usair330
Posts: 691
Joined: Thu Mar 14, 2002 12:48 pm

US Airways In Competition Mode!

Sun May 02, 2004 3:41 pm

"US AIRWAYS ANNOUNCES 'GOFARES,' ITS NEW PERMANENT SIMPLIFIED LOW FARE STRUCTURE

GoFares Start as Low as $29*; No GoFares More than $499* One Way

Employees Take to the Streets in Philadelphia in Largest
Awareness Campaign in Company History
ARLINGTON, Va., April 29, 2004 -- US Airways introduced the first phase of its new permanent and simplified low fares called "GoFares®" today in Philadelphia, kicking off the largest awareness campaign in company history. Employees will be performing "unbelievable" acts of kindness as part of an intense nine-day highly visible promotional campaign to tell Philadelphians about its new $29 - $499* GoFares. Best of all, there is no Saturday night stay required to take advantage of these new low fares in designated markets.

US Airways’ new GoFares start at as low as $29* each way, with last-minute fares as low as $49* each way. GoFares are never more than $499* each way, and there are no Saturday night stay or roundtrip purchase requirements typical of leisure-type fares..........."

Read the rest of it here
http://usair.com/about/press/nw_04_0429.htm


 
TriStarL1011
Posts: 3
Joined: Mon Jan 19, 2004 12:06 pm

RE: US Airways In Competition Mode!

Sun May 02, 2004 3:52 pm

'Permanent': Does this mean that US is also planning on a Low Cost Service similar to Song or Ted or etc.,?
 
777ER
Crew
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RE: US Airways In Competition Mode!

Sun May 02, 2004 3:53 pm

It looks like US is getting desperate Sad
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TriStarL1011
Posts: 3
Joined: Mon Jan 19, 2004 12:06 pm

RE: US Airways In Competition Mode!

Sun May 02, 2004 3:57 pm

Surely, since HP (if I mat recall well) is coming to PHL this summer, US has to be worried as PHL was its bread and butter. This kind of a fare sale will retain its customers to a certain extent.
 
COEWRNJ
Posts: 1000
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RE: US Airways In Competition Mode!

Sun May 02, 2004 3:59 pm

TriStarL1011
HP has been serving PHL for a while. HP is America West. It is WN that is coming to PHL in I believe eight days or so. WN being Southwest.
 
TriStarL1011
Posts: 3
Joined: Mon Jan 19, 2004 12:06 pm

RE: US Airways In Competition Mode!

Sun May 02, 2004 4:04 pm

COEWRNJ,

Thanks pal. I have been out of touch as I am on vacation. It certainly is WN. But why did US give so much of its assests in PHL when it was Kingdom. Its like DL giving up at ATL or AA and UA at ORD. What do you feel?
 
COEWRNJ
Posts: 1000
Joined: Mon Oct 13, 2003 9:46 am

RE: US Airways In Competition Mode!

Sun May 02, 2004 4:13 pm

TriStarL1011
Hope your enjoying your vacation!
I don't think US really gave up much of its assets in PHL nor are they giving up PHL in general. Just my thoughts but it is going to be hard for US to compete on routes that WN has out of PHL simply because its costs are so high. You can lower your fares to match, but if your cost don't line up than your out of luck. So what US will have a hard time with is competing with WN profitably. That's why they are saying WN is out to kill us. WN knows US can't compete with fares at WN level for any extended period of time.
 
ouboy79
Posts: 4111
Joined: Sun Nov 18, 2001 1:48 pm

RE: US Airways In Competition Mode!

Sun May 02, 2004 11:31 pm

Want a sure way to beat WN...pack PHL so tight that the ground delays kill them off. Okay...doesn't know good to kill yourself too, so moving on.  Smile

US Airways is doing something it shoudl have done a long time ago - rationalize the fares. Every indication I've heard is that these will go system wide similar to what HP did a couple years back. As I've said...the next couple months will tell all. Mr. Lakefield has a lot of work to do, but the unions seem to respect him a whole lot more than Austin Powers.

They still have more steps to go...

1) Rationalize the fare system - working on it.
2) Utilize the fleet correctly - Airbuses and Boeings should not be flying <500 mile legs anymore unless the loads require them.
3) Rationalize the work rules for all employee groups - do not cut pay anymore
4) Devise a plan of expansion and stick to it. They have many cities they serve that can benefit greatly by a point-to-point network.
 
elwood64151
Posts: 2410
Joined: Fri Feb 08, 2002 10:22 am

RE: US Airways In Competition Mode!

Sun May 02, 2004 11:40 pm

2) Utilize the fleet correctly - Airbuses and Boeings should not be flying <500 mile legs anymore unless the loads require them.

So how, then, does WN make money when the majority of its routes are 300-500 miles?

3) Rationalize the work rules for all employee groups - do not cut pay anymore

Wholeheartedly agree there.

4) Devise a plan of expansion and stick to it. They have many cities they serve that can benefit greatly by a point-to-point network.

This would negate #2 by the very definition of a point-to-point network. No, US needs to either stick with their curent hub-and-spoke system with bypasses only for very heavily booked routes (similer to FL), or switch entirely to P2P (like WN).

USAirways has a lot of problems. They've taken some of the steps they need to take to improve the situation. However, I do not believe that all steps they've taken are correct (RJs) or that they are correcting everything that needs to be corrected (utilization). Most importantly, they need to learn how to reduce costs without cutting employee salaries (again, utilization is key), as this leads to low morale.
Those who fail to learn history are doomed to repeat it in summer school.
 
DfwRevolution
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RE: US Airways In Competition Mode!

Sun May 02, 2004 11:51 pm

So how, then, does WN make money when the majority of its routes are 300-500 miles?

WN's CASM is so unbelievably low they can afford to fly 73Gs on routes dominated by RJs and still turn a profit. This flexibility is one of the main reasons they have not aquired a smaller fleet type. IMO, it would be nearly impossible for US to achieve this utilization.

Employees will be performing "unbelievable" acts of kindness as part of an intense nine-day highly visible promotional campaign to tell Philadelphians about its new $29 - $499* GoFares.

Competition is always good for the passenger  Big thumbs up

[Edited 2004-05-02 16:52:40]
 
Leskova
Posts: 5547
Joined: Wed Oct 08, 2003 3:39 pm

RE: US Airways In Competition Mode!

Sun May 02, 2004 11:56 pm

Any idea what these "unbelievable" acts of kindness will be?
Smile - it confuses people!
 
Greg
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Joined: Sat May 28, 2005 1:11 am

RE: US Airways In Competition Mode!

Mon May 03, 2004 2:04 am

More like a competition with UA to see who can burn the most cash in the shortest amount of time...
 
MSPPHL
Posts: 14
Joined: Wed Apr 14, 2004 12:49 pm

RE: US Airways In Competition Mode!

Mon May 03, 2004 2:38 am

It's going to be an interesting summer for not only USAirways at PHL but also some of the other mainliners. Terminal E is under a 'transformation' as of late-- even getting a Krispy Kreme donut shop. It will be nice to see Terminal E get some long-awaited attention-- we only got a bar recently. But as we all know, when WN plants itself into a terminal, people traffic increases, and with that comes increased opportunities. For NW and DL, Terminal E is going to start showing a whole new "crowd" of people.

As for why WN is so good financially, as other have said, their costs are lower. Thanks to an extraordinary Jet fuel hedging of some 80% at $25/barrel and 2005 is at 60%, WN is more protected from fluctuating fuel prices-- best fuel hedging against the majors: US at 30%, Delta 32%, NW and UA have little or no hedging for the year--oops.

Southwest's Costs per seat mile are at a fantastic 7.5 cents, with USAirways at 10.2 cents. There are so many reasons WN does well financially, and there are so many reasons we need mainline carriers like US, UA, AA, DL, NW. If WN goes overseas, has a more blended fleet, operates club lounges, targets larger corporate businesses more heavily, etc etc, they'll chip into that $$$ success. The fact that others like AmericaWest, JetBlue, AirTrain, ATA, have their own successes and based on a similar model shows it can work.

What would happen if all the majors went that way and didn't go overseas... Would Amtrak operate the flights to Europe?
 
Bicoastal
Posts: 2446
Joined: Wed Oct 06, 1999 5:56 am

RE: US Airways In Competition Mode!

Mon May 03, 2004 2:49 am

Hmmm....Krispy Kreme donuts arriving at PHL about the same time as Southwest. Okay, I'll refrain from comments but draw your own conclusions about the favorite food of trailer park trash.
Airliners.net has many forums. It has spell check and search functions. Use them before posting!
 
MSPPHL
Posts: 14
Joined: Wed Apr 14, 2004 12:49 pm

RE: US Airways In Competition Mode!

Mon May 03, 2004 2:56 am

Bicoastal: You couldn't have said it better... I was trying to be nice when I said Terminal E is going to see a whole "new" crowd... You nailed it.

I'm glad to see that along with the "cattle ropes" now installed at the TSA checkpoint, an official "roadwarrior" bypass is setup for DL and NW special-- shall I say, travel-savvy, pax.
 
Logos
Posts: 607
Joined: Mon Jan 24, 2000 10:47 pm

RE: US Airways In Competition Mode!

Mon May 03, 2004 3:10 am

This has already been discussed, see this thread

http://www.airliners.net/discussions/general_aviation/read.main/1538345/

As for Southwest, it's not just their costs, but also their high labor productivity (read work rules) which allows them to operate profitably where others can't. Their ability to turn around an aircraft and get it back in the air is pretty much unparalleled, in part because everyone pitches in and doesn't worry about their "territory".

Even with concessions, USAirways has some of the most archaic work rules in the industry and that's unlikely to change. Even with Siegel gone, the labor strife goes on, as witnessed by their inability to find a solution on flying the CRJ-701s at PSA. The whole labor force feels they've already given back a lot and, by golly, they're not going to give anything else back.

On the one hand, that's an understandable attitude. On the other hand, it's a stubbornness that's likely to end up killing the airline. As for these fares, putting in USAirways in a "competitive" mode, let's see them make money with this fare structure first.

Cheers,
Dave in Orlando
Too many types flown to list
 
MSPPHL
Posts: 14
Joined: Wed Apr 14, 2004 12:49 pm

RE: US Airways In Competition Mode!

Mon May 03, 2004 3:31 am

The high labor productivity and other management overtones will take its toll. The recent rift with the flight attendants has put a somewhat negative spotlight on what is going on in the magic kingdom of WN.

I agree Dave that it is nearly impossible to see how USAirways could pay the bills with their current loss rate and now a huge far war.

Time will tell and as numerous other threads on here have speculated the timely death of USAirways and those who will swoop into feed on what's left, only time will tell.

-jim
 
txagkuwait
Posts: 1388
Joined: Fri Aug 27, 1999 7:39 am

RE: US Airways In Competition Mode!

Mon May 03, 2004 3:47 am

>>Hmmm....Krispy Kreme donuts arriving at PHL about the same time as Southwest. Okay, I'll refrain from comments but draw your own conclusions about the favorite food of trailer park trash.<<

Well, let's see....what is the real purpose of an airline company anyway????

Is it to provide sanitized transportation for a few elitist snobs who think they are better than everyone else, losing basketloads of money in the process???

Or is it to make money for the shareholders while providing fast, safe transportation between distant points and employing bunches of people?

USAirways has pretty much demonstrated that they can't do it by charging average fares of $ 300 + for 300 mile trips.

I think it is going to be fairly clear, fairly soon that the way to survive in the industry is to carry everyone.

That means business suits and designer dresses and folks in jeans who eat doughnuts and shop at WalMart.

Folks who drive Lexus' and folks who drive GMC trucks and maybe even one or two who own a KIA.

Back to the topic - this "incredible" fare structure shakeup is nothing more and nothing less than matching WN fares, sort of. They didn't even do a very good job of it. They still have 14 or 15 fare buckets in markets where WN has 4.

If U's management had any cojones whatsoever they would have done it systemwide and they would have done it yesterday.

But they don't. And much is the pity, because their lack of any is going to be the death of the airline.

You know, it is really funny to see Americans trying to be class conscious. That may be more of an east coast thing. In the hinterlands, (ie TX NM OK LA AR) everyone rides WN. On the left coast they occupy the same position in society that PSA used to. (Anyone at U remember PSA?)

The bottom line, the boys and girls from Dallas are going to demonstrate once again how their vision of an airline company is vastly superior to what the highfaluting folks in Crystal City can come up with.

And when there is no U, the snobs who turn their delicate little noses up at WN will have a different set of choices - fly WN or drive.

 
DCA-ROCguy
Posts: 3890
Joined: Fri Apr 21, 2000 5:03 am

RE: US Airways In Competition Mode!

Mon May 03, 2004 4:54 am

Preach it, TxAgKuwait. Always good to hear from you. Southwest is a great airline that, as those of us who fly them know, serves everyone from business pax to young families to grad students.

They're the ones with a highly effective and profitable business model, offered by great professional employees, and disciplined management. WN will settle their disagreement with their FA's. Haven't seen Southwest's FA's pull any anticonsumer schedule terrorism like the United pilots' "Summer of Hell" in 2000, have we?

It's really, really sad that US management more or less only reacts to LCC's, and tries to keep up their restrict-capacity-and gouge business model everywhere they possibly still can. US is just matching fares on *exact* Southwest routes, and putting a marketing happy face on it. It's always hilarious to watch network-carrier management try to do "hip and exciting" marketing, because it is so obviously fake, done *only* in exact, particular reaction to LCC entry into particular markets.

And yes, as Logos notes, this topic was discussed already.

Jim
Need a new airline paint scheme? Better call Saul! (Bass that is)
 
InnocuousFox
Posts: 2556
Joined: Sat Dec 06, 2003 1:30 am

RE: US Airways In Competition Mode!

Mon May 03, 2004 4:54 am

" the favorite food of trailer park trash."

Ignorant flamebait.
Dave Mark - Intrinsic Algorithm - Reducing the world to mathematical equations!
 
freshlove1
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Joined: Thu Jan 15, 2004 1:38 pm

RE: US Airways In Competition Mode!

Mon May 03, 2004 5:13 am

Oh yeah those ground delays are going to kill their o/t preformance. Those 20 min turns they claim they do are going to go out the window real fast in PHL. While I believe it is ok that WN goes into PHL, I believe they did not look at all of the things that may hurt their operation. I guess we will see over time how it all works out. We actually did a WN charter this a.m (sun). It was one of the 737-700's with the winglets, I believe it was A/C 458WN, but ill have to check the paperwork to confirm that. According to the pilot this was only the planes 3rd revenue flight. It was brand new, and when you opened the cargo bin doors it even had that new plane smell, similar to what you get hen you get a new car.
 
Cody
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Joined: Tue May 18, 1999 12:16 pm

RE: US Airways In Competition Mode!

Mon May 03, 2004 5:46 am

I believe Southwest will be able to utilize Runway 17/35 for takeoffs with their high-powered 737-700's more than US AIRWAYS can with their A319's. That may help their performance somewhat. I know that when the RJ's are heavy, they cannot use 35/17.

Another problem I was thinking about, the other day, is when the wind is blowing from the west and PHL decides to utilize PRM approaches for Runway 26 and 27L, what would happen if the RJ's and the prop's refuse 26? I guess we will see a final approach to 27R that begins out over the North Atlantic. I guess time will soon tell.