Can you spare a twenty ( $20), please................

[Barfbag]

BRIEF: American Airlines' $20 fare hike might be falling apart
12:26 p.m. 06/09/2008 Provided by


Jun 09, 2008 (Fort Worth Star-Telegram - McClatchy-Tribune Information Services via COMTEX) -- Continental Airlines rolled back its $20 fare increase this morning, which "signals the beginning of the end" for the fare hike that American Airlines launched Friday night, the farewatcher farecompare.com said Monday.

American initiated a $20 roundtrip fare hike across a third of its routes, then expanded the increase on Saturday across the bulk of its network.

Continental, Delta, United, and US Airways matched American's increase over the weekend, leaving Northwest Airlines as the only traditional major carrier that hadn't matched as of late Sunday.

The airlines have tried to raise fares 17 times this year, with 12 successful, as they try to cope with skyrocketing fuel prices.

 

[LGA Fleet Service]

Amazing, oil sets a new record on Friday and they roll back the increase Monday? Fantastic.

 

[aredeeyou22]

Amazing, oil sets a new record on Friday and they roll back the increase Monday? Fantastic.

Exactly why a significant amount of capacity needs to exit the domestic network, fast.

 

[TWU informer]

Amazing, oil sets a new record on Friday and they roll back the increase Monday? Fantastic.

We should advocate that ALL Airline CEO's get triple salary in Stock Option Bonus Awards.
Afterall, their superior decision making is creating a wonderful and profitable industry.

 

[eolesen]

Oil peaked on Friday, and fell back over $4/bbl today, but that's not why the increase failed to stick.

Capacity needs to leave, and it will soon enough. And there will be around 25,000 pink slips issued by airlines' as a Labor Day gift, one which is bound to keep on giving.

But they also still have to fill the remaining seats they have onhand this summer, and every time fares go up by $10 and $20, there's a certain amount of people who decide not to fly.

With gas now averaging $4 a gallon, people are thinking twice about little things like eating out, going to the movies, or heading to theme parks...

So, buying a plane ticket is probably going to be further and further down the list, and those who do decide to travel are likely to do so less often.

We should advocate that ALL Airline CEO's get triple salary in Stock Option Bonus Awards.
Afterall, their superior decision making is creating a wonderful and profitable industry.

The first time was funny. It was old the fifth or sixth time. Now, it's just tedious...

 

[Joe Patroni]

Oil peaked on Friday, and fell back over $4/bbl today, but that's not why the increase failed to stick.

Capacity needs to leave, and it will soon enough. And there will be around 25,000 pink slips issued by airlines' as a Labor Day gift, one which is bound to keep on giving.

But they also still have to fill the remaining seats they have onhand this summer, and every time fares go up by $10 and $20, there's a certain amount of people who decide not to fly.

With gas now averaging $4 a gallon, people are thinking twice about little things like eating out, going to the movies, or heading to theme parks...

So, buying a plane ticket is probably going to be further and further down the list, and those who do decide to travel are likely to do so less often.

I know it's way, way down on my list.

 

[local 12 proud]

Oil peaked on Friday, and fell back over $4/bbl today, but that's not why the increase failed to stick.

Capacity needs to leave, and it will soon enough. And there will be around 25,000 pink slips issued by airlines' as a Labor Day gift, one which is bound to keep on giving.

But they also still have to fill the remaining seats they have onhand this summer, and every time fares go up by $10 and $20, there's a certain amount of people who decide not to fly.

With gas now averaging $4 a gallon, people are thinking twice about little things like eating out, going to the movies, or heading to theme parks...

So, buying a plane ticket is probably going to be further and further down the list, and those who do decide to travel are likely to do so less

Fine, let them drive at $4.00 a gallon or stay home. The well has run dry for this Mechanic, and I plan to vote NO on every concession....Bankruptcy, ya say?

Bring it, I'll file my own chapter 13!!!!!!!!!!

 

[PRINCESS KIDAGAKASH]

Exactly why a significant amount of capacity needs to exit the domestic network, fast.

That's why I have been calling for AA to start a fare war. If the other airlines won't raise their prices, then let's undercut them and send them into Chapter 7 bankruptcy. Capacity problem solved.

 

[777 fixer]

That's why I have been calling for AA to start a fare war. If the other airlines won't raise their prices, then let's undercut them and send them into Chapter 7 bankruptcy. Capacity problem solved.

You're assuming of course AA won't be the one going under. Or that they won't go Chapter 11 and gut pensions, retiree medical benefits etc, etc. Be carefull what you wish for.

 

[PRINCESS KIDAGAKASH]

You're assuming of course AA won't be the one going under. Or that they won't go Chapter 11 and gut pensions, retiree medical benefits etc, etc. Be carefull what you wish for.

They are gonna do that anyway, so what are you afraid of?

 

[Bob Owens]

You're assuming of course AA won't be the one going under. Or that they won't go Chapter 11 and gut pensions, retiree medical benefits etc, etc. Be carefull what you wish for.

They already did. By cutting our pay they lowered our pension and our ability to compensate for the lower pension by increasing our 401K contributions. We are also paying more for medical than ever before and thats on a reduced paycheck. We were forced to sacrifice our financial well being to save the stockholders.

 

[TWU informer]

The first time was funny. It was old the fifth or sixth time. Now, it's just tedious...

I felt the same way about the bonus awards. The First time I was just shocked and a little angry.

The fifth and sixth time had me frothing at the mouth with anger. And when they voted to go on with the seventh, well I have to keep those thoughts and feelings to myself and choose to be tedious instead.

 

[777 fixer]

They are gonna do that anyway, so what are you afraid of?

If AA were to go into BK it would be a guarantee that pensions would be gutted along with retiree medical. What I find interesting is that you seem to have total faith that AA would survive a fare war while others would go under. This coming from someone who seems to have so little faith in AA in other posts.

So PK, care to put your money where your mouth is and issue a 100% guarantee that AA won't go under if they start this idiotic fare war of yours?

 

[FWAAA]

So PK wants to go all-in. Put it all on the table and bet on black, hoping that bet leads to serious red for everyone else.

Interesting view. Northwest was the lone holdout over the weekend (from what I read), so it looks like once again, ScabAir is trying to keep fares down. Perhaps NW has co-opted PK's mother of all fare wars philosophy.

 

[PRINCESS KIDAGAKASH]

If AA were to go into BK it would be a guarantee that pensions would be gutted along with retiree medical. What I find interesting is that you seem to have total faith that AA would survive a fare war while others would go under. This coming from someone who seems to have so little faith in AA in other posts.

So PK, care to put your money where your mouth is and issue a 100% guarantee that AA won't go under if they start this idiotic fare war of yours?

777fixer, who are you trying to kid? This is the deregulated airline industry. THERE ARE NO GUARANTEES! Some airlines are going to have die in order for this industry to be profitable again. AA in the late 70's was able to clobber Braniff into oblivion and now AA controls DFW. AA with the right management team could do it again. Arpey and the gang are wasting a perfect opportunity to get rid of the trash. What makes you think AA can't clobber these other worthless junk airlines that are right on the edge of Chapter 7?

You still haven't told us your great plan to bring back profitability to the airline industry.