smellthejeta
The plane I solo'd in
- Joined
- Mar 31, 2003
- Posts
- 588
MickeySlapnutz said:Why on earth then have they lost so much money in such short order? Where have all those loyal customers gone? Same planes,crew,management etc....
How can such solid performers tank an airline with just a paintjob?
Um, genius...
You forget that ACA's agreement with United was a guaranteed fee per departure agreement. Presuming United was not in BK status, that contract would still be enforceable and ACA would still be rolling in the dough. I don't know what you think, but a contract that guarentees profits without regard to revenue generation, well, was great for ACA and bad for United. Switching over to a model that required ACA to assume all of the risk, well, was obviously not as great as the guaranteed profits under United.
WRT to "loyal customers..." Um, dude, I know you probably don't buy tickets, but for those that do, customers are loyal to their pocket books. These frequent flyer programs, IMHO, are killing the legacies (well, they're not helping them) but in this instance they do have the benefit of keeping people within the UA/US system and off of FlyI's planes. One of the things that JetBlue et al are dong right is giving customers reasons to put their butts in seats. Service? What service? With internet check-in, self-check-in kiosks and nothing more than a couple of sodas in flight, well, where's the service? DirecTV, XM Radio, etc, are reasons other than fares that get people on planes. If you're going to compete on fares, "that something extra" is what sways people. Be it a solid FF program or inflight amenities, that's what's keeping "loyal customers" off of ACA's planes.
That solid performer that tanked with a new paint job also tanked because the business agreement they had changed. Sorry it wasn't as simple as the paint job.