Attn. United Haters

[B6Driver]

AA717Driver / Tim,

I sort of figured that but thanks any way. We're good.

 

[WatchYourElbows]

Sorry, would love to sit and chat. But I have to pack for my Munich trip. You know Munich, it's in Europe. Ta Ta for now!! Have fun in Des Moines.

 

[canyonblue]

Here is some German to help you in Munich:

Ich bin ein fetter Flugbegleiter, der nicht gelegt erhält, helfe mir bitte!

 

[F9 Driver]

Am I wrong in assuming that F9 is "selling their product" right now for less than it will cost in the near future? Your Airbus leases are heavily back-loaded as I understand it. It seems to me that as the true Airbus lease costs begin to kick in, F9 will see further erosion in cost advantages over the UAL competition. I am not trying to spar with you, just wondering if their is any validity to this line of reasoning.

Well. Here’s the program as I, just a line pilot mind you, see it.

UAL’s CASM ex-fuel is higher than F9’s. Even with all of the gnashing of teeth and wailing – A LOT higher. About two cents I believe. Right now I think UAL’s profitable international flying is subsidizing its domestic CASM > RASM, and chapter 11 protection makes the book keeping more important than the flying.

I don’t think UAL’s CASM is going to drop once CH11 protection ends. F9’s is probably going to continue to drop as the aircraft are deployed more efficiently, but may be negatively impacted by changing lease rates in the future. Our RASM should continue to increase as we enter better earning markets.

Leases aren’t my specialty. But it would seem that GCAS et al have been softened up by the recent spate of bankruptcy filings/threat of bankruptcy filings, and may want to renegotiate lease terms. Kind of like the pension domino effect.

Even if F9’s CASM does rise I don’t see it reaching UAL’s level. With that as my premise: I’d like to see UAL raise their fares to where their RASM > CASM. We’d both make money.

I know this is a bit simplistic, but it is basic economics, and is why I think this line of reasoning is precisely where the solution lies – at least part of it.

 

[enigma]

I’d like to see UAL raise their fares to where their RASM > CASM. We’d both make money.

I know this is a bit simplistic, but it is basic economics, and is why I think this line of reasoning is precisely where the solution lies – at least part of it.

It is also basic that you can't raise fares above the level that customers are willing to pay. At some point, raising fares reaches a point of diminishing returns, and for as much as I question management some times, I don't think that they are stupid enought to price too low, or to price too high. Quite frankly, I'll bet that all managers are charging every penny that the market will bear.

enigma

 

[skykid]

Great posts enigma and F9. If you look back over the last year or so you will see United has either led the charge to raise fares or jumped in immediately on increases in the markets it is possible to do this. As far as the Ted fares, when you cram 156 seats on a 320 and fill them well over 90%, you can charge less.

 

[Pilotbob3]

Tee Hee Hee, Nice way to treat your 744s with the purdy white paint...........

http://www.airliners.net/open.file/907988/L/

I think that the new Ual paint job looks incredibly similar to JetBlue!

It will save $$ in the buyout.

DAHHHHHHHHHHHHH!!!!!!

 

[WatchYourElbows]

Here is some German to help you in Munich:

Ich bin ein fetter Flugbegleiter, der nicht gelegt erhält, helfe mir bitte!

Es ist offensichtilich, dass Du nicht fliessend Deutsch schreiben kannst.

(those online translators don't work Canyon.....your sentence doesn't make sense. LOL)