abeflyer

Is US Airways management incompetent or do they just want to fly the airline to extinction?

Being a US Gold I generally fly everywhere where US flys–namely eastern US. I read that US Airways needs to cut costs to survive. When I see what management has done, however, I wonder if anyone in CCY has any common sense. In my business nothing takes place in a vacuum. You change something and it ALWAYS has an effect on something else.

Management says they want more business travelers to raise revenue and must do something with the coming of SWA to PHL, but their actions makes cuts without looking, using common sense, to see side results of what their cuts do.

Now as a Gold I find this year I won’t get Trans-Atlantic upgrades. With all US’s shorthaul flights, unlimited upgrades domestically really aren’t going to be used for many of us who now fly rj’s. A reason to stay with US has been taken away, since for me the only time I get upgraded is when flying to Europe. So where empty seats built loyalty, now will just be empty seats. If I’m in coach, why not fly out of Newark which is normally cheaper than PHL. Of course, it won’t be US flying from there. Smart move. Common sense would say leave it untouched and don’t ruffle your best customers’ feathers.

US Airways Clubs now will come with ala carte pricing. Might as well join Priority Pass, which may become a cheaper solution and pay for use as needed. Another smart move. Common sense would have said leave it untouched and don’t ruffle your best customers’ feathers.

In my case I fly predominantly out of ABE, so if willing, I can drive an hour to either Newark or PHL. From the #1 carrier, who pre-9/11 filled 6 mainline jets a day to PIT and CLT and 7 Dash-8's to PHL, we are now down to one mainline to CLT, Saab’s to PIT, and 6 to PHL, (where they cut the 6AM morning flight that was normally filled with businessmen connecting on business--want a early morning flight?--now fly Delta or NWA). Southwest is coming to region and rather than maintain service and fight them on all fronts, management cuts service. In essence rather than protecting and fighting for the region, CCY is telling those of us in the northern suburbs of Philly, if you don’t want a Shuttle America plane, drive to PHL or Newark. If you drive to PHL, as a customer, my thinking is why not try out SWA. Rather than fighting SWA, management’s decision actually works to help them get passengers. Where is the common sense? What is management thinking? Between PHL and/or Newark, ABE is only about 50 miles, away. Do they not look at a map? I-78 takes you to Newark. I-476 to PHL. Both high speed routes. Smart move. Common sense would say leave service untouched and give folks in the region a reason (or excuse) try out SWA. And still battle SWA in PHL.

Then where is the plan Siegel has? He says the unions oppose it, but spring time and SWA is coming quickly. Plans can not be put into effect overnight. Common sense would say the time for implementation is quickly passing. Or is this another case of this management waiting for the crisis to occur and then do something.

I have read Bonner say, that he would be shooting himself in the foot if he replaced Siegel now, but aren’t they already doing that? What’s the difference what type of gun you use if you are still shooting yourself in the foot? At least with someone with common sense, maybe he would miss and actually do something to rebuild this airline.

I had a talk last night with another frequent flyer. Both of us were trying to figure out if we should burn miles and where to built our status this year. I have already have booked 16 flights that are coming up. Right now I am left with the question-- Do I build status again with US or UAL (flights already e-ticketed)?

Right now with US’s management I’m inclined to go for status with UAL, since I don’t see US lasting over the long term with management with no common sense.

USFlyerUS

US is actually pretty good about upgrading to Europe on miles. I've heard much more frustration from UA elites trying to upgrade UA international.

cedric

Traditional airlines CANNOT effectively compete with SWA. It has been tested again and again and the result has been the loss of a LOT of money. When SWA comes in, the traditional airlines usually pulls out (or cuts back). US can't afford a costly battle with SWA right now. The game changed (again) when SWA announced its PHL service. SWA has been highly succesful at drawing the VFR traveller as well as, increasingly, the business traveller and even if US could hang on to a few of those higher business fares, if the back of the bus is empty, those 8 business class seats ain't gonna cover the lost revenue.

The problem with SWA is that it highlights the price which in turns changes customers expectations.

The ONLY way that US will effectively be able to compete against SWA is that it consistently offers similar fares. And how do they do that? Cut costs to a quasi-SWA level while hoping to retain a few loyal business travellers. There's no way around it. You either please the high-fare travellers, or please the rest. And these days, the high fare travellers are no longer providing as much revenue. So that means the airline must please the rest, and to do so it must do exactly what SWA did: nickel and dime.

[This message has been edited by cedric (edited Jan 16, 2004).]

geo1005

It's 60,000 miles to upgrade a non-full fare coach ticket. That is no bargain IMO and a waste of miles. For my 2004 flights to Europe, I'll be flying UA with Economy-Plus seating rather than US coach this year for sure.

GadgetFreak

Huh? Until the last couple years US was difficult or impossible to upgrade on miles. Some of the gate agents still dont know how to do it. I have never failed to get an upgrade with miles or certificates on UA international. NEVER. And I have been flying about 100K miles per year on UA for 6 years, virtually all of it international.

And I do believe the majors can compete with SWA. But they have to change their fares to support a reasonable value proposition for customers. If they charge 20% more they need to provide 20% or more improved service. They cant do it for less service (like no refunds) and they cant charge 6 times as much for 30% better service. It really isnt very complicated.

TomBascom

The "majors" have tried the same tired tactics again and again with WN and you're right -- they always fail. That's because they boil down to a refusal on the part of the legacy carriers to acknowledge that business travelers don't see 10x the value between a full Y ticket on a legacy carrier and a WN ticket. Both tickets get you there about as well. One of them gets you a full can of soda.

The only tactic that has ever worked has been HP's fare rationalization. They compete head to head in many of the same markets and yet HP manages to offer an F cabin and more of a semblance of full service than we get on US these days...

The lesson would seem to be that the only known successful way to compete with WN is to find positive differentiators that justify a small premium in price (small being perhaps 25% -- not the 1,000% that they used to enjoy...)

Starting a fare war with WN is tantamount to suicide.

US1@ORF

I think this approach makes the most sense. I wish US mgmt would monitor this forum. I cannot believe all the threads in the past few days about the likelihood of US' demise and the amount CP's and Golds who are seriously considering switching airlines and thus building loyalty with the major competitors.

For this diehard US fan, this is seriously depressing that US mgmt cannot wake up and try something outside the lines.

US1



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US CP; UA Prem; AA Gold; Hilton Honors Diamond

trvlr64

YES!!

I would also suggest you email what you have posted here to USAirways. Can't hurt. They recently phooned me back on an email I sent to Consumer Affairs. It's worth a try.

trvlr64

HAPPY HAPPY JOY JOY in your world USFlyerUS!! You took the most insignificant line out of that posting and pointed out nothing.

USFlyerUS

So how is my post different from the drivel you post? :-P

trvlr64

Touche!