If you could be the CEO, what would you do?

[rvsm410]

Pub, would you not agree

That the current fares are too low, especially in light of your comment from the 70's? I just see something wrong with todays prices...no business stays in business unless they make money..sure they cut costs, but they also raise prices...auto gas, bread, milk, everything has gone up...so why cant this industry do the same? And I don mean a $476 ticket for an hour 72 ride...just something better than coast to coast for $99 bucks...

I however do understand what you have said, but remember were supposed to be thinking "outside" of the box on this thread....

 

[Draginass]

The problem is two-fold . . . . government and an antiquated business model.

Government:
1. All security costs should be borne by the government.
2. Profiling should be openly legal and routinely done.
3. The airline industry is NOT "DEREGULATED". It is probably the most regulated industry in the country.
4. Do away with the Railroad Labor Act, PEBs, etc. These provide unnecssary interference in the pursuit of free trade.
5. Have the FAA provide much greater oversight of maintenance facilities. REQUIRE aircraft maintenance work to be done by licensed mechanics instead of unlicensed immigrants at $7 an hour. Either that or just go to a scheme where only 1 pilot in the aircraft has to have a license, since he's working under the "supervision" of a licensed pilot.
6. Annually, make airlines competitively bid for every TO and landing slot at every airport. Highest bid wins. Same for gates and airport floor space.
7. Stop subsidizing air service to small towns that cannot economically support air traffic on its own.

Corporate:
1. Sell off regional feeders.
2. Stop fee-for-departure schemes that guarantee commuter airlines profits at the expense of mainline.
3. Get rid of airplanes under 100 seats.
4. Stop service to small markets that cannot support several 100 seat flights a day.
5. Terminate all pension schemes, worker and management.
6. Simplify pricing. Price by leg, not trip.
7. Pay pilots flat rate pay regardless of aircraft. Minimize training costs by locking in aircraft for 5 years. Regular bids for bases.
8. Institute preferential monthly bidding.
9. Discourage flight attendants from trying to make being a stewardess a career. Singapore Air does have have crusty old grandma's as flight attendants and their service is superb.
10. Stop being cheap with snacks and beverages on airplanes. Lower first class fares to reasonable levels. If you want a shock, go on a major airline web site and see what a major US city to London ticket costs in first class. I'll bet it's about 7 times what you thought.


That's what I can think of off the top of my head. Fire away.

 

[TonyC]

4. Do away with the Railroad (sic) Labor Act, PEBs, etc.

3. Get rid of airplanes under 100 seats.

4. Stop service to small markets that cannot support several 100 seat flights a day.

5. Terminate all pension schemes, worker and management.

7. Pay pilots flat rate pay regardless of aircraft. Minimize training costs by locking in aircraft for 5 years. Regular bids for bases.

8. Institute preferential monthly bidding.

While you're at it, start including Pilot's Licenses in every third bag of Cracker Jacks. Anyone who can afford three bags deserves to fly jets.


(You don't know how much it hurt to type "bag" of Cracker Jacks instead of "box." )

 

[Draginass]

They're in bags now?

Given the number of pilots that are perfectly willing to work for $30k a year flying jets, I think pilot's licenses are already in those bags of cracker jacks.

 

[vetteracer]

Hire some 22-year-old guys from MIT kick them in a room and have an operating model developed.

Hire pilots that are non-outside union. Form an internal form of representation from all level, from new hires to F/A’s and mechanics to old crusty captains. The panel would change yearly and service would be mandatory. Everyone gets a chance. You would fly the line and get paid to attend meetings and bring up issues to management. The next meeting ALL of those issues would be dealt with.

Keep this board up to date on business plans and concerns and get input on expansion and expenditures.

Hire the best people I could at the best price we could afford. The company has to make money to grow, and when the company grows, so does pay and seniority as new hires come on board.

In some form I would make my company employee owned. Plain and simple, we make money, you make more money. The company lays out an HONEST operating cost for the year. All profits made after that point are spilt 50-50 with the company and the employees. Then pro-rated based on time in service.

Bring back the glamour in air travel. Comfortable seating free soda, snacks, etc. Make such a good experience that customers look forward to the travel as much as the destination. Find young enthusiastic flight attendants. Make a family out of your airline.

 

[Publishers]

ideas

Great ideas but what does it do for the consumer. Airline seats are a commodity and once the plane leaves the gate, they are obsolete.

All of these ideas are great for you but which one is great for the paying public. That is the nature of a business. It is producing a product that the consumer wants and is willing to pay for which you can produce at a profit. That simple!

We have an idea what they are willing to pay, the question is what does it take to produce the product.

 

[Draginass]

That's precisely the problem. There is a gross oversupply of seats, I'd say about 20-25% oversupply. Airline seats are completely perishable, but at the same time very expensive. The airline industry simply cannot adjust to wild swings in demand as has happened over the last couple of years. The government hasn't a clue on how to regulate the industry . . . and make no mistake about it, it IS regulated. The government also has no idea of what kind of national transportation system it wants to have, except that the tickets should be below bus travel. We now have a situation where capital is so cheap and easy and Airbus will sell airplanes for next to nothing, that new startups can come in every few years with bottom-barrel compensation employees. If we want a national system that only cherry picked cities, then JB is the way to go. But that's not really want the public wants. They want service to small cities and easy connections to anywhere . . . only they don't want to pay for an experienced and mature work force to go with it. Why not just turn it over to the Chinese. They can buy their tickets at Walmart right next to the 150,000 other Chinese imports that they sell.

 

[rvsm410]

Wal-Mart ticket Kiosk...On My Gosh!!

Draginass, you mentioned the Walmart angle....you know it would now really surprise me to see something like this in the future....how horrible......Lts go to Wally world get some shopping done and buy our tickets to Vegas...we have wally bucks, we can fly for FREE!!

At some point, a company has got to ask is it worth staying in business???....the stock holders have got to be running away from this industry....I dont own a share of any airline stock....better to play Black-jack at least you can have some fun....

 

[Jungle_Jet]

The problem is two-fold . . . . government and an antiquated business model.

Government:
1. All security costs should be borne by the government.
2. Profiling should be openly legal and routinely done.
3. The airline industry is NOT "DEREGULATED". It is probably the most regulated industry in the country.
4. Do away with the Railroad Labor Act, PEBs, etc. These provide unnecssary interference in the pursuit of free trade.
5. Have the FAA provide much greater oversight of maintenance facilities. REQUIRE aircraft maintenance work to be done by licensed mechanics instead of unlicensed immigrants at $7 an hour. Either that or just go to a scheme where only 1 pilot in the aircraft has to have a license, since he's working under the "supervision" of a licensed pilot.
6. Annually, make airlines competitively bid for every TO and landing slot at every airport. Highest bid wins. Same for gates and airport floor space.
7. Stop subsidizing air service to small towns that cannot economically support air traffic on its own.

Corporate:
1. Sell off regional feeders.
2. Stop fee-for-departure schemes that guarantee commuter airlines profits at the expense of mainline.
3. Get rid of airplanes under 100 seats.
4. Stop service to small markets that cannot support several 100 seat flights a day.
5. Terminate all pension schemes, worker and management.
6. Simplify pricing. Price by leg, not trip.
7. Pay pilots flat rate pay regardless of aircraft. Minimize training costs by locking in aircraft for 5 years. Regular bids for bases.
8. Institute preferential monthly bidding.
9. Discourage flight attendants from trying to make being a stewardess a career. Singapore Air does have have crusty old grandma's as flight attendants and their service is superb.
10. Stop being cheap with snacks and beverages on airplanes. Lower first class fares to reasonable levels. If you want a shock, go on a major airline web site and see what a major US city to London ticket costs in first class. I'll bet it's about 7 times what you thought.


That's what I can think of off the top of my head. Fire away.

Man, I can't believe you didn't get completely pounded on this one. Mention free market capitalism and individuality to a group of pilots!? Wow, oyu skated that one.

Anyway:

1) Sounds good, but who is the government? The money isn't free, so why should non-flyers bear the cost of security for fliers? User fees are fine, but get TSA out of it.

2) I agree, but keep in mind that these arrangements raised the regionals out of the puddle jumper status they previously occupied. Without such arrangements financing for those fancy new Brazilian baby jets is too hard to get.

3) Why?

4) Again, why? I get the feeling (not slamming you) that you have a regional bias.

5) Pretty much agree, I think I am responsible for my retirement, not my employer (who, come to think about it is me) or the government.

6) Agree as well, isn't this what Neeleman and his boys are doing with JB?

 

[ThomasR]

CEO and Cost of Doing Business

Is it true that some Delta pilots make $600,000 a year?