Originally Posted by
Valar Morghulis
Thats not even a new thing. Robert Crandall invented “yield management” in the 80s when the legacies faced the exact same set of circumstances from the likes of New York Air, People Express, Air Florida and the like.
AA was a huge innovator in data crunching, and had one of the very first computerized
reservation systems, and was able to very effectively parse that data to manage inventory of very low fares in response. Their methods drove the low cost carriers to the brink of extinction. Not quite all the way, as People Express was bought by Continental, and UALs EWR operation is the direct descendant.
The question as to why this lesson had to be re-learned by the majors is the big mystery.
I think everytime you get a new generation in charge, they believe they are smarter than the previous! They don’t take the time to learn the history and feel like they are re-inventing the wheel and it will work this time around because, well its them doing it not someone else! Sounds an awful lot like what’s happening in some of our larger cities doesn’t it!