"Don't Sacrifice Safety for a Cheap Ticket" - AZ Republic

[tonyw]

I'm wondering why they haven't, or more correctly, why Tony thinks they haven't done so (I have my own ideas on that). If it really were that easy I would think that someone would be trying it, wouldn't they???

Because they're afraid of what will happen to them.

Wall Street will kill their stock price. They know it. They know all the analysts will scream and shout about how they're going to destroy the airline they're running.

The problem is if you are perceived as selling a commodity product -- which is what the airlines have devalued their product to -- then people are going to go for the cheapest version of that commodity they can get.

The only solution is to provide something that differentiates your product from the rest of the pack and to charge appropriately.

Steve, you are probably old enough to remember the saying you won't get fired for buying IBM, correct?

This is the same mentality. The execs know if they keep on doing what everyone else is doing, they won't get in trouble.

On the other hand, to do what I'm suggesting -- provide more amenities and say we're charging for them -- puts their butts on the line.

The closest anyone came to this was right after September 11 when Bethune said it's stupid for me to take meals off planes and to remove pillows and blankets and olives.

 

[Toonces]

As long as you have tools who complain that it's "outrageous" that people have to pay $600 for a transcon -- hell, man, when I had to pay $480 to fly from IAD to YVR, people called that insane -- nothing's going to happen.

I've said it before and I'll say it again. Raise fares. You've got loads in the 90 percent range. On a freaking redeye from DEN to IAD on a Thursday night, there were no empty seats on a A320.

When you've got those kinds of loads, I say jack up the fares. Make it so you can make money with a 65-70 percent load factor and guess what?

Some people will be more than happy to pay a premium in order to get an empty seat next to them. Some people won't.

Screw the people who won't. They ain't gonna make you money. They're the Wal-Mart crowd. You don't want them. They only want to fly you when they're paying too little for you to make money.

Go for the Bloomies crowd. You can make money on them.

Too many businesses, airlines included, chase every customer. That's only half right.

You want to chase PROFITABLE customers.

Those customers who are not profitable are useless. Actually, they're worse than that. They suck up your resources and they divert your attention from the customers who you can make money on.

Right on. My thoughts exactly. I hate sitting next to people thats look like they belong in the movie Deliverance. It wouldn't break my heart to see the low rent crowds dissapear. I think it would help elevate the profession as well.

 

[surreal1221]

It can be if United or American or Delta wants it to be.

Jack up the price and cater to the customers who are willing to pay a premium for better service. Not quite first class or business class, but better service, such as more leg room, maybe a free alcoholic beverage, etc.

I'll bet there are plenty of passengers who are willing to pay a premium for that kind of service. It will go against everything Wall Street tells people to do but if you can do it and stick to your guns, it will pay off in the long run.

Airlines may not be able to go the Neiman Marcus route but they sure as hell can go the Target route. Right now they all want to be Wal-Mart and they wonder why people hate them.

Amen! Keep it up! I'm spreading the word as well. I love working with people who have no clue what it REALLY costs to fly a jet aircraft from point A to point B. Always bitching and moaning that they have to pay $135 one way for a one stop flight from CAE to CLE (either through ATL or CLT - depending on airline). If only they REALLY knew how much it SHOULD cost. Then they get all pissy when I tell them they should have paid MUCH MUCH more.

As long as you have tools who complain that it's "outrageous" that people have to pay $600 for a transcon -- hell, man, when I had to pay $480 to fly from IAD to YVR, people called that insane -- nothing's going to happen.

I've said it before and I'll say it again. Raise fares. You've got loads in the 90 percent range. On a freaking redeye from DEN to IAD on a Thursday night, there were no empty seats on a A320.

When you've got those kinds of loads, I say jack up the fares. Make it so you can make money with a 65-70 percent load factor and guess what?

Some people will be more than happy to pay a premium in order to get an empty seat next to them. Some people won't.

Screw the people who won't. They ain't gonna make you money. They're the Wal-Mart crowd. You don't want them. They only want to fly you when they're paying too little for you to make money.

Go for the Bloomies crowd. You can make money on them.

Too many businesses, airlines included, chase every customer. That's only half right.

You want to chase PROFITABLE customers.

Those customers who are not profitable are useless. Actually, they're worse than that. They suck up your resources and they divert your attention from the customers who you can make money on.

Yup! Cheers TonyW!