pilotyip
Well-known member
- Joined
- Nov 26, 2001
- Posts
- 13,629
management envy?
Do I detech management envy? If you have the answers it is your duty to step up and save the industry. I understand your frustration with the industry, but there are no easy solutions in a market with too much capacity and instant access to the cheapest ticket on any route. However if you not sell seats below cost you go out of business. It makes the difference in the one or two additional seats sold per flight to ensure profitability. Anyone read Hard Landing? AAL's Crandall came up with yield management. It goes like this you sell low demand seats in advance for below cost, maybe there is 5 seats on Friday, 15 seats on Tuesdays that sell below cost. As those seats fill the price goes up. Leaving those seats empty will cost the airline $M's, and once the flight leaves those seat are like spoiled fruit at the super market, they have no value. Unused seat can not be stored, they cannot be inventoried for future use, and they are useless. In order to pay for the airplane it must fly 10-14 hours per day, it must fly Tuesday and Wednesday. These are low travel days; these are the days the flier with no schedule to keep will buy tickets to ensure the airline comes cost to covering cost on low yield days. I am sure there are some Aviation Management College degred guys who could make meaningful input to this discussion. BTW You could tell your airline if they don't raise your pay, you will shut it down to show them who is boss, SWA would love it.You're wrong! Managements continual and never-ending dumping of capacity in the marketplace, requiring prices to be charged that don't cover the costs of operating current capacity. Does the market really need 30 flights a day from LGA to ORD? I think not. But it's the only way to keep fares low. What a travesty it would be to actually charge a fare that covers costs..
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