U.s. Airline Future

[BoeingBoy]

ktflyhome,

You are correct in that our (U's) non-personnel costs have risen. This quote from article #2 sums it up. "And unit costs increase as capacity is reduced unless the costs are lowered by the same percentage." We cut capacity by probably more than any network carrier (in percentage) without a corresponding decrease in many of our fixed costs - a perfect example is gate leases. Since capacity decreased faster than non-personnel costs, the non-personnel side continued to increase as measured by cost per ASM, more than offsetting the reduced personnel costs. Hence our overall cost per ASM also continued to increase, just not as fast as it ould have without the labor concessions.

Jim

 

[ktflyhome]

Doc, talk about taking F/C away. That reminds of when we introduced MetroJet. Boy oH Boy were F/C Pax's ever unhappy. That whole thing was a joke. Expecially when you had to constanly change f/c with coach. Coach px's had the swinging curtain "bulkhead" in their face the whole flight. F/c pax's had less room and no one was happy. Here we go again with the new configuratin of the 75's. What a joke and loss. Plus ,there is less overhead and closet space to store belongings. Where does management think this is going to be effective.?

 

[ktflyhome]

BoeinbBoy: So let me try to get this straight. We cut alot of labor cost but in the same time we cut out alot of flights and gave up gates, so to speak. Since we gave up gates, and cut out routes, (which may or may not have been productive) we are now carrying less on our airplanes and have less routes? Please, don't everyone laugh at me, I am truly trying to get a grasp on all of this. I have just been a F/A (Yes!!!!!) but I am not that stupid. We have not been informed as many others have on how things really operate, that is why I am on these boards today and trying to learn and educate my self. So for those of you who want to laugh, we all have to start somewhere. thanks BoeingBoy......KT

 

[ClueByFour]

Dave has never said it was all labor and bethune gets paid a chunk as well. The bottom line the whole lot of it has to be cut plain and simple. You cant blame him for todays environment.

When have you heard him give a speech or talk and mentioned anything besides "labor costs must come down?"

Hint: Never.

The most notable thing which you fail to address is the fact that non-labor costs are going up under the current management team.