Originally Posted by
Global_Hi_Flyer
You can't save your way to profitability, especially if the product suffers. You have to create an environment where there is close attention to costs, but at the same time attention to product quality. Often the only way to create that kind of product is to start ground-up (e.g. WN, B6).... then as others try and match your cost structure and raise fees/prices, tout the difference. US has nothing to differentiate itself from the rest, except on the negative side.
Exactly, this is why I think the US management team is making a big mistake. They are now stuck in the middle. I think the chance of US going bankrupt within 6 months to a year will be pretty high because they can't compete with the like of Southwest and yet, their products are now materialy inferior to the legacy airlines. There is little reason to fly the U.S. except convenience and that means its customer base will be limited to to its hubs. You can't survive on just that.
Besides the $10 million saving for removing IFE / year really is not worth the reputational damage to the airline, IMO. When I fly US, I don't watch their movies since I had to pay for the headsets so I don't bother. But it's good to know the option is there. If they scrap it, I definitely perceive the product as inferior. Given that I fly US only occasionally and only as UA codeshares, I will make sure I avoid US whenever possible going forward.