usairways expects 1st q loss.

[sharktooth]

Petroleum prices are increasing due mainly to the devaluation of the US Dollar against other currencies.

Interesting. Pretty tenuous correlation since the dollar has been fairly constant against the euro for several cycles now (1.4 to 1.45, give or take).

So, increased oil competition from emerging economic entities (China, India, SE asia) have little to do with increases? How about the US adventure in the Middle East and fears that the witless, equinophobic cowboy in the whitehouse might pull the trigger on another innocent, sovereign country like Iran and Syria or Lebanon through his proxy, Israel, further reducing oil supplies? and, of course, several major oil refineries have reduced capacity due to lax oversight on the part of government resulting in sometimes volatile shutdowns.

------ You know what sends mixed signals to Syria? Working with Syria to torture our detainees for us, then attacking Syria for sponsoring terrorism. - Bill Scher

 

[P51Pilot]

I guess it will be a little longer until that sweetheart contract that will buy the East pilot's seniority.

 

[PHL]

Take care of people and the numbers will take care of themselves.

If that's true, then airlines like CO who are reputed to have fantastic service and a customer friendly attitude will show significantly better numbers even in the bad times.

 

[US1YFARE]

If that's true, then airlines like CO who are reputed to have fantastic service and a customer friendly attitude will show significantly better numbers even in the bad times.

That's what the projected numbers show right now and CO has a very weak domestic system.

 

[autofixer]

Change is on the horizon.

Sounds like one of the vapid political slogans we are hearing today.

 

[PA18]

You mean raise fares in the Bos-Phl market from $1,000 - $1,200?

No.

It means stop charging $129 for a flight from BOS to MCO through PHL, because there are no non-stops.

How much do you suppose the company loses using two airplanes, two flight crews, three ground stations, and thousands of gallons of fuel and de-icing fluid getting in and out of PHL; all to attract passengers who will book that flight because it's cheaper than the competitors' non-stops?

So you charge less money, but spend more money than the other airlines to get those passengers to MCO. (That is, if they and their bags actually get there.)

Brilliant.

 

[vantheman63]

US can't raise fares or they will have fewer passengers and bring in less revenue in total.

If US were a decent carrier, people would be willing to pay more, but that is obviously not the case.

That's exactly right....

This week, I did this flying:

Continental Airlines Trip Details
------------------------------------------------------------
Mon., Feb. 18, 2008:
CO5854 ERJ145 departing PVD at 6:00 a.m. arriving CLE at 7:59 a.m. Seat 12A
CO2252 ERJ145 departing CLE at 9:10 a.m. arriving AUS at 11:27 a.m. Seat 12B
------------------------------------------------------------
Total Trip Cost: $385.00
Actual Air Fare Paid: $338.60
Actual Miles Flown: 1,715
Yield: $0.197 per mile
Taxes & Fees Paid: $46.40, 12% of the cost of the ticket

American Airlines Trip Details
------------------------------------------------------------
Mon., Feb. 19, 2008:
AA 1070 MD-83 departing SAT at 6:30 p.m. arriving DFW at 7:35 p.m. Seat 23B
------------------------------------------------------------
Total Trip Cost: $58.50
Actual Air Fare Paid: 44.65
Actual Miles Flown: 247
Yield: $0.18 per mile
Taxes & Fees Paid: $13.85, 23% of the cost of the ticket !!!

Continental Airlines Trip Details
------------------------------------------------------------
Thur., Feb. 21, 2008:
CO 1138 B733 departing DFW at 3:15 p.m. arriving EWR at 8:06 p.m. Seat 7D
CO 163 B735 departing PVD at 9:35 p.m. arriving PVD at 10:49 p.m. Seat 14F
------------------------------------------------------------
Total Trip Cost: $385.00
Actual Air Fare Paid: $338.60
Actual Miles Flown: 1,532
Yield: $0.221 per mile
Taxes & Fees Paid: $46.40, 12% of the cost of the ticket

==================================================================

As is plainly visible, I piad $0.197 per mile, $0.18 per mile and $0.221 per mile....all for coach...and I was satisfied. When I fly on CO, I worry about SO much less...like, "will I get there? Will they treat me right? Will I get a bite to eat?"

And with that, I don't feel ripped off, so I'm okay paying the extra.

Oddly, on the CO flight, which I literally bought at the ticket counter and was one of the last ones to buy and board. And it was $385....try walking up on a US and finding that.....what's more, try getting the same quality product at that price.

So, I think you are spot on...

CO has invested in their product as their way of managing revenue. US has leveraged off employees and customers.

Think about that....as for cost savings, US has done it on the backs of their employees and customers.

AMAZING.

 

[jimntx]

I think what is being inferred here, is that industry consolidation will eventually reduce capacity enough that ALL carriers will be able to increase fares to offset the ridiculous rise in fuel prices.

Problem is that all the airlines currently in merger talks are saying publicly that there will be no reduction in capacity. A lot of smaller cities that are totally dependent upon one carrier (or close to it) are very concerned about the consolidation issue. Also, I think I read somewhere that the UA pilots have a clause in their contract that prohibits grounding more than some small percentage of the total fleet.

 

[SS255]

Well it just seems simple to me...RAISE THE FARES! Everything else has gone up as a result of fuel prices. Why are airfares the only thing going down? Even a cup of coffee at Starbucks has increased in price by almost 40 cents in the past three years because of fuel costs associated with delivering milk, supplies, etc. But rather than raise the fares, God forbid, they will continue to loose money and squeze more out of the employees. It amazes me how if the airlines try to raise prices people throw a fit, but no one has picketed the gas pumps lately....

BINGO!

 

[luvthe9]

It's ashame Doug did not come up with a at least a pairity raise for the East. They are killing him in fuel, the small raise might have saved millions.

 

[autofixer]

It's ashame Doug did not come up with a at least a pairity raise for the East. They are killing him in fuel, the small raise might have saved millions.

It is amazing, "The more things change, the more they stay the same." U management has always spent a dollar to save a dime. Crystal City did it that way and now Tempe does it that way.

As a side note, always be sceptical of change. This merger was change, the communist revolution in Russia was change, Hitler was change... Despite what is being taught in MBA schools these days, change is rarely good.

 

[jerseyfinn]

Well it just seems simple to me...RAISE THE FARES!

Well, there's been a lot of fairly obvious things out there for the aviation industry to see and do, and it never quite works that way does it?

I agree that we all live in pretty much the same economy and I would not be surprised to see a fare increase when fuel prices are hammering most every business/industry. As Jim points out, Tempe could cover the real cost of fuel price increases by adding a $10 fuel tariff to each ticket. I certainly would not object to that. So why don't they simply do so?

Now the other side of the coin in my book is that this company can not in any way, shape or form to be trusted. We pax have seen the fog of obfuscation fall over the web site and pricing information. Extra booking fees come and go and you never know quite what you're paying for in a ticket. Sure, Tempe gives you an explanation, but past history with this outfit clearly demonstrates that integrity and truth are not part of company ethos.

Tempe could, if they want to play straight up and say prices are going up ten bucks to cover rising fuel costs. The fringe crowd who is never satisfied in any situaiton will still complain, but the bulk of us would accept that. So it's out there waiting to be done. All it takes is a business plan and vision to see where the business is going. Oh yeah, you also need a product as well. Oops! Tempe always seems to leave one step out.

Barry

 

[wopr21]

It's ashame Doug did not come up with a at least a pairity raise for the East. They are killing him in fuel, the small raise might have saved millions.

Bingo Again !

 

[FlyDCJets]

I'm sure the departure of VFF's hasn't helped matters.

The rest of the industry is expecting a 1st qtr lose due to the $100 oil.

The departure of VFF's has nothing to do with the expected 1st qtr lose, and it has been reported that there is approx $3B in cash to weather the economic storm.

Would you like another "Kool-aid" shaken not stirred or straight up?

 

[Be Careful What You Wish For.]

What I find ironic is Art's tag line (and I do have the utmost respect for Art and FFocus)- "It's the fares Stupid".