Boyd says LCC's have their problems approaching

[Blue Dude]

Why would I buy a ticket on SWA when I can buy a ticket on AA at the same price?

Depends on how many times he's received bad service on the legacy, too. They were misconnected, bags were lost, snarled at by a gate agent, etc. People remember, and purchase accordingly, especially if they don't care much about elite FF levels. They just want to get where they're going with a minimum of fuss. The carrier that provides that to them more consistently has an edge in getting their business next time.

 

[Ty Webb]

People in the past have selected the LCC because of the $90 price tag verses the $500 from the legacy. If the legacy charges $90 people will select the legacy everytime.

I often agree with your posts, but this one just demonstartes that you haven't flown on many LCC flights, or sat in the back of your own flights and actually talked to the people who are buying the tickets.

Every airline out there has a core of very pissed-off passengers. Whether their beef is really justified or not, who knows, but every time I commute, I have people tell me "I hate flying on ___(legacy)____airline. I NEVER fly on them if I have a choice because they (screwed me over, lost my bags, called my fat wife "fat", etc)". Almost every flight I commute on yields a passenger who just "has to tell" that he/she loves AirTran and will fly on us every opportunity they get because we (treat them well, have the best fares, never lost their bag, can cure cancer, etc) so don't count on passengers choosing Legacies over LCC's . . . . . . y'all just aren't that great.

Often, LCC's have service equal to or better than some Legacy airlines. If you go from ATL on Delta to a nearby city, such as Pensacola, Gulfport, Savannah, New Orleans, etc., you will likely be on an RJ, and even if you aren't, you probably won't even get a real beverage service, but on AirTran, you'll be in newer, possibly larger, aircraft, and will have full beverage service and XM Satellite radio, too.

 

[lifeguard]

Because the majority of travelers don't fly enough to even earn a FF ticket. Trying to woo a passenger with the prospect of a free trip to Paris will only work if the person actually flies enough to even earn one. The bottom level for AA to Paris is 40,000 miles, 100,000 for unrestricted travel. So for the average person that travels 2 or 3 times a year it isn't even a reality. On the other hand if that same person were to fly just 8 roundtrips in 24 months on Southwest they will get a free roundtrip ticket, and mileage does not matter.

If a passenger is only flying 2-3 times a year..he is going to have a hard time earning a ticket on Southwest too.

 

[abe44]

Lcc??

What is a LCC? If you ask most non-airline folks (or airline analysts) they will tell you that it's an airline that pays their empoyee's less.

They will point to "non-union" SWA as a great example of low cost. The thing is, SWA employees make more money than any legacy carrier employee that you can name....(and they are the most unionized airline in the US).

They will point to Airtran, with their "point-to-point" service and their low-paid employees. They don't realize that Airtran pays it's 717 Captains more than Delta or United or Northwest pays their widebody Captains. They also don't realize that Airtran is a Hub carrier just like Delta, Northwest and United.

They also will tell you that all LCC's are profitable. Not so, just look at Jet Blue's recently reported loss......or Airtran's latest quarter and 2006 estimate....or SWA's 2005 performance (minus their fuel hedges).

What am I saying with all of this?? Things will be very interesting in the next few years for "so-called" LCC's and "so-called" legacy carriers!

LCC's are no longer "low-cost" and "legacy" carriers (for the most part) are becoming "brand new" in the way they do business.

Abe44

 

[boeing747-800]

THE LCC craze is OVER! Get ready for big competition from those who've been in this business over 75years and counting...

 

[GuppyWN]

Bring it on. The way I see it, once the legacy carriers regain profitability, the employees (managers) will just choke the life out of the operation. Again.

Gup

 

[800Dog]

Bring it on. The way I see it, once the legacy carriers regain profitability, the employees will just choke the life out of the operation. Again.

Gup

Spoken like a management love child! If the legacies go away, how do our troops get to and from the theater? LUV, Jetblue, AirFrance, Lufthansa?

 

[YourPilotFriend]

How did the employees choke the life out of it? SWA has the highest paid employee's in the industry. Don't worry GuppyWN you can join the rest of us here in the paycut world soon. In my opinion, SWA will be in or near bankruptcy by 2008-2009.

 

[Skyguy]

Management and Pilots

A man is flying in a hot air balloon and realizes he is lost. He spots
a
man down below and lowers the balloon to speak with him. The balloonist
gets
close enough to speak with the man on the ground and shouts down to him,
"Excuse me, but maybe you can help me. I promised my friend I would meet him
half an hour ago, but I don't know where I am."

The man on the ground responds, "No problem; you are in a hot air
balloon
hovering about 30 feet above
this field. You are located at 26' 04.4 North Latitude, and 80' 09.2 West
Longitude and drifting slowly south."

You must be an airline pilot, says the balloonist.

"I am, how did you know?" replies the man on the ground.

"Well," says the balloonist, "everything you have told me is technically
correct, but I have no idea what to make of the information you gave me. I
am
still lost, so you have done absolutely nothing to help me!"

The man on the ground says "You must be in airline management."

"I am" replies the balloonist, "how did you know?"

"Well"; says the man on the ground, "you do not know where you are or
where
you are going. You have made a promise that you cannot keep and you expect
me
to solve your problems for you. The fact is that you are in the exact same
position you were in before we met, but now it is somehow my fault."

Ain't this the truth!

 

[abe44]

Bring it on. The way I see it, once the legacy carriers regain profitability, the employees (managers) will just choke the life out of the operation. Again.

Gup

Guppy,

I tend to agree...just thank your lucky stars that you have a management group that knows what the hell is going on! I work for a legacy management.....I, and the rest of the employees here have sacrificied big-time and now are paid much less than you and your co-workers. Everyone at my company is paid less than SWA, except our senior managers!

Not counting the huge bonuses/stock options that they will make after we exit BK, our senior managers already make a lot more than yours! (and their performance shows that they should be earning about 1/10 or your top guys/gals).

My hope is that we get rid of our "dead weight" as we restructure here. If I were in charge I would bring over some intelligent SWA managers (at double their current salary...still less than our worthless managers) and give them total power to clean house. (I work for Delta, by the way).

Either that, or just re-hire the folks who ran this place before the bean counter, Harvard MBA's took over.

My prediction (you heard it here first!) is that LCC pilots/flight attendants/mechanics/gate agents/etc will be crying about their company coming to them for givebacks in the near future because they can't compete with the so-called "legacy" carrier costs.

It's an easy prediction to make, because the time is NOW!

Abe44