Why should NWA ask for concessions?

RV4

Veteran
Aug 20, 2002
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www.usaviation.com
Airlines recind $20 fare increase
By Trebor Banstetter
Star-Telegram Staff Writer
FORT WORTH - Despite their heavy financial losses, the major airlines on Monday abandoned their latest attempt to raise fares after Northwest Airlines refused to play along.
The fare increase began Friday, when Houston-based Continental raised ticket prices by $10 each way, to cover the rising cost of fuel. Most other major carriers, including Fort Worth-based American Airlines, matched the increase on Friday or over the weekend, according to Tom Parsons, chief executive of Bestfares, an Arlington firm that tracks airline ticket prices.
But as it has done several times recently, Northwest played the spoiler, refusing to increase its own fares. By 11 a.m. Monday, all of the other airlines had phased out the increase.
This will be the third attempt to raise airfares in less than 60 days to fail, Parsons said.
American officials confirmed the price cut, but decline to comment further. Even though the airlines are losing millions of dollars every day, they don''t want to lose customers to competitors that have cheaper fares, Parsons said.
So a single airline can scuttle any attempt to hike prices -- something Northwest has done consistently in recent months.
With these tough economic times and the threat of war, no airline can make an airfare increase stick right now, Parsons says.
The six largest carriers lost nearly $11 billion last year, and expect to lose billions more in 2003.
 
Northwest needs to ask for concessions because it is the current fashion and airlines are herd animals. In case you haven't noticed, it is "Beat On Labor" season.

What will be fun is if Northwest can get concessions. What will this do to the other airlines that got concessions to maybe get operating costs down to the CAL/NWA level, and now NWA dives lower? Will this mean another round of concessions for the Zombie Alliance (UAL/U) in order to stay competitive with a leaner, meaner NWA?
 
Consessions will occur at ALL legacy carriers...the only question is the depth and duration of the cuts. The group paying the most severe price are the men and women on furlough (100% pay cut). However, if UAL-USAir turn from ch.11 to Ch.7, excess cap will be removed - yields will increase and concessions will slowly fade away. Good luck to all.
 
Northwest misses out on a chance to increase revenues and balance cost of fuel...they solution is to take money from their employees.

Now that is a very progressive company and a company with GREAT employee relations.

Bostonblue
 
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On 2/17/2003 10:12:30 PM whaledriver wrote:

Consessions will occur at ALL legacy carriers...the only question is the depth and duration of the cuts. The group paying the most severe price are the men and women on furlough (100% pay cut). However, if UAL-USAir turn from ch.11 to Ch.7, excess cap will be removed - yields will increase and concessions will slowly fade away. Good luck to all.
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Lets all pray for the demise of UAL and AAA. I wouldnt want you to have to take any concessions.

Retread(AAA)
 
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On 2/26/2003 1:13:35 PM retread wrote:


Lets all pray for the demise of UAL and AAA. I wouldnt want you to have to take any concessions.

Retread(AAA)
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I don't think anyone is wishing death on any airline...many amoungst us have been with other airlines that are no longer flying...with that being said, the industry is flying with too much capacity...even after all of the cutbacks...the shutdown of United would help solve this problem AND many would argue UA is now working with an unfair advantage with the bankruptcy laws in its favor while everyone else still has to pay their bills.
 
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On 2/26/2003 1:13:35 PM retread wrote:


Lets all pray for the demise of UAL and AAA. I wouldnt want you to have to take any concessions.

Retread(AAA)
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Why would any humanbeing wish for such a horrible outcome to the thousands of employees at the abovementioned airlines? All the employees have bills to pay, mortgages/rents to pay, doctors/medical bills, children expenses. Tell me why you would wish thousands of Americans out of work and into the unemployment lines. The effect on the already weak economy would be devastating. You would be impacted by higher taxes and cost of living to make up for the loss of earnings and tax base of the thousands of unemployed you are wishing for. What a sick individual you are. In fact, I find you disgusting!!!
 
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On 2/27/2003 8:19:00 AM novaqt wrote:

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On 2/26/2003 1:13:35 PM retread wrote:


Lets all pray for the demise of UAL and AAA. I wouldnt want you to have to take any concessions.

Retread(AAA)
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Why would any humanbeing wish for such a horrible outcome to the thousands of employees at the abovementioned airlines? All the employees have bills to pay, mortgages/rents to pay, doctors/medical bills, children expenses. Tell me why you would wish thousands of Americans out of work and into the unemployment lines. The effect on the already weak economy would be devastating. You would be impacted by higher taxes and cost of living to make up for the loss of earnings and tax base of the thousands of unemployed you are wishing for. What a sick individual you are. In fact, I find you disgusting!!!
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Read the post please, I am one of the people who would be out of work. I was replying to a post that to me was quite "disgusting".