ImSoSuss

[QUOTE=Cachaco;3823873]From Raven:

This week has been a tough one for our industry. CrowdStrike caused massive chaos, Delta had a system meltdown, American reported a near 50% drop in profits, and Southwest is having to make adjustments to its business model. All this, while Delta and United continue to aggressively pursue their business objectives and leverage every strength they have.

Bottom Line Up Front, the majors are feeling the pressure and two stories tell this best.

Delta's CEO, Ed Bastian, said it clearly in some recent interviews. In his words, if you're at the "lower end of the industry's food chain" and still posting losses in this high-demand environment, you're in for a rough ride." Some will look at this with skepticism, noting Delta's strong Q2 performance that still fell short of analyst expectations.

Having said that, some really telling news stories came out later on in the week that bolstered Ed's comments.

Here's what happened:

1. American reported a massive drop in profits after having to reverse a booking strategy misfire.

American's recent attempt to bypass third-party book software massively backfired, leading to a 46% drop in profits. While American reports taking aggressive action to undo their mistake, a massive glut in domestic oversupply will likely make their recovery from this setback difficult. They don't have as many levers to pull right now as they did a year or two ago. CEO Robert Isom acknowledged that their current revenue performance isn't where they want it to be, citing an imbalance in domestic supply and demand.

This means, that if you're waiting for a class date at American, it may be a b









Lot of balls for Delta's CEO talkin **** about the rest of the industry. Karma's a *****.

ClncClarence

Raven’s primary goal is to convince people to buy their prep services.

People sitting on CJOs aren’t making them any money so how surprising is it that they’re trying to bring them back by telling them their CJOs might be no good?

They offer a good product but I’ve read some of their eblasts and most read like the cover of the National Enquirer.

JulesWinfield

Everything they said seems accurate to me.

Margaritaville

[QUOTE=ImSoSuss;3823875]To be fair one meltdown doesn't mean an airline is going under and Delta management has repeatedly flown circles around ours. We are way overdue for a major meltdown btw.

This latest f-up with the reservations is just another in a long line of terrible decisions by management hacks who ran other airlines into the ground. I guess the BOD is fine with being the 3rd place also ran legacy for the forseeable future. They still run this place like we're "too big to fail".

Name User

If the history of the company was so bad, why did you bother to come/stay here? You literally could've had your pick for two+ years of hiring.

Parker took control of America West weeks before 9/11 at the age of 39. He successfully lobbied the ATSB to loan the airline a lifeline of money after initially encountering push back. After that, they were the only airline to successfully go toe-to-toe with SWA. Then, he merged with the failing US Airways which would have 100% gone out of business had the merger not been consummated. He even made the combined Airways profitable prior to the 2008 recession, and Isom completely turned the combined company's NE operations around. It was normal to push and wait 45 mins for t/o in PHL on a Tuesday night.

Then, he engineered a merger with AA making it the largest carrier in the world. Not sure how much you know about AA history but a year or two after the merger we posted the biggest profit in airline history at $7b.

I'm really curious how you think these "management hacks" ran the company into the ground?

FWIW industry experts agree with AA that the move to direct booking was the correct one, they just made it too fast.

Margaritaville

Weak rebuttal but I came here because I didn't want to leave Florida and was tired of allegiant going nowhere fast. I have zero regrets about my decision.

Are you one of Dougie's drinking buddies? I bet he's a hoot. How can I get in on that party?

JulesWinfield

Did you forget about the 2011 bankruptcy?

Name User

The one where stockholders were made whole? Where pilots came out of it getting a raise? How was that a terrible thing?

AllYourBaseAreB

American went “bankrupt” in 2011, not with Parker, who didnt take over until 2013

Sliceback

To match the BK's the other airlines had used in the previous decade? 2011 was a much better BK process than the 2002/2003 era BK's. We dodged a bullet.