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US airlines need a refresher course in capitalism....cut prices and advertise
self | vanity

Posted on 09/15/2001 7:58:50 PM PDT by ken5050

OK..it hasn't been a good week for US airlines, but it hasn't been a good year either. In the wake of 4 planes crashing, we are hearing about the imminent collapse of the US civil aviation industry, the possible bankruptcy of several airlines, and worse. The airlines are lobbying


TOPICS: Editorial; Your Opinion/Questions
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Congress for exemptions from civil suits, and untold billions in federal subsidies and loan grants. Without debating the merits of these proposed actions, or the ways in which airlines, since so-called deregulation, have behaved in very uncompetitive, even monopolistic, methodologies, I'd like to point out that the airlines aren't doing the one thing that they could do to help themselves.....that is to get out there and do some marketing...

They're runing out of cash, they have high fixed costs, and planes sitting, and flying, empty..and they're flying now at about 20% of capacity. Now, it doesn't take a genius to realize than an empty seat on a plane that has just taken off is worth LESS than nothing. The same thing applies to empty hotel rooms, cruise ships, whatever. The American consumer is being urged to revamp the economy, to keep up spending. OK, makes sense, But why not give the American consumer the motivation to spend money on airline tickets..to bring them back to the friendly skies?

I can't believe that not one airline hasn't cut fares by 50% for the next 90 days.....no advance booking anywhere, or announce that you can fly anywhere they fly in the US for one flat price..say $250..and oh yeah, by the way..price applies to any seats, first class or business class..but on a first come, first served availability basis.....

As any free market economist knows, there is a point in the pricing of all commodities that overcomes all resistance. The airlines could announce it with simple, candid advertisements.....Look, we suffered a tragedy, the government and we are taking steps to make sure it won't happen again....but we're here, we're flying, and we want you to come back.....so for the next three months....we've got a great deal for you.

The airlines definitely deserve help, probably in the form of relief from lawsuits, and possibly some federal loan guarantees, but it would be nice to see the airlines trying to save themselves.

The lack of any effort on their parts shows that deregulation has really failed, because it hasn't fostered competion, rather, just more consolidation...

So let's hear it...would you buy a ticket tomorrow if the price was right?

1 posted on 09/15/2001 7:58:50 PM PDT by ken5050
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To: ken5050
The only airline that does it right is the only airline I care to fly: Southwest.
2 posted on 09/15/2001 8:06:13 PM PDT by wysiwyg
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To: ken5050
price would have to be pretty low until they figure out if we're going to continue to be forced into that prison w/o any means of defense, but that's just me. i agree with you on the semi loss leader approach, with 2 possibly counterbalancing points: perhaps they're waiting until a little more grieving goes by, but i suspect they would be given quite a bit of leeway by the public, given their role as victims in the attacks.

sure was strange to ride my bike past national today and see only a couple of planes in action.

3 posted on 09/15/2001 8:08:39 PM PDT by AntiTyrant
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To: wysiwyg
southwest rules. good call.
4 posted on 09/15/2001 8:08:57 PM PDT by AntiTyrant
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To: ken5050
I am not feeling too good about any type of air travel right now.
5 posted on 09/15/2001 8:16:13 PM PDT by pnz1
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To: ken5050
So let's hear it...would you buy a ticket tomorrow if the price was right?

This is not a strategy with a wining history. Lose a little on every flight make it up in volume has never worked.

Very few Amercians are going to fly for months, and many will not for years. Many, many, females will never fly again. Bet on it. It is a sure bet. Every week for as long as the National Enquirer can see, each issue displayed on super market checkout line near you, there will be another story about some Islamic pilot trying to get on a plane or planning too dump one into a huge building somewhere. You could get more females to bungy jump off the Golden Gate bridge than you will get to fly on an airliner.

Did you notice, the flights they highjacked were not even half full. Airlines were hurting before the highjacking. Most planes at the previous rate of flying would be less than a quarter full if you let people fly for free. The number of flights will have to decrease drastically. It will take at least 18 months AFTER the war is over for flights to build back up. Bush says it is going to be a long war.

Corporate flights are way down. The Company budgets for flights are very low. Families are not traveling. Much of the former vacation money is being spent to buy gas to go to work. Car sales are down and we are at war.

Over half the airline employees including pilots, are going to lose their jobs. Food service is going to be history. It will be easier to find a gas station with attendants to fill your tank and check your oil than it will to find a flight with food service. All the food employees will need to find jobs.

Flight attendants will be armed guards. Kiss all those stewardess jobs goodbye. To try to make passengers feel safe the airlines will only hire trained police to fly as guards. There will no longer be attendants. There will be the saftey guards.

The number of flights will drop in half, and all the advertising in the world would not fill em. Advertising does not create a market. Advertising gets the person who was going to ride on United to use Southwest instead. It does not increase a market. It changes which vendor people buy from.

Sell boeing short. Plane sales and ridership are going in the dumpster. It will take years to recover.

6 posted on 09/15/2001 8:33:00 PM PDT by Common Tator
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To: ken5050
As any free market economist knows, there is a point in the pricing of all commodities that overcomes all resistance.

At what price does a chance to end your life on a flight with four killer terrorists sell out?

Why don't you get rich selling sessions of Russian Roulette. You could use the slogan, "Three bullets in every gun." that ought to do it.

7 posted on 09/15/2001 8:44:27 PM PDT by Common Tator
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Comment #8 Removed by Moderator

To: Common Tator
Corporate flights are way down. The Company budgets for flights are very low.

Very true. I work for a company that is the #2 largest user of O'Hare Airport in Chicago. ALL TRAVEL for the next 60 days has been CANCELLED.

Given we're the #2 largest user of O'Hare airport according to records kept by both O'Hare and the City of Chicago, that's gotta hurt the airlines. Notably American, our corporate carrier.

9 posted on 09/15/2001 9:26:17 PM PDT by usconservative
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To: ken5050
In a heartbeat, if the price was right. With tens of thousands of flights every day (or at least thousands in the aftermath of Tuesday's incidents), the chances that your flight will be hijacked are pretty damned small — even if the security net still isn't 100 percent effective.

Furthermore, we will need to start flying again pretty soon, if any of the airlines are to remain in business. Might as well do it while the prices are good and the flights are uncrowded.

10 posted on 09/15/2001 9:28:24 PM PDT by Skibane
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To: Common Tator
I already hold a useless ticket on Midway. I'm d/t fly to Jax FL on Oct 17 to catch a Bahamas cruise.

I will hopefully be able to get booking on another airline, or at least that's what they tell me.

I'm not afraid to fly at all. I look at it this way. Flying a month from now will be safer than it's been in a LONG time, apparently unbeknown to us.

There will be armed guards on all flights and a lot of additional safety measures in place. Hopefully things will have settled down and be running more smoothly by then.

I figure that it's safer for me to fly then it is to drive for 8 hours alone, I tend to nod off at the wheel pretty easy, especially while traveling alone.

MKM

11 posted on 09/15/2001 9:56:48 PM PDT by mykdsmom
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To: ken5050
I don't fly, but I've always wondered how, by using a credit card or other useless items to airlines one could get free air miles.

I wondered when this would come to a head ....now I know.

12 posted on 09/15/2001 10:36:56 PM PDT by lewislynn
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