United..Headed in wrong direction...?

[dsee8driver]

We often hear about the "Business traveler" and how the major airlines need to lure them back to be profitable. Quoting a USA article on the USA Today 01/06. "United is eliminating first and business class meal service on flights of two or three hours to the USA and Canada outside normal meal hours. Only beverages will be served on flights that aren't in the most popular breakfast, lunch, and dinner times."

Do you guys think United is gona lure back this passengers by cutting on the service? The only thing left is the comfortable seat and extra legroom. Something you can get on Airtran for a 25.00 upgrade one way not the exoberant "First Class" fare paid to United.
I'm no economist or financial guru, just a humble freight dog. But I can see that cutting the services and commodities that separate the so called "full service airlines" from the low cost carriers without a significant price cut is not very consumer friendly. What do you guys think?

 

[General Lee]

Delta is moving in on USAir's territory with RJ's mostly at this point. They have added about 30 RJ's a day into DCA and are trying to attack routes that are only served by USAir from DCA---like CHS, HSV, JAX, PBI, FLL, TPA, and MCO. So, essentially this gives the Washington DC resident an extra choice out of convienent DCA, and that isn't great news for USAir. Sure, Delta is flying ASA and Comair CRJ's, which might not be as comfortable as USAir's A319's/A320's, but it is better than no competition.

United on the other hand is reeling. They are fighting for their lives over there now. Oil prices are over $30 a barrel, which translates into millions of extra dollars they have to pay each day primarily because they do not hedge (pre-pay) for fuel to a large extent. (Delta hedges 70% of their fuel---6 months in advance)
And the banks have given them a very tough revenue schedule to keep each month. If they do not hit those revenue triggers for each month, the banks could possibly liquidate them in Chap 7. The next event could be a War in Iraq, which would hurt everyone, especially United and USAir. The next three to four months will be interesting in this industry. Good luck to all.

Bye Bye---General Lee

 

[skykid]

I don't think cutting meals on shorter flights and replacing a hot lunch with a salad on other flights makes a difference to the business traveler. Esp since their meal service will still be equal or better to most competitors, even with the cutbacks. The 40% cuts on last minute flight prices on business routes are about 1000% more relevant to bringing back customers.