US Airways Dividend Miles (Pre-FlightFund Merger) - A few observations about fares and operations




AtlanticBeach
Apr 15, 05, 9:01 am
First day off at home in ages and in anticipation of my next trip that begins tomorrow, I had a few thoughts.

1. Loads are so historically high, there is little incentive for US to eliminate Blo-Fares.

2. Yield management must be having a very tough time these days. Several trips in May show fares on US about 40% less than on WN or DL. Either US has pre-sold few seats on these routes or the competition expects travelers to pay a premium at certain peak travel times.

3. The staff at LAX has figured out part of the Club/ security line dilemma. They direct elites to use the elevator after check-in, bypassing the Airline TV show wannabes.

4. Simplification has still not occured for fares. For example, PHL-BDL still shows 13 fares. This route was supposed to be the Poster Child for "We'll match Southwest at their own game". Still more than twice as many fares as WN.

5. Five of last 8 planes that I have been on required gate starts for the engines. This could be a telling sign of changes in maintenance or my travel in the past month was statistically abnormal.

6. The financial agreements with the regionals remain counter-intuitive. At a time that 50 seat aircraft appear to be less financially viable, the company has traded one-time cash for continued use of this equipment.

7. Other than a mileage run, I have not been at PHL in ages. In the world of US Airways customers, I deem myself to be quite fortunate.

8. The thread that consists of many former loyal US Airways elites is very interesting. It reflects the change in corporate philosophy that appears to make US more like an LCC. However, the coach product at US does not match WN or B6 in the areas of seat pitch, refreshments or IFE in the case of B6.

9. The two most likely things to kill US this summer are oil prices or GECAS. Positive news on both fronts keeps them in the air for a while longer. Should Airways go under, the people for whom I feel most badly are those who will be in the islands. There is not enough lift from other carriers to get them home on a timely basis.


SS255
Apr 15, 05, 10:42 am
Good observations, AB. See what a little time away from the boards will do for you? Just curious: Do you have any evidence to support #3? I will be flying out of LAX on May 5 during peak security line time. I really don't want to have to get my exercise by walking over to the Tom Bradley It'l terminal at a brisk pace, and then spending 2 hours meandering to the front of the security line.

phlwookie
Apr 15, 05, 10:45 am
First day off at home in ages and in anticipation of my next trip that begins tomorrow, I had a few thoughts.

1. Loads are so historically high, there is little incentive for US to eliminate Blo-Fares.
I think the problem is that between the advance purchase fares that are being sold with pretty good volume, and the high B/Y/A/F/etc fares which aren't, the average revenue per available seat mile is too low. Which brings us to yield management:

2. Yield management must be having a very tough time these days. Several trips in May show fares on US about 40% less than on WN or DL. Either US has pre-sold few seats on these routes or the competition expects travelers to pay a premium at certain peak travel times.
WN shows that you don't need to have the highest load factors in the world to make money, and US, UA and others are showing that high volume doesn't always translate into profits, or even necessarily lower losses.

Some airlines haven't figured out that they aren't going to win this on cheap seats and high volume. They also haven't figured out how to raise average revenues, and no longer have the capital expenditure power to improve their onboard products to differentiate themselves enough to do so.

3. The staff at LAX has figured out part of the Club/ security line dilemma. They direct elites to use the elevator after check-in, bypassing the Airline TV show wannabes.

Thanks for mentioning this - it will probably help me next week.

5. Five of last 8 planes that I have been on required gate starts for the engines. This could be a telling sign of changes in maintenance or my travel in the past month was statistically abnormal.
I recently had a string of five straight United Express RJ flights where they needed the air truck to start the engines due to dead APUs or bad batteries. It was spread among Air Whisky and Skywest so I didn't think much of it. Haven't had that lately on US mainline, though when I do it tends to be on a 737-300.

7. Other than a mileage run, I have not been at PHL in ages. In the world of US Airways customers, I deem myself to be quite fortunate.
I live in PHL, and other than the security lines I don't have huge problems with the place. I do pity those who routinely connect however.


AtlanticBeach
Apr 15, 05, 10:52 am
Good observations, AB. See what a little time away from the boards will do for you? Just curious: Do you have any evidence to support #3? I will be flying out of LAX on May 5 during peak security line time. I really don't want to have to get my exercise by walking over to the Tom Bradley It'l terminal at a brisk pace, and then spending 2 hours meandering to the front of the security line.


Went through LAX on 27Mar. Agent did not know I was a Club member and directed me to the elevator.

sfeinberg
Apr 15, 05, 11:19 am
Went through LAX on 27Mar. Agent did not know I was a Club member and directed me to the elevator.

Went to the elevator on April 11th...no questions asked.



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