What has the company done to increase revenue?

REACC1

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Aug 20, 2002
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With the question posed about cutting expenses, what are they doing to increase revenue? With their god given talent, is it possible? A lot has been taken away, but what has been done to increase value to the customer and draw them to U?
 
Dec 21, 2002
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www.usaviation.com
[blockquote]
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On 12/28/2002 9:24:26 AM PineyBob wrote:

I humbly await your no guts non response! Perhaps Chip would like to offer his thoughts since he is often accused of being the "Oracle of Management"


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Chip is 90 percent copy 'n' paste..10pct repeat rhetoric.
The company has done absolutely nothing to increase revenue,they have destroyed consumer confidence in what was once a great product, are nickel and diming the passenger to death with exorbitant reticketing fees and policies with a fare structure understood only by a Martian,if that, and all the while blaming and subsequently chopping labor for all its agony and not looking at changes in the business model to improve the state of the company. With the Pentagon ordering 25k troops to Persian Gulf today, things couldn't look more dismal, and another excuse to stick it in the backside to labor again. For these reasons and others, I remain severed 'n' happy.
 

Martek85

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Aug 28, 2002
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www.usaviation.com
I lost a big sale last night IAH-PIT. Nonstops all sold out for dates requested. Conx via CLT to PIT as well. US fares do not permit routing via PHL, but they do permit 2 conx IAH-CLT-GSO-PIT ???? On the flip side US publishes fares ORD-PHL-LAX. 678 miles east to go westbound???? Scratching my head and having customer laughing as he said he'll call Delta.
 

TomBascom

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Aug 20, 2002
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To answer the question:

1) No favors, waivers or exceptions. This is expected to increase revenue through the collection of at least one $100 fee on every passenger trip. Customers will be very understanding of the "logic" behind these fees and recognize that they are, after all, simply good business.

2) The creation of the new $100 junk fee for standby. The hordes of customers who stand by every day will happily pay this fee resulting in millions per day of additional revenue.

3) Pay toilets are scheduled to be installed as aircraft come in for heavy maintenance. It is unfortunate that this program has been delayed while cockpit doors are reinforced but the government is expected to reimburse the airline for the lost revenue that this federal mandate has caused.

4) "Fly in to Spring" and "Go West" fare sales offering seats at deep discounts and with heavy restrictions months in advance in order to protect the junk fee revenue to be collected as customers need to make unforseen adjustments to their itineraries while schedules and services are being cut.

(Customers just love this stuff. They ask for it in survey after survey. Nobody is really sure why SWA hasn't caught on to it yet but US Airways will be laughing all the way to the bank...)
 

cubfan02us

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Sep 10, 2002
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I was thinking about that old story about the
frog and boiling water.Drop the frog in hot water
and he'll jump out.Slip the same frog into cool
water and slowly turn up the heat,he'll stay in
after it boils.

I can see mgt. standing by the stove,in one pot
we have employee frogs in another customer frogs...

Do you think it's getting warm in here?
 

wings396

Veteran
Aug 20, 2002
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This is an easy question..they have come after the employee groups to increase revenue...it is the best way as of late...
 

ITRADE

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Aug 19, 2002
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DCA/IAD US2
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Unless the airline can successfully push through a price hike, there is very little US can do about direct revenue generation. US did away with many of the "waiver and favor" programs and instituted standby fees. However, these only add incremental revenues. Unless all the other airlines agree that they want to raise prices, a fare increase is never going to stick.[BR][BR]And, applying the general economic principal of supply v. demand, increasing price in a depressed market is not the recommended strategy.[BR][BR]OTOH, US has done some long-term revenue builders that will take time to yield results. The code shares are examples of this.
 

mbmbbost

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Dec 13, 2002
213
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On 12/29/2002 6:36:37 AM ITRADE wrote:

Unless the airline can successfully push through a price hike, there is very little US can do about direct revenue generation. ----------------
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One thing I don't understand is why there is not an incremental difference in leisure fares between US and SWA in the markets where they compete. US ought to charge a bit more. Who'd complain about $10-$30? Make people aware of the superior product, and cut a bit of the loss.
 

TomBascom

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Aug 20, 2002
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www.greenfieldtech.com
[blockquote]
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On 12/29/2002 10:23:50 AM mbmbbost wrote:

One thing I don't understand is why there is not an incremental difference in leisure fares between US and SWA in the markets where they compete. US ought to charge a bit more. Who'd complain about $10-$30? Make people aware of the superior product, and cut a bit of the loss.
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Simply put US Airways has to undercut SWA because SWA enjoys a premium in the customer mind. SWA is known for low fares and fair treatment of customers. US and the other majors are known for nickle and dime tactics, gouging their customers at every turn and a byzantine morass of rules and restrictions. On the whole customers trust SWA. They do not trust US (or UA, CO, DL, AA & NW).

This can be fixed but it will take time and commitment to a clear positive message. Something that management shows no signs of being interested in.
 

mbmbbost

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Dec 13, 2002
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Simply put US Airways has to undercut SWA because SWA enjoys a premium in the customer mind. SWA is known for low fares and fair treatment of customers. US and the other majors are known for nickle and dime tactics, gouging their customers at every turn and a byzantine morass of rules and restrictions. On the whole customers trust SWA. They do not trust US (or UA, CO, DL, AA & NW).
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...you're right, now that you mention that..SWA isn't going away, so US had better get on it soon...
 

PHL

Veteran
Aug 20, 2002
1,658
57
[blockquote]
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On 12/28/2002 5:36:56 PM wings396 wrote:

This is an easy question..they have come after the employee groups to increase revenue...it is the best way as of late...
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[/blockquote]
How so? Are the employee groups purchasing tickets now?

Cost cutting does NOT equal revenue generation. These two phenomenons are mutually exclusive.
 

FrugalFlyer

Senior
Aug 20, 2002
254
0
[blockquote]
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On 12/29/2002 6:36:37 AM ITRADE wrote:

Unless the airline can successfully push through a price hike, there is very little US can do about direct revenue generation. US did away with many of the "waiver and favor" programs and instituted standby fees. However, these only add incremental revenues. Unless all the other airlines agree that they want to raise prices, a fare increase is never going to stick.

And, applying the general economic principal of supply v. demand, increasing price in a depressed market is not the recommended strategy.

OTOH, US has done some long-term revenue builders that will take time to yield results. The code shares are examples of this.
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[/blockquote]

How about something different than raising fares? How about something like value pricing? By that I don't mean lowering prices on the super cheap restricted buy in advance leisure fares but lowering the unrestricted fares. As it stands now, there is generally about a 10-fold price difference between the cheapest economy fare and the unrestricted economy ($120 vs. $1200).

What does US Airways have to loose by trying something like value pricing anyways? The company is operating in chpt. 11, what does it have to loose if it does not work out?
 

KCFlyer

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Aug 20, 2002
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www.usaviation.com
[P]
[BLOCKQUOTE][BR]----------------[BR]On 12/29/2002 10:23:50 AM mbmbbost wrote:
[P][/P]One thing I don't understand is why there is not an incremental difference in leisure fares between US and SWA in the markets where they compete. US ought to charge a bit more. Who'd complain about $10-$30? Make people aware of the superior product, and cut a bit of the loss.
[P][/P]---------------[BR][BR]After one itenerary change for a hundred bucks plus any airfare difference, the passengers will realize that the extra $10 to $30 wasn't worth if for the superior product. Indeed, the superior product may well be the one that <b>doesn't</b> nickle and dime the customer. Unless you're prepared to offer something for that $10 to $30, just how "superior" is the service? Extra almonds in the snack mix? Face it, for flights under 4 hours you're offering peanuts and a coke. All things being equal, there isn't a $10 to $30 premium for the service offered on U versus SWA. [/BLOCKQUOTE]
 

KCFlyer

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Aug 20, 2002
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[P]
[BLOCKQUOTE][BR]----------------[BR]On 12/29/2002 7:38:41 PM Busdrvr wrote:
[P]
[BLOCKQUOTE]You've never flown first class on U have you? (I have and I've flown SWA) Yes, even the snacks are FAR superior.[BR][/BLOCKQUOTE][/BLOCKQUOTE]
[P][/P]----------------
[BLOCKQUOTE][/BLOCKQUOTE]
[P]They weren't willing to sell me a first class ticket for $10 to $30 over the price of a SWA ticket. Sorry. You should try coach sometime - posh mini pretzels, lip smacking snack mix, and of course, gourmet peanuts. [/P]