grewjac

5 Key Quotes from US Airways on the Airline Industry

Haven't these people heard of price elasticity of demand? "Ala carte pricing" is still pricing: raising rates to bolster, or at least increase the hope of profitability is strictly limited by the market's (fliers') willingness to pay.

Another lesson Continental learned by observing how well letting the bean-counters decide what service costs to cut. Greg Breneman said, "They ruined the product. Who wants to fly in a hot, dirty aircraft with seating cannibalized from planes with six different color schemes?" Eliminating in-flight entertainment to save fuel sounds "green," but they will lose "folding green" from business travelers who can only tolerate so much time trying to use a laptop sitting in coach.