Re: NW-DL poss bankruptcy

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Bob,=20
Please tell me that you are not jumping in the group of people that =
consider
Southwest the next best thing since slice bread.=20

Granted that I am way more informed about airline travel than regular =
Joe
Moe, but even some consultant folks are aware of the differences between
Southwest and major airlines.=20

Let's leave the food discussion out of the question for a moment. United =
has
the right package of products for me:=20
- Conveniently located hubs (SFO, DEN, ORD, IAD, FRA, NRT) and focus =
cities
(SEA, LAX) with all these combinations I can get a 36 inch seat with =
decent
leg and elbow room.=20
- Very ample destinations.. To this day the only place that I couldn't =
get
seats on UA/UX carrier was XNA and thank god I didn't have to go there. =
(But
after 2 months that project born dead UA started service to XNA)
- CRJ700s and ERJ170s have Economy Plus and F seats.. Show me another
airline that does that..=20
- Southwest doesn't have international connection.. I fly to Istanbul at
least twice a year.. UA gets me there in comfort, style with nice
connections.=20

- I consistently pay higher fares on United compared to Southwest, even =
when
I am traveling for personal trips. (Just paid $427 for SFO-RIC instead =
of
$337 on AirTran. No one can force me in a 737-700 with 17 inch width and =
30
inches of pitch).=20

FlexJet, NetJets, etc. are not an option for me.. I am not a executive, =
I am
a worker that happens to commute with airplanes.=20

To me 4 hours of drive is the breaking point between flying/driving
decision. Even in some cases I personally fly an aircraft, than driving. =
I
really hate driving because except people in Quebec no one knows the =
concept
of fast lane, and that drives me insane..=20

Gone are the days of $2000 r/t tickets. Both United and other "majors" =
have
reduced their cost structures to a point where they are pretty =
efficient.
So, I think they are going to be here to stay.. Some of the traffic will =
be
converted to coach only service, but United is really being smart about =
it
by putting Econ Plus on Ted flights.=20

BAHA
Fan of UAL

-----Original Message-----
From: The Airline List [mailto:AIRLINE@xxxxxxxxxxxxxxxxx] On Behalf Of =
RWM
Sent: Saturday, August 20, 2005 4:34 AM
To: AIRLINE@xxxxxxxxxxxxxxxxx
Subject: Re: NW-DL poss bankruptcy

True enough, and this in part explains the comparatively higher=20
penetration of train travel in Europe.=20

Still, there is no reason for network carriers to have gouged people=20
through "discriminant pricing" than:

1./  they stumbled across the economic theory, valid enough, but
2./  they never updated 1970's (pre-deregulation) market research into=20
price/demand elasticity, and
3./  they thought their service was un-substitutable and "worth it"=20
(keep that KoolAid coming), and
4./  they thought (hoped) they could get away with it, relying perhaps=20
on PT Barnum's theory of markets "There's a sucker born every minute".

Of course, PT Barnum was an optimist.=20

And then came Southwest, the coup de gr=E2ce.

- Bob





Bahadir Acuner wrote:

>Yes,=20
>But flying is an essential part of the economy. Distances are much =
higher
>than any other developed country and if you are like me going to =
clients,
>doing projects, etc. etc. there is no alternative to it.=20
>
>Currently there is a not single soul in the project that I am working =
on
>that is local to Bay Area. One guy comes from NYC, the other one from =
PIT,
>another one from LAX, me from SEA, PM is from East Coast, etc. etc.=20
>
>Tell them to drive and you will lose them..=20
>
>The price elasticity of these people are much different than the folks =
from
>Baltimore going to see uncle Herb in Dallas.. :)=20
>
>BAHA
>Fan of flying the friendly skies of UAL
>
>-----Original Message-----
>From: The Airline List [mailto:AIRLINE@xxxxxxxxxxxxxxxxx] On Behalf Of =
RWM
>Sent: Friday, August 19, 2005 2:45 PM
>To: AIRLINE@xxxxxxxxxxxxxxxxx
>Subject: Re: NW-DL poss bankruptcy
>
>Gerard M Foley wrote:
>
> =20
>
>>Don't know if I've said this before here.  If so, I apologize.
>>
>>It is quite possible that air passenger transportation in the U.S. may =

>>go the way of all other forms of public transportation - subsidy or =
quit.
>>
>>The automobile is a fierce competitor.  Although its actual costs are=20
>>quite high, a major part of the cost is the initial purchase.  Once=20
>>the car is bought, it is very difficult to convince the owner not to=20
>>use it.
>>
>>The result is that the public transportation facility, rail, bus,=20
>>subway, and maybe airline too, finds that there is no fare point at=20
>>which costs can be recovered.   Drop the fare and the added volume=20
>>costs more than the added income.  Raise the fare and the reduced=20
>>volume won't pay the fixed costs. The public always has two other=20
>>options - drive or stay home.
>>
>>Gerry
>>   =20
>>
>
>Excellent points, Gerry.  Indeed, Southwest is fully cognizant that its
>pricing affects the modal split between private and public ground =
transport
>and travel by air.  This is one of the reasons they only reluctantly =
raise
>fares by $2-4 each-way, when network carriers file for $20 increases.
>Fundamentally different views of price elasticity and as a result,
>approaches to pricing.
>
>- Bob Mann
>=20
> =20
>

--=20
R.W. Mann & Company, Inc.   >>  Airline Industry Analysis
Port Washington, NY  11050  >>  tel 516-944-0900, fax -7280
mailto:info@xxxxxxxxxx      >>  URL http://www.RWMann.com/

This e-mail is for the designated recipient only and may contain=20
privileged or confidential information.  If you have received it=20
in error, please notify the above sender immediately then delete=20
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