Parker on CNBC this morning RE: A La Carte Pricing

[vantheman63]

Okay...let me ask this again....'cause the last time I asked, no one seemed to have an answer...

Fuel prices are going to come down...it's not a matter of "if," it's a matter of "when." conventional wisdom has it that oil will be inside of $100 a barrel by election time. Conventional wisdom also has it that if oil were priced to supply and demand it would be in the $60 per barrel range...accounting for the weakness fo the dollar, maybe $80 a barrel, tops...

We also know Mr. Parker made a bet that would happen...that bet was when he bought a boat-load of stock at, what, $2.00 a share? $3.00 per share? Whatever it was, he's done well....already. And, as I've said before, that bet was more about the price of oil being out of whack than any faith in any business, US or otherwise.

So this question is....all of the hatcheting done in the past 90 days....does that drop to the bottom line? Do those things get added in? What happens to the product when (not if, WHEN) the price of fuel makes sense again???

As I've said...I FIRMLY believe this was a plan from day one....and this current economic climate, no matter how short lived it's always been, was the turning point needed to take this airline to the place it's headed.

So, what happens now folks?

 

[LCC_#1]

No one will answer because the Doug Parker haters have nothing to gain from admitting you're correct

And for the Doug Parker Kool-Aide Kids, you've burst their bubble too in that surprise surprise Doug Parker is first and foremost all about Doug Parker. That's not bashing him it's a reality for everyone of us. At the end of the dayI'm going to do what benefits me most based on my wants needs and desires. So is Mr Parker.

I formly believe that this was the plan from September 26th, 2005 and all US did was lay the groundwork and wait for an economic "event" to provide cover for the transition. Let's see if it works? I see signs of short term success and signs of long term danger ahead.

Once you lose elites they're damned hard to win back and that IMO is the biggest part of their gamble. I know if I do go in January it's all most certainit will e for good.

I agree with you! We have seen this wait until the right time to do it strategy in the past. It was called September 11 and NO airline exploited it as much as the old US Airways with the retirement of all 737-200/DC9/MD80's...something they always wanted to do but needed the right timing and excuse to implement.

 

[phlus2]

I've got to give him credit for trying something new. The old formulas aren't working. I look at my own situation. The MOST important thing is on time, reliable transportation. Everything else is secondary. LCC has been doing a LOT better in that regard, and that bodes well for their attempts to make the airline work.

I will agree that on time and reliable are the most important thing when flying - however - I do not believe it is the first thing people think of when they are booking a flight. I doubt that many people actually pick their flight based upon the on time arrival performance of that flight - and I would wager a big bet that the on time perforamance record of a given airline is not the first thing people think of when deciding to book a flight.

And while on time and reliable are important - they are certainly not the only decision factors in booking a flight.

For example - you can fly PHL - PVD on both USAir and SouthWest. If you book far enough in advance - you even get the same fare. BUT - if you book closer to departure date - US is going to be many times more expensive that SouthWest. And God forbid you book a US ticket and want to make a change - that little adventure will cost you $150 while on SouthWest it costs you nothing. And you get a free drink and peanuts on SouthWest while USAir announces in flight that due to the short duration of the flight they wont' be serving you anything - hmmm - seems like a lie to me if SouthWest can serve a drink AND a snack on the same fligt that US claims is too short to serve a drink. And don't forget the free checked baggage on SouthWest.

So - which one would you pick? Even if US on time performance is better on the route - there is no logical reason to pick US over SouthWest anymore.

 

[vantheman63]

I will agree that on time and reliable are the most important thing when flying - however - I do not believe it is the first thing people think of when they are booking a flight. I doubt that many people actually pick their flight based upon the on time arrival performance of that flight - and I would wager a big bet that the on time perforamance record of a given airline is not the first thing people think of when deciding to book a flight.

And while on time and reliable are important - they are certainly not the only decision factors in booking a flight.

For example - you can fly PHL - PVD on both USAir and SouthWest. If you book far enough in advance - you even get the same fare. BUT - if you book closer to departure date - US is going to be many times more expensive that SouthWest. And God forbid you book a US ticket and want to make a change - that little adventure will cost you $150 while on SouthWest it costs you nothing. And you get a free drink and peanuts on SouthWest while USAir announces in flight that due to the short duration of the flight they wont' be serving you anything - hmmm - seems like a lie to me if SouthWest can serve a drink AND a snack on the same fligt that US claims is too short to serve a drink. And don't forget the free checked baggage on SouthWest.

So - which one would you pick? Even if US on time performance is better on the route - there is no logical reason to pick US over SouthWest anymore.

My thoughts exactly....the ONLY logical reason you might do the US trip is (a.) because you KNOW you are taking the trip with "death" being the only thing that prevents it and (b.) you have an allegiance to the product do to the continuity program they have in place....ie: the FF program....which is being, systematically, devalued, if not, destroyed.

 

[Bobbie]

The US Airways product is, consistently, the poorest value in the US. You literally get less for more with US Airways. They want to be able to start all these extreme customer-cutting programs and keep the same fares...hoping everyone else in the industry will jump on board. They can't raise fares, so they'll just cut service. Getting costs in line with expenses, right?

The problem is that other carriers are offering more for the same or, in many cases, lower prices. Without all of the other carriers on board, these policies will be difficult to maintain. In places like Charlotte and, to an extent, Philadelphia, where passengers have no other reasonable choice for direct flights other than the other airline hubs, this stuff will have to fly for people who refuse to connect. There is, indeed, a high value placed on flying direct. And US Airways is prepared to charge outrageous fares and nickel and dime those hostages until they're flat broke.

No one with reasonable flight options chooses US Airways. It's just not an airline of choice. Some people are forced to fly US on last minute fares because they offer a last-minute torpedo-fare that's hundreds of dollars below the competition. Others are forced because of the city they live in. The frequent flyer program is no longer a reason. That's history. It's the worst program of all of the major carriers. Absolutely no reason to stay. Burn your miles up and walk if you're staying just for Dividend Miles. The dividends have stopped paying.