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Cutting Services vs. Increasing Revenue

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Old Sep 25, 2001 | 3:44 pm
  #16  
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For what its worth...
National had a post 9/11 sale of $50 RT for 4 Tuesdays from Dallas - Vegas. 3 flights/day, so 12 total. All 12 sold out in less than a week.

So folks will still fly for the right price.
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Old Sep 25, 2001 | 4:01 pm
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Greg, I misread you roriginal post as being mostly focused on the cutbacks. Sorry about that.

However, as far as sales go, prices (by way of restrictions) seem to have plummeted. Today, I booked a 3 Day Advance Purchase flight from IAH-ORD for $178.00. With that short notice, I had expected $500.00.

Even normally, a 21-Day advance is usually $230 or so.

Editing to point out that this fare is actually available without a Saturday night stay!

[This message has been edited by robb (edited 09-25-2001).]
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Old Sep 25, 2001 | 5:17 pm
  #18  
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cwpfly, I believe BWI is an aberration. I too was surprised at the number of passengers there when I flew this past weekend. However, it seems that US Air is diverting many of its outbound DCA passengers to BWI. My journey took me through ORD, SFO, and SMF. ORD appeared to be a lot lighter than usual and SFO was empty. Can't comment on SMF as this was my first time there.
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Old Sep 25, 2001 | 6:06 pm
  #19  
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by robb:
However, as far as sales go, prices (by way of restrictions) seem to have plummeted. Today, I booked a 3 Day Advance Purchase flight from IAH-ORD for $178.00. With that short notice, I had expected $500.00.
</font>
I think we may have started to see the beginning of sale fares -- following Southwest's lead.

Southwest today extended their previous Internet fare special. The fares are now valid for purchase through October 11. There are no day of week restrictions, only a 3 day advance purchase is required, and (I believe) do not require Internet purchase.

In various markets, other majors have matched the fares. STL-SEA is now down to $178 on TW, CO, and NW.

This is what I was hoping for.. and plan on booking two tickets in the next few days.

Greg
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Old Sep 25, 2001 | 7:57 pm
  #20  
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I looked at UAL's efares for this weekend. They aren't that much lower than regular advance purchase fares. SEA-SFO is $124. Additionally, when I flew Saturday and yesterday, ORD was a virtual ghost town. Very few people in the terminals. Finally, I don't understand why such harsh decisions were all made the WEEK after the attack. Of course people aren't going to fly right away! Of course demand isn't going to be the same. Why not wait a few weeks? See if people will return (which they will!).

Also, I agree with other posters that there should have been some "strings" attached to the bailout. Although I agree with a bailout, giving the airlines free money (well, my money!) is absurd. Why don't they have to give something back? And one condition should have been no layoffs for awhile. That's the last thing needed in this country - more people out of work!
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Old Sep 25, 2001 | 8:06 pm
  #21  
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At the very least, I think the government should get some ownership stakes in the airlines for the cash and loan guarantees they are putting up. Soemthing along the line of convertible debt.

When the airlines get back to the good times, raking in the millions, taxpayers would have a chance to get some of our money back.
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Old Sep 25, 2001 | 8:26 pm
  #22  
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Everyone keeps wanting the majors to follow Southwests fare plan, but doesnt want to give up their amenities. You cant have it both ways. Southwest was in a better financial position before Sept 11, so it makes sense that they can offer the deals right now. This is not even taking into account the fact that they are not spending a S**tload of money taking care of their crews and the rest of the employees that become traumatized when one of your own planes crashes. I'd rather see the money go to that then a full page ad for those who need to be bribed back in the air.
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Old Sep 25, 2001 | 8:33 pm
  #23  
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I am an airline stockholder, a frequent flyer, an airline family member and an airline analyst. I know this industry well, too well sometimes, and what has been happening in the last 2 weeks has been more than just painful, it has been numbing.

But I'm a realist. Airlines need to save money because the TRAVELLING PUBLIC, represented by every assh*le on this thread who is whining about stuff, will not fly for a while, regardless of how cheap the fares are.

Don't bash the airline brass for this. I know what they went through on Tuesday and I know how painful it is for them to follow through with cuts so soon afterward. Give them a while to sift through the rubble and find out where the industry stands before passing judgement.
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Old Sep 25, 2001 | 8:48 pm
  #24  
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by B747-437B:
But I'm a realist. Airlines need to save money because the TRAVELLING PUBLIC, represented by every assh*le on this thread who is whining about stuff, will not fly for a while, regardless of how cheap the fares are.</font>
Excuse me. I take personal offense to this comment as the person who initiated this topic. Your comment was out-of-line and uncalled for, and I believe an apology is in order.

I am not someone who has just gotten on a plane for the first time within the past year and realized what great benefits frequent flyers get. For my first five years out of college, I worked for an international consulting firm on different projects within the country. Those years I flew a minimum of one trip per week while staffed out of town and now, since taking a job which requires less travel, still average 50,000 miles per year between leisure and business.

My initial post is based on a sound business argument -- when facing a drastic loss of revenue, you need to combat the problem two ways: by cutting costs AND increasing revenue, because neither effort will accomplish everything that is needed to be done.

In addition, people truly have a fear of the unknown. Right now, air travel is back to the unknown for many people, including myself -- as I have not travelled since Labor Day weekend. Giving away air travel does not make sense, but I believe that most people will fly again some sooner, some later. As horrible as it may be to admit it, discounts will get some people back in the seats quicker than they might otherwise.

Greg
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Old Sep 25, 2001 | 9:13 pm
  #25  
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by B747-437B:
But I'm a realist. Airlines need to save money because the TRAVELLING PUBLIC, represented by every assh*le on this thread who is whining about stuff, will not fly for a while, regardless of how cheap the fares are.</font>
I agree this comment was inappropriate. B747-437B, read through this forum a bit. It appears to me that a LOT of flyertalkers ARE flying. I flew four segments last week and will do it again next week.
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Old Sep 26, 2001 | 5:00 am
  #26  
 
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Old Saying from an Old Salesman that I never forgot:

"I can sell on the basis of price, quality and service. But I can only sell two of those three at any one time."

It makes some sense to me.
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Old Sep 26, 2001 | 6:03 am
  #27  
 
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B747:

It is the very same people you are calling names that are having their tax dollars used to bailout a mismanaged and negligent industry. Your comment was inappropriate and uncalled for.

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Old Sep 26, 2001 | 8:41 am
  #28  
 
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Once the first headline is printed saying "Airlines' Passenger Loads Back To Normal", a lot of people will feel that things MUST be OK. Planes are flying with lots of empty seats. Put people in those seats with perks, miles, low prices, or whatever it takes. The offer so far isn't too enticing: higher fares, no meals, fewer flights to choose from, reduced carryons, and telling us of a three-hour boarding process (or whatever today's advice is). Oh, and by the way, you may die.

Offer ME a decent price and I'll be flying in a heartbeat. My travel is mostly leisure, and I DO care what the price is. A meal and reasonable service would be nice too, if an airline doesn't want to be shopped directly against Southwest. Right now I'm sticking to PriceLine, since my airline of choice (AA) doesn't particularly seem to want my business.

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Old Sep 26, 2001 | 9:24 am
  #29  
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It's not so complicated -- if customer demand is down, you don't rebuild it by slashing service and quality.

I'll be interested to see what DL does by way of layoffs/furloughs today. I'm hoping they'll be smarter than CO, UA or AA were.

Also gotta hope they'll be wise enough to avoid AA's new marketing program:
"Hey folks, you're worried about the economy and you're scared to fly? Well here's a great incentive package we're offering this month: new delays, extra inconvenience and no fare cuts.
"And to make your flight even more enjoyable, we're gonna take care of you the American Airlines way -- no more amenities. You're thirsty? Tough. Plus, no bag of mixed nuts either!!
"Pretty attractive deal, eh?"
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Old Sep 27, 2001 | 1:01 pm
  #30  
 
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I am surprised that they aren't offering incentives - through bonuses, cheap flights, free companion, etc. The frightened people won't be taking advantage of this, but the people who are not afraid to fly will and fill up the seats and the fearful ones will hear about full planes flying and gain confidence. Lots of people who are not afraid to fly would if they price were right. I flew to Rome last Feb because the fare was $330.00 on AA - with bonuses. Had the price not been so great, I wouldn't have gone. I think some of these cuts are too soon and too drastic. I am very sad that the CTO are closing - I think that is a big mistake and at minimum they should create at least 1 AT each airport - people who know what they are doing.

------------------
DtG
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