Dave's Friday Message (from Tokyo)

[cavalier]

Chaimes, though, has said Siegel's promise to Santorum is not legally binding.

Translation: His word means absolutely nothing and if you believe otherwise consider yourself warned that you’re playing the fool.

 

[USFlyer]

USFlyer,

There are very few places in the country where there is not a legitmate option. It may not be the exact routing, but there are probably options within a two hour drive somewhere. This is where the passengers are going.

True, as a business traveler, though, I will not go through this. If my company wants me to travel every bloody week, I'm leaving from the nearest airport. And that airport for me is DCA. I know within my company we are starting to see a revolt of sorts to the corporate mantra of "always choose the lowest cost option."

 

[Art at ISP]

Art, How Much More On Average Should US Airways Get From It Passengers Versus America West and Jet Blue?

Jetguy,

If US delivers a superior product, with better choices, a moderate premium is justified. We know we can't compete with HP costs. Although our fares must be higher, they don't need to be astronomically so.

Let's look at NYC-SYR, an example I made last time I refused to pay exhorbitant fares.

LGA-SYR on a Buzz Bucket was $536.00

JFK-SYR on a brand new A320 was $218.00

Now in reality I would not expect US to match $218 for a number of reasons. First there is a premium for LGA due to its proximity to NYC. Second, like it or not, US costs are higher, especially using airplanes which are really much too small for the routes.

What would I think is a fair fare? An unrestricted walk up same day fare of about $298 or so. It CAN be done. I think that business travelers are getting tired of subsidizing the Priceline traveler.

Again I do NOT advocate an out and out match. I advocate RATIONALIZATION.

Regards from PHL (yeah I am not home yet--don't ask!!)

 

[PITbull]

Art,

Its 7:00 pm Eastern, are you home yet? I can never tell on these posts what the real time is when someone posts as the time is advanced by 3 or 4 hours or something like that.

 

[Smoke and Mirrors]

At least the reporter could avoid misspelling Chiames' name. Pitbull, remember that everything is on the table.

PIT Tribune-Review

Chaimes yesterday said "everything" must be on the table when cutting costs, including the salaries of the more than 7,000 US Airways employees in Southwestern Pennsylvania.

Sounds as if the concession stand is not closed yet.

 

[crazyincanton]

Hey Chaimes. How about the salaries in ccy? You can either run it, leave it, or close it. I don't care which option you pick but you'll get nothing else from me.

crazyincanton

 

[jetguy_50]

Art, I guess that means as a Biz traveler you are willing to pay 30 to 40 percent more? Correct?

If Jet Blue offered that same fare from LGA would you still be willing to pay 30 or 40 percent more?

How much more do you think US Airways can get out of vacation people going to Florida or any where else than Jet Blue? The Same 30 percent?

 

[tadjr]

Art, I guess that means as a Biz traveler you are willing to pay 30 to 40 percent more? Correct?

If Jet Blue offered that same fare from LGA would you still be willing to pay 30 or 40 percent more?

How much more do you think US Airways can get out of vacation people going to Florida or any where else than Jet Blue? The Same 30 percent?

I think there needs to be a distinction when talking about different fares.
You have 1) The business guy who has to travel no matter what (Full Y)
2) The business guy who is flexible (maybe Y, maybe a rt, maybe ?)
3) The leisure traveler who knows when they are going and are willing
pay a little more for the flights they want
4) The leisure traveler who doesnt care exactly when they go and can
shop around for the best deal
5) Priceline, Hotwire, Esavers - people who will only go if they get the
rock bottom price they want and can afford, otherwise they dont go,
take the bus or suck it up and drive

I dont think anyone is saying that the 3,4,5 fares need to drop any. They are already for the most part rock bottom (thats part of the problem).
Its the 1 and 2 that need to be tweaked. You will always have the 1's, but CCY says they arent out there as much as they were before so how much would you actually lose if 1 came down in price (but maybe got a couple more willing to pay for the flights they want). 2 is the one thats the most critical. These are the ones that will shop around for a good fare, buy the excursion and then pay the $100 to change if needed, when for a little bit more lowering on the highest fare, they might be willing to spend that up front to be able to change the ticket whenever they needed. These are also the last minute people we are losing to the LCCs since their walkup fares are so much cheaper than US. If we have seats (20-30% are open according to load factor numbers), then how many MORE would we get instead of them heading to Airtran or Jetblue if the price were more reasonable vs how much would we lose from the 1 or ? (however many people who buy the full fare that the company says isnt happening that much) people that would have to fly us anyway and begrudgingly pay the outrageous fare. That is what ART is addressing I believe. This is where the number cruchers should be working on figuring out what tweaking could happen to make everyone happy.

 

[Art at ISP]

Art,

Its 7:00 pm Eastern, are you home yet? I can never tell on these posts what the real time is when someone posts as the time is advanced by 3 or 4 hours or something like that.

PIT,

Sorry to say, I am NOT home yet. I am stuck in PHL tonight. I hope to get home in the morning.

But this is a story for another topic.....then again

 

[Art at ISP]

Tad,

You hit the nail on the head my friend. I never said that 3 4 or 5 has to be lower than it is, or for that matter, stay where it is. I think most people would not object to a $10-20 addition IF they are receiving a superior product with perhaps more choices.

It's the 1 and 2 that need tweaking. The management is right about one thing--there are fewer 1's and 2's out there--why? Because these last minute travelers have gone to the LCC's, who have reasonable last minute walk ups.

I think that business travelers would pay a REASONABLE premium to stay with a major carrier, as long as they get the added flexibility and service that goes with it. Right now, however, the product at US is equal to or inferior to the LCC's.

There's a lot which needs to be done, and I wholeheartedly admit I DON'T know it all. But there has to be a starting point somewhere.

Time for mgt to get their heads out of the sand. My friends at PHL tell me they are REALLY worried about WN coming in. The key is to be proactive and take action NOW, not in May.

I'll let y'all know when (if) I finally get home tomorrow.

My best to you all

 

[Colby]

Clue,

Sorry I didn't respond earlier....A little busy... ANYWAY, I understand completely what you are saying...I was simply trying to give an example of how Everyone is looking for the best Fare !!!!!!

The Average person will take whatever the lowest fare is...Even if they need to fly 4 legs to get there....Then, after they do this... They realize that for the price difference they could have been to their destination 3 hours earlier and NOT SO EXHAUSTED !!!!!

 

[diogenes]

Chaimes yesterday said "everything" must be on the table when cutting costs, including the salaries of the more than 7,000 US Airways employees in Southwestern Pennsylvania.


Chaimes, though, has said Siegel's promise to Santorum is not legally binding.


"Everything is on the table," he said. "There is nothing that we are not looking at right now."

The above is prime facie proof dave and friends have mismanaged US Airways.

Did they not have EVERY opportunity to arrange the table to suit them in Chapt. 11?

If not, why not?

Is there any wonder they have no credibility with employees?

BOD, the emperor has no clothes.