Any "Latest & Greatest" about Delta?
01-23-2010, 06:28 AM
Back on TDY
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01-23-2010, 06:40 AM
Gets Weekends Off
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01-23-2010, 06:40 AM
Gets Weekends Off
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The problem is slim margins in this business. If the pilots showed up to work for free, the airline would only see a small improvement in the bottom line. However, since there is such a small margin, pay cuts make the difference between a profit and a loss. This is why labor continues to take a beating in this industry.
In my opinion, the fundamental problem in this industry is the way airlines have changed their revenue generating policies. For some reason the airlines think that filling every seat on the plane at any cost is better than having it go out empty. THIS IS WRONG, and ever since this way of thinking was implemented, the airlines have lost money. Imagine if Intel, instead of discarding the processors that don't perform up to spec, decided to sell them at a discount price. Instead of paying $350 for a chip that runs at 2.5 GHz you can buy one out of spec for $100 that runs at 2.0GHz. How long do you think it would be till Intel is bankrupt? The cost of the empty seats should be factored into the cost of the filled seats, this was how revenue was generated during regulation. When you create a secondary market for the same product it causes severe downward pressure on the cost of the original product. Management has no choice but to turn to labor for the savings, where in reality they only have to raise the prices of the seats 1% to turn a profit again.
In my opinion, the fundamental problem in this industry is the way airlines have changed their revenue generating policies. For some reason the airlines think that filling every seat on the plane at any cost is better than having it go out empty. THIS IS WRONG, and ever since this way of thinking was implemented, the airlines have lost money. Imagine if Intel, instead of discarding the processors that don't perform up to spec, decided to sell them at a discount price. Instead of paying $350 for a chip that runs at 2.5 GHz you can buy one out of spec for $100 that runs at 2.0GHz. How long do you think it would be till Intel is bankrupt? The cost of the empty seats should be factored into the cost of the filled seats, this was how revenue was generated during regulation. When you create a secondary market for the same product it causes severe downward pressure on the cost of the original product. Management has no choice but to turn to labor for the savings, where in reality they only have to raise the prices of the seats 1% to turn a profit again.
Actually, Intel did do this, they were called Athalon processors, to distinguish them from thier main line chips. Many thousands of computers were sold to unsuspecting customers that never knew the difference. Even the tech press let intel have a pass on the practice.
The Airline passenger has gotten so inured to low prices they can't seem to be persuaded to fork over the bigger bucks for a more expensive ticket. This includes some of our best business travelers.
01-23-2010, 06:43 AM
Gets Weekends Off
Joined APC: Apr 2007
Position: Flying the SEC
Posts: 2,350
Actually, Intel did do this, they were called Athalon processors, to distinguish them from thier main line chips. Many thousands of computers were sold to unsuspecting customers that never knew the difference. Even the tech press let intel have a pass on the practice.
The Airline passenger has gotten so inured to low prices they can't seem to be persuaded to fork over the bigger bucks for a more expensive ticket. This includes some of our best business travelers.
The Airline passenger has gotten so inured to low prices they can't seem to be persuaded to fork over the bigger bucks for a more expensive ticket. This includes some of our best business travelers.
01-23-2010, 06:44 AM
veut gagner à la loterie
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Well, good luck out there. 
01-23-2010, 06:51 AM
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Good luck indeed. Why do we have to learn about this in the paper? I feel like we have learned nothing since 9/11.
01-23-2010, 07:12 AM
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01-23-2010, 07:35 AM
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01-23-2010, 07:40 AM
Happy to be here
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01-23-2010, 07:49 AM
Happy to be here
Joined APC: Jun 2006
Position: A-320A
Posts: 18,563
I think all of us want all of the money now. For that to be even a remote possibility CAL and AMR need to get something prior to our opener. If they do not have contracts with great gains, we will be fighting for more of the same.
I leave for one night and you guys have 30 pages. Man it was a busy night!
I leave for one night and you guys have 30 pages. Man it was a busy night!
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