Unicorn From Vatican City, joined Nov 2003, 102 posts, RR: 1 Posted (10 years 5 months 5 days 17 hours ago) and read 3984 times:
As reported in the media
US Airways Considering Eliminating First Class
The St. Petersburg Times reports that US Airways has reduced the size of first class on Boeing 757s citing "too many upgrades" and is considering eliminating it altogether on domestic routes.
On its 757s, US Airways reportedly has reduced the first class cabin from 24 seats to just eight. The airline also reportedly scrapped plans to have first class aboard its new Embraer 170s and is considering eliminating first class on routes where the carrier competes with low-fare airlines or even domestic wide.
"The vast majority of people in first class domestically on all routes are upgraded," US Airways spokesman David Castelveter told the newspaper. "In some markets, there's a greater use of upgrades than others. On Las Vegas and Florida (flights), we were maintaining seats for upgrades."
Through their use of Song and Ted, Delta and United also are reducing first class capacity on routes to leisure destinations.
Not a good way to retain your frequent flyer and business passengers
Spoon04 From United States of America, joined Mar 2004, 180 posts, RR: 0
Reply 6, posted (10 years 5 months 5 days 16 hours ago) and read 3737 times:
I've asked it before, and I'll ask it again - can anyone provide an instance or example where pay cuts proved to be the "ultimate solution" to a carrier's fiscal difficulties? Concessions are only a band-aid placed on a gaping wound - in three to six months, the band-aid needs to be changed with more concessions requested. And as far as First Class is concerned, this forum is full of posts from disgruntled passengers ragging on the lack of amenities inherent to domestic F/C service these days. So what would be the loss? Would US abolishing First Class service aid in their cost reduction program? Personally, I haven't a clue.... but they've got to try something other than the never-ending appeal(s) for concessions and pay cuts. Or are we looking at the quintessential "moot point"?
Ciro From Brazil, joined Aug 1999, 662 posts, RR: 6
Reply 8, posted (10 years 5 months 5 days 14 hours ago) and read 3611 times:
Regarding the "pay cut as the ultimate solution" you mentioned, I am afraid this is a true statement. As much as I hate such pragmatic rhetoric, we are in an industry whereas the fixed expenses account for most of the total flying costs. The cost-base of these fixed expenses (and labor is the heaviest item in the equation as we all know) are often inelastic, therefore airlines that can make a buck are very often relying on cheaper salaries and wages outside unions.
Unlike what many people say, I think there is nothing wrong with the "legacy carrier model"... If we check their load-factors, ground-asset utilization and and daily-flying hours, they have never been so sharp! In the other hand, there is a serious problem on how these companies spend their money and if we compare balance-sheets with any LCCs, it is clear that the crucial differences pop up within the cost-center "personnel".
That's why I believe that airlines, such as jetBlue, Frontier and easyJet, were created by opportunistic rather than genius entrepreneurs, who rely their profitability in cheap labor. But if there are both a labor and consumer market willing to accept such trading conditions; this will be the way to go.
US Airways does not have another option to survive if its labor costs do not come closer to those from competition. At least for me, it looks obvious.
The fastest way to become a millionaire in the airline business is to start as a billionaire.
NIKV69 From , joined Dec 1969, posts, RR:
Reply 9, posted (10 years 5 months 5 days 12 hours ago) and read 3511 times:
Yes, USAirways is a sinking ship at this point, I would just get a life preserver and jump, they can not provide a service to rival anyone, can't pay their bills and are going to just get murdered by WN. It's time to hang it up already and put themselves out of their misery.
Trekster From , joined Dec 1969, posts, RR:
Reply 11, posted (10 years 5 months 5 days 12 hours ago) and read 3432 times:
Will you all please shut up about USAIR.
Most, no, all airlines are having trouble at the moment.
I got back from te US yesterday, and flew USAIR internal and international.
There service is great, the seat room is actually bigger on there 757 then there 330 which i was suprised at, but was not that bothered.
On the VEGAS route, there were only 2 people in first class on the service, so what is the point of it if it is not used as much and they can save a bit of money as well.
The crews were great, i wrote to the captain on each flight to vegas asking for info on the flight, and on the 330, the captain delivered it back to me, shook my hand, gave me a route map (filled out) and said he would be glad if i could visit the flight deck after landing.
The 757 captain gave me a map, which i had to give back, but when i got the the flight deck, he told me to sit in the capt chair, and then nicked my vid cam and did a small tour around the cockpit, i was in there around 30 min.
Col From Malaysia, joined Nov 2003, 2116 posts, RR: 22
Reply 12, posted (10 years 5 months 5 days 12 hours ago) and read 3373 times:
It is called re-alligning your product to suit the market. I do not believe anything that US, DL, UA and AA do will make 100% of people happy, they are trying to survive. Offering a product which costs more, and that is not required should be cut. LCC is where the growth is, and the legacy carriers have got to try to get their costs in line. Good luck US Airways and your employees.
Spoon04 From United States of America, joined Mar 2004, 180 posts, RR: 0
Reply 13, posted (10 years 5 months 5 days 11 hours ago) and read 3250 times:
Hello Ciro ! Excellent points, and duly noted. However my friend, I have to ask you, how many more pay concessions will US management request in order to balance the ship? I believe this latest request reflects the third such cut in a relatively short period of time. We just have to wonder if, as mentioned, is it all moot at this time? Perhaps nothing can be done at this point.
Dexter From Austria, joined Jul 2000, 261 posts, RR: 1
Reply 14, posted (10 years 5 months 5 days 11 hours ago) and read 3161 times:
I've got a question:
At any point in time, have the US majors experienced a situation where they ALL had to cut labor costs simultaneously in order to survive? After the deregulation in the '70s? What was the experience like?
Aa777flyer From , joined Dec 1969, posts, RR:
Reply 15, posted (10 years 5 months 5 days 2 hours ago) and read 2816 times:
I really dont think that is a great idea. 99% of your upgrades come from business travellers. Those are the passengers that you want to keep comming back. Although the fares they are paying are lower, they are paying them more frequently and thus generating the most revenue for an airline.
Furthurmore, if they were to just eliminate it from a few routes you add complexity to your business model by adding different aircraft sub types that can only be flown on certain routes.
Eliminate ALL first class you alienate your Frequent Flier, this could also hurt UAL since the two of the carriers are so closely linked.
Reduce seats ok, but eliminate? Think Carefully!
Flyguyclt From United States of America, joined Aug 2005, 537 posts, RR: 8
Reply 16, posted (10 years 5 months 5 days 2 hours ago) and read 2787 times:
Good for USAirways. If they would just offer a product that people are willing to pay for. Since most of the capacity in FC is upgrades then good for them. The more revenue you can pack on an airplane the better. While some love the "freebies" of being a loyal customer. The days of $1000 one way tickets are gone for good. So why on Earth do you think they could make money in FC with upgrades on $299.00 last minute fares. The problem with USAirways is that they have been in limbo far too long. They need to just be a new airline in house. Fly with frequency and convince and use their global alliance partners to the best of their ability. Take on Southwest. jetBlue is better than SWA because it is smaller and they can keep a better lid on employee moral and have that little TV that so many like. If USAirways can just make it a comfortable and seamless, hassle free experience, and get the attitude of employees onboard, they would indeed be unstoppable on the Eastern Seaboard.
LTBEWR From United States of America, joined Jan 2004, 13113 posts, RR: 12
Reply 17, posted (10 years 5 months 5 days 1 hour ago) and read 2711 times:
Many of the flights operated, even mainline, by US are relatively short haul, that is less than 2- 2 1/2 hours. Assuming they had a decent pitch in coach, do you really need 1st on any of those flights? They should keep business class, and remove 1st class like many airlines have done on many of their routes. 1st should be kept for long-haul, transcon and Trans-atlantic, flights.