Agreed, UAL777flyer. That's the inherent problem with a large airline in bankruptcy...they drive down the revenue streams for everyone else as well.
Their number one priority is cash-on-hand, and the easiest way to generate an infusion of money right now is to offer deep discounts on fares. So the carrier deeply cuts fares in an attempt to stimulate sales and cash-on-hand. They don't have to worry about actually carrying those customers until whenever they're ticketed for, yet they get the money up-front.
Since the bankrupt carrier has drastically cut fares, their competitors will match to avoid losing business. This means a smaller amount of money for everyone, making this a lose-lose proposition.
On 9/17/2002 3:29:46 PM UAL777flyer wrote:
Sounds like cash grab to me.
Perhaps there's even more to it than a Bankruptcy 101 cash grab.
Could it be that the use-it-or-lose-it factor is having a noticeably negative effect on bookings? Two consequences I forsee to airlines who have decided to go with use-it-or-lose-it:
1) Will cause a revenue drain at least equal to, and probably much greater than, the so-called security hassle loss of revenue being cited by the likes of Leo Mullin and Gordon Bethune. Call it revenue loss due to the unacceptable risk factor. Wonder who Leo and Gordie will try to blame it on?
2) Yield will be weakened still further. Due to the risk inherent in use-it-or-lose-it, customers will hold out for even lower fares before taking the use-it-or-lose-it risk; and there will be no offsetting increase in the number of customers willing to be gouged for outrageous flexible fares.
[BLOCKQUOTE][BR]----------------[BR]On 9/17/2002 2:04:19 PM chipmunn wrote:
[P]This action will put a strain on non-bankrupt airline revenues.[BR][BR]Chip[/P]
[P]This action will do nothing more than strengthen the resolve of the carriers attempting to put U out of its misery.[/P][/BLOCKQUOTE]
On 9/19/2002 1:05:42 AM Res wrote:
whatever the motive it's working ...we have been slammed....which is a good thing by the way....
New interline etkt/upgrade classes going on this week might account for this also.