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Jetguy,jetguy_50 said:Art Where Has It Been Done?
Sure, it's working for these carriers. Can we say point to point service without the costs of having two low O&D hubs and one high O&D terribly inefficient (at least currently) hub? Plus, US's network of taking people from "Nowhere, USA" to "Nowhere, USA" can't compare to HP's or JB's cherry picking of key business routes. AA to me is on par with UA and DL -- they're all so big and comprehensive they can play with the pricing model in select markets and still stay in business.Art at ISP said:Jetguy,
HP did it and they made money
AA did it in select markets and its working
Jet Blue did it and they're making money
Now I am not saying we can compete with Jet Blue or HP on a cost basis, and there's room for adjustment. But the MODEL works. That's the whole point.
Change is hard but necessary.
JB is a point-to-point carrier, no problem, no question.USFlyer said:Sure, it's working for these carriers. Can we say point to point service without the costs of having two low O&D hubs and one high O&D terribly inefficient (at least currently) hub? Plus, US's network of taking people from "Nowhere, USA" to "Nowhere, USA" can't compare to HP's or JB's cherry picking of key business routes. AA to me is on par with UA and DL -- they're all so big and comprehensive they can play with the pricing model in select markets and still stay in business.Art at ISP said:Jetguy,
HP did it and they made money
AA did it in select markets and its working
Jet Blue did it and they're making money
Now I am not saying we can compete with Jet Blue or HP on a cost basis, and there's room for adjustment. But the MODEL works. That's the whole point.
Change is hard but necessary.
If you want a better pricing model, I say dump PIT, focus more on point to point services instead of routing everyone thru hubs, roll PHL and then let's talk. Right now I firmly do not believe US is setup to take on a new pricing model. The infrastructure is all designed for a high fare airline. I fault management for not fixing this in Chapter 11. They made a lot of tough choices but not enough in my opinion.
Because its a basic tenet that when costs outstrip revenues, you're going to lose money. When you've got a HP-style wage structure, it's easier to match costs to revenues. It does not take a Harvard or UPenn MBA to understand that.PITbull said:Itrade,
Do you know when you speak about U employees accepting HP cost structure, is the exact verbage, and I mean verbatim exactly how you stated it above, from Siegel. You know how many e-mails I have from the guy with these exact words for the entire last Winter stating if we had HP's pay structure, we would be profitable? How come that is? Breaking bread with the guy lately?
....
Customer you say? huh? Since when are customers so concerned about U employees wage structure? Your in Asia huh? So is Dave. Oh yea, your China, he's Japan, or is it the other way around? On the same flight back to the states, perhaps? h34r: