whymeworry?
Well-known member
- Joined
- Sep 17, 2005
- Posts
- 701
dude,
Put the gun down. USA today= ken-n-barbie reading. Nobody really takes it seriously.
I remember when oil was $30 a barrel. USA today printed in big words that oil was going to retreat.
Now at $120/ bbl they report that it could go to $200-300.
I also remember after 9/11 when the nasdaq hit 777. The very next day USAToday printed the impending doom of the stockmarket (I think the dow was 6700 back then, down from 10,000+). Weren't they a little late to "predict" a market meltdown? The point is, their reporters are like parrots. No research, no checking into fact, just interviewing so-called "industry experts" and repeating what they are told.
Who do you think is feeding journalists the gloom-and-doom load factor scenario idea? Mgmt wants you to think loads will be dropping so that labor won't hold them to account. They figure we'll fall for this for another 18 months while they take yet another half billion dollars off the table in stock options and cash payouts.
Remember, Boyd's commentary last fall "Storm clouds on the horizon for Legacy managements." His point was that labor is back and it intends to get paid. He called on managements to begin a strategic shift in thinking if they intend to fight the inevitable labor onslaught. Well, within days they did. You can almost see the exact shift in thinking by mgmt timed with his weekly update at that period. Meanwhile, bookings are strong and every fare increase but one has stuck ever since.
People are going to continue to travel. And they will travel in ever-increasing loads. They will continue to pay up no matter the fare increase. Why? Well, first, look around you. They'll pay $8.00 in the terminal for a gourmet coffee that they don't really need just prior to boarding an aircraft (why get wired before a long flight? I never understood that?). They'll pay $1500 for the latest LCD TV set. They'll switch out their entire DVD collection and player just because Sony tells them Blueray is better. They'll update their kitechen with $15,000 in stainless appliances, 'cause everyone else did. They'll drive a brand new $40,000 Honda Odessey or $55,000 BMW, cause their neighbor has one. Just the same, they'll pay up to be in Miami, San Francisco or Zurich because... well, because it's their God-given right to travel, damnit.
The second reason is because airfares are just plain low anyway. In fact, excluding the fare hikes of '08, the fares are as low as they were 30 years ago. Everything has gone up. EVERYTHING... except air travel. It's our turn to start charging for the cost of doing business. In fact, even with the fare hikes, I have found a dozen markets where my airline is literally charging only the fuel cost for seats. The point is fares have a long way to go before they get too expensive. They are still quite cheap.
Airline mgmts beware. Just as you MUST pay for fuel. So to will you pay for pilots. The loan is due.
We ain't fallin' for this sht again.
Put the gun down. USA today= ken-n-barbie reading. Nobody really takes it seriously.
I remember when oil was $30 a barrel. USA today printed in big words that oil was going to retreat.
Now at $120/ bbl they report that it could go to $200-300.
I also remember after 9/11 when the nasdaq hit 777. The very next day USAToday printed the impending doom of the stockmarket (I think the dow was 6700 back then, down from 10,000+). Weren't they a little late to "predict" a market meltdown? The point is, their reporters are like parrots. No research, no checking into fact, just interviewing so-called "industry experts" and repeating what they are told.
Who do you think is feeding journalists the gloom-and-doom load factor scenario idea? Mgmt wants you to think loads will be dropping so that labor won't hold them to account. They figure we'll fall for this for another 18 months while they take yet another half billion dollars off the table in stock options and cash payouts.
Remember, Boyd's commentary last fall "Storm clouds on the horizon for Legacy managements." His point was that labor is back and it intends to get paid. He called on managements to begin a strategic shift in thinking if they intend to fight the inevitable labor onslaught. Well, within days they did. You can almost see the exact shift in thinking by mgmt timed with his weekly update at that period. Meanwhile, bookings are strong and every fare increase but one has stuck ever since.
People are going to continue to travel. And they will travel in ever-increasing loads. They will continue to pay up no matter the fare increase. Why? Well, first, look around you. They'll pay $8.00 in the terminal for a gourmet coffee that they don't really need just prior to boarding an aircraft (why get wired before a long flight? I never understood that?). They'll pay $1500 for the latest LCD TV set. They'll switch out their entire DVD collection and player just because Sony tells them Blueray is better. They'll update their kitechen with $15,000 in stainless appliances, 'cause everyone else did. They'll drive a brand new $40,000 Honda Odessey or $55,000 BMW, cause their neighbor has one. Just the same, they'll pay up to be in Miami, San Francisco or Zurich because... well, because it's their God-given right to travel, damnit.
The second reason is because airfares are just plain low anyway. In fact, excluding the fare hikes of '08, the fares are as low as they were 30 years ago. Everything has gone up. EVERYTHING... except air travel. It's our turn to start charging for the cost of doing business. In fact, even with the fare hikes, I have found a dozen markets where my airline is literally charging only the fuel cost for seats. The point is fares have a long way to go before they get too expensive. They are still quite cheap.
Airline mgmts beware. Just as you MUST pay for fuel. So to will you pay for pilots. The loan is due.
We ain't fallin' for this sht again.
