Siegel Expects Airline Mergers

BoeingBoy said:
Poor management. They can't implement simplified fares due to the high cost structure. I'm sure that those carriers that are actually simplifying fares are doing it because their costs are so low they don't mind their revenues decreasing. How benevalent of them. They couldn't be doing it because simplifying the fares could actually INCREASE revenue, could they?

Jim
Actually, if properly done, RATIONALIZING the fares WOULD result in increased revenue, IMHO. Understand I am saying rationalizing, NOT dropping to the floor or below to match other airlines.

I have always maintained that if you were to raise the lowest fares by a little bit, but lower the unrestricted fares like other competitors have done (America West, Alaska, etc.), to the point where they make some sense, you would see that the AVERAGE fare paid on any given flight would go up. If the average goes up system wide, would that not result in an increase in overall revenue???

I for one, am anxious to hear this plan they are talking about. Come on guys, share it---we'll tell you whether or not it will fly (I would even sign an NDA to address security concerns).

Keep your chins up and keep the smiles coming at the gates and in the cabins folks--I know its tough but at least we frequent customers DO appreciate you....

My best to you all...
 
Art at ISP said:
I have always maintained that if you were to raise the lowest fares by a little bit, but lower the unrestricted fares like other competitors have done (America West, Alaska, etc.), to the point where they make some sense, you would see that the AVERAGE fare paid on any given flight would go up. If the average goes up system wide, would that not result in an increase in overall revenue???
Wise man.

Southwest sells a higher percentage of "full fare" tickets than anybody. Why?

The full fare is tolerable.
 
Does anyone else think that the worse part of that article is that Dave doesn't know where we will fit into the grand scheme? What's the deal? Where's the plan?
 

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