Agree 100%! I think that outside of consolidation, our prospects are limited. We could offer the best product in the free world, and I believe our revenue opportunities would still be limited as opposed to the other majors.
Interesting read from LK at CO about where his airline is heading:
http://www.chron.com/disp/story.mpl/front/6326245.html
I realize this is the US board, but these two paragraphs struck me as interesting:
Even in situations where a competitor’s fare cost was actually higher once the bag fee was added, travel Web sites and reservation services often wouldn’t reflect that, he said. Continental’s fares would appear more expensive to customers, even if the final cost was lower, and Kellner said resisting the fee didn’t seem to draw passengers.
“After about four months, we were picking up zero market share by not having a fee,†Kellner said. Continental’s first-bag fee took effect last September
LK says the fares
appear higher, and the majority of people were simply choosing the cheaper option. With all the talk of elites defecting to CO on here, I am truly surprised that CO has not gained market share. Also, with respect to the "kettles", doesn't this show that amenities like free food in Y and PTV's in every seat do not allow CO to charge a fare premium? The majority of travelers enjoy these amenities immensely, but are unwilling to pay extra for them.
At least Larry Kellner is honest in what he's saying...as opposed to Scotty boy who said he sees the market "stabilizing". The fact is that Larry has credibility--with employees and customers. US management has NONE.
Regarding Larry's observation of zero market share improvement, and the obvious bias of the off brand booking engines, I have to agree completely. Had the booking engines like Orbitz, Travelocity, etc. been forced to include the baggage and other likely fees to their price quotes, I am sure CO would have picked up market share. To me this sounds a bit like false advertising, and I think it is incumbent on the groups who control these engines to level the playing field.
Unfortunately, there is a place for alacarte pricing in the airline world today--and I do not see it going away anytime soon. That said, where US crossed the line was the beverage fees, which they had to rescind. I think if one had access to the true numbers, you would find that many US elites are gone (enough for even a blind executive to notice), and I do think they are finally worried. Perhaps the kettles won't carry the company after all....
However, as Van has said, to me, absent a nonstop flight option, to me it's the value--which includes not only price, but product, service, and reliability. If I am going to travel, especially on a trip with connections, I need to know that in the event of an irregular operation, someone has my back. I need to know that if there is a complaint filed, the appropriate management team will address the root cause of the problem, not just throw vouchers at me to get me to shut up and go away. Unfortunately, this is as yet not the case with US.
Last week I had a connection in IAH...admittedly short at 48 minutes scheduled. Our inbound was held up by ATC and we held for a while, and eventually got to the gate about 35 minutes late, leaving me approximately 12 minutes to get from the first flight to the second. Now this was IAH, where NOTHING is really close--so as close as C-24 SOUNDS to C-29, they are really just about on the opposite ends of the airport.
I literally RAN to the connecting gate, taking every bit of 14 minutes....schedule minus 1. There were people at the counter, and an agent there was shaking her head no--so I expected the worst. Instead, I went to the boarding scanner, and the agent asked if I was Art, to which i said yes, and he said, "we were waiting for you". I do not imagine the experience would have been similar on US.
As to the hubs, I was witness to what Larry said about Newark--that it keeps him up at night. BUT, while every airline has its highs and lows, CO provides a level of consistency not present at other carriers...I can count on them to be honest when something goes wrong, and to do the right thing in the event of irregular ops.
Talking about value--tomorrow's trip is on WN--to BNA. Unrestricted, Business Select ticket for about half of what the "majors" were asking---so go figure.
My BEST to you all.
