Pay The Price

[kmox29]

After a failed attempt by Northwest to raise ticket prices $50, I see that some mainline carriers are trying to do it again. This time around, however, it's only $10. From the news releases, it seems like American might not follow suit and thus the increase would die.

It seems so odd to me that the airlines are always whining about high fuel/labor/CASM prices. Why then do they balk at the opportunity to charge a little more for a ticket? Are they that eager for a ticket sale that they would risk sinking the airline? So concerned about the pennies falling off the table, they miss the stack of dollar bills in front of them?

I only have a 4 year degree from a state college in Minnesota, so I am sure I don't see "The Big Picture". But guess what...it costs more than $100 to go from Boston to L.A.. Passengers need to pay.

Done ranting.

 

[bvt1151]

Maybe the passengers that American would lose with a $10 increase would actually result in a loss of revenue than if they left the fares where they were. You could raise the price $1,000, but if nobody showed up, you'd lose money.

American has the most advanced revenue management system out there. I'm sure they've got it figured out.

 

[Axel]

The LCC's are keeping the prices low and price is all that matters to the pax. Prices will remain low (too low) until everyone raises prices.

Even though they are losing $$, they have to do it because they are at least taking a smaller loss when they actually fill the seat for less than it costs to fly it. Anyone who unilaterally raises prices does not fill the seat.

You'll see prices go up when the LCC's have buried everyone else and become the only carrier in that town.

 

[kmox29]

American has the most advanced revenue management system out there. I'm sure they've got it figured out.

I'm sure it's like all other carriers: Unable to raise the ticket price due to [insert problem here], we need our employees to continue to give up benefits (NWA = let's charge employees $50/year for the privledge or non-revving) and keep taking pay cuts. This is how we'll stay competitive.

Genius...pure genuis.

 

[NRHPilot]

American has the most advanced revenue management system out there. I'm sure they've got it figured out.[/QUOTE]

If any airline that was losing money had if "figured out" they would not be losing as much money as they are. It seems to be fairly clear. The legacy carriers are not having a difficult time filling up airplanes. Some load factors are almost 80% for some of these carriers. So if there only choice is to either (a) make more money or (b) cut more costs. But if a carrier raises ticket prices and no one follows, the losses will continue for everyone. No end in sight to this problem.

 

[ex j-41]

Regulation

My .02 is that this industry needs to be regulated.

Then the consumer does not have 8 choices of airlines to fly.
When was the last time you had a choice of 8 different busses you
could take downtown? NEVER
The city regulates the busses.
Taxi's etc.....
and the fares are set by the goverment. And get this....
The consumer is more protected as well. Less companies going
out of business means less consumers losing out.
REGULATION IS THE KEY

 

[SWA GUY]

Regulation is not the key. If you think airlines are screwed up now, let the Fed Gov try to run them!

Free market economy is the best way to run things in this country. Darwin's law will sort things out nicely.

 

[248to2.8]

The LCC's are keeping the prices low and price is all that matters to the pax. Prices will remain low (too low) until everyone raises prices.

It doesn't appear that it is the LCC's that keep backing out out plans to raise ticket prices. If all the legacy carriers would grow a set and raise prices, everyone would make more money. No legacy carrier is making money, and they will continue to not make money untill prices go up. Bashing the LCC's for everything is getting old. Instead of just pointing fingers, maybe we should figure out what we can do to make pax want to fly on our carriers. Better service? CS? Just an idea..

248

 

[ex j-41]

Regulation

Regulation is not the key. If you think airlines are screwed up now, let the Fed Gov try to run them!

Free market economy is the best way to run things in this country. Darwin's law will sort things out nicely.

But we are already so heavily regulated.
Every item we do is because of a regulation.
WHy stop it there when if we go a little further our pay would increase,
work standards would increase etc...would you not like to have goverment
benifits? Work rules can't be worse than what ALPA does for us!

 

[JohnDoe]

quote:

"Free market economy is the best way to run things in this country. Darwin's law will sort things out nicely."



Too bad we really don't have a free market economy. If we did, companies wouldn't be allowed to hide in chapter 11 for years. Darwin's law would be allowed to sort things out as you say. Thats not what happens in this country. They are put on the government-sponsored life support known as bankruptcy laws.

If it weren't for bankrupcy, Darwin would have already worked.

And I'll say it again, I have yet to see any of you free market economy "zealots" explain how bankruptcy fits into that notion.