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UA reports highest increase in revenue per passenger mile flown in March

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UA reports highest increase in revenue per passenger mile flown in March

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Old Apr 10, 2013, 10:14 pm
  #61  
 
Join Date: Mar 2008
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There is no doubt as any semi-casual readers know that there are some warring factions here and no-one is compensated for their time, effort of analysis. We live in a free and open society where anyone can have an opinion and speak their mind. I know there are a lot of really smart and successful people here and sometimes people forget about ideals and attack the actual people instead. That’s the part that’s gets a little difficult to pallet most of the time.

As someone who pays to fly most everywhere, you learn that there is a lot of behind the scene processes and inherent efficiencies of doing business. However, you don’t have to be a rocket scientist to realize something smells in Denmark. We all had hope for this merger and I still like to fly and United holds a special place for me, but once you see latten inefficiencies, constant spin on this problems, it makes you wonder what is really going on. It’s obvious from simple tasks of boarding a plane, to making sure the door is closed on time, to sit either after push back or wait for the gate because you are way too early, to having to watch a video of non-sense and then knowing none of these processes are getting done or any better.
I know the old way where I could board in decent time, for the most part, be at the gate that was printed on by boarding card and feel like it was enjoyable to fly. Case in point, the new promo is food service, kitchen at 30k. Domestically, I know for breakfast, I will be very tired breakfast sandwich or two bowls of cereal you put in a bigger bowl, lunch/dinner will be the hamburger from the back, a hot pocket thing or shrimp salad. My last international flight, they ran out of every non-sugar mixer and they budgeted one bottle of water per pax. I know that there is .25 less grams of coffee in the new mix than Starbucks, but it still not added in an attempt to make it better because of pmUA inferior coffee makers.

Now I see ERJ going to Hubs from TPA, horrible lay-over times and a very stale and inconsistent product. So one sees a better on-time performance, because of less mainline a/c, more misconnects and more time sitting on the tarmac (all cost money, but you can say you are being a good steward of capacity). I will say my upgrades have gone up and even catching a gate UG for IRROPS, but I also know more of the hotels at IAH than I ever had and 2 x $20 vouchers will get you a better meal than on the plane. All this from the Leading airline (in something), maybe the most self-proclaimed awards won?

They are not in a tailspin, they are not in JCP mode and people will forget how bad a product is, if there is something better at the end of a leading airline’s rainbow. Every Airline has their ebbs and flows, this one is just flat. I believe most people want them to succeed, I just wish I knew at what.
There is a lot of good information with a lot of the prolific posters and the best decision is an informed decision. Comments on information are just that and ultimately a decision should be formed from them, not belittling the facts by reminding someone they are an idiot for being a Smisek hater/lover.

Originally Posted by IAH-OIL-TRASH
Analysts actually have incredibly poor track records predicting the future from the past.
So am I at what my girlfriend is going to do next, but someone has to do it. Otherwise, I would be an awesome boyfriend and we all know those don't exist.

Last edited by iluv2fly; Apr 11, 2013 at 12:54 am Reason: merge
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Old Apr 10, 2013, 11:02 pm
  #62  
 
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Originally Posted by 5khours
Capacity Management = One time profit improvement by selling less stuff.

Anyone who thinks that reducing the top line is a long term formula for success is nuts. Might help executive bonuses, but shareholders are stupid to leave these kind of execs in place.
Why is it a "one time" thing? As long as supply<demand, it can continue. Look at OPEC, look at DeBeers, look at every single release of an iphone. Yields go up each and every time supply is lower than demand for any product, where there exists a free market way to puchace the scarce product. Are their capacity management programs one time things? Your definition is missing the basic premise that matching supply to demand is not a one time thing, but an ongoing economic method for keeping prices up, and it even works where there is competition, although not as good as where there is a cartel or a monopoly, like my 1st 2 examples.
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Old Apr 11, 2013, 1:48 am
  #63  
 
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It's very simple. Most of us hate the changes & how UA has deteriorated since 3/3/12. We had a good time believing Smisek was a fool & would run the airline into the ground. The problem is Smisek is smarter then 99.9 % of the people posting here, at least when it comes to running an airline. He is aware the airline he runs is a train wreck for customers, he is aware that so called Elites are up in arms, he is aware that employee moral is low but none of that matters. He has a plan & unfortunately that plan may work out fine for UA. Mgmnt could care a less if we get an upgrade or not, they know that in this shrinking world of airlines, they are going to lose Elites & they also know they will gain elites from other carriers.

Bottom line, we, the customers lose. There might have been some hope that UA was heading in the wrong direction & would be forced to do an about face but that is not looking like its gonna happen

I may not agree w Smisek, I may HATE what he's done to UA but I have never underestimated him. Those here on FT Zeho for a year have been talking about his imminent demise or that he will be forced to do an about face were just speaking to hear themselves heard. There may be a lot of experts here on how to beat the system or do a mileage run but I have yet to hear from an expert who knows how to run an airline. (I've heard from a few that SAY they know how but that means nothing)
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Old Apr 11, 2013, 3:59 am
  #64  
 
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Analysts actually have incredibly poor track records predicting the future from the past.
Followed only by Internet forums .....
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Old Apr 11, 2013, 4:21 am
  #65  
 
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Originally Posted by spin88

Its amazing to me that many of the same posters who tried to defend UA in that thread, had their arguments shot down, are now back saying the same things.
spin - I too continue to be amazed by the same few posters posting the same thing over and over again...

So, we have that in common.
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Old Apr 11, 2013, 4:34 am
  #66  
 
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Originally Posted by LarkSFO
spin - I too continue to be amazed by the same few posters posting the same thing over and over again...

So, we have that in common.
But, spin88 uses lots of info to support his points unlike many other people.
So, you two are not alike at all.

We should just wait and see what are the numbers in Apr and May.
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Old Apr 11, 2013, 10:43 am
  #67  
 
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Read this and got this horrible flash of Smisek squeezing Lincoln pennies until boogers fell out of Lincoln's nose.....time for me to retire.
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Old Apr 11, 2013, 11:02 am
  #68  
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The volume is too loud for the onboard announcements too.
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Old Apr 11, 2013, 11:32 am
  #69  
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Originally Posted by chinatraderjmr
It's very simple. Most of us hate the changes & how UA has deteriorated since 3/3/12. We had a good time believing Smisek was a fool & would run the airline into the ground. The problem is Smisek is smarter then 99.9 % of the people posting here, at least when it comes to running an airline. He is aware the airline he runs is a train wreck for customers, he is aware that so called Elites are up in arms, he is aware that employee moral is low but none of that matters. He has a plan & unfortunately that plan may work out fine for UA. Mgmnt could care a less if we get an upgrade or not, they know that in this shrinking world of airlines, they are going to lose Elites & they also know they will gain elites from other carriers.
I disagree. UA's total revenue in 2012 was $42 million more than it was in 2011. That was a tiny percentage increase over 2011's revenues of $37.11 billion.

What about AA, the competitor in Ch 11 and which suffered a pilot work action when their contract was voided? AA's total revenue in 2012 was $900 million higher than it was in 2011. Delta's revenues were $1.555 billion higher in 2012 compared to 2011. Looking at revenues, I cannot conclude that Smisek knows anything about running an airline. At least not as much as Richard Anderson or Tom Horton. He's a former general counsel pretending to be a CEO. And failing miserably.

Originally Posted by chinatraderjmr
Bottom line, we, the customers lose. There might have been some hope that UA was heading in the wrong direction & would be forced to do an about face but that is not looking like its gonna happen

I may not agree w Smisek, I may HATE what he's done to UA but I have never underestimated him. Those here on FT Zeho for a year have been talking about his imminent demise or that he will be forced to do an about face were just speaking to hear themselves heard. There may be a lot of experts here on how to beat the system or do a mileage run but I have yet to hear from an expert who knows how to run an airline. (I've heard from a few that SAY they know how but that means nothing)
I don't need to post a thesis proving that I know how to run an airline to realize that Smisek does not possess that expertise; all I have to do is point to the results at AA, DL, US, WN, NK, and others which all increased their revenues in 2012 without alienating large portions of their most loyal customers. Their management teams were all far more successful at running their airlines in 2012 than was Smisek and his excuse for a management team.

Smisek = Failure. Simple as that. That doesn't mean he'll be forced out at the next board meeting. Not being fired isn't the same thing as non-failure.
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Old Apr 11, 2013, 11:52 am
  #70  
 
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Originally Posted by FWAAA
Looking at revenues, I cannot conclude that Smisek knows anything about running an airline.
^
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Old Apr 11, 2013, 11:53 am
  #71  
 
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Originally Posted by Zomba
MD's are terrible if

9 across in Y on the 787 is a perfect example of how 'new' does not mean better. AA is now going 10 across in the 77W, which is another terrible mistake IMHO.

.
^^
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Old Apr 11, 2013, 12:16 pm
  #72  
 
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I think I'm in line with chinatraderjmr on this.

The numbers may be good for UA at least for now. But I think of it in terms of my own self interest. I fly long haul a lot and I'm looking for comfort. Mostly in coach. I left NWA/Delta a couple years ago for UA primarily because of things like E+ and upgrades and Premier Gold benefits. Since then my experience has gotten worse on long haul with more crowded planes, frequent last day plane swaps and the lowering of benefits. And looking forward to the 787 it looks like in coach even more crowded and narrower seats in coach it doesn't seem like it'll get better any time soon.

Add to that the fact that UA fares seem to be substantially higher for TPAC and TATL flights it makes me even less hopeful that as a customer I'm benign given what I need.
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Old Apr 11, 2013, 2:30 pm
  #73  
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Originally Posted by Bear4Asian
The numbers may be good for UA at least for now.
Who says the numbers are good for UA? Maybe those who don't care to look at the deeper analysis I guess...
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Old Apr 11, 2013, 3:55 pm
  #74  
 
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Originally Posted by Bear4Asian
I think I'm in line with chinatraderjmr on this.

The numbers may be good for UA at least for now. But I think of it in terms of my own self interest. I fly long haul a lot and I'm looking for comfort. Mostly in coach. I left NWA/Delta a couple years ago for UA primarily because of things like E+ and upgrades and Premier Gold benefits. Since then my experience has gotten worse on long haul with more crowded planes, frequent last day plane swaps and the lowering of benefits. And looking forward to the 787 it looks like in coach even more crowded and narrower seats in coach it doesn't seem like it'll get better any time soon.

Add to that the fact that UA fares seem to be substantially higher for TPAC and TATL flights it makes me even less hopeful that as a customer I'm benign given what I need.
I know many dont like to hear this, but the reality is those paying and flying intentional economy are just not a big driver of decisions since it's not where the profit is. Things wont get better in that cabin.
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Old Apr 12, 2013, 2:18 pm
  #75  
 
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Originally Posted by grahampros
I know many dont like to hear this, but the reality is those paying and flying intentional economy are just not a big driver of decisions since it's not where the profit is. Things wont get better in that cabin.
I understand that. But I don't have to like it. And I'll do my best to get myself on planes with better upgrade possibilities and the like. That's one reason I'm on FlyerTalk every day.

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