Dave's Friday Message (from Tokyo)

[A319FA]

Dave explains RASM-(Revenue Per Available Seat Mile)

Increasing stage length will lower unit costs, but will reduce revenue.

Must adjust numbers to be on the same stage length basiswith the other carriers.

Flying an Atlantic route might generate .7-8 cents per seat mile versus the Shuttle at .30 cents.

US Revenue in the domestic markets last 12months- took in .99cents compared with .94 cents for every industry dollar. Our revenue improvement has been the best in the industry.

Lowering fares is not the answer. WN will generate 30% less revenue per seat mile in PHL. US will generate 5 to 10% more revenue than WN in PHL.

 

[jetguy_50]

I thought he said that for every dollar AA or DL took in we took in 99 cents. Where As A few Months ago we only took in 94 cents versus AA or DL.

 

[ITRADE]

Dave explains RASM-(Revenue Per Available Seat Mile)

Increasing stage length will lower unit costs, but will reduce revenue.

Must adjust numbers to be on the same stage length basiswith the other carriers.

Flying an Atlantic route might generate .7-8 cents per seat mile versus the Shuttle at .30 cents.

US Revenue in the domestic markets last 12months- took in .99cents compared with .94 cents for every industry dollar. Our revenue improvement has been the best in the industry.

Lowering fares is not the answer. WN will generate 30% less revenue per seat mile in PHL. US will generate 5 to 10% more revenue than WN in PHL.

ITRADE's Friday Message (from Shanghai):

Rev picture seems to be improving. OK. While I concur that we should not be really reducing fares, we often don't have a choice in the matter.

Traveling consumers appear to be much more price sensitive than they had been in previous cycles, thus holding the line on pricing may very well be a costly and dangerous scenario.

Consider the following - gas stations.

Wawa charges $1.35 for very cheap, lowish grade unleaded gas (may or may not be true).
Chevron charges $1.52 for unleaded gas with "techroline" added to it. Chevron also offers Upromise College points.

While some are willing to pay the $1.52 for the additional premium service and bonus points, most look only at the pricing - the $1.35 - and could care less whose revenue model is doing better or whose employees are treated better.

 

[700UW]

ITRADE,
In your previous posts you say you don't work for you, now you post we and our, me thinks you might be Mr Ashby, next alliance with China Airways?

 

[ITRADE]

ITRADE,
In your previous posts you say you don't work for you, now you post we and our, me thinks you might be Mr Ashby, next alliance with China Airways?

I'll change we to you if you would like..

But I used we as an all-inclusive, happy term, as opposed to using "you" or "they" or "them" which are exclusive. Because, after all, its Christmas, and "we" should be one big, happy family. No?

 

[Light Years]

If you are Ashby, VP of Express and Alliances, you apparently feel every airline under the sun should be part of the US Airways family.

 

[PITbull]

ITRADE,

You are so full of it....no matter where you are traveling , or what your title is...or YOU say it is not.....


Consumers get what they pay for. The average consumer knows that if they pay less, they receive less. If folks want premium, folks pay for premium.

Example: A car, is a car, is a car. Gets you from point A to B.

However, if you want a premium ride, with all the bells and whistles, bumper to bumper warranty for 10 years, and care very much that the car states BMW on the hood or Mercedes, or Jaguiar, or Lexus, or AUDI V8 or Porche, THEN YOU PAY.


PS: You know even LESS about employees value in the work place. Business Econ 101 new lesson for you today:

Employee poor morale, effects customer care, effects product, effects bottom line profits.

 

[pitguy]

Sounds like ITRADE slipped up. If he is U management that would explain why his web site has not been updated in a very long time (Last update: December 9, 2002).


--Mama always said the longer the lie one weaves the more apt one is to get caught up in it.

 

[tadjr]

I can vouch that Itrade is not management, but if you want to believe otherwise feel free to do so.

 

[CaptBud330]

PITbull, I tend to agree with you about quality. But I have to say I believe passengers will endure almost any indignity for a 2 hour flight if the price is right.

 

[ITRADE]

PITbull, I tend to agree with you about quality. But I have to say I believe passengers will endure almost any indignity for a 2 hour flight if the price is right.

Exactly.

PitBull is right that passengers who want premium service will pay for it. That is what F class is for. However, the vast majority of passengers really don't care that much. They want cheap, efficient, reliable transportation. If by chance, there are a few perks that accompany a particular cheap flight (i.e., blue corn chips, inflight headphones, FF alliance opportunities), so be it. But these benes are lures that do not enter into the utimate decision of many consumers.

Why do you think Priceline and hotwire are so popular??????

 

[ITRADE]

I can vouch that Itrade is not management, but if you want to believe otherwise feel free to do so.

All ^&#&^# Tad, don't ruin the fun. Gotta let the members have faith in something.

 

[tadjr]

Dont worry they wont believe me anyway, ya know. I'm on Hawk and Flys personal PM lists so I must be in cahoots right?

 

[ITRADE]

Dont worry they wont believe me anyway, ya know. I'm on Hawk and Flys personal PM lists so I must be in cahoots right?

You forgot Analyst.

 

[Colby]

Let me just throw in my 2c worth here!!

Alot is being said about what people are willing to pay for.... Well, for some reason even if they drive the Jag, Mercedes, BMW or Audi... In my Travel Agent days almost EVERY single phone call I took began with..... "I want to go to..... for as LITTLE AS POSSIBLE"..... Even some of my Corporate people would call with a particular Schd.... I need to be in ORD by 0900 and my meeting will be done at 1500 and I want in and out asap..... After I quoted them their $900.00 fare they would ask if I could find something cheaper.... AND THEY WEREN'T PAYING !!!!

Then again coming from a GM town they expected even the Airlines owed them a GM discount !!!!