Who's next?

[Propsync]

In the last few months:

MAXJET
ATA (lower 48)
Skyway
Aloha
Champion

Is there really that much overcapacity to the point where there is no pricing control due to competition? I understand fuel has a bit to do with it. Will there not be anymore mergers due to the underwhelming success of AW/US? What carriers out there can honestly fend for themselves?

It looks like the sky is falling. Is it?

 

[General Lee]

In the last few months:

EOS
ATA (lower 48)
Skyway
Aloha
Champion

Is there really that much overcapacity to the point where there is no pricing control due to competition? I understand fuel has a bit to do with it. Will there not be anymore mergers due to the underwhelming success of AW/US? What carriers out there can honestly fend for themselves?

It looks like the sky is falling. Is it?

EOS is still around. MAXjet just left. There is a difference. Research before you type.

Bye Bye--General Lee

 

[IronCityBlue]

Looks like he edited his major error. Anyway that's a good question, because managers like to use the word "overcapacity" like its an automatic get out of jail card for bad management, but is there really any overcapacity? Maybe in September and January, but the summer and holidays are jam packed to the point that its bad for business. Last summer was so full any airline could have raised every fare 50 bucks and would have been just as full because every airline was packed to the gills.

 

[ACL65PILOT]

Most of those are small and do not affect the route structure of a major network carrier.

 

[Propsync]

Last summer was so full any airline could have raised every fare 50 bucks and would have been just as full because every airline was packed to the gills.

That's kinda what I was thinking. So is summer travel a failure of revenue control? Will all of the airlines make overdrastic capacity cuts even though summer load factors have been high the last couple of years? I don't get how you can charge less when you know the planes will be full. Obviously, there's a breaking point for some, but it sure doesn't seem like it slows any passengers down. Just charge it.

So back to my question, is this going to come back around and bite someone a bit bigger than the carriers first mentioned. I do apologize about the MAXJET/EOS mistake, I was thinking of an earlier EOS post about picking up MAXJET pilots (or something like that) and got them switched. At least I didn't confuse Mesa with Aloha.

 

[ACL65PILOT]

Depends. DAL just rolled over on all of the fare increases they rolled out last week.
Makes me wonder what they are thinking. Maybe they are trying to squeeze the other players.

All of the flights I have flown, except one, have been full for the last few month. It just makes me wonder how the heck we cannot be making money.

 

[Tanker Clown]

Depends. DAL just rolled over on all of the fare increases they rolled out last week.
Makes me wonder what they are thinking. Maybe they are trying to squeeze the other players.

All of the flights I have flown, except one, have been full for the last few month. It just makes me wonder how the heck we cannot be making money.

It doesn't matter if your full when your yields don't cover your costs. You probably are on a jet full of $49 fares.

 

[ACL65PILOT]

Not really. Everyone that I was talking to in the gatehouse (when I get the chance) was paying North of 375 for their fares. They did not seem to mind either.

 

[Tanker Clown]

Maybe your costs are out of whack then. Delta can't control the price of oil...but they know one thing they can cut....

 

[DrewBlows]

EOS is still around. MAXjet just left. There is a difference. Research before you type.

Bye Bye--General Lee

The General must have left his FI account logged in on a public computer. There is no way he believes this.