NPR: US Airlines unhappy with foreign competitors
May 15, 2015, 9:50 pm
#1
Original Poster
Join Date: Aug 2001
Location: Erie, CO USA
Programs: UA, Marriott, Starwood, et al
Posts: 1,559
NPR: US Airlines unhappy with foreign competitors
Big 3 Airlines Say Foreign Competitors Are 'Dumping' Seats In U.S.
http://www.npr.org/sections/thetwo-w..._campaign=news
Draw your own conclusions, but the fact that the US airlines are still charging what were initially allegedly fuel price surcharges (AA's and DL's YR surcharge and UA's YQ surcharge) in a period of very low fuel prices suggests to me that they should have some room to lower prices, should they choose. From some brief research on Seatguru, it would appear that at least Qatar and Emirates are flying a slightly superior base coach product in terms of seat pitch and width, which may be influencing pax.
http://www.npr.org/sections/thetwo-w..._campaign=news
Draw your own conclusions, but the fact that the US airlines are still charging what were initially allegedly fuel price surcharges (AA's and DL's YR surcharge and UA's YQ surcharge) in a period of very low fuel prices suggests to me that they should have some room to lower prices, should they choose. From some brief research on Seatguru, it would appear that at least Qatar and Emirates are flying a slightly superior base coach product in terms of seat pitch and width, which may be influencing pax.
May 15, 2015, 10:26 pm
#2
Moderator: American AAdvantage
Join Date: May 2000
Location: NorCal - SMF area
Programs: AA LT Plat; HH LT Diamond, Maître-plongeur des Muccis
Posts: 62,948
Whingeing about the competition - while unbundling fares, installing lighter, smaller seats with less pitch, cutting, reducing, ignoring the service aspects. I'm not sympathetic.
May 23, 2015, 6:09 am
#3
Join Date: Jan 2014
Programs: Amtrak Guest Rewards (SE), Virgin America Elevate, Hyatt Gold Passport (Platinum), VIA Preference
Posts: 3,134
I'm unsympathetic on two counts. Count one is the general complaining about competition (I really don't think anyone has the better of the argument on subsidies that are being thrown around). Count two is the apparent detachment of fuel surcharges from fuel prices, which is another ball of wax.
At least in theory, a fuel surcharge should probably only be applied if fuel prices spike outside of a "normal" range. If prices are within a predictable range for a long period of time, whether that range is "high" or "low", it gets hard to justify the surcharge except as a way to evade taxes on the base fare. Moreover, if there's an obvious disconnect between what the airlines are paying for fuel (yes, I realize that this might not line up with the spot price of oil because of hedges and so on) and the surcharge they're charging that generally doesn't add up in my mind.
At least in theory, a fuel surcharge should probably only be applied if fuel prices spike outside of a "normal" range. If prices are within a predictable range for a long period of time, whether that range is "high" or "low", it gets hard to justify the surcharge except as a way to evade taxes on the base fare. Moreover, if there's an obvious disconnect between what the airlines are paying for fuel (yes, I realize that this might not line up with the spot price of oil because of hedges and so on) and the surcharge they're charging that generally doesn't add up in my mind.
May 23, 2015, 8:26 am
#4
FlyerTalk Evangelist
Join Date: Feb 2003
Posts: 10,202
NPR: US Airlines unhappy with foreign competitors
They can't play the "American Jobs" angle when every time I fly through HKG I see nothing but AA and UA planes going thought their heavy maintenance checks.
Screw them.
Screw them.
May 23, 2015, 2:41 pm
#5
Join Date: Sep 2014
Location: USA/Canada
Programs: UA Premier 1K, AC SE, Delta Platinum Medallion, Marriott Titanium
Posts: 448
Big 3 Airlines Say Foreign Competitors Are 'Dumping' Seats In U.S.
http://www.npr.org/sections/thetwo-w..._campaign=news
Draw your own conclusions, but the fact that the US airlines are still charging what were initially allegedly fuel price surcharges (AA's and DL's YR surcharge and UA's YQ surcharge) in a period of very low fuel prices suggests to me that they should have some room to lower prices, should they choose. From some brief research on Seatguru, it would appear that at least Qatar and Emirates are flying a slightly superior base coach product in terms of seat pitch and width, which may be influencing pax.
http://www.npr.org/sections/thetwo-w..._campaign=news
Draw your own conclusions, but the fact that the US airlines are still charging what were initially allegedly fuel price surcharges (AA's and DL's YR surcharge and UA's YQ surcharge) in a period of very low fuel prices suggests to me that they should have some room to lower prices, should they choose. From some brief research on Seatguru, it would appear that at least Qatar and Emirates are flying a slightly superior base coach product in terms of seat pitch and width, which may be influencing pax.
I'm not complaining hehe
May 23, 2015, 11:12 pm
#6
FlyerTalk Evangelist
Join Date: Jan 2014
Location: San Diego, CA
Programs: GE, Marriott Platinum
Posts: 15,500
I have the feeling that this complaining from the US3 will backfire on them. I'm not sure to what extent though. Are there any scenarios where the US government ends up being forced to allow domestic flights by foreign carriers, for instance?
