US Airways Dividend Miles (Pre-FlightFund Merger) - It's Hard to Give Business to a Shrinking Airline

During the past six weeks, I've taken four trips on other airlines. Three of these were last-minute, refundable tickets where the return was within 36 hours of the outbound. Until recently, I would have taken US non-stop, but they no longer provide any service on these routes. On each route they had competition and additional competition has since entered the market to fill the voids.

Last week, I had a choice between US and WN going from JAX to BWI. For almost 18 years, PI and US flew this route with up to 3 non-stops daily. When Southwest entered the market, 6 total daily non-stops all had excellent loads. There was always plenty of cargo including mail on these flights. The complete abdication of BWI means no more US non-stops.

Well, US decided several months ago that demand was going to be very high on July 2nd and 3rd, so there were no Q and V fares offered on many flights. This seemed to be a systemwide approach. The result was the infamous "Everywhere to a Hub for $98/138/198 E-Saver Special for the Fourth". In my case, it was easier and much less costly to fly Southwest non-stop.

Casual discussion with employees working for several airlines in both JAX and BWI was fairly consistent. They were going out full, with a good mixture of fares. US had seats available and many of those sold were at the low end of the fare spectrum, especially UA codeshares at rock bottom prices. (I tried, but I could not get a codeshare on one of the flights I needed)

We have discussed, ad nauseum, the lack of management that exists. My view (which is now open to debate) is that the only corporate vision is a Beans Counters Ideal; predicated on certain numerical projections being met. There is no "feel" for short term needs as evidenced by the over-reductions in Utilities and Reservations. Hence, the continuing dilemmas without any strong efforts at marketing to potential customers or immediate corrective actions when operational problems occur.

Now we look to the future and debate the new EMB-195 as a "shrinking" replacement for the 737. I am reminded of one question that US does not directly answer, that I believe will be consequential to frequent flyers using the aircraft. The company refers to "large overhead storage", but does not define large. If a standard rollaboard does not fit into the overhead, this aircraft may be avoided by many of us. This may further reduce US's ability to meet our needs.

What is your view?

[This message has been edited by AtlanticBeach (edited 07-06-2003).]

US has a choice.

They can price themselves to be competetive in ALL the markets they serve and then re-structure the internal costs to make this allowable.

OR

They can (as they are currently) pick and choose those routes that are profitable and charge a premium for them until another carrier comes in and steals the business with lower costs.

Either way, they are toast.

I am going to NOLA in August and have yet to book my ticket. I have found sub-$200 fares on ALL carriers for the dates and times I need EXCEPT US Airways. They will give me the lower fare but only on the 6 a.m. departure. No thanks BBB.

http://www.flyertalk.com/forum/mad.gif

At some point, my $$$ is going to another airline - even though I search every day for a reason to give it to US. Do you think anyone else does soooo much to keep US in business? No. I did not think so.

US will, within ten years, be TOAST. http://www.flyertalk.com/forum/frown.gif

http://www.flyertalk.com/forum/frown.gif


[This message has been edited by geo1005 (edited 07-06-2003).]

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by geo1005:
US has a choice.

They can price themselves to be competetive in ALL the markets they serve and then re-structure the internal costs to make this allowable.

OR

They can (as they are currently) pick and choose those routes that are profitable and charge a premium for them until another carrier comes in and steals the business with lower costs.

Either way, they are toast.

I am going to NOLA in August and have yet to book my ticket. I have found sub-$200 fares on ALL carriers for the dates and times I need EXCEPT US Airways. They will give me the lower fare but only on the 6 a.m. departure. No thanks BBB.

http://www.flyertalk.com/forum/mad.gif

At some point, my $$$ is going to another airline - even though I search every day for a reason to give it to US. Do you think anyone else does soooo much to keep US in business? No. I did not think so.

US will, within ten years, be TOAST. http://www.flyertalk.com/forum/frown.gif

http://www.flyertalk.com/forum/frown.gif


[This message has been edited by geo1005 (edited 07-06-2003).]</font>

Who said anything about US lasting ten years? The point of the restructuring was for the company to survive until a merger or sale could be brokered in a better industry environment.

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Thank you for choosing Continental Airlines, a proud member of the SkyTeam Alliance.

Maybe US should just sell the place off to Mesa, who in turn will just keep being a regional airline to UA, DL, HP, and whomever else they fly for... Big planes be dam*ed!

As I have mentioned continually in these threads, this management continues to base its operational decisions on which "predicament of the day" they have. First, they sized to their costs. Lately, its been to the competitor. In that regard, they seem to believe if they declare a market, route, or aircraft type to be inappropriate, no one else will disagree, and therefore abandoning share will simply drive traffic to whatever alternative service remains. AirTran's order, last week, for 100 full size Boeings, would seem to indicate a difference of opinion. Next time you go through some of these airports US has pulled out of, have a litle fun, and count the new Southwest, JetBlue, and AirTran gates. Then try to guess how many regional aircraft those 3 low cost guys have....like, maybe 0.

My own dilemna:

USAirways flight from Norfolk to Pittsburgh

One month ago: Fokker 100 (half empty)
Two weeks ago: ERJ (full)
One week ago: Saab Turboprop (oversold)
This week: No flight

So I flew Northwest on DC-9s through Detroit on a full fare Y ticket (just like I buy on USAirways) for half the price, and NW let me into their nice new clubs on my ticket, not to mention a brand spanking new terminal. Also, I could purchase an upgrade to F/C for $35 each way or pay $30 more up front to buy a fare that gives me an automatic upgrade to first at time of reservation.

The Worldclub access for Y pax is sweet and may be enough to tip the scales, especially as USAirways keeps cutting schedules and going to smaller and smaller planes, which is making the flights longer and longer on a cramped plane, vs only slightly longer connections on much better planes.

But as my wife tells me I see everything as a conspiracy for USAirways against Pittsburgh so take it with a grain of salt http://www.flyertalk.com/forum/smile.gif

And to add insult to injury load factors are running 78%. Yet they claim that they have no "pricing power". (But they can steal $10/customer without blinking an eye?) And they think they need higher density aircraft?

They need to increase capacity. By about 20%. More if they enter new markets or develop new routes.

How did you fly a Fokker 100 a month ago, they have been parked for about a year, and US gor out of the leases when they came out of Chapter 11

Must have been a DC-9, always get those two confused. One of the smaller 'big jets' is all I remember.

There hasn't been a Fokker, DC-9, or MD-80 in US' fleet for a year or so. The only mainline aircraft left are Airbus A319, A320, A321, and A330 and Boeing 737 (-300 and -400), 757, and 767.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by pitflyer:
Must have been a DC-9, always get those two confused. One of the smaller 'big jets' is all I remember.</font>

Are you sure you weren't on AA? http://www.flyertalk.com/forum/wink.gif

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by AtlanticBeach:

We have discussed, ad nauseum, the lack of management that exists. My view (which is now open to debate) is that the only corporate vision is a Beans Counters Ideal; predicated on certain numerical projections being met. There is no "feel" for short term needs as evidenced by the over-reductions in Utilities and Reservations. Hence, the continuing dilemmas without any strong efforts at marketing to potential customers or immediate corrective actions when operational problems occur.

Now we look to the future and debate the new EMB-195 as a "shrinking" replacement for the 737.

[This message has been edited by AtlanticBeach (edited 07-06-2003).]</font>

I have been on US to and from STL a lot recently because of better flight times over AA and I can tell you that the flights I have been on have been full even if it was an Express. I figure that they should be able to fly a mainline to CLT the first thing in the morning for the biz pax and the leisure. Why leisure? The last flight I was on had most of the flight with leisure pax connecting to every Caribbean destination imaginable based upon the connection announcement. The pax connecting to Greenville I assume was biz. http://www.flyertalk.com/forum/smile.gif
Because it looks like US may end up owning the Caribbean and leveraging the UA connection for those UA FFers wanting to sun and fun, along with the worries of STL folks over the potential downsizing of AA there, the Crystal cabal should be looking to expand rather than shrink service.

Maybe the "mainline" EMB will be the key but US management should be planning now for the potential opportunities.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by deelmakur:

Next time you go through some of these airports US has pulled out of, have a litle fun, and count the new Southwest, JetBlue, and AirTran gates. Then try to guess how many regional aircraft those 3 low cost guys have....like, maybe 0.</font>

Actually, there is AirTran JetConnect flying the CRJ.

There are many airports Southwest will not serve because they insist on flying 737's. Regional service beats no service if you ask me.

JetBlue is going halfway between those two extremes with the Embraer order of relatively large "RJ"'s, but not creating a subsidiary.