[blockquote]
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On 2/16/2003 1
06 PM Cart Pusher wrote:
Why is it, though, that nobody ever mentions all the other factors that drive the costs sky high at the majors - things that should also be addressed, such as - meals on long haul domestic flights (ie; flights over 4 hours), clubrooms, elaborate frequent flyer programs, world wide alliances, First Class seating (that nobody ever actually pays for), advanced boarding passes and the latest in web technology. All of those things drive up the costs at every major carrier much more than the wages. If people insist on the majors offering fares that match their low fare competitors than they should also expect that the frills they've come to know and love will be taken away as well. Pretty soon we will end up with a bunch of low fare airlines offering very limited frequent flyer programs with few or no partners, no club rooms or upgrade opportunities because there will be no First Class section, very basic web technology (no advanced check in or kiosks, etc.) and no alliances with other large airline around the world. Only then can you compare Southwest, Air Tran and Jet Blue with Northwest, American, United, Delta, etc.
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[/blockquote]
Wow...where do I even start?
Most of things you mentioned (FF programs, web technology, First Class,etc), cost the major airlines very little. I would venture to say all those extra amenities are no more than 10% of the total cost structure and probably les. Labor and fuel combined make up 50-60% of total cost at the majors. Since the majors have little control over fuel prices (hedging can help some), then labor has to take the brunt of the hit.
As for the technology, its coming to the low-fare airlines. Obviously, WN's website must work pretty well considering they book more tickets through their website than any other US major. Kiosks are also coming. I know FL allows on-line check-in...just like the majors.
Cart Pusher, you did make one accurate point. It's not really as much about pay as it is about productivity and benefits. It also reflects a changing industry where many of the employees at the low-fare airlines will not make that one airline their lifetime career. I expect very few of the gate agents, baggage handlers, FA's to stay at the likes of FL/JB/F9 for very long. Heck, even the WN FA's are getting tired of having the productivity squeezed out of them. They will rapidly tire of the low-pay (which won't rise that much), long hours and relative dead end nature of the jobs.
Contrast with the likes of AA,US,UA,DL where many came to work for their entire careers. Unfortunately, many are now learning that being an FA or CSR for a major airline just isn't a long term career. It's a sad wake-up call for many, but it's a reality that many will have to face.
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On 2/16/2003 1
06 PM Cart Pusher wrote: Why is it, though, that nobody ever mentions all the other factors that drive the costs sky high at the majors - things that should also be addressed, such as - meals on long haul domestic flights (ie; flights over 4 hours), clubrooms, elaborate frequent flyer programs, world wide alliances, First Class seating (that nobody ever actually pays for), advanced boarding passes and the latest in web technology. All of those things drive up the costs at every major carrier much more than the wages. If people insist on the majors offering fares that match their low fare competitors than they should also expect that the frills they've come to know and love will be taken away as well. Pretty soon we will end up with a bunch of low fare airlines offering very limited frequent flyer programs with few or no partners, no club rooms or upgrade opportunities because there will be no First Class section, very basic web technology (no advanced check in or kiosks, etc.) and no alliances with other large airline around the world. Only then can you compare Southwest, Air Tran and Jet Blue with Northwest, American, United, Delta, etc.
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[/blockquote]
Wow...where do I even start?
Most of things you mentioned (FF programs, web technology, First Class,etc), cost the major airlines very little. I would venture to say all those extra amenities are no more than 10% of the total cost structure and probably les. Labor and fuel combined make up 50-60% of total cost at the majors. Since the majors have little control over fuel prices (hedging can help some), then labor has to take the brunt of the hit.
As for the technology, its coming to the low-fare airlines. Obviously, WN's website must work pretty well considering they book more tickets through their website than any other US major. Kiosks are also coming. I know FL allows on-line check-in...just like the majors.
Cart Pusher, you did make one accurate point. It's not really as much about pay as it is about productivity and benefits. It also reflects a changing industry where many of the employees at the low-fare airlines will not make that one airline their lifetime career. I expect very few of the gate agents, baggage handlers, FA's to stay at the likes of FL/JB/F9 for very long. Heck, even the WN FA's are getting tired of having the productivity squeezed out of them. They will rapidly tire of the low-pay (which won't rise that much), long hours and relative dead end nature of the jobs.
Contrast with the likes of AA,US,UA,DL where many came to work for their entire careers. Unfortunately, many are now learning that being an FA or CSR for a major airline just isn't a long term career. It's a sad wake-up call for many, but it's a reality that many will have to face.
