Knope2001 From United States of America, joined May 2005, 2567 posts, RR: 31 Reply 1, posted (4 years 11 months 2 weeks 4 days 3 hours ago) and read 5591 times:
Every year the GSA designates a preferred carrier for government travel between a few thousand city pairs. Last year AirTrna had the contract in 118 city pairs, and this year is it 119. The estimated contract amount is significantly higher, though, which suggests that the GSA has ratcheted up the contract fares for 2008/2009. As they should, frankly.
It's not any sort of subsidy, as MKE22. AirTran bid on the contract for an undisclosed number of city pairs, and they were awarded the contract for 119 of them.
Years back these government contracts were viewed as nothing too special because they are discounted fares over the standard rates. However in recent years as a greater portion of total traffic has become leisure, these discounted business fares are neverthless at least business-fares.
This is one of those documents that I have never been able to find online, and I'd be curious to see who received what awards for this coming year. Does anyone know where the master list of these awards is?
FL1TPA From United States of America, joined May 2004, 258 posts, RR: 0 Reply 2, posted (4 years 11 months 2 weeks 4 days 3 hours ago) and read 5451 times:
Very interesting. I see that the referenced article comes from the Tampa Bay area as well. The article says the awarded city pairs included nine TPA pairs. I'm currently based (virtually) in TPA and will be attending the next charter class later on this month, I hope they'll send some our way!
FL1TPA
"Looks like I picked the wrong week to stop sniffin' glue."
AirAmericaC46 From United States of America, joined Mar 2004, 590 posts, RR: 1 Reply 3, posted (4 years 11 months 2 weeks 3 days 13 hours ago) and read 4132 times:
What city pairs will be served, type of aircraft? and frequency of flights? Thanks for the data.
FATFlyer From United States of America, joined May 2001, 5673 posts, RR: 17 Reply 4, posted (4 years 11 months 2 weeks 3 days 13 hours ago) and read 4108 times:
Quoting Knope2001 (Reply 1): Does anyone know where the master list of these awards is?
The master list of airlines and fares in various city pairs in 2007 and 2007 is under the left side button labeled "Awarded Markets Current". It is in a .csv file to do various crunching.
Mayor From United States of America, joined Mar 2008, 9272 posts, RR: 14 Reply 5, posted (4 years 11 months 2 weeks 3 days 13 hours ago) and read 4055 times:
Delta got $641mil in contracts at the same time.
"A committee is a group of the unprepared, appointed by the unwilling, to do the unnecessary"----Fred Allen
United1 From United States of America, joined Oct 2003, 5378 posts, RR: 8 Reply 7, posted (4 years 11 months 2 weeks 3 days 13 hours ago) and read 3898 times:
SPREE34 From United States of America, joined Jun 2004, 2110 posts, RR: 10 Reply 8, posted (4 years 11 months 2 weeks 3 days 11 hours ago) and read 3291 times:
Quoting AirAmericaC46 (Reply 3): What city pairs will be served, type of aircraft? and frequency of flights? Thanks for the data.
Don't know the cities, but it will be 737s and 717s, and the frequency will be the normally scheduled flights. These aren't "charter" flights, just normal schedule with a pre-arranged price.
I don't understand everything I don't know about this.
MKE22 From United States of America, joined Nov 2007, 1111 posts, RR: 2 Reply 10, posted (4 years 11 months 2 weeks 3 days 10 hours ago) and read 3022 times:
Quoting Enilria (Reply 9): GSA is dangerous to bid on right now because if fuel prices go up further, prices of tickets for govt employees are locked in for the whole year.
United1 From United States of America, joined Oct 2003, 5378 posts, RR: 8 Reply 11, posted (4 years 11 months 2 weeks 3 days 10 hours ago) and read 2956 times:
Quoting Enilria (Reply 9): GSA is dangerous to bid on right now because if fuel prices go up further, prices of tickets for govt employees are locked in for the whole year.
Actually fuel isnt a problem, those fares that are quoted exclude the fuel surcharges.
As an example....
ORD-ATLs preferred carrier is UA.
Unrestricted fare is $143, capacity controlled is $110, that includes federal, state and local taxes. To that fare you add Passenger Facility Charges, Segment Fees, and Passenger Security Service Fees as well as a fuel surcharge of $65. The fuel surcharge can go up at any time, all the government requires is that the new fuel surcharge is not more then the commercially charged fuel surcharge and that the new surcharge cannot go into effect for government fares untill 14 days after it is announced.
United1 From United States of America, joined Oct 2003, 5378 posts, RR: 8 Reply 13, posted (4 years 11 months 2 weeks 3 days 3 hours ago) and read 1406 times:
Actually fuel isnt a problem, those fares that are quoted exclude the fuel surcharges.
Good point, but the cost of fuel is far greater than the surcharges. Base fares are also increasing.
The fares are actually pretty profitable in general for the airlines. The reason the feds negotiate these rates is because like a business they can't always plan weeks ahead and get the lowest airfares. The preferred rates are alot cheaper then full Y fares however give the traveler the same flexibility as an unrestricted Y fare.
Based off the example I gave earlier a capacity controlled airfare would net UA $175 one way between ORD-ATL which works out to 28.9 cents a mile, now thats less then the $401 base fare that an unrestricted one way Y ticket fare would bring UA however its still way over UAs break even point.
On a slightly different topic, some of the routes that the preferred carriers have are a little weird as an example LAX-SYDs preferred carrier is AA. You actually end up traveling on QF...
Bond007 From United States of America, joined Mar 2005, 5098 posts, RR: 8 Reply 14, posted (4 years 11 months 2 weeks 3 days 2 hours ago) and read 1343 times:
Quoting Enilria (Reply 12): Good point, but the cost of fuel is far greater than the surcharges. Base fares are also increasing.
Actually, in the United example, it's quite the opposite. The so-called 'fuel surcharge' actually covers all of the fuel PLUS almost all other costs ... and they can increase it if/when the cost of fuel increases !!!
The whole fuel surcharge concept is a racket, and this is a prime example.
Jimbo
I'd rather be on the ground wishing I was in the air, than in the air wishing I was on the ground!
United1 From United States of America, joined Oct 2003, 5378 posts, RR: 8 Reply 15, posted (4 years 11 months 2 weeks 3 days 2 hours ago) and read 1325 times:
Quoting Bond007 (Reply 14): Actually, in the United example, it's quite the opposite. The so-called 'fuel surcharge' actually covers all of the fuel PLUS almost all other costs ... and they can increase it if/when the cost of fuel increases !!!
Actually no it doesn't that $65 works out to around 10.7 cents a mile which is less then UAs cost to operate the route. The fare plus fuel surcharge covers the cost of the route and makes a profit for the airline, at the same time it saves the feds money by not having to book last minute fares at full Y.
Bond007 From United States of America, joined Mar 2005, 5098 posts, RR: 8 Reply 16, posted (4 years 11 months 2 weeks 3 days 1 hour ago) and read 1288 times:
Quoting United1 (Reply 15): Actually no it doesn't that $65 works out to around 10.7 cents a mile which is less then UAs cost to operate the route.
Well, that's around UA's CASM isn't it??
It may well be higher on the ORD-ATL route (or less!), but it would appear that the $65 fuel surcharge applies to most/all routes.
The bottom-line is that this surcharge very easily covers ALL fuel costs, and much more.
IMO, the whole concept of a fuel surcharge is not to charge folks for ALL of the fuel. Fuel is part of normal operating expenses. If you want to cover recent and future fuel increases, then you charge the difference ... otherwise I'll stick to my previous comment ... it's a racket.
...anyway, getting off topic ... sorry!
Jimbo
I'd rather be on the ground wishing I was in the air, than in the air wishing I was on the ground!
United1 From United States of America, joined Oct 2003, 5378 posts, RR: 8 Reply 17, posted (4 years 11 months 2 weeks 3 days 1 hour ago) and read 1274 times:
CASM is 12.67 cents on UA on average, in general however the shorter the flight and smaller the aircraft the higher the CASM is, so its probably a bit higher then that on ORD-ATL.
Bond007 From United States of America, joined Mar 2005, 5098 posts, RR: 8 Reply 18, posted (4 years 11 months 2 weeks 2 days 18 hours ago) and read 1189 times:
Quoting United1 (Reply 17): CASM is 12.67 cents on UA on average, in general however the shorter the flight and smaller the aircraft the higher the CASM is, so its probably a bit higher then that on ORD-ATL.
OK, so total average costs would be less than $80 for that distance .... and they are charging $64 just for so-called fuel surcharge. You see my point
Jimbo
I'd rather be on the ground wishing I was in the air, than in the air wishing I was on the ground!
GentFromAlaska From United States of America, joined Feb 2005, 2102 posts, RR: 2 Reply 19, posted (4 years 11 months 2 weeks 2 days 2 hours ago) and read 983 times:
To view a particular GSA city pair type in the three letter origin and destination airport code. The air carrier and fares will populate. If you want to view all city pairs the airline from a single airport type in the origin airport leave the destination airport blank.
Price is not the only award criteria. Where dual air carriers compete frequency and non-stop flights also play a role. Each city pair is one way. The YCA fare is for the most part a unrestricted fare. Tickets are generally purchased through a contacted corporate travel agent or can be purcahsed at the ticket counter with approriate credentials. Some five years ago GSA added capacity controlled fares. These are further discounted fares for federal employees who are able to plan their trips.
The current FY08 contracts expire Sept 30. The new FY09 are effective Oct 1, The new FY09 city pair contacts should be posted by NLT Aug 15, if not sooner.
Man can be taken from Alaska. Alaska can never be taken from the man.
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