[QUOTE=OldAg84]I just read The marketplace is setting the price- and that includes on the supply side. The industry is overcapacity in a lot of respects, clearly Virgin America won't help that aspect. But go ahead and have your carrier charge 50% more for a ticket and see where that gets you.
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I deadhead a lot on most all of the legacy carriers, (Platimum Elite on 2 legacy carries and 1 smaller carrier) I use Southwest too on occasion.
When I here there is too much capacity in the industry, I cringe. Every flight I deadhead on is Full ........especailly international........but the domestic flights are crammed full too. This year almost all carriers set load factor records, most are in the 80-85%. So capacity isn't the problem...............Yield is the problem. Price a ticket for what it costs..............
I am tired of hearing how 911 caused all these problems (True 911 severly affected the industry for that quarter and the next). But the traveling public has put 911 behind them as more people are flying now in the US than ever before.
When I flew for the PAX carriers, if we had 55% load factor we made money..........and there was Low cost competition back then too.........Remeber NY AIR, Remember Peoples Express remember the Eastern BK which sold tickets from LGA to MIA for $99, Continental went into BK and was selling cheap seats, America west followed and Southwest was growing Big out west. Then Value jet popped up on the EAST. Reno Air on the westcoast, Western Pacific, and Frontier....................................LCC are not new to the industry.
Managament needs to manage,,,,,,,,,,,,,,Airline mangers today seem to take the approach that........"We are losing $20 Million a month so if we get $30 Million a month in Labor concessions we will net a $25 million dollar/ month profit.........after we take our 5 million a month in Bonuses and perks.
Capacity has already shrunk considerably..............with the substantial increase in Code sharing.....Charge a fair price for your product and people will pay........they will have no choice.