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US Airways' Competitive Advantage (this is not a drill)

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Old Sep 27, 2004, 12:31 pm
  #1  
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US Airways' Competitive Advantage (this is not a drill)

After reading the transcript from the online chat with BBB et al., as well as considering my future travel plans as I live in the battleground market of PHL, I began to consider the competitve advantage US has over others in the PHL marketplace.

I begin this thread with a request to provide tangible ideas as to the competitive advantage you perceive US to have over other carriers. The henny pennies may wish to post elsewhere, please. If this thread bears any fruit, may I suggest our FFOCUS chairs forward it on to the folks at Crystal City to aid their marketing efforts?

Below is a list of things I consider part of US's competitive advantage(particularly in consideration of Southwest Airlines or other LCCs):

1) Elite Status with tangible meaning, namely: priority security line in a busy hub, priority boarding, preferred seat selections, unlimited upgrades upon availability, dedicated phone and email lines.
2) Redemption opportunities to 750+ destinations (as per BBB) on some of the world's best carriers.
3) In the past 4 years of flying, either US alone or with a code share partner has been able to give me a manageable itinerary to all my travel destinations.
4) Access to airport lounges.

Recent changes I have noticed that may prove to also be competitive advantages (provided they continue)
1) Go/Go First Fares in popular markets for me.
2) Responsive management listening to its very frequent flyer customer base and responding promptly to queries.

Last edited by 19103_aa; Sep 27, 2004 at 12:56 pm
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Old Sep 27, 2004, 12:46 pm
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Competitive advantage = International service to key European business and vacation locations.
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Old Sep 27, 2004, 1:22 pm
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Originally Posted by PHLbuddy

I begin this thread with a request to provide tangible ideas as to the competitive advantage you perceive US to have over other carriers. The henny pennies may wish to post elsewhere, please. If this thread bears any fruit, may I suggest our FFOCUS chairs forward it on to the folks at Crystal City to aid their marketing efforts?

Below is a list of things I consider part of US's competitive advantage(particularly in consideration of Southwest Airlines or other LCCs):

1) Elite Status with tangible meaning, namely: priority security line in a busy hub, priority boarding, preferred seat selections, unlimited upgrades upon availability, dedicated phone and email lines.
I think this is a hard sell. Arn't most PAX non-elite? Hard to sell someone on membership to a club they probably cannot get into. Most casual travelers take the cheapest airline and never earn status.
Originally Posted by PHLbuddy

2) Redemption opportunities to 750+ destinations (as per BBB) on some of the world's best carriers.
I think they SHOULD play up the *Alliance membership. Its one of the things I feel most solid about right now. (Although I still cannot get to Vail easily).


Originally Posted by PHLbuddy
1) Go/Go First Fares in popular markets for me.
2) Responsive management listening to its very frequent flyer customer base and responding promptly to queries.
I think playing up things like roachfest and the recent chat would be smart. I am not a marketing expert by any means so I dont know how you'd go about this, but I like when companies take an active interest in their customers. Its one of the things I love best about the *wood forum with The Lurker.


just my $.02

-N
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Old Sep 27, 2004, 2:19 pm
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All of those items are certainly competitive advantages for US Airways when a customer goes to select an airline for a flight, but does US generate enough additional revenue through these advantages to offset the costs of these advantages? If not, how will they change their model to do so?
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Old Sep 27, 2004, 3:18 pm
  #5  
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Originally Posted by whlinder
All of those items are certainly competitive advantages for US Airways when a customer goes to select an airline for a flight, but does US generate enough additional revenue through these advantages to offset the costs of these advantages? If not, how will they change their model to do so?
---------------------------------------

If their new fare structure is supposed to look like SW, they should think about bringing their nonrefundable ticket change fee in line with SW also.

I would agree with the earlier comment that US is moving towards trying to get more non-elite flyers on their planes. If they have a fare structure like SW and maintain a $100 change fee, it will look to an average traveler that they would lose 50% or more of the price of a lower priced ticket as compared to no change fee with SW.

Last edited by chicagorich; Sep 27, 2004 at 4:28 pm
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Old Sep 27, 2004, 8:07 pm
  #6  
 
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Laptop power ports at every seat in the Airbus fleet.
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Old Sep 27, 2004, 8:12 pm
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Originally Posted by SpaceBass
I think this is a hard sell. Arn't most PAX non-elite? Hard to sell someone on membership to a club they probably cannot get into. Most casual travelers take the cheapest airline and never earn status.
1 CP = 50 or more once a year fliers and almost certainly pays more on average. Even roach CPs are a better deal than your average leisure flier.

Send the cheapest fare people over to the E concourse. Go after the cheapest fare plus 10% crowd.
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Old Sep 27, 2004, 11:03 pm
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Originally Posted by TomBascom
1 CP = 50 or more once a year fliers and almost certainly pays more on average. Even roach CPs are a better deal than your average leisure flier.

Send the cheapest fare people over to the E concourse. Go after the cheapest fare plus 10% crowd.
And with regards as well to your last post, here's why I see US as a vital airline for business customers:

1) Frequent service to the nation's business capitols (BOS, LGA, DCA, ?PHL).
2) Power ports to get your work done.
3) Clubs in major cities.
4) New fare structure which does not require Sat. stays
5) Use your hard-earned miles to take the family to the Islands, LAS, Europe, and plenty others on *A.
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Old Sep 28, 2004, 4:45 am
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Frequent flyer plan that lets you save miles for when you need them or for the "big trip" - as opposed to Jet Blue that expires your miles after a year and Southwest that (i believe) spits out a RT coupon every time you've accrued 20 credits or whatever it takes.

Of course the LCC's don't offer "the big trip" to CDG, OGG, etc.

The value proposition is so skewed away from LCC's that I honestly can't figure out why people fly them. Don't get me wrong, I see the paradigm shift. I just don't understand it. I fly US Airways even when I am paying the ticket out of my own pocket and even when it is $20 to $50 more. Recent example in August PHL-TPA - paid more than LCC, took inconveniently late flight down on a Saturday, had to book the 6:30 AM flight home on Sunday to get a GoFare seat. But flew F both ways and got 3x mileage credit plus CP 100% bonus. Worked for me. Some of my friends and coworkers fly WN and brag about staying up until after midnight to score Zone 1 seating. What's the attraction of that? I have to stay up past midnight and remember to do OLCI or show up at the airport 2 hours early and by the way no club, queue up in the boarding area or else I get a center seat? Not for me.

BTW Barry Biffle who we met at RoachFest is well aware of these points and is playing them up in the advertising. A lot of the GoFares ads I am seeing in the Philly Inquirer and elsewhere play up the low fares AND reserved seating, many destinations, etc.

Last edited by gardener; Sep 28, 2004 at 4:48 am Reason: spelling
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Old Sep 28, 2004, 8:52 am
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US has lots of Plusses

PHLbuddy,

Thanks for your thoughtful post.

My wife & I live in the PHL region & we too have been pondering life without US. Like you, we feel that US is a worthy carrier trying to do a good job. There are indeed lots of things which make US an important player in our book.
  • Status & the perks which accompany Elite status to make flying just a little less dreary.
  • Destinations. US flies to the places we want to go, most usually non-stop because we fly out of the PHL hub.
  • Europe. We really depend upon US to hop across the pond to LGW, SNN & other destinations. The Airbus is a great way to fly to Europe.
  • Dividend Miles. US offers a solid FF program to those who decide to commit loyalty to flying US. We appreciate the ability to upgrade on occassion.
  • Passenger Experience. Our US experiences have most usually been positive. The FAs, check-in, & sky caps are good people trying to do a good job.
  • Customer Service. We send feedback to US ( both positive & negative ) and we've always received a prompt acknowledgement. US is trying to do the job right.
  • Star Alliance. Offers increased flexibility and choice.
  • US Club. Availble at many of the destinations we travel to & a welcome place to await your flight.

US certainly has some warts as well. It sounds as if baggage handling at PHL can still be a bumpy experience at certain times and we continue to notice a more chaotic overall experience at the B/C terminals than we do from the International terminal. Likewise the web site could use some tweaking to provide a smoother, more fluid interface.

But overall, US is doing the job right. It's unfortunate that US & other majors are caught up in a rapidly changing market and world. US is indeed worth saving.

Barry
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Old Sep 28, 2004, 9:00 am
  #11  
 
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Originally Posted by gardener
The value proposition is so skewed away from LCC's that I honestly can't figure out why people fly them. Don't get me wrong, I see the paradigm shift. I just don't understand it. I fly US Airways even when I am paying the ticket out of my own pocket and even when it is $20 to $50 more.
It's because that $20 to $50 dollar difference used to be (and in all too many cases still is) $200 to $2000. People don't forget being gouged. The legacy carriers have a lot of bad feelings and mistrust to sooth over.
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Old Sep 28, 2004, 11:18 am
  #12  
 
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direct flights nearly everywhere in usa

good ff program

powerports

worldwide connections

green limes
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Old Sep 28, 2004, 1:08 pm
  #13  
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Arrow

Originally Posted by gardener
Frequent flyer plan that lets you save miles for when you need them or for the "big trip" - as opposed to Jet Blue that expires your miles after a year and Southwest that (i believe) spits out a RT coupon every time you've accrued 20 credits or whatever it takes.

Of course the LCC's don't offer "the big trip" to CDG, OGG, etc.

The value proposition is so skewed away from LCC's that I honestly can't figure out why people fly them. Don't get me wrong, I see the paradigm shift. I just don't understand it. I fly US Airways even when I am paying the ticket out of my own pocket and even when it is $20 to $50 more. Recent example in August PHL-TPA - paid more than LCC, took inconveniently late flight down on a Saturday, had to book the 6:30 AM flight home on Sunday to get a GoFare seat. But flew F both ways and got 3x mileage credit plus CP 100% bonus. Worked for me. Some of my friends and coworkers fly WN and brag about staying up until after midnight to score Zone 1 seating. What's the attraction of that? I have to stay up past midnight and remember to do OLCI or show up at the airport 2 hours early and by the way no club, queue up in the boarding area or else I get a center seat? Not for me.

BTW Barry Biffle who we met at RoachFest is well aware of these points and is playing them up in the advertising. A lot of the GoFares ads I am seeing in the Philly Inquirer and elsewhere play up the low fares AND reserved seating, many destinations, etc.
You have good company with the rest of management of the legacy carriers.

If I had to choose, I would rather stay up until midnight than get up for a 6:30 am flight in order to catch that "cheap fare".

And US is giving you 3 or 4 x the normal mileage credit to get you to do it---granted in a fc seat. Unfortunately, those miles are fast becoming a worthless form of airline "funny money".

By the way, is the US club in PHL open that early in the morning?

WN has on line check-in now, so the old queue up at the gate is no longer true either.
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Old Sep 28, 2004, 3:25 pm
  #14  
 
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Originally Posted by chicagorich
WN has on line check-in now, so the old queue up at the gate is no longer true either.

Um, isn't this what you'd stay up til midnight for?

Plus, you still have to que up at the gate to get your seat, because the online check-in only gives you a boarding pass and boarding zone or whatever it's called, but not a seat assignment. So you'd get to the gate and still have to deal with the moshpit of people scrambling to get the exit row or bulkhead.

Didn't PHL request that this be a constructive thread, and that henny penny posters should post elsewhere?
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Old Sep 28, 2004, 3:28 pm
  #15  
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GC,
'tis ok...don't feed trolls, please
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