United's latest failure...

Re: United\'s latest failure...

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instead of starting a low cost airline within an airline why don't they just turn United as a whole into a low cost airline?

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They can't just do that. United is still paying for all sorts of larger aircraft, and the only way that they can keep afloat (as much as they can be right now) is to fly them as much as possible. That means those spankin' new 777s need to continue flying, or else United goes bye-bye.

Besides just the financial issues, there are always labor issues. US Airways ended up going into bankruptcy because their pilots wouldn't even consider flying RJs, as they were flying 737s, 757s, etc. already. If United suddenly announced that it was going to become, say, an all A320 fleet, you betcha the pilot union would have something to say about it.
 
Re: United\'s latest failure...

I understand FalconCapt, But can someone please give me an example?
 
Re: United\'s latest failure...

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I understand FalconCapt, But can someone please give me an example?

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eeg, you can go to this website and play around with the quotes and get an idea of how much it costs to charter.
 
Re: United\'s latest failure...

mtsu_av8er, Thanks
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Re: United\'s latest failure...

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OMG! That's alot of $$, Tax ride off huh?

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yeah, it's not cheap. I think that website is marking things up quite a bit, though. You can charter a light jet in many areas for about $1800/hour, and I know of a Falcon 50 that goes for $3600/hour. Still, not cheap. But it definately has some awesome advantages!!!
 
Re: United\'s latest failure...

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Just out of curiousity how much more do you spend on the private jet then you would on a commercial flight?

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When it comes to business travel, typically the cost isn't an over-riding concern. The security, convienience and privacy far outweigh the extra money spent.

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The statement immediately above is true to some extent. My clients are billed at the rate I would pay for first/business class commercial airfare, plus an hourly rate for my travel time. The rest comes out of my own pocket To me it is worth it.

In 2003 I spent roughly $62,000 on business charters. To fly the equivalent trips via commercial carrier would have been a little more than 40% of that. The net cost to me, figuring fewer hotel nights, meals, and reduced use of rental cars etc. came to about $24,000. In addition to the above, I spent $28,000 on commercial airlines (BA & CX) for two trips to Europe an one to Asia.

This year I have worked out a deal to pre-purchase a set block of hours at a nice discount to the usual price. I'll spend a little more but get quite a few more hours out of it, which I plan to use on personal/family travel. (Its amazing how cost effective chartering can become when you are moving five people and two cats around the country). My international travel will remain the same.

So you see, there is the rub. I'm the guy the airlines used to court. We paid the bills. Cheapening the product to such an extent, coupled with the TSA lunacy means many of us don't plan on returning. We have also found ways to make it so we don't have to travel as much anymore. For us older guys at least, that is a good thing.
 
Re: United\'s latest failure...

Jack, thank you very much for that explanation. Now I see the true benefits.
 
Re: United\'s latest failure...

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Just out of curiousity how much more do you spend on the private jet then you would on a commercial flight?

[/ QUOTE ]

When it comes to business travel, typically the cost isn't an over-riding concern. The security, convienience and privacy far outweigh the extra money spent.

[/ QUOTE ]


The statement immediately above is true to some extent. My clients are billed at the rate I would pay for first/business class commercial airfare, plus an hourly rate for my travel time. The rest comes out of my own pocket To me it is worth it.

In 2003 I spent roughly $62,000 on business charters. To fly the equivalent trips via commercial carrier would have been a little more than 40% of that. The net cost to me, figuring fewer hotel nights, meals, and reduced use of rental cars etc. came to about $24,000. In addition to the above, I spent $28,000 on commercial airlines (BA & CX) for two trips to Europe an one to Asia.

This year I have worked out a deal to pre-purchase a set block of hours at a nice discount to the usual price. I'll spend a little more but get quite a few more hours out of it, which I plan to use on personal/family travel. (Its amazing how cost effective chartering can become when you are moving five people and two cats around the country). My international travel will remain the same.

So you see, there is the rub. I'm the guy the airlines used to court. We paid the bills. Cheapening the product to such an extent, coupled with the TSA lunacy means many of us don't plan on returning. We have also found ways to make it so we don't have to travel as much anymore. For us older guys at least, that is a good thing.

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Jack... Good explaination... The cost issue goes far beyond Airline Ticket vs. Charter cost... You pointed out less hotel nights/rental car days, meals, etc... this all adds up and is saved by spending less time on the road. In addition, everyone in the business world knows the value of time and that time=money...
 
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