Record Profits?
- Thread starter delldude
- Start date
ITRADE
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Nice to see DellDude actling like a 3d grader. Oh well.
firstamendment
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We've all been there, so no stone throwing now.delldude said:
ITRADE
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Which one?USFlyer said:
usair_begins_with_u
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yeah.. certaintly not when CASM > RASM
LOL!!!!!!!!!!!!!!
Didnt we have this discussion already? I feel like no one listens to me.
🙄
Seatacus
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Instead of US making a buck. It's more like the passengers are saving megabucks.
usair_begins_with_u
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Yup... thats true. Which really makes it sucky when a pax rants and bitches about poor service, or a lost bag.. Hell, for what these people are paying to fly, most of em are lucky to make it to the proper final destination. But you can't blame the pax, they are price takers.. Blame the pricing department.
Anyone see Mike Boyd's column at www.aviationplanning.com ?
Click on Hot Flash... In this week's column Mike discusses that in nominal terms, yields have not increased since 1978. (Evidence? PEOPLExpress sold transcons at $99ew , and NE-Florida $69-$89ew in the 80's) When adjusted for inflation, yields have declined 50%.
My take on this is that airlines have done a few things over the years to compensate:
1. Increase load factor
2. Lower costs
a. fuel - more 73G's are much more fuel efficient that 73S's
b. distribution - remember travel agents and commissions?
c. service - less FA's/per flight, less food, less clubs, less FC seating
d. technology - self-service check-in, internet purchasing, e-tickets
3. Become more efficient
4. "Right-size" operations - did EVV really need 737's?
5. Use FF programs to retain high-yield traffic
Today, we are seeing the airlines take on the employee costs part of #2. Beyond that, what else can the airlines do to continue to lower costs? I think efficiency/technology is one answer, but I think the largest cost savings that the airlines can attain is largely done. Prices simply have to go up, eventually. How many other products/services can you buy for the same price as 1978? Ok, gas may be one 😛 , name another.
Click on Hot Flash... In this week's column Mike discusses that in nominal terms, yields have not increased since 1978. (Evidence? PEOPLExpress sold transcons at $99ew , and NE-Florida $69-$89ew in the 80's) When adjusted for inflation, yields have declined 50%.
My take on this is that airlines have done a few things over the years to compensate:
1. Increase load factor
2. Lower costs
a. fuel - more 73G's are much more fuel efficient that 73S's
b. distribution - remember travel agents and commissions?
c. service - less FA's/per flight, less food, less clubs, less FC seating
d. technology - self-service check-in, internet purchasing, e-tickets
3. Become more efficient
4. "Right-size" operations - did EVV really need 737's?
5. Use FF programs to retain high-yield traffic
Today, we are seeing the airlines take on the employee costs part of #2. Beyond that, what else can the airlines do to continue to lower costs? I think efficiency/technology is one answer, but I think the largest cost savings that the airlines can attain is largely done. Prices simply have to go up, eventually. How many other products/services can you buy for the same price as 1978? Ok, gas may be one 😛 , name another.
