Re: Industry Changes

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I may be mistaken, and please correct me if I am, but... aren't a lot of
the carriers in Europe heavily subsidized by their respective
governments?

Clay - SEA
Fan of BA

-----Original Message-----
From: Travel Pages [mailto:travelpages@xxxxxxxxx]=20
Sent: Monday, September 27, 2004 12:20 PM
Subject: Re: Industry Changes

CO could also be said to have abused the state of Chapter 11 to the
extreme detriment of the entire market.  Operating for YEARS under cost
in an attempt to recoup market share totally pushes the envelope of what
bankruptcy is supposed to do.  It is not supposed to reshape a market.

Reminder to all observers that in Europe, when you become insolvent,
your ticket is immediately pulled.  Consequently, Euro-carriers cannot
plan to file bankruptcy as a "what if" scenario in their marketing
plans.  Bankruptcy is the end of the operation, and they do indeed
behave very differently than US carriers because of this restriction on
a company living beyond it's means.  Just one reason why Euro-fares are
inherently different and will remain so for a long time to come.

You wonder what US airfares would look like if carriers equated
"bankruptcy" with "liquidation."  Methinks you'd see fewer irrational
fares.

Douglas Schnell <dks28@xxxxxxxxxxx> wrote:
CO benefits mightily from cost savings imposed during its two trips to
bankruptcy in the early 90s. In that sense, they could be said to have
extreme foresight.

They also have made a conscious decision to focus on business travelers
as
their core market, another decision that seems to be paying dividends.

-----Original Message-----
From: The Airline List [mailto:AIRLINE@xxxxxxxxxxxxxxxxx] On Behalf Of
Alireza Alivandivafa
Sent: Monday, September 27, 2004 11:51 AM
To: AIRLINE@xxxxxxxxxxxxxxxxx
Subject: Re: Industry Changes

I think CO is a good example of a legacy carrier that is treating its
employees decently, offering good fares and keeping up service with
things
like meals on longer (and I mean over 2 hours) flights and the like.
They
have a seat-mile cost around that of WN according to recent
measurements,
mostly because they do things in house. They do their own catering
(decent
too) and keep their costs way down. A cool enough concept that I have
Onepass now and am considering going elite on them next year (as I fly a
lot
more now).

<want good service, but they want it cheaply too. If UA, AA, and DL
can't
find a way to do that, they are going to continue to have hard times. I
suspect that most people don't care that they don't get the bad airline
food
anymore. I for one am not about to choose what airline I fly based on
whether or not they serve food. I think BAHA, you are the exception to
the
rule here.>>


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