FrontierMan From United States of America, joined Oct 1999, 413 posts, RR: 0 Posted (12 years 11 months 2 weeks 4 days 1 hour ago) and read 836 times:
This is an extremely sensitive subject. I believe that you will see more DOJ cases is large airlines merge. Bigger airlines and more assets make it easier to compete in predatory practices. Small Start-up airlines are forced with an unfair fight because larger airlines price their services below cost. Those prices make it a low-profit or no-profit situation for the smaller airline. Although if we look back at airline history, we see some low-fare airlines pricing their services below cost, we still see major airlines slashing fares and unleashing hoards of capacity just to compete with a start-up airline. Sometimes they bring in lower-paid staff(aka "United Shuttle"). Airlines are getting very creative with predatory practices.
I believe that American got nailed with a settlement for Vanguard for predatory practicing in the DFW area. I know United is getting sued from Frontier for their predatory practices. I think Spirit is suing Northwest also. Well, does anyone know of any other cases that are arising from predatory practices, and if so what are your opinions on Predatory Practices?
BH346 From United States of America, joined Jan 2000, 3265 posts, RR: 17 Reply 3, posted (12 years 11 months 2 weeks 3 days 11 hours ago) and read 684 times:
AA has its own site about AA and Predatory Practices. I guess the site's meaning is to say that they were just competing. http://www.aadoj.com
It talks a lot about Vanguard in the part called "Kansas Information" I am from Wichita, and AA got Vanguard out of here a while ago. You can find out more about it there.
Northwest Airlines - Some People Just Know How to Fly
Dsmav8r From United States of America, joined Mar 2000, 579 posts, RR: 8 Reply 5, posted (12 years 11 months 2 weeks 3 days 9 hours ago) and read 669 times:
It has nothing to do with whining. I have seen 3 airlines in a span of 2 years get run out of DSM. Vanguard, AirTran and AccessAir. The predator in DSM is not AA, but UA. Competition is one thing, but slashing prices to the point that UA is *losing* $$ on the route is another.
Don't get me wrong, its nice flying one-way to ORD on a 757 for $74. But once the "intruder" gets ran out, the price jumps to $600 on a 737-200 one-way, hmmm.........
To most people, the sky is the limit. To those who love aviation, the sky is home
Tritanic From United States of America, joined Jul 2010, 0 posts, RR: 0 Reply 7, posted (12 years 11 months 2 weeks 3 days 6 hours ago) and read 649 times:
Well no offense, and I know starting up a new airline is near impossible, as well as not profitable. Trust me when I say AirTran some months have been known to sell off parts just to make rent. I will say this I would never ever think about opening up a small grocery store, or a hardware store right next to a WALMART!!!!!
Tritanic From United States of America, joined Jul 2010, 0 posts, RR: 0 Reply 9, posted (12 years 11 months 2 weeks 3 days 6 hours ago) and read 648 times:
Ok FrontierMan, let's get serious. Is it fare for a new airline to cruise into an airport and introduce fares that are absolutely UNPROFITABLE!!! When your dollar per seat mile is costing you up to two times what the passenger is paying you are not using sensible business sense!!! Just take a look at AirTran, the fares have risen every year in operation. They allocate fewer discount fare seats than ever. They put in a First Class on there flights!!!! They are not a discount airline they want to be one of the bigboys!!!!! So is it fare for an airline to come in as a "discount" airline, and the real intentions are to actually make a profit!!!!, like the big boys!!! Let's not sugar coat this, operating an airline is far, far, from cheap, and those 600.00 seats you are talking about are a gamble on behalf of the airline. They sell them usually for the same day business guy, but you can bet it's definitely a gamble!!!
Frontierman From United States of America, joined Oct 1999, 413 posts, RR: 0 Reply 11, posted (12 years 11 months 2 weeks 2 days 13 hours ago) and read 599 times:
Boy Seattle OPs you are really displaying some maturity. Dominant airlines slash their fares below cost at the competing airline's destinations, and then raise prices where there is no competition. Forcing other customers to pay sky high prices. So call it whining if you will. When you run into a 400 dollar fare to fly from Shenendoah Valley to Dulles. I don't want to hear you complain, because you'll know why it's happening.
AAR90 From United States of America, joined Jan 2000, 3410 posts, RR: 50 Reply 12, posted (12 years 11 months 2 weeks 2 days 12 hours ago) and read 597 times:
Frontierman, suggest you take a few beginning economics classes in college followed by a couple of beginning law courses. You'll find supply and demand set the prices and _matching_ a competitor's price is, by definintion, not a "predatory" practice no matter what your costs to produce the product. If you believe otherwise, you are saying SEARS can not sell the same product for the same price as WALMART. Sorry but capitalism and free markets don't work that way.
FYI, I own/operate a $1.5 million/year business and all of my products pricing is set by my numerous competitors. I'd prefer the prices to be higher, but the marketplace sets the price. Some I lose money on, but I have to sell at that price to keep my customers.
Reality is sometimes tough.
*NO CARRIER* -- A Naval Aviator's worst nightmare!
Seattle ops From United States of America, joined Aug 1999, 202 posts, RR: 0 Reply 13, posted (12 years 11 months 2 weeks 2 days 10 hours ago) and read 590 times:
I was out in my ops truck checking some lights, very carefully clear of incoming flights.Out in the rain with my earmuffs on tight,the sound of those jets can cause quite a fright!The roar of the engines on a seven twenty seven, a Dash eight's props feathering then reving and reving.Then all of a sudden a noise had me puzzled, what was this strange airplane that had me befuddled?It could best be described as a sickening WHINE, so I looked and I looked could it be DC-9?Then I finally discovered who had made such a wail, for it had a bald eagle, right on its tail!