USA320Pilot
Veteran
- May 18, 2003
- 8,175
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Long-haul Fliers Reap Benefits
- Thread starter USA320Pilot
- Start date
ELP_WN_Psgr
Senior
- Nov 29, 2003
- 419
- 0
As ye sow, so shall ye reap...
Anyone recall several years back when they changed the way they taxed airplane tickets?
Once upon a time the tax on a plane ticket was a set percentage.
Then the "big" airlines figured they could kick WN in the groin by changing the tax to a lower percentage, with a "per leg" tax thrown in.
The goal was to take the winds out of the sails of the people with the ugly planes who had a reputation for transcon 3 stops at low prices.
They didn't stop to think about the law of unintended consequences...namely, that WN would start throwing transcon nonstops back at them. And filling them up.
Oh well.
Anyone recall several years back when they changed the way they taxed airplane tickets?
Once upon a time the tax on a plane ticket was a set percentage.
Then the "big" airlines figured they could kick WN in the groin by changing the tax to a lower percentage, with a "per leg" tax thrown in.
The goal was to take the winds out of the sails of the people with the ugly planes who had a reputation for transcon 3 stops at low prices.
They didn't stop to think about the law of unintended consequences...namely, that WN would start throwing transcon nonstops back at them. And filling them up.
Oh well.
OP
USA320Pilot
Veteran
- May 18, 2003
- 8,175
- 1,539
- Thread Starter
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- #3
LCCs' Transcon
ARLINGTON (theHub.com) - Big airlines are losing one of their last havens of high profits -- coast-to-coast flights -- to low-cost carriers, according to a report in today's edition of USA Today.
"For most of the last 25 years, no matter how intense the price competition on other routes, giants like American and United could charge high fares and extract large profits from their showcase transcontinental routes. But no more," the article said.
Now, carriers such as Southwest, JetBlue, AirTran, ATA and America West have invaded the high-traffic routes with significantly lower fares. From zero in 2000, discounters now have 38 percent of the New York-San Francisco market and nearly one third of the New York-Los Angeles market with roundtrip fares of $200 now common, the paper said.
Regards,
USA320Pilot
ARLINGTON (theHub.com) - Big airlines are losing one of their last havens of high profits -- coast-to-coast flights -- to low-cost carriers, according to a report in today's edition of USA Today.
"For most of the last 25 years, no matter how intense the price competition on other routes, giants like American and United could charge high fares and extract large profits from their showcase transcontinental routes. But no more," the article said.
Now, carriers such as Southwest, JetBlue, AirTran, ATA and America West have invaded the high-traffic routes with significantly lower fares. From zero in 2000, discounters now have 38 percent of the New York-San Francisco market and nearly one third of the New York-Los Angeles market with roundtrip fares of $200 now common, the paper said.
Regards,
USA320Pilot
BoeingBoy
Veteran
- Nov 9, 2003
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- Banned
- #4
As usual, this company is seeking haven from the LCC's in areas they're about to jump into. Caribbean flying - there's a rush of LCC's applying for authority to fly there. Europe - ATA is talking about it seriously and the others are probably soon to follow.
All the more reason to fix the inefficient structure before it's too late.
Jim
All the more reason to fix the inefficient structure before it's too late.
Jim
