US Airways Dividend Miles (Pre-FlightFund Merger) - No Exceptions?




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TomBascom
Sep 3, 02, 7:42 am
From usaviation.com:

There is a newsletter sent out by John McCorkle, a US Flight Attendant (on furlough still I think) who gives a nice insiders view of his company. Many "high profile" people read his emails I'm told.

This is an excerpt from his latest newsletter:

DID THE SQUEAKY WHEEL GET THE GREASE FROM US AIRWAYS?

For those of you who have been on my newsletter list for at least the past
year-and-a-half, you'll recognize the following story, but what will get
your attention is the 'twist' to the story I've recently discovered -- and
I can assure you, this will disturb our frequent flyers.

Back in early 2001, while the United - US Airways merger was still being reviewed, you'll recall me writing about the comments of South Carolina Senator, Ernest 'Fritz' Hollings. Mr. Hollings complained about his wife having to pay almost $1,000. to fly between Washington, DC and Charleston,
SC on US Airways. I agreed with the Senator that the fare was excessive and from that point on, I continued to monitor the fare about once every three or four months, to see if there were any changes.

Another reason I continued to monitor the fare was because former US Airways President and CEO, Rakesh Gangwal, frequently citied the 'drop off' in business traffic as a major contributor to our financial woes. As many of you know, my feeling was if the company was going to complain that nobody was purchasing those $1,000. fares, maybe the company should cut the fare in half in an attempt to stimulate revenue.

At the time of Senator Hollings' complaint, the flight to and from CHS was operated by a Boeing 737. Now, the flight is operated by a 32-seat turboprop aircraft and yet the fare continues to remain excessively high, at $941.50 (as quoted on 8-31-02).

But here's where the story gets interesting: A gentleman by the name of Ron Reeves retired earlier this summer from his position as US Airways' Vice President of Governmental Affairs. Last year, Mr. Reeves' office sent a directive to the manager who oversees the Chairman's Preferred liaisons.
(You'll recall when I exposed the VP 'upgrade gate' that these dedicated
liaisons deal with only Chairman's Preferred members and members of Congress).

Senator Hollings has a profile on file with the company and when he or his wife or someone from his office calls to book a flight, the US Airways liaison pulls up his profile and here is what they see:

***********IMPORTANT********************
PER RON REEVES OFFICE/WORK WITH SENATOR/WIFE REGARDING CHANGES -- WAIVE ADD COLLECTION AND CHARGE FEES AND EVEN ADVANCE PURCHASE FEE IF THEY PRESS YOU. QUOTE RULES AS YOU WOULD TO ANYONE, THEN IF THEY ASK YOU TO WAIVE SOMETHING - THEN WAIVE IT. IF YOU DO WAIVE ANYTHING FOR THEM, PRINT A COPY OF THE PNR *AFTER* YOU HAVE MADE THE CHANGE **AND** ADDED THE WAIVER CODE.
LEAVE IN GLORIA'S MAILBOX.
**********************************************

This information was current as of July 26, 2002. So, are we to understand that a Senator or his wife or a representative of his can dial up US Airways and DICTATE what is an acceptable fare to pay for travel and what is not? According to this memo, they most certainly can. I wonder if the new pricing changes implemented last week will effect Senator Hollings?

I imagine the call goes something like this:
Agent: "Thank you for calling US Airways, how may I help you?"
Senator: "Yeah, this is Fritz Hollings -- a United States Senator -- I need a ticket to Charleston for tomorrow."
Agent: "Yes Sir, Senator, let me see, that will be $941.50 -- may I book this for you?"
Senator: "Hell no, that's too much, uh, let's see, uh, oh yeah, waive something for me."
Agent: "OK Senator, I can waive the add collection fee for you, and that will get us down to $795."
Senator: "No, that's still too much, uh, waive something else."
Agent: "Ok, hold on just a minute ... ok, I've waived the change fee and that gets it down to $595.50."
Senator: "Hell no, that's still too much. How much are you people paying Wolf? Waive something else."
Agent: "Ok, well Sir I can also waive the advance purchase fee and that will price out at $326.50."
Senator: "Uh, hang on just a second ...... SWEETIE, I'M OUT OF SCOTCH, BRING ME ANOTHER ONE."
Agent: "Excuse me?"
Senator: "Oh, no, I was just yelling at my wife. What was that last price again?"
Agent: "$326.50 sir."
Senator: "****, can't you waive something else? Don't you know how expensive 80-year old scotch is?"
Agent: "Well Senator, why don't you just name your own price since you're so special?"
Senator: "Ok, how about $89 round-trip?"
Agent: "That will be fine Sir."
Senator: "And I want first-class as well."
Agent: "Well, I'm sorry sir, but first-class isn't offered on our turboprop flights."
Senator: "That **** Stephen Wolf. Ok, just book the **** ticket. And I want a paper ticket too."
Agent: "Yes Sir, that will be an additional $25."
Senator: "Waive it."
Agent: "Yes Sir, Senator. Thank you for calling US Airways."

Well folks, if the new pricing changes don't totally alienate our frequent travelers, this story might. Showing favoritism to a wealthy Senator while trying to squeeze another dollar out of our most loyal passengers will not go over well. Let's see how this plays out. What do you think about this, Dave?


Beckles
Sep 3, 02, 8:42 am
That's interesting, if true, but the thing is I don't fault US for trying to placate someone as important as a Senator who is publicly complaining about them specifically ... I think this could be big trouble for the Senator if they took they took advantage of this however using federal funds since it could be construed as favoritism ...

jcrb
Sep 3, 02, 8:55 am
Originaly I was going to say that they would be stupid not to do whatever they could to make Senators happy with them.

But the more I think about this, the last time I checked giving gifts of significant monetary value to a Senator, basicly what they are doing by giving him a significantly lower price than they would give anyone else, is also known as bribery?


TomBascom
Sep 3, 02, 9:21 am
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Beckles:
That's interesting, if true, but the thing is I don't fault US for trying to placate someone as important as a Senator who is publicly complaining about them specifically ... I think this could be big trouble for the Senator if they took they took advantage of this however using federal funds since it could be construed as favoritism ...</font>

Perhaps they should consider listening to the Senator's complaint that the fare is unreasonably high and revisit their fare structure?

Beckles
Sep 3, 02, 9:47 am
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by jcrb:
Originaly I was going to say that they would be stupid not to do whatever they could to make Senators happy with them.

But the more I think about this, the last time I checked giving gifts of significant monetary value to a Senator, basicly what they are doing by giving him a significantly lower price than they would give anyone else, is also known as bribery?</font>

I do agree with you somewhat, but the thing is what US did is of little or no real monetary value to them, it's more a favor than a bribe the way I see it ... but I could see it either way and did consider using the word 'bribe' in even my initial message ...

That being said, like I said, to me this is worse for the Senator than it is for US publicity wise ...

deelmakur
Sep 3, 02, 9:54 am
See my post the other day about the perils of standby upgrades at DCA, and the incredible shrinking inventory at the last minute.

Beckles
Sep 3, 02, 9:57 am
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by TomBascom:
Perhaps they should consider listening to the Senator's complaint that the fare is unreasonably high and revisit their fare structure?</font>

Yeah, that's what they did last week ... sure we don't like it or agree with it, but they certainly "revisited" it, didn't they?

I don't know what the deal is with CHS anyway ... that is the most expensive city I have ever flown into when I was working down in MSY ... an advance purchase fare was around $1,000 (DCA for example, refundable, was $700, which was my most expensive "usual" run).

biggs
Sep 3, 02, 9:57 am
With rank comes privileges. It used to be with status, comes privileges. To hear it from some US employees, waivers are granted all the time on change fees for everyone who complains.

I do remember the Senator in the old US Club in the interim terminal at National late one late night and thought "I wonder if he pays membership fees". I always did prior to making CP. I also saw the old CEO of my organization one night and did not wonder if he paid for it because he was twice retired and a very wealthy man. I tried to keep a low profile because he would probably have thought that he was paying the staff too much if I could be in there http://www.flyertalk.com/forum/smile.gif.

jcrb
Sep 3, 02, 10:01 am
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Beckles:
I do agree with you somewhat, but the thing is what US did is of little or no real monetary value to them, it's more a favor than a bribe the way I see it
</font>

The best bribes, er I mean "favors", have little cost to the giver and high value to the givee. Certainly the fair market value of their 'gift' is quite high.

biggs
Sep 3, 02, 10:05 am
Forgot to add that anyone recall that in the second round of the opening of DCA to flights, the first second tier city for US to open was CHS. RDU did not make it until the third round.

I wonder why that happened? http://www.flyertalk.com/forum/wink.gif

TomBascom
Sep 3, 02, 11:15 am
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Beckles:
Yeah, that's what they did last week ... sure we don't like it or agree with it, but they certainly "revisited" it, didn't they?</font>

Customers: Your fares are too high.

US Airways: Ok, we'll confiscate discount fare tickets and make them completely inflexible. Thanks for the idea!

scootcha
Sep 3, 02, 12:09 pm
http://hollings.senate.gov/email.html



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