Nice article, but it doesn''t mean much unless we compare it to the Available Seat Miles (ASMs) year over year. I''d be curious to see how much THAT dropped over the same time frame. Looks like our load factor drop was nearly negligible.
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On 6/4/2003 8:32:33 AM A320 Driver wrote:
Nice article, but it doesn''t mean much unless we compare it to the Available Seat Miles (ASMs) year over year. I''d be curious to see how much THAT dropped over the same time frame. Looks like our load factor drop was nearly negligible.
A320 Driver
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Looks to me like your LF is at a structural limit. As you continue to reduce capacity it''ll stay there. You''re basically turning away revenue customers who would like to book flights but cannot because you have no seats at the times or on the routes they need/want to fly.
Meanwhile HP is seeing record growth (while competing with WN) and attributing it to rational fares... (check out their forum)
The good news (maybe) is that Dave spent his column in Attache this month talking about fares (95% lamely trying to justify the current state of affairs) and at the end says that he has challenged the appropriate people to come up with something better. Given management''s track record I''m keeping a sharp eye on my wallet but, for some inexplicable reason, I''m hopeful...
I''m no business major but if the concept of supply and demand were really applied and fairs adjusted accordingly, why would any of our A/C be oversold? Shouldn''t our heavy markets have some empty seats on them because of pricing?
Just a thought. Some of you business folks weigh in on this.
Yes, to me oversold flights implies the fares were too cheap. The demand was there at a supply over what it should have been. As for Dave''s article, US has already begun rationalizing fares in certain markets. Three day advance (or thereabouts) with no Saturday night stay between DCA and SEA, for example, is about $900 under what it was last year. As a result, I always buy B-class fares now and purposely don''t book too far in advance (mainly for upgrade purposes).
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On 6/7/2003 1:38:07 PM A320 Driver wrote:
I''m no business major but if the concept of supply and demand were really applied and fairs adjusted accordingly, why would any of our A/C be oversold? Shouldn''t our heavy markets have some empty seats on them because of pricing?
Just a thought. Some of you business folks weigh in on this.
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