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derg

derg

Apparently a "terse" writer
Staff member
From Southernjets:

Skyrocketing fuel costs prompt U.S. route cancellations
March 14, 2008

Because of the continuing spike in oil prices, and its effect on jet fuel costs, we are discontinuing service in markets as part of an ongoing strategy to manage those costs. Select flights and markets that cannot be profitable in light of the increase in fuel prices are being canceled.

By May 1, we will discontinue service in four markets operated by Delta Connection carriers. From Salt Lake City, we will discontinue service to Bellingham, Wash., and Fargo, N.D., both operated by SkyWest Airlines. From Atlanta, we’ll stop service to Atlantic City, N.J., and Islip/Long Island, N.Y., both operated by Atlantic Southeast Airlines.

“As a result of the 70% to 80% increase in fuel prices experienced over the last year, we continue to fight rising fuel prices through capacity reductions in the U.S. and by shifting more aircraft to international routes,” said Joe Esposito, managing director-Schedule Planning. “During 2008, we are trimming domestic schedules in select domestic markets at off-peak times and reducing the number of regional jets in our fleet, while at the same time growing our international capacity.” Other domestic regional jet markets that have been canceled previously as a direct result of increased fuel prices include Corpus Christi and McAllen, Texas, and Tupelo, Miss.

Because of our cost effective and flexible fleet, there is a possibility for further domestic reductions as necessary, Joe said. “We will continue to review market conditions to ensure we are most effectively responding to these persistently high fuel prices,” he said.
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If oil prices continue to skyrocket, what we'll see over the next 10 years is a disappearance of any aircraft with less than 120 seats and a reduction in frequency on routes. Bigger airplanes moving more people at a time, with less flights per day. The only way I see things changing all this is reregulation.

It'll make commuting interesting, and destroy the regional market. There ain't THAT much of a difference between a 50 seater and a 70 seater.
 
It's amazing to me that every other transportation industry except the airlines are adding "fuel surcharges." The airlines need to take notice instead of more and more cutbacks to labor in order to maintain the $99 fares!
 
My moms boss was going to overnight something to her sister but it was cheaper for her to buy a plane ticket and see her this weekend.
 
Well, its about time we went with the Japanese model. Less frequency, bigger jets. Even 70 seat RJs won't be economical.

In Japan, they fly 747s between Tokyo and Osaka. Or at least they used to. Its only a matter of time before you see the 787 as the "small" narrowbody.
 
“As a result of the 70% to 80% increase in fuel prices experienced over the last year, we continue to fight rising fuel prices through capacity reductions in the U.S. and by shifting more aircraft to international routes,”

Spectacular!!!!11
 
Cheechako said:
It's amazing to me that every other transportation industry except the airlines are adding "fuel surcharges." The airlines need to take notice instead of more and more cutbacks to labor in order to maintain the $99 fares!
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Are you kidding? Landscapers have added a fuel surcharge to mow your friggin' lawn. And people pay that. Why won't they pay a couple bucks more to make sure their butts get somewhere safely?

:banghead::banghead::banghead::banghead::banghead:
 
I just wonder when the "Pricers" will wake the hell up and stop giving these deals away.

But hey . . . I'm sure their superhero protector will come in shortly to save them from taking too much heat.

Reduction flying. . .or. . .increase prices.

People are still going to fly, they have no other choice except for Grayhound and Amtrak.

Time cost money, so start charging a fare appropriate to services rendered.
 
Charging more, fuel surcharges? Sounds like the perfect plan but with the recession people are going to stop flying no matter what the prices are. Businesses are starting to do more and more video conferencing and conference calling. My wife works for Cardinal Health and they are really cutting back on their flying, no one goes anywhere unless they specifically need to be there. Last year they sent 1200 employees to a trade show in Las Vegas. This year only 300 went to the same one. This company is number 19 on the Fortune 500 and have over 60,000 employees that they send all over the world. Just imagine what the little companies are doing. Foreclosure rates are the highest since the depression and the US dollar is dropping in value by the day. Raising the prices in my opinion is stupid. They need to run leaner and they need to reduce supply. The current market demand can't support the supply.
 
SoCal, I agree. I'm pretty scared as far as the economy and airlines are concerned. Back in 2003 when the airlines were losing their shirts at least fuel was $.50/gallon. They could fly the planes for pretty cheap. Now not only is demand going down but gas is 5x or more. We're in a world of hurt. Nothing I can do though.
 
wheelsup said:
SoCal, I agree. I'm pretty scared as far as the economy and airlines are concerned. Back in 2003 when the airlines were losing their shirts at least fuel was $.50/gallon. They could fly the planes for pretty cheap. Now not only is demand going down but gas is 5x or more. We're in a world of hurt. Nothing I can do though.
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It sucks but its reality. You can raise the prices all you want but you will go from a full plane with $200 dollar tickets to a half full plane with $300 dollar tickets. Flying isn't considered necessary by anyone its not like fuel, milk, bread, or the select things that people will always buy. When a family is having trouble making ends meet or a company that is about to go into the red what do you think the first thing to go is? Electricity? Food? Gas? Vacations and unneeded travel? I think its safe to say the latter. The airline industry is in a world of hurt if they can't keep air travel affordable to the masses.
 
No need to quit unless airlines start making it financially unreasonable for the average Joe to fly. The majors should also start advertising more aggressively in other countrys where the currency and economy is good. "Come to the US where your Euro is worth a ton and you can fly there for really cheap" Soon Mexico and India will start out sourcing all of their jobs to america because labor will be so cheap... :sarcasm::sarcasm:
 
surreal1221 said:
People are still going to fly, they have no other choice except for Grayhound and Amtrak.
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Funny you mention that ... given Amtrak's system-wide fuel mileage, it takes almost the same amount of diesel on a train to get from Austin to the Bay Area as a 757 does, and in only two-and-a-half days now!
 
Minuteman said:
Funny you mention that ... given Amtrak's system-wide fuel mileage, it takes almost the same amount of diesel on a train to get from Austin to the Bay Area as a 757 does, and in only two-and-a-half days now!
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Thats crazy. I would never have thought about that. Amtrak is government owned aren't they?
 
Minuteman said:
Funny you mention that ... given Amtrak's system-wide fuel mileage, it takes almost the same amount of diesel on a train to get from Austin to the Bay Area as a 757 does, and in only two-and-a-half days now!
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This is funny.

IAH to LAX
3/19 coming back 3/30

Amtrak
$270 RT 38 hours

Greyhound
$222 RT 34 hours

US Airways (cheapest ticket)
RT $510 RT 6 hours including swapping planes

----------

It gets better:

IAH to LAX
4/19 coming back 4/30

Amtrak
$381 RT 40 hours

Greyhound
$198 RT 34 hours (nonrefundable cheapest fare)

US Airways (also cheapest ticket)
RT $174 RT 6 hours including swapping planes

Continental (next cheapest ticket)
RT $198 RT 3 hours 35 minutes non-stop

Something tells me we don't have to worry about Amtrak or Greyhound too much...
 
Shocking isn't it?

Someone was mentioning that time cost money. . .I have to say, I agree with that. But why is our industry NOT putting a price on that convenience?

*shrug*
 
surreal1221 said:
Shocking isn't it?

Someone was mentioning that time cost money. . .I have to say, I agree with that. But why is our industry NOT putting a price on that convenience?

*shrug*
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Because despite management's insistence that load factors don't matter and yield is everything they still have a perverse (and somewhat justified) fear that if they raise their prices and nobody else follows they will lose all their customers. Call it the "uber" Southwest Effect. It happens all the time. One company will slap on a fee or raise a fare and either everybody else matches it or nobody else matches it and the original company is forced to lower their fare or remove the fee.
 
BobDDuck said:
Because despite management's insistence that load factors don't matter and yield is everything they still have a perverse (and somewhat justified) fear that if they raise their prices and nobody else follows they will lose all their customers. Call it the "uber" Southwest Effect. It happens all the time. One company will slap on a fee or raise a fare and either everybody else matches it or nobody else matches it and the original company is forced to lower their fare or remove the fee.
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It's not even legal for them to talk to each other and "agree" to match increases is it?
 
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