Programs: AA lifetime GOLD, thanks FT, AARP senior member
Posts: 13,839
This is going to be an absolute mess for people going on cruises.
I have already seen and heard arguments at the check in lines at DFW! Plan for more time in those lines and a lot more yelling from unhappy passengers!
With oil prices what they are, this really had to happen.
I think you may be right, an effort to re-regulate in some format may be in the near future. However, what would that do to FF programs? Nothing good IMHO
There were no frequent flyer programs before deregulation. Airlines didn't need them to attract pax...their routes and profits were guaranteed.
If re-regulation takes place, expect frequent flier programs to be degraded.
Programs: AA - ExPlat 1MM Marriott - Platinum, Hertz - Presidents Circle
Posts: 424
Quote:
Originally Posted by VT_hawkeye
This is Ryanair-style bullcrap. I would have expected it out of US or NW, maybe UA the way they're heading. Not AA.
Arpey is a bean counter. That's his forte. Leadership is not his forte. Unfortunately he did not surround himself with people of leadership quality either. If this is what it takes for the airline to survive and avoid the bankruptcy route again, then so be it.
Thank the speculators who are continuing to drive up oil prices and others who have driven the economy to where it's at.
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๑۩۞۩๑Purple๑۩۞۩๑
This place is 98% whining and 2% substance, and yes, it is difficult to tell the difference sometimes.
Location: Rural Northwestern Virginia - IAD Home Airport
Programs: Lufthansa, AsiaMiles
Posts: 85
Quote:
Originally Posted by TN_Again
Oil prices are not coming down - ever.
Airlines are basically eliminating the vacation/leisure traveler with fare and fee increases. It's over.
Bingo! Anyone who thinks oil is going to drop back down to the $50/barrel range is seriously kidding themselves. Until Hydrogen or some other fuel is fully entrenched in the global market for ground vehicles, that is.
Do bus services charge for bags these days? (just curious) I'm assuming they get hit by rising oil costs too. Have ticket prices shot up in that industry too?
Surely you cannot have forgetten which board you are on? "absurd extremities" is an art-form rarely duplicated elsewhere.
mike
Unfortunately just a few years ago being charged for the first checked bag would have been an labeled an absurd extremity. It's a slippery slope. And we're on it.
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New York to London via Bangkok....Is there really any other way?
I would like to hear Sluggo's perspective on this. As I understand it FA's don't start getting paid until the door is shut. So now they are expected to police the Group 5's and Group 6's that can't fit their bags into the overhead bin and to charge them and shepherd the bags to the tarmac and yada yada and we will still depart on time?
I fly aa so i'm putting this post here; it applies to any carrier.
I just went over to ryanair's web sight and noticed they are running a promo for june to lots of cities: free: no taxes-no fees-no charges (book by 5/22/08); they nickel and dime you on everyting (else)--the price of oil is still costly for them. How can they stay in business and run this promo?
[I was going to put this in the AMR thread which is now 5 (and counting) pages long but info has a way of getting lost...]
Location: Stuck Between the Moon and PHL or EWR, Riding the Rail from ZFV, Your local Taco Bell
Programs: AA EXP, CO Plat, SPG Plat, Marriott Silver
Posts: 2,812
Quote:
Originally Posted by lehms
lets see what happens after Southwests brilliant fuel hedge comes off, me thinks may be a tad tough for them to keep the streak alive
OK... repeat after me: WN does not have a "magic fuel hedge" that's about to "expire".
What WN DOES have is a significant hedging program. Each quarter, their hedges extend further into the future. Generally, they cover the bulk of the fuel they're going to need for the period by the time they open up their schedule for that period. Their costs have been going up, just like everyone else. Their costs just haven't gone up as quickly because they've got a very effective hedging program.
The upshot is that WN knows nearly exactly what each seat it sells will cost, fuel and all, and then prices accordingly in a simple and transparent way. That's why you don't see nearly as many $29 fares. PHL-RDU, for example, used to be $29-79 each way, depending on which fare you bought. Now it's $59-129. Why? WN's costs have gone up and in turn so have the fares.
To argue that WN's "magic beans" (fuel hedges) will magically disappear one day is laughable. They won't always be at as low a price as they once were, but they will continue to extend.
.... and WN can then continue to avoid selling $1 for 75 cents.
