They Are Killing Themselves - Don't Blame the LCC's

[ivauir]

ivauir,

I guess you have been to the strategy meetings and know all about what is going on at each legacy carrier? Yeah, you probably know everything that is going on........riiiiiiiight. Man, can we tap you as our next chairman?


Bye Bye--General Lee

Dude, I never said I had it figured out or that I even knew what the managment at even my own company is thinking. I guess you are not interested in having a mature discussion about how the market has changed (or anytihing else for that matter).

 

[Boeingman]

I have said on this board (for the past several years) that what the "Legacy" carriers are doing is "dumping" seats.

If this was any other industry, be it computer chips, steel, or shrimp, it would be considered "dumping". They are putting seats into markets at way below their cost, and they say they are trying to "preserve marketshare". B.S.! If you can't serve that market at that price, then it ain't your market.

Funny how the Legacy guys want to blame the LCC guys for the dunderheaded mistakes of their own management. . . . if the problem was our payscale, how come your companies are still losing money now that you guys are working cheaper than us, and with crappier work rules?

Talk amongst yourselves . . . .

There is an argument, albiet flimsy about market share.

Payscales are not the problem. Gross mismanagement, management compensation schemes, poor effciencies, business models tied to pumping the stock prices are part of the real problems.

The LCC's will continue to survive and prosper since legacy management still tries to adhere to outdated business plans and focusing on quick band aid fixes like labor costs to fix their ills.

 

[Well-hung Start]

Furthermore, they can pull back at no cost should the need arise.

um.....and what might indicate that need, a loss of 3 (instead of 2) BILLION dollars a quarter?

 

[Well-hung Start]

It's called regression.....

......a well-documented weakness in animal behavior, which includes humans. Under times of extreme stress, animals will regress to behavior which has either worked in the past, or provided comfort at an earlier stage of development.

For example:

1) An older child will soil himself, long after potty training, if he becomes frightened.

2) An immigrant will resort to cursing in his native language despite being fluent in the local dialect.

3) A cornered rat will start grooming himself moments before being pounced upon by a cat.

4) Legacy carriers will add seats and lower ticket prices to drive upstarts out of business.


The majors are doing this because they are helpless and have no idea how to extricate themselves from their predicament. The managers feel they have to do something, but their choices at hand exclude anything effective. Hence, they choose from among useless actions. Thence...