Low *Prices* for a High *Cost* Service?

[killbilly]

According to my Pops the latest rumor is SWA is going to have their first losing quarter in 30 some years.

I could be wrong about this, but I seem to recall that SWA has had the odd non-profitable QUARTER from time to time, but the YEARLY has always been profitable only since about 1979 or so.

Like I said, I could be wrong, but something in the back of my head says that a negative quarter HAS happened before.

 

[NC_BE300]

Say all you want about Virgin Atlantic/America, but my god their flight attendants are HOT.

The man speaks the truth!

On the hotel bus leaving JFK last month- i shared it with a Virgin America crew.....and OMG there were some HOT FA's!!!!!!!!!!!

 

[meritflyer]

Maybe Virgin and Skybus can team up?

LINK

 

[Velocipede]

Good. The sooner these clowns are out of business, the better for all of us.

 

[Seggy]

Good. The sooner these clowns are out of business, the better for all of us.

Especially when their Flight Attendants hopefully look for work at other airlines!

 

[SkyCougar]

I doubt it, because it would still be far cheaper to fly than to drive. Most airlines are already turning a profit anyway, so expenses are covered at this point.

That is true. I flew to ATL last week, booking my fare 2 weeks out, and paid $311 round trip from SFO. I filled up my Avalon today and it was $50. $50 X 6 tanks is $300. I know it's going to take me more than 6 tanks to drive round trip from SFO to ATL! (and you don't get to check out the hunky Delta pilots at A19:::::sidetracked again )

 

[NC_BE300]

Especially when their Flight Attendants hopefully look for work at other airlines!

EXACTLY AGAIN!!!!!

You sir, are on a roll!!!!!!!!

 

[SkyCougar]

Especially when their Flight Attendants hopefully look for work at other airlines!

LOL...you guys are funny...but Seggy, are they Swedish???

 

[taseal]

Good. The sooner these clowns are out of business, the better for all of us.

they'll just lower hiring mins, and pay less to make up for the loss and bump up ticket prices like 2-3 bux

 

[derg]

LOL...you guys are funny...but Seggy, are they Swedish???

I need to find Seggy a "Sista".

But I live in N. Scottsdale.

 

[surreal1221]

Sorry. Hate to be the grammar police, but we're all professionals here.

"they're entire business model revolves around their low prices."

they're - A contraction of THEY ARE

their - posessive

He is a Marine.

Marines make up their own grammar.

 

[mtsu_av8er]

Sorry. Hate to be the grammar police, but we're all professionals here.

"they're entire business model revolves around their low prices."

they're - A contraction of THEY ARE

their - posessive

I made a typo - my apologies.

 

[Malko]

Sorry. Hate to be the grammar police, but we're all professionals here.

"they're entire business model revolves around their low prices."

they're - A contraction of THEY ARE

their - posessive

Sorry, hate to be the "ironic" police but since we're all professionals here, does that include capitalization, spelling, and structure as well?.......

Shaw Group is hiring for the Westwind in Baton Rouge right now... Why not drop off a resume. Who knows? Right place...right time.

Thanks. It's been about 4 months since I made that decision and -- so far – i'm still ok with it.

I only cry a little bit when I see a shiny jet nowadays

….. I have been told to expect the "take it or leave it" letter within the next two weeks, and that classdates will be scheduled in September and October…..

<-- Might know of potential job opportunity for a few flight followers / part 91 dispatchers. PM if interested & i'll give you the info.

ex-Bluestreaker

I made a typo - my apologies.

It's o.k. Marine.....

 

[flyover]

This got me thinking.

I paid $257 and change for a full-fare ticket on SWA yesterday from DAL to SAT and back. I was wondering what that seat cost SWA to fly me there - 36 minutes in cruise either way at FL290.

I was just wondering how profitable that flight was. It WAS a full flight, and I doubt everyone paid what I did for it.

They made $257 more than if that seat had been empty.

Seats are priced based on supply and demand. They can't be priced based on cost because they are perishable and there is competition in the market. The idea of cost based pricing for airline seats is fun to think of but not reality based.

And obviously Virgin America is absorbing start-up costs now. Check back in a couple of years.

 

[SlumTodd_Millionaire]

And obviously Virgin America is absorbing start-up costs now. Check back in a couple of years.

Hopefully they won't even be around in a couple of years.

 

[killbilly]

They made $257 more than if that seat had been empty.

Seats are priced based on supply and demand. They can't be priced based on cost because they are perishable and there is competition in the market. The idea of cost based pricing for airline seats is fun to think of but not reality based.

Good point - thank you for pointing that out. But cost is still a factor - it's just affected in a different way.

Since supply/demand are affected by competition, I wonder what it cost SWA to move me that day vs. what it might have cost AA (on a 73) or AE (on an RJ) for the same route.

I won't lie. The economics of running an airline fascinate me.

 

[flyover]

......cost is still a factor - it's just affected in a different way.

Since supply/demand are affected by competition, I wonder what it cost SWA to move me that day vs. what it might have cost AA (on a 73) or AE (on an RJ) for the same route.

Cost may be the biggest factor since airlines are having zero luck trying to price in "superior" service. (ie effect demand)

The last competition barriers are down and going forward any successful airline will be competitive on cost.

It cost SWA less to move you that day than it would have cost the others.