Hi!
If U guys want the new CEO to run an airline, and continue to run it, it has to make money.
Even with the concessions taken by all the U employees, I still believe that the U has the highest labor seat-mile costs of any US airline. The DAL pilots may be close to the U pilots in seat-mile cost, but if they are that's no consolation as DAL is loosing it.
To survive, the U has 3 options.
1:
If the labor seat-mile cost remains higher than other airlines, the U will have to provide superior services to other airlines to justify the higher ticket prices required to make money.
2:
If the labor seat-mile costs are reduced to the average seat-mile costs in the industry, then the U can make money by providing better customer service, which is possible, but difficult. From what I've read both JetBlue, and SWA, for example, both provide excellent customer service, and their seat-mile costs are lower than the U.
3:
If the labor seat-mile costs are reduced near the bottom of the airline industry, then the U can make money by being a low-fare carrier-undercutting AirTran, Independence Air, SWA, etc. The product doesn't have to be as good as the others if the price is right.
Is option 1 likely to work?
If not, then the U will have to significantly lower the labor seat-mile cost.
It seems like a lot of pilots (and other employees) wanted to get rid of the CEO because he wanted to cut costs. Is there any other choice, if the U is to survive?
I do realize that all the labor groups at the U have taken serious pay concessions up to this point.
I also hope that ya'll can pull it together and survive.
CLiff
DTW