Originally Posted by wrdouglas
Folks, let's remember this is supposed to be a LCC so they should be creating the "fare wars" for the "legacy" carriers, not ignoring them. In the SW florida market, AA is kicking the crap out of US on fares, especially to the W. Coast, and they have a superior FC product in comparision.
Just my $0.02, but come on . . if you are in a Zebra suite, you are a Zebra, not a Lion.
Thanks,
William
On the contrary, they may "win" , but it is a pyrrhic victory. Setting a low fare only means they are more than likely losing more money than the rest. Im pretty sure that US management is deliriously happy they are charging the lowest fare, all it does is fill their plane faster with low yield crap. Anyone could run at 100% load factor if they charge super cheap fares. Having the right mix of high yield passengers and low yield while consistently maintaining high load factors , at profitable levels, now thats the trick. There is no glory in offering the lowest prices just go ask Mr. Skeen and the former IAIR crew. They offered the lowest prices around and guess what they screwed up by not making any money.
If they were profitable I would be the first to congratulate them, but they weren't and they paid dearly for not doing anything about it.
And before any of you mention Southwest, AA is not even remotely near their cost levels.
As for the view of price fixing. Every day at multiple time airlines can publish new fares. It is solely up to the other airlines to match or enter higher or lower fares. Just because other airlines match an action does not mean price fixing. If enough one large airline does not match the rate hike it is frequently withdrawn.