Low-Fare Carriers Rethink Ticket Prices
02-27-2006, 09:32 PM
#11
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JB and their CEO. He wants to "squeeze" $5 - $10 out per pax...
He's the one who started the DEEP discounts trying to get market share. Now his cost's are rising (they aint gonna go down ever). A big fat WAH!
Can anyone say PEOPLES EXPRESS..................
He's the one who started the DEEP discounts trying to get market share. Now his cost's are rising (they aint gonna go down ever). A big fat WAH!
Can anyone say PEOPLES EXPRESS..................
Last edited by crewdawg52; 02-28-2006 at 04:50 AM.
02-27-2006, 09:33 PM
#12
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Sell at a loss, and make it up with volume
The Majors were guilty of suicidal pricing years before the LCCs became a significant force in the industry. ("These prices will kill us, but they'll kill our competitor first.") Marketers failed to learn that the competition always matches the low fare, even if they go bankrupt, and then they're a greater threat than ever. (EAL in its last years cost Delta millions, since they would sell a ticket at almost any price just to keep the doors open a little longer.) Fare wars usually left everyone with about the same market share that they had before, but much less revenue. Solution? Cut costs, starting with employee wages. The LCCs simply reversed the order--low wages first, then fare wars. Until poor service generates enough political pressure to re-regulate fares, nothing much will change, and right now passengers just take the cheapest seat and squawk. 
02-27-2006, 09:40 PM
#13
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American is next........then CAL, Value Jet (air tran), Frontier, Alaskan, SWA (when the hedges run out)....Gonna keep going on, and on, and on. Enough is enough!
Everyone is spouting off about low wages......How many of you will jump at the chance to go with virgin america....... I bet they will have too many applications to look at.
Everyone is spouting off about low wages......How many of you will jump at the chance to go with virgin america....... I bet they will have too many applications to look at.
Last edited by crewdawg52; 02-28-2006 at 04:51 AM.
02-28-2006, 07:27 AM
#14
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Originally Posted by captjns
Just paint "Trailways" or "Greyhound" on the side of the planes. Then paint "United" "American" "Delta" etc. on the side of the buses and trains. Call it roll reversal... Just like when it was cheaper to take the train and bus.
Well, I am a Bus driver.
02-28-2006, 04:48 PM
#15
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Posts: 345
Originally Posted by Dizel8
"Believe me execs would love to raise ticket prices, but its the low cost carriers that are at fault"!
That is interesting, since I kept reading that NWA was always the carrier that would not go along with the raises.
Secondly, plenty of LCCs have higher fares than the legacies, compare SWA vs the legacies on many routes, jetblue vs Song etc. So I am kind of perplexed by your statement?
That is interesting, since I kept reading that NWA was always the carrier that would not go along with the raises.
Secondly, plenty of LCCs have higher fares than the legacies, compare SWA vs the legacies on many routes, jetblue vs Song etc. So I am kind of perplexed by your statement?
I think he was refering to the fact that the Legacies fares are so low because they have to undercut the LCCs. And the Legacies wernt built for legacy service on Low Cost fares. So It is because the LCC's exist that the legacies have to lower their own fares to compete.
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