Bear96,
You are dead wrong. We understand the pricing pressure the LCCs put us under, but the fare structure is so out of whack it kills revenue overall. It has been posted here countless times where we price our product below that of LCC competitors, but if you need a last minute fare or need to go out back the same day? Forget it, US will try to get 2-3 times more than someone like WN.
Add to the fact that capacity has been reduced so much and US has gutted service so much in the name of costs, there is no real incentive to pay more. Even our alliance partner UA can sucessfully siphon off traffic. Who is to blame for that? It is all part of the revenue picture. Cavuto on FNC had a great piece a couple on months ago on how you can only cut costs so far before it becomes a never ending cycle liike a dog chasing it's tail. You get to a point where you cut more costs, and it costs you more revenue than you cut, so you cut more and on it goes until you get to a point of no return. The question is, can US pull itself back from that line? Can this place be run more efficiently? Yes, but until the revenues are addressed, all the efficiencies in the world will not help.
You are dead wrong. We understand the pricing pressure the LCCs put us under, but the fare structure is so out of whack it kills revenue overall. It has been posted here countless times where we price our product below that of LCC competitors, but if you need a last minute fare or need to go out back the same day? Forget it, US will try to get 2-3 times more than someone like WN.
Add to the fact that capacity has been reduced so much and US has gutted service so much in the name of costs, there is no real incentive to pay more. Even our alliance partner UA can sucessfully siphon off traffic. Who is to blame for that? It is all part of the revenue picture. Cavuto on FNC had a great piece a couple on months ago on how you can only cut costs so far before it becomes a never ending cycle liike a dog chasing it's tail. You get to a point where you cut more costs, and it costs you more revenue than you cut, so you cut more and on it goes until you get to a point of no return. The question is, can US pull itself back from that line? Can this place be run more efficiently? Yes, but until the revenues are addressed, all the efficiencies in the world will not help.
