Alaska gloom and doom?

[Capt. X]

I thought he had some valid points. Rising oil prices are going to be the death of airlines. I say that because prices are increasing faster than airlines can raise prices to pass it along. Also with all the competition, airlines aren't passing it along.

Crude Future $88.71 bbl (-2.30) 11/30

Looks like the Saudi's wanted to show the world what they can do to the price of oil. Now that they proved their point I believe we will see these numbers fall back down. IMHO

 

[The Prussian]

Anybody else want to state flatly that the airline's fortunes are not directly related to the state of the economy, or to oil prices???...Capt. X: I give you a pass on this question...

 

[vetrider]

Yee haw, I can't wait till mr. overcapacity himself DP at USairways starts making his moves. I can hear the broken record already.

 

[ferlo]

Anybody else want to state flatly that the airline's fortunes are not directly related to the state of the economy, or to oil prices???...Capt. X: I give you a pass on this question...

Yes, I'll state that as flat as a pancake. Why? Record profits at Alaska Airlines...right along with record oil prices. BTW, the economy, while not what it was, has been far, far worse in recent history. Maybe, you're just not used to being lied to like us Alaska guys.

 

[Heavy Set]

Passenger numbers are not down because it also is expensive to drive. More people are flying than driving long distances. I think many LCCs are having problems because they can't fall back on international traffic which has higher yeilds due to the difference between the Euro and the Dollar. People in Europe think a $500 ticket is cheap to America, and the Legacies know exactly how much they need per ticket to make profits. JMO.

 

[Deadalus]

Passenger numbers are not down because it also is expensive to drive. More people are flying than driving long distances. I think many LCCs are having problems because they can't fall back on international traffic which has higher yeilds due to the difference between the Euro and the Dollar. People in Europe think a $500 ticket is cheap to America, and the Legacies know exactly how much they need per ticket to make profits. JMO.

I was riding on a Southwest airlplane recently and the pilots were surprisingly gloomy about the fact they don't have any international flying to fall back on.
A big part of Parker's bid for Delta was obviously for the international routes. As far as majors go we're behind the field, but most of the planned expansion is international ie. the additional 7 330/200s just ordered.

 

[SpiderMan]

http://www.alaskaair.com/as/alaska/gaytravel/toc.asp

 

[Deadalus]

http://www.alaskaair.com/as/alaska/gaytravel/toc.asp

Well I guess now the baby blue airplane with tinkerbell on the side makes sense. What a bunch of fairys.

 

[check6]

Guy in the crew room said Gregg Saretsky was on his jumpseat and he told him that Horizon will be loosing all of their RJ's! Replaced with the Q-400's. Said the RJ's are too expensive to operate. Guess that is how they are going to get a pay cut out of them since the Q-400 pay is less than the Jet.

This has been a rumor that has been going around. But, we were told a few routes of ours would be cutback to fill in where necessary. Ironically some of them were Q400 routes. I guess this still is not as drastic as parking planes.

The "extra" ex-Frontier CRJ's will be used to fly one of the MD-80's schedule is what I read.

They should add service somewhere so they can fly those planes!! Easier said than done.

 

[grinder]

Why does high oil prices mean the death of airlines? People still have to fly. Raise the damn ticket prices. When you get to the point where it is too much and people actually stop flying I will believe it. Having said that, I am glad I did not go to Alaska.

Ticket prices are up a bit. Business travel will not go away because of higher prices. This spring break will be revealing. If housing values are still a problem, suburban parents will quit dropping cash for their high schooler to go on a quick drinking vacation to Europe or Mexico.