US Airways is expected to report the second-biggest loss among domestic carriers
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http://www.centreforaviation.com/news/2011/04/27/us-airways-joins-peers-in-1q-loss-consolidation-a-long-time-from-now---ceo/page1
Of course the airline, which does not hedge, cited fuel for its first quarter performance, adding if fuel expenses had remained flat year-on-year, fuel would have been USD240 million lower. CEO Doug Parker said fuel was now the largest item in operating costs as fuel rose 33% year on year on a price-per-gallon basis. It now represents one third of the company’s USD3 billion in total operating expenses.
Mr Parker, echoed his CEO peers in reporting strong demand continuing even as unit revenues jumped 8%. He also noted a year-on-year decline in mainline non-fuel unit costs.
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Under current Obama administration policies ...... look for fuel and energy prices to go higher. Drilling upsets lizards and deer, US tax dollars to encourage offshore exploration are fine sent to Brazil but not Virginia. Coal is to dirty. Oil company's are "big bad business" and support Republicans. Over time this path kills hundreds of thousands of jobs. One might be yours?
WorldTraveler
Corn Field
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correct, Jim.
Note also that DL is SHRINKING its regional carrier operations while adding capacity to the domestic MAINLINE system.... and hiring new DL employees to fly the more efficient MAINLINE aircraft it is buying, even if they are largely used M90s.
The CRJ200 will be increasingly difficult to keep around given high fuel prices... but it also plays a key role in maintaining many cities in the network, something that is alot harder to do with US' hubs which are not as larger as other carriers. Remember that part of what DL has done is eliminate a lot of hub capacity that was built on RJs and consolidating service to smaller cities to fewer hubs using larger aircraft.
don't worry... the American people will get tired of higher and higher fuel prices and answers that obviously don't translate into solving the problem.... the 2012 election system will kick off in just a few months...
gabby
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Ever wonder why west Virginia voted democrat? George bush was a oil man not interested in coal.
A's for the inefficiencies of the 50 seaters....Kirby said that they are easier to adjust pricing with because the markets are smaller and there is less competition. Us airways is a regional airline with some select routes that aren't. I would love to see 737's flying into koaj or kfay or kewn. But the cities cannot support them.
BoeingBoy
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wings396
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I have often wondered the same thing. Lots of small stations saw the 727's and 737's, and they put plenty of passengers and cargo on them. Now we fly 50 seat RJ's into these markets, and have trouble filling them. I guess that everyone picked up and moved to the "Big Cities".....
WorldTraveler
Corn Field
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Many of those cities now have more seats on more flights... the RJ helped to create frequency and pricing power for airlines which are necessary because at the same time RJs allowed specific regions which were controlled by one or two airlines to be viable for multiple airlines including from non-traditional hubs for a region.
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Part of the promise of the latest round of mega-mergers was to allow DL and UA to become more efficient on their domestic networks as a result of more efficient service to medium and small cities. DL was first in the mega-mergers and they combined DL and NW's traditionally strong regional strengths to increase efficiencies in a number of small and medium sized cities.
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Parker is right when he says that US could benefit from a merger because it would create some of the economies of scale and market dominance that US needs in its domestic network.
Mainline aircraft are often more cost effective than smaller regional jets and they also have the benefit of helping the mainline airline grow which helps keep costs down and makes labor happy.
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Perhaps someday some of those traditionally strong US cities on the east coast esp. will see mainline US service again.
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Part of the promise of the latest round of mega-mergers was to allow DL and UA to become more efficient on their domestic networks as a result of more efficient service to medium and small cities. DL was first in the mega-mergers and they combined DL and NW's traditionally strong regional strengths to increase efficiencies in a number of small and medium sized cities.
.
Parker is right when he says that US could benefit from a merger because it would create some of the economies of scale and market dominance that US needs in its domestic network.
Mainline aircraft are often more cost effective than smaller regional jets and they also have the benefit of helping the mainline airline grow which helps keep costs down and makes labor happy.
.
Perhaps someday some of those traditionally strong US cities on the east coast esp. will see mainline US service again.
It is call regulation
And the CAB having the authority for the routes airlines run, and the fares they were allowed to charge.
BoeingBoy
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The 727/100 didn’t fly into OAJ FAY EWN pre deregulation
I seam to remember it did at lest fly in to one of those city's
gabby
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- Jul 24, 2006
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The 727-100 was a 94 pax airplane. So mesa flying the 900's into FAY is about the same thing.
The average fare for a domestic ticket in the year 2000 was $336.66 and in 2010 was $339.21 an increase of .91%
Anyone else see the real issue here?
The average fare in Charlotte in 1993 was $359.97 and in 2010 it was $357.94
BoeingBoy
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You're the one that said flying big metal into those cities was called regulation, John John.
FAY was regularly on the 727-200 - that's 151 seats before they put FC in - and OAJ was not rare.
Jim
wings396
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I agree with Jim. The 727's went thru just about every station that PI served prior to deregulation as well as after it came about. At that time PI didn't have anything that operated as express, with the only prop a/c being the YS-11. Prior to the 727-200 entering the fleet, there were only about 6 of the 100's on the property.
WHY?
