The Cities Are Announced!
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phllax
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It's interesting to see that they are going after the O&D market in Philly. MDW looks to be the only city where they would have good connecting opportunities to cities that you cannot get to from PHL (RNO, OKC, GEG, PDX, ABQ, SAT, AUS, TUL, ELP). It's surprising that they wouldn't serve HOU.
ClueByFour
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Because this is not like chasing Airtran off PIT-MDW and PIT-PHL and PIT-LGA. LUV can actually make money at those price points. U will bleed to death.robbedagain said:
One of the few ways to compete with Southwest is to offer products to our passengers that southwest may lack (they lack in very little). IFE comes to mind.
Although statistics show passengers now look for the lowest fares. We may be able to compete (play tug of war) for awhile if we can offer some new services and products, but in the long run I am affraid that the fat lady is going to sing and unfortunately she is going to be southwest's anchor man. I honestly hope we can pull this off.
-Happy Holidays
Although statistics show passengers now look for the lowest fares. We may be able to compete (play tug of war) for awhile if we can offer some new services and products, but in the long run I am affraid that the fat lady is going to sing and unfortunately she is going to be southwest's anchor man. I honestly hope we can pull this off.
-Happy Holidays
USA320Pilot
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Southwest’s entry into Philadelphia is a direct assault on US Airways, but the LCC expansion into network carrier hubs is not new. For example, Delta has been “battling†AirTran in Atlanta and United has been "battling" Frontier in Denver.
This week the ALPA International EF&A Department briefed the US Airways MEC and said that the LLCs are forecast to grow at a rate of 14percent, with Southwest experiencing more modest growth at 8 percent and the other LCC’s 20 percent. The ALPA advisors said the LLC’s will have 25% of the planes and the network airlines will have 40% of the planes in 2006.
In May Southwest will start its Philadelphia operation with 4 gates 8 - 14 daily flights and growing to 80 daily flights, which will make life difficult for US Airways.
ALPA EF&A believes the Southwest Philadelphia fight be much harder for the Dallas-based company than in Baltimore. When Southwest entered the Baltimore market US Airways was already decreasing flights and the LCC does not have US Airways Philadelphia international presence or marketing advantages. US Airways does have a lot of “defendable marketsâ€, which will be hard for Southwest to break in, but the company will have to lower both its fares and unit costs to do it.
US Airways has already identified $200 to $300 million in expense reduction for 2004. The company told the Smith Barney Transportation Conference on November 12 these savings would come from:
Flight Operations
Maintenance Efficiencies
HR initiatives
Medical
Lost Time
Insurance Costs
Express Operations
For example, in the area of Flight Operations the Flight Department is looking at Electronic Flight Bags (EFB's). In fact, US Airways is one of three carriers involved in an active on-line evaluation and the company is doing a cost analysis with various vendors on different levels of going paperless. By comparison, JetBlue uses laptops for some manuals, but they do not use them for Jeppesen approach plates. In addition, the company has evaluated keeping keeping all of the paper approach plates in the aircraft, however, it’s not operationally feasible. But US Airways can place "bricks" of plates containing alternate airports on-board the aircraft and will start this cost reduction program soon.
Regards,
Chip
This week the ALPA International EF&A Department briefed the US Airways MEC and said that the LLCs are forecast to grow at a rate of 14percent, with Southwest experiencing more modest growth at 8 percent and the other LCC’s 20 percent. The ALPA advisors said the LLC’s will have 25% of the planes and the network airlines will have 40% of the planes in 2006.
In May Southwest will start its Philadelphia operation with 4 gates 8 - 14 daily flights and growing to 80 daily flights, which will make life difficult for US Airways.
ALPA EF&A believes the Southwest Philadelphia fight be much harder for the Dallas-based company than in Baltimore. When Southwest entered the Baltimore market US Airways was already decreasing flights and the LCC does not have US Airways Philadelphia international presence or marketing advantages. US Airways does have a lot of “defendable marketsâ€, which will be hard for Southwest to break in, but the company will have to lower both its fares and unit costs to do it.
US Airways has already identified $200 to $300 million in expense reduction for 2004. The company told the Smith Barney Transportation Conference on November 12 these savings would come from:
Flight Operations
Maintenance Efficiencies
HR initiatives
Medical
Lost Time
Insurance Costs
Express Operations
For example, in the area of Flight Operations the Flight Department is looking at Electronic Flight Bags (EFB's). In fact, US Airways is one of three carriers involved in an active on-line evaluation and the company is doing a cost analysis with various vendors on different levels of going paperless. By comparison, JetBlue uses laptops for some manuals, but they do not use them for Jeppesen approach plates. In addition, the company has evaluated keeping keeping all of the paper approach plates in the aircraft, however, it’s not operationally feasible. But US Airways can place "bricks" of plates containing alternate airports on-board the aircraft and will start this cost reduction program soon.
Regards,
Chip
USA320Pilot
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737nCH11:
737nCH11 said: "Inside sources have told me that U will be purchasing old Jeppesen approach plates from UAL for a substantial discount."
Chip comments: 737nCH11, I believe you are a little confused. Those manuals will be left over and kept onboard the aircraft for transfer to US Airways after the Arlington-based airline's chairman of the board does not agree to United's demands to renegotiate Boeing 767 EETCs. The chairman could provide the EETC's to US Airways at a competitive lease expense to "his airline", to help lower US Airways' unit costs. Thus, US Airways would not have to "purchase" the aircraft or "approach plates" from its business partner.
Regards,
Chip
737nCH11 said: "Inside sources have told me that U will be purchasing old Jeppesen approach plates from UAL for a substantial discount."
Chip comments: 737nCH11, I believe you are a little confused. Those manuals will be left over and kept onboard the aircraft for transfer to US Airways after the Arlington-based airline's chairman of the board does not agree to United's demands to renegotiate Boeing 767 EETCs. The chairman could provide the EETC's to US Airways at a competitive lease expense to "his airline", to help lower US Airways' unit costs. Thus, US Airways would not have to "purchase" the aircraft or "approach plates" from its business partner.
Regards,
Chip
I guess we all can look forward to many more cities going Mainline/Express in the up coming year. Big Labor Savings. I would figure that Dave and Company will make the Annnouncement prior to Christmas as they have done in years prior. Happy Holidays to the Few who are left.
As far as UAIR buying UAL it ain't happening. The only thing that UAIR is focusing on right now is survival.
As said before UAL's prospects for long-term survival are much greater than UAIR's and that is even with UAL in chapter 11.
The fact is Philly is different than Baltimore, UAIR's operation in Philly was much larger than the operation at BWI. The thing that everyone must keep in mind is that Southwest can run those dirt cheap fares to MDW and make money UAIR can't come close to doing it. Now when the battle begins UAIR will run flights to competing cities at competing rates but they will lose so much money and that will force them back into 11. Than Southwest will go for the jugular and introduce more cities at even cheaper fares.
The only way to fix this problem is to control cost and get these new jets in the sky as quickly as possible so UAIR can start making some money. Believe me I do not want anyone to lose their jobs or take anymore pay cuts, but the reality is UAIR is now fighting for its life.
The LCC's have the legacy carriers by the neck and they are determined to take control of the lucrative east coast network. I have not agreed with most of Siegel's moves while he has been at the helm but the implementation of MID ATLANTIC may be the move that saves this airline. The company can make money with this product and compete with both the LCC's and the Legacy carriers, the only problem will be is whether or not he can get this product in the sky quick enough.
Best of Luck to all of you at UAIR!!
As said before UAL's prospects for long-term survival are much greater than UAIR's and that is even with UAL in chapter 11.
The fact is Philly is different than Baltimore, UAIR's operation in Philly was much larger than the operation at BWI. The thing that everyone must keep in mind is that Southwest can run those dirt cheap fares to MDW and make money UAIR can't come close to doing it. Now when the battle begins UAIR will run flights to competing cities at competing rates but they will lose so much money and that will force them back into 11. Than Southwest will go for the jugular and introduce more cities at even cheaper fares.
The only way to fix this problem is to control cost and get these new jets in the sky as quickly as possible so UAIR can start making some money. Believe me I do not want anyone to lose their jobs or take anymore pay cuts, but the reality is UAIR is now fighting for its life.
The LCC's have the legacy carriers by the neck and they are determined to take control of the lucrative east coast network. I have not agreed with most of Siegel's moves while he has been at the helm but the implementation of MID ATLANTIC may be the move that saves this airline. The company can make money with this product and compete with both the LCC's and the Legacy carriers, the only problem will be is whether or not he can get this product in the sky quick enough.
Best of Luck to all of you at UAIR!!
USA320Pilot
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Shaka:
Shaka said: "As far as UAIR buying UAL it ain't happening. The only thing that UAIR is focusing on right now is survival."
Chip asks: Who said US Airways was buying United?
Shaka said: "I have not agreed with most of Siegel's moves while he has been at the helm but the implementation of MID ATLANTIC may be the move that saves this airline. The company can make money with this product and compete with both the LCC's and the Legacy carriers, the only problem will be is whether or not he can get this product in the sky quick enough."
Chip answers: Shaka, I agree with your MDA comments. MDA is the only competitive LCC response and it will represent 23 percent of the mainline fleet, with 279 Boeing and Airbus aircraft, by September 2006.
Regards,
Chip
Shaka said: "As far as UAIR buying UAL it ain't happening. The only thing that UAIR is focusing on right now is survival."
Chip asks: Who said US Airways was buying United?
Shaka said: "I have not agreed with most of Siegel's moves while he has been at the helm but the implementation of MID ATLANTIC may be the move that saves this airline. The company can make money with this product and compete with both the LCC's and the Legacy carriers, the only problem will be is whether or not he can get this product in the sky quick enough."
Chip answers: Shaka, I agree with your MDA comments. MDA is the only competitive LCC response and it will represent 23 percent of the mainline fleet, with 279 Boeing and Airbus aircraft, by September 2006.
Regards,
Chip
USA320Pilot
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Hope777:
Hope777 said: "Our OWNED Express carriers should have been flying RJ's Years AGO. But thanks to a VERY restricitive PILOT contract, it never happened."
Chip says: I agree.
Regards,
Chip
Hope777 said: "Our OWNED Express carriers should have been flying RJ's Years AGO. But thanks to a VERY restricitive PILOT contract, it never happened."
Chip says: I agree.
Regards,
Chip
Whoa, wait a minute, Hope. You can't blame the pilots for this one. Wolf and Gangwal failed to jump on the small jet bandwagon years ago. It just wasn't important to them. This was all part of their NO PLAN B scenario. They GAVE the scope language to the pilots and you can't blame the pilots for using it to their advantage when ALPA needed to pull a rabbit out of pilots hats. In fact, I don't remember Wolf and Gangwal bringing up the RJ/SJ issue until after the merger failed. If they did bring it up before, it certainly wasn't long before. They were sounding like Jan Brady... MERGER! MERGER! MERGER!Hope777 said:
Colby
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Personally I still see US concentrating more on the International, Carribean and South American Routes .
Now adays the Domestic Traveling Public is Pathetic.... the $99.00 Fare Pax looks like the $10.00 ___________ you see in Kmart. They're probably waiting for the Blue Light Specials to be announced on anything sold Onboard the Aircraft.
About a month ago I was non-reving with one of my Friends and we sat near the back to talk to the F/A's we knew. I noticed a guy standing in the Galley, He was just hanging out there... Very Suspiously.... The F/A's were doing their Bev Service... When he finally left the Galley he walked by me and I could see a Can of Diet Coke stuck in his Pocket...... He sat back down and was acting like a 4year old that just got away with something.... GIVE ME A BREAK !!!!
PEOPLE IF YOU WANT A CAN OF DIET COKE....JUST ASK FOR IT !!!!!
Now adays the Domestic Traveling Public is Pathetic.... the $99.00 Fare Pax looks like the $10.00 ___________ you see in Kmart. They're probably waiting for the Blue Light Specials to be announced on anything sold Onboard the Aircraft.
About a month ago I was non-reving with one of my Friends and we sat near the back to talk to the F/A's we knew. I noticed a guy standing in the Galley, He was just hanging out there... Very Suspiously.... The F/A's were doing their Bev Service... When he finally left the Galley he walked by me and I could see a Can of Diet Coke stuck in his Pocket...... He sat back down and was acting like a 4year old that just got away with something.... GIVE ME A BREAK !!!!
PEOPLE IF YOU WANT A CAN OF DIET COKE....JUST ASK FOR IT !!!!!
Walmart Greeter
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Unfortunately, Southwest will deliver fares that are low(what customers want and are demanding), and they will ensure the prices are not high enough for US to make money at current costs.
Sure, US will match the fares and the losses will steepen.
Everyone is jumping up and down to fight back and blaming Dave for the problems, but are we ready to do what needs to be done to lower our costs?
The productivity issues are clearly a big deal. There are even books written on WN in this regard. Their employees are cheerful and work their butts off.
If I went to a hot dog stand that had one person working at the stand and they charged $1 for a dog and next to that stand was another hot dog stand that had two people serving up the same exact dog, would I be willing to pay $2 so that the two could make the same dog in an in-efficient manner? Everyone knows the answer.
So does anyone know how many employees WN has vs. US per airplane or per passenger? How in-efficient are we?
Sure, US will match the fares and the losses will steepen.
Everyone is jumping up and down to fight back and blaming Dave for the problems, but are we ready to do what needs to be done to lower our costs?
The productivity issues are clearly a big deal. There are even books written on WN in this regard. Their employees are cheerful and work their butts off.
If I went to a hot dog stand that had one person working at the stand and they charged $1 for a dog and next to that stand was another hot dog stand that had two people serving up the same exact dog, would I be willing to pay $2 so that the two could make the same dog in an in-efficient manner? Everyone knows the answer.
So does anyone know how many employees WN has vs. US per airplane or per passenger? How in-efficient are we?
