Time for a revenue model change!!

[Oliver Twist]

Tom, I missed this one earlier.

What does this mean?



4. Standby permitted anytime during the ticketed day if fare class is full.



Presumably you meant not full??? Why restrict it to fare class? Any empty seat is an empty seat -- why make the rule more complex than it needs to be?

---------------------------------

I can deal with that as long as it's the same day they were originally ticketed. The fare class meant the letter code like F Y V etc. If you don't put in this modest restriction then there is no point in having 5 or 4 fare levels or advance purchases at all. Advance purchase rules allow for revenue prediction. Any company that can't predict it's revenue stream is in serious trouble.

Also, I assume you like having seat assignments? Interline agreements for your bags and in bad weather re-routes? The SW model does not allow for that. If there was only one way to do it right, Walmart would be the only place to shop. I don't like that idea much.

 

[TomBascom]

[blockquote]
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On 10/29/2002 5:49:00 PM UAL777flyer wrote:

Tom Bascom,

I think your comments are overdoing it a bit.
[/blockquote]

Could be. On the other hand I've certainly run into plenty of airline people with bizzare notions regarding on the subject.

[blockquote]
And airlines do have to budget for tickets. When employees travel on positive space for company business or other reasons, such as a death in the family, that comes out of the person's departmental budget.
----------------
[/blockquote]

At what rate? (I've seen some of these internal funny money deals in other areas -- it's never very realistic. Unrealistically high or low though depends on who set the rate...)

 

[TomBascom]

[blockquote]
----------------
On 10/29/2002 10:17:07 PM Oliver Twist wrote:

Tom, I missed this one earlier.

What does this mean?

4. Standby permitted anytime during the ticketed day if fare class is full.

Presumably you meant "not full"??? Why restrict it to fare class? Any empty seat is an empty seat -- why make the rule more complex than it needs to be?

---------------------------------

I can deal with that as long as it's the same day they were originally ticketed. The fare class meant the letter code like F Y V etc. If you don't put in this modest restriction then there is no point in having 5 or 4 fare levels or advance purchases at all. Advance purchase rules allow for revenue prediction. Any company that can't predict it's revenue stream is in serious trouble.
[/blockquote]

I don't see the point in caring about fare class for same day stand-by except perhaps to prioritize the stand-by list.

Standing by for a different day it makes sense though. I can understand needing the same class available for that.

[blockquote]Also, I assume you like having seat assignments? Interline agreements for your bags and in bad weather re-routes? The SW model does not allow for that. If there was only one way to do it right, Walmart would be the only place to shop. I don't like that idea much.
----------------
[/blockquote]

Seat assignments are nice but I'd rather have a decent cup of coffee I've only ever been re-routed on another airline once that I can recall -- United put me on an AA flight years ago. Occasionally I've had U look around but everything is always all sold out and I just punt.

I don't think that slavishly emulating SWA is the way to go. But I'm getting really tired of having the Ben Baldanza's of the world justify all of their really bad ideas on imaginary restrictions that SWA or someone supposedly has without bothering to check out what it is they do that is really responsible for their success and what it is about the way that they implement whatever restriction it is that CCY is pretending to emulate that makes it so that it's not just ok when SWA does it but a benefit to customers.

US Airways could be a really excellent business travelers airline. They could easily differentiate themselves from SWA and the ilk to the tune of a 10% to 20% premium. Maybe even more than that if they work at it. But that process doesn't start by treating business travelers as idiots who can't do the math.

 

[Ramp Rogue]

[P][FONT face=Comic Sans MS size=2]Here are a few ideas that can generate immediate cash flow:[/FONT][/P]
[P][FONT face=Comic Sans MS size=2]1. More flights from the west coast to the east that aren't funneled through Phl, Pit, or Clt. In the late 80's & early 90's, west coast flights went nonstop to Day, Mci, Tpa, Mco, Cle, Ind and a few others that I can't recall at this time. The flights were always oversold. Bring those flights back, or find other city pairs that no one flies to nonstop from the west to the east. Or do triangle flying from the west: Lax-Msy-Clt-Lax Sea-Sat-Phl-Sea Sfo-Mci-Pit-Sfo San-Cmh-Bwi-San These city pairs are just examples. [/FONT][/P]
[P] [/P]
[P][FONT face=Comic Sans MS size=2]2. For those cities that Usair owns their own cargo facility in, give cargo back to the Ramp. By doing so, USAir can start taking in and doing contract work for the international carriers. This would be done with USAir's own workforce. International carriers pay through the nose to those willing to load, unload, and distribute their cargo. Which means that since USAir already has the facility and workforce, the added revenue from the other carriers is putting free money in the bank. Plus by doing our own cargo again, it would bring back the customers that we lost when we switched to the contractors.[/FONT][/P]
[P] [/P]
[P][FONT face=Comic Sans MS size=2]3. Bring Pacer back! As antique as it was, it still beats saber by a mile. If that isn't possible, then program it to be more USAir agent friendly. Every time you have to do something you have to go to res, then back to decs, then back to res. Who in their right mind thought up something so ridiculous? And who decided to purchase a system that is so backwards, from american?[/FONT][/P]
[P] [/P]
[P][FONT face=Comic Sans MS size=2]4. If someone in upper management has the balls to do it, offer anyone with at least 10 years seniority free pass priviledges for life to anyone on their term pass if they separate from the company. You would find that a lot of the more senior people would jump at it. Thus relieving the company of a-scale employees. [/FONT][/P]
[P][FONT face=Comic Sans MS size=2]I know someone is going to find loopholes in my suggestions. That is what teses discussion boards are supposed to be for. Fire back when ready, I'm putting on my bullet proof vest![/FONT][/P]

 

[UAL777flyer]

WhatKind,

Think about it. Do you honestly think that the overwhelming majority of employees in this industry, with maybe the exclusion of pilots, would work for the airlines if there were no non-rev flight priveleges? This industry is highly cyclical and rides the ups and downs better than the Cyclone at Coney Island. With that comes lots of grief for employees and their families affected by furloughs, pay/benefit cuts and airline liquidations, as well as the constant uncertainly and black clouds that are always just around the corner. Given that, I'm willing to bet that if non-rev flight priveleges were eliminated, many folks would simply deem this industry not worth it considering its' drawbacks. Whether you agree with it or not, flying priveleges are what keep many people working at airlines.

 

[whlinder]

Why can't the industry invest in software that performs like that Microsoft commerical where all the wine is destroyed, causing the price of the wine to skyrocket? Why can't there be constantly changing prices based on how full a flight looks to be and based on past history? Sure you've got fare buckets and all that good stuff, but those fares don't change dynamically based on reservations. My guess is the investment would cost too much...

 

[Dea Certe]

Ramper,

I agree with you, bring back the west coast nonstops to Florida cities. I worked those flights all the time and they were always full!

And Advertize! No one on the West coast knows US Airways exxcept from the news on the BK.

I wouldn't mind picking up the cabin between flights, provided the planes get a good cleaning on the RON's. And I was also threatened with a union grievence for trying to help get a quick turn out on time by helping pick up the trash. We need to get some real team spirit going.

Also, our planes are either overstocked with paper products (towels, TP, tissues) or understocked. The overstocked stuff gets crammed into just any compartment and crushed to the point of being unusable. Could there be a way to let catering/utility know what we need in advance? Old PSA used to have the f/a's write up a list of what was needed. It was called in to ops and waiting for us on arrival. That might not work with only two pilots up front now, but how about a list to hand to the catering guys? They could save lots of time and trips to and from the truck by pulling together what's needed from the list. And then bringing in on board in one trip.

 

[N513AU]

[blockquote]
----------------
On 10/30/2002 10:36:21 AM whlinder wrote:

Why can't the industry invest in software that performs like that Microsoft commerical where all the wine is destroyed, causing the price of the wine to skyrocket? Why can't there be constantly changing prices based on how full a flight looks to be and based on past history? Sure you've got fare buckets and all that good stuff, but those fares don't change dynamically based on reservations. My guess is the investment would cost too much...
----------------
[/blockquote]

Uh, that's what we have now and why airline prices are such a mess.

 

[whatkindoffreshhell]

Yes I am serious. Everything should be on the table. I don't buy the 'cyclical nature of the business' argument either. Lotsa other industries are cyclical, do they rely on free bennies to attract quality employees?

Let me ask you: what is your position when the auto workers keep on insisting on totally free health benefits, just because that's the way it has always been? The average American-built car has $800 of labor healthcare costs built into the sticker price. All free benefits have a cost.

Nevermind anyway sir. The airlines won't rescind this particular privelege.

You professionals work very hard for this reward and I'm not begruding anyone this perk. Choices were made by all us. The point of my argument was that airline employees don't have to budget for travel.

 

[KCFlyer]

[BR]Let me ask you: what is your position when the auto workers keep on insisting on totally free health benefits, just because that's the way it has always been? The average American-built car has $800 of labor healthcare costs built into the sticker price. All free benefits have a cost.[BR][BR]The ones built in Mexico have a helluva lot more than $800. They sticker those puppies out as if they had to pay a 25 year UAW veteran build them. [BR]

 

[TomBascom]

Just to emphasize the point...

This afternoon I bought a ticket -- MHT [--] DEN 11/7, 11/12. The web site came back with $695 -- steep but not outrageous. This trip has been very fluid or I'd have booked it 6 weeks ago... So I'm thinking maybe a refundable would be worth looking into -- a couple hundred bucks would be well worth some flexibility and peace of mind. So I check that (no small feat on the web site). Wow! $1,910.50. No thanks, see ya later.

I would have happily paid a premium. But not that kind of gouging.

 

[Oliver Twist]

Tome, I think you are right in your decisions about the fares you mentioned. It's time for some serious rationalization in fares. As the USAToday article from Tue noted, our competitors smell blood and are circling for the feast. America West enters the PITPHX market where its new fares no Saturday night stay requirement and lower fares - will be popular.

Well no kidding. Fix the fare structure and do away with the silly and costly rules and we will have a real chance to fight back!