VA-keeping competitors honest

[tzskipper]

This thread should be subtitled: Flunking ECON 101 due to failing to understand free market principles, and the relationship of those principles as applied to the sale of perishable commodities.

Or something like that.

S

 

[Kalifornia]

This thread should be subtitled: Flunking ECON 101 due to failing to understand free market principles, and the relationship of those principles as applied to the sale of perishable commodities.

Or something like that.

S

How about subtitled: 21st century Frank Lorenzos and their sweeter more delicious flavored kool-aid. Who wants more?

 

[tzskipper]

How about subtitled: 21st century Frank Lorenzos and their sweeter more delicious flavored kool-aid. Who wants more?

I am not sure of the comparison you appear to be making. Free markets overall drive innovation and keep consumer pricing in check. Lorenzo and his ilk (imo) were not out to innovate, they were out to strip strip assets from vulnerable companies (Wallstreet?), ruining lives without regard. Again, my opinion only, there is a difference between stripping assets and building successful companies. Kind of hedge fund vs. entrepreneur....

S

 

[Kalifornia]

I am not sure of the comparison you appear to be making. Free markets overall drive innovation and keep consumer pricing in check. Lorenzo and his ilk (imo) were not out to innovate, they were out to strip strip assets from vulnerable companies (Wallstreet?), ruining lives without regard. Again, my opinion only, there is a difference between stripping assets and building successful companies. Kind of hedge fund vs. entrepreneur....

S

These current guys primary motivation are making self fortunes and upping their egos by being eccentric in their own unique style and getting free press from it. Whether the airline makes money, loses money, flies forever or folds tomorrow, they all seem to still get paid very, very well. Just like Lorenzo, their main innovation is maximizing their own worth. Lorenzo was a complete unapologetic scumbag. Branson is a much gentler version, but I think he sells a lot of kool-aid to investors and employees to stroke his own ego, legacy, and/or fortune. And then got that complete competitive weasel in Ireland's carrier Ryanair CEO, who loves to make a joke of the pilot profession as part of their discount strategy. I believe part of the free market is that pilots stay unified in calling BS to a devaluation of the profession.

 

[blackbox]

Kalifornia, I have only read the last 2 pages of this thread, and either you are A) a troll, that just wants to stir up ******************** or B) not that smart.

You may think 1100 dollars is the going rate for a transcon, but most of the public does not. Skypine and Jayme hit the nail on the head. You have to price the seats at what the market is willing to pay. And 1100 dollars is not what your avg. passenger is willing to pay. You cant compare flying to other forms of transportation. Yes, the plane gets you there quicker than a bus or a train. But bus and train are not your competition. Delta, American, Spirit, Southwest, etc.. is your competition. I assure you no one at any airline's revenue management dept. is asking how much is a greyhound ticket or an amtrak fare? But they are asking what is AA or DL charging. Start an airline with 1100 dollar transcon fares, and pay your pilots 300K a year. Let me know how that works out for you.

Contrary to your belief, airlines dont exist solely to make pilots rich. They exist to make money for themselves, their stakeholders. Its like any other industry. Unfortunately for us, you get what you pay for. Airlines CEOs dont get paid the big bucks relative to other industries, so we get the second or third Tier MBA grads. The ones that graduated from Western Kentucky University or Boise State, not the ones that went to Kellogg @ Northwestern or UPenn Wharton.

 

[Kalifornia]

Kalifornia, I have only read the last 2 pages of this thread, and either you are A) a troll, that just wants to stir up ******************** or B) not that smart.

You may think 1100 dollars is the going rate for a transcon, but most of the public does not. Skypine and Jayme hit the nail on the head. You have to price the seats at what the market is willing to pay. And 1100 dollars is not what your avg. passenger is willing to pay. You cant compare flying to other forms of transportation. Yes, the plane gets you there quicker than a bus or a train. But bus and train are not your competition. Delta, American, Spirit, Southwest, etc.. is your competition. I assure you no one at any airline's revenue management dept. is asking how much is a greyhound ticket or an amtrak fare? But they are asking what is AA or DL charging. Start an airline with 1100 dollar transcon fares, and pay your pilots 300K a year. Let me know how that works out for you.

Contrary to your belief, airlines dont exist solely to make pilots rich. They exist to make money for themselves, their stakeholders. Its like any other industry. Unfortunately for us, you get what you pay for. Airlines CEOs dont get paid the big bucks relative to other industries, so we get the second or third Tier MBA grads. The ones that graduated from Western Kentucky University or Boise State, not the ones that went to Kellogg @ Northwestern or UPenn Wharton.

Thanks for the comedy. You're a real MBA wizard yourself or are you? I have only read your one reply here and either you are a A) member of airline management B) not that smart of a paid pilot [self devaluing/hanging out at the kool aid kooler]

What percentage of airline throughout the last 30 years have ceased business? What percentage have declared bankruptcy? Let me remind you again the theme of my reply. The fares are set too low if a stream of start ups come in with low fares that are below the cost of actually profitably running an airline for both the start up and the current operating airlines. Historically speaking with all the defunct airlines and bankruptcies, the records show a self defeating airline market because too many characters come in with grandeur plans. Justifying lower pilot wages as part of that process is dumb considering upper airline management walks out the door paid well regardless of the success of the airline and low pilot wages can't make up for all the other costs associated with running an airline.