moscow on LH fly US Airways any more/less because of Star? Probably not (in the short term). Will US Airways access to ANA pax in NRT put some folks on a NRT-LAX-CLT routing? Probably. But it is just as likely that they will fly a UA or ANA/UA routing.

All I want to see is this: Is US Airways just going to be a part of this alliance and take the pax it is given? Or will US Airways develop a strategy to maximize the pax generated from the alliance?

Don't take the perspective of Star from only the US Airways vantage.

As GEO mentioned, you have to consider that others (Europeans, west coasters) are more likely to take US now that they're in Star.

I've pointed this example out several times. In my office we've got primarily US and UA flyers. My office had two major projects last year - one in Thailand/China and one in France. Universally, the office folks took UA/US/Thai to China/Thailand and took UA/US to France.

Had there not been a US/UA hook up, we would have only have taken UA to France and would likely have taken AA/JAL/Cathay to Asia.

All these trips were full fare business class fares worth about $100,000 by the end of the year.