US Airways Dividend Miles (Pre-FlightFund Merger) - Looks like DL is screwing the pooch in FL

WN and DL had been doing a good job of beating down US in Florida, but looks like DL is going to give US a huge opportunity:

http://www.flyertalk.com/forum/Forum21/HTML/006782.html

I see this as a very good chance for DL to grab all of DL's Florida based Medallions, which is nothing to sneeze at! I'm not even sure US will have to do anything to attract them, DL seems to be doing a **** fine job of driving them away on their own ...

Having priced First Class to the point where only a politician, or shyster lawyer billing an unsuspecting client (hey, they may be one in the same) can pay it, the whole product is a promote. At some point, particularly in the Florida market, they just configure the planes to the yield. That's what MetroJet was all about. Where it comes unstuck is when you do that, you limit cross utilization of the equipment. The all coach 757 doesn't really work ATL-LGA, where you really do have high paid fares. In the case of US, adding the Florida routes to the Shuttle operation (a little of which is being done already) might make sense. Anyway, I fear the First Class cabin, as has already happened in Europe, is an endangered species.

[This message has been edited by deelmakur (edited 08-03-2002).]

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">
Anyway, I fear the First Class cabin, as has already happened in Europe, is an endangered species.
</font>

I'm not sure I agree. I think that FC might be on the way out on Florida routes (indeed it already is, with Delta Express, MetroJet, and both airlines using uniclass shuttle equipment on the weekends) but it's definitely here to stay on key business routes (to/from DFW/ATL/NYC/BOS/ORD/LAX/SFO/SEA etc). Sure, no one is paying the fares, but it's a key to marketing (it's the driving benefit behind elite programs and customer loyalty). And all the non-business routes are downgraded to RJ's anyway. The RJ is why FC is disappearing in the US, not ripping FC cabins out of the big jets.

BizJet, I fear we are fossils. It is clear that airlines willing to operate above the no frill level can no longer make a profit, given fuel, aircraft, and employee costs.
Additional security has driven the final nail. They will consolidate, drive fares where they can, dictate employment terms to the unions, and produce the inevitable result, which will be basic, single class transport. Captains of industry will go private (these days, that's almost as good as stock options), civilians will take more family trips by car, and us road warriors will just fade away to that great airline club in the sky. And to think, it all started with Frank Lorenzo and a bunch of free peanuts. What a ride!

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by deelmakur:
BizJet, I fear we are fossils...</font>

Wow! You're gloomy this weekend...

So just how many more seats do they add to a 757 when the replace FC with Coach? 18? Is
that really enough to make it attractive? (Especially if you're selling them all for $78?)

Actually, a big point that you guys are missing is this: replacing first class seats with those of steerage (for a net gain of maybe 6 seats total) wont do you much good if you're still paying your pilots some of the highest wages in the industry!

The primary reason WN, regional jets, etc can do what they do (utilizing the fares that they offer) is because their pilots are paid less.

Now, try to see DL do that to mainline pilots, but only those that fly select markets..... I for one will have my popcorn and 3D glasses ready http://www.flyertalk.com/forum/tongue.gif

------------------
Stronger than Airbus, Faster than Airbus, Bigger than Airbus... BETTER than Airbus!

[This message has been edited by 777-232LR (edited 08-05-2002).]