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United Air Lines Goes Bankrupt...

Discussion in 'Issues Around the World' started by Sierra Mike, Dec 9, 2002.

  1. Sierra Mike

    Sierra Mike The Dude Abides Staff Member

    I'm not at all surprised, obviously. I actually kinda hope they go all the way out, so that way other carriers can move in on their turf...so long as they absorb United's workers, which would be a good thing. (But not their management...please God, not that!)

    One thing I don't like is that United will likely hike rates over the long term, according to this article. United's going to hike rates? Do stones bleed now?

    Read all about it at: UAL Files For Bankruptcy Protection

    SM
     
  2. Swamp Fox

    Swamp Fox Veteran Member

    Airlines tend to go under quite a bit. One did recently in Canada. I think the problem is that the relatively few airports (that is, relative to cities) make it difficult, since the good routes and airport hubs are often taken.
     
  3. ethics

    ethics Pomp-Dumpster Staff Member

    Actually, I think the problem is that itsy bitsy profit line.

    I say hike up the prices for flying. :)
     
  4. jfcjrus

    jfcjrus Veteran Member

    Maybe it's because I've had to fly so much, I don't know.
    But, I consider air travel as transportation. nothing more.

    I have no idea why it's run the way it is.
    I pay $1000 for a seat, and the person sitting next to me pays $200. Or vice versa.
    Costs, divided by # of customers, equal price per ticket.
    Yea, ok, marketing enters the picture.
    But, it's pretty obvious that however it's structured is not working; when the 'gov' gives them billions of $ and it doesn't do any good.

    I don't have enough knowdedge on this issue to even suggest an answer, but it seems pretty obvious that the 'fundamentals' of the business here don't work.

    You want to get from NY to Miami the quickest way? $400(eg). Period. What difference does it make when I want to go? Salaries, cost of fuel, depreciated cost of plane, cost of airport fees, divided by capacity, equals price of ticket.
    I know this is oversimplified. But I can also see that the way they're running this basic mode of transportation now isn't too successful.
    Just wondering...
    Regards,
     
  5. Coot

    Coot Passed Away January 7, 2010

    UAL is suffering from modus antigua. The airlines that will make it will be the ones that can redefine their business model to be more inline with Southwest and JetBlue. Both of these companies are profitable, in spite of the economy and the 9/11 hit. I expect that this time next year, UAL will be defunct with its assets sold off and other carriers picking up the cost effective routes and eliminating the others.
     
  6. Sierra Mike

    Sierra Mike The Dude Abides Staff Member

    I'm actually working on a post about a mythical airline, and how it could be made profitable, given the best info I can find. Not that I know a hell of a lot running an airline.

    SM
     
  7. Sierra Mike

    Sierra Mike The Dude Abides Staff Member

    What are you, nuts? Check out the prices--would you spend $1,110.50 to get from LGA to Detroit on American? I wouldn't.

    Prices on some carriers (like United) are so phenomenally high on some routes it's ridiculous--and as you'll see in my next post on this matter, American offers direct service on a 30-seat ERJ. The line must be servicable, otherwise door-to-door regional jet service wouldn't exist. But making consumers shell out a grand to hit Motown is the quickest way to route poisoning I can think of. Plus the ERJs are pretty cheap to operate, they're leased, and the pilots make about $32,000 a year.

    SM
     

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