| If this is your first visit, be sure to check out the FAQ by clicking the link above.
You may have to register before you can post: click the register link above to proceed.
To start viewing messages, select the forum that you want to visit from the selection below.
|
08-02-2004, 06:02 PM
|
#1
|
|
|
Re: American Airline Award Travel -to be more available???
Gee I thought that it meant that he was going to loosen up. Until
lately Southwest offered a free RT to anywhere they fly in exchange for
four RT flights. Even a cross country freebe for four short trips. And
the FF seats aren't limited. If there is an available seat at any price
the FF coupon is good. Sounds like he's going to make FF rewards easy
to get. FFM
None wrote:
> It's only going to get worse as American Airlines' (AMR) CEO announced he is
> pretty much going to tighten the noose on Frequent Flyer award travel:
> February 6, 2004
>
> American's CEO Says Airline Is Learning from Southwest
>
> By Eric Torbenson, The Dallas Morning News
>
> Feb. 6--NEW YORK -- American Airlines Inc.'s chief executive, Gerard Arpey,
> praised rival Southwest Airlines Co. Thursday, saying his company's new
> thinking emulates what Southwest has done for years.
>
> "One of the reasons Southwest is so successful and has such high customer
> service ratings is that they promise a product that is very simple and
> deliver on that promise very consistently," Mr. Arpey said. "It's a better
> paradigm ... and that's where we need to move."
>
> Mr. Arpey's comments to analysts at a Wall Street conference represent
> another significant change in the corporate mindset of the world's largest
> airline.
>
> Southwest has been profitable for three decades by using one plane type and
> offering a no-frills point-to-point schedule.
>
> American's system has been far more complex. Just a few years ago, American
> flew 14 types of planes with 35 configurations, Mr. Arpey said, as part of a
> strategy to put the right planes in the right markets to bring in the most
> revenue.
>
> But complexity came at a high cost. As business travelers have grown more
> cost conscious, discount carriers such as Dallas-based Southwest have gained
> momentum. In response, American has been simplifying its operations since
> 2002 by cutting the number of types of aircraft it flies, streamlining its
> schedule and scrutinizing its processes to squeeze savings.
>
> By September, American will have just 5 types of aircraft, Mr. Arpey said.
> The carrier would move faster to simplify its fleet if the task weren't so
> expensive, he said.
>
> "The more complex your operation is, the more chances you have in
> disappointing your customers," Mr. Arpey said at the morning conference,
> sponsored by Goldman Sachs.
>
> The Fort Worth-based carrier continues to rethink how it sells itself to
> customers, Mr. Arpey said, but wants to be sure it has services to offer
> that fliers will pay more for. American has no plans to drop its first class
> cabin, for example, because its best customers value the extra legroom and
> other services, he said.
> ************************************************** **********************
> American will use its frequent flier program to drive more revenue, but Mr.
> Arpey said he thinks the program's mileage bonuses and incentives are a bit
> "too liberal." He said he hopes that a strengthening economy and airline
> industry will let the airline "tighten them up a bit."
> ************************************************** **********************
> The good news is that American's financial recovery continues to take shape.
> American hopes its costs per seat mile flown, a standard unit of measure for
> airlines, will be 17 percent lower in the current quarter than in the first
> three months of 2003, Mr. Arpey said.
>
> "We must keep pedaling as hard as we can," he said.
>
> Some factors are making American's recovery more of an uphill ride. Health
> care costs for current and retired American employees run as much as $350
> million annually. Competitors and newly created airlines such as JetBlue
> Airways Corp. have little or no expense for retirees, Mr. Arpey said.
>
> Stubbornly high fuel prices will continue to eat into American's bottom
> line. The carrier has used financial markets to hedge some of its fuel needs
> for the current quarter, but it has significantly less fuel pre-purchased at
> lower prices for the rest of the year.
>
> Still, analysts have generally cheered American's overall job of reducing
> expenses, which are now lower than at Houston-based Continental Airlines
> Inc.
>
> With leaner costs, American can now flex its muscle against both its
> traditional foes and the surging low-cost carriers.
>
> "If we face carriers such as JetBlue that come into our markets, we can
> defend them with all the tools available to us," Mr. Arpey said.
>
> But analysts are concerned that when American and JetBlue compete on a
> particular route, JetBlue is winning customers in part because it has
> satellite television in each of its seats. JetBlue offers no first class
> service or meals.
>
> American has studied adding such systems to its fleet of more than 700
> planes, Mr. Arpey said. But for now, it's focused on adding power ports on
> its planes to let travelers use their computers for work or for watching
> movies.
>
> "You really have to ask yourself how much we are going to spend on that kind
> of technology on the airplane when people are bringing it on themselves," he
> said.
>
>
|
|
|
|
|
08-02-2004, 06:03 PM
|
#2
|
|
|
Re: American Airline Award Travel -to be more available???
The only thing Arpey is "really" mirroring Southwest with is his secret
desire to knock all the employee's wages and benefits down as low as they
are at Southwest.
As for award travel, clearly his statement says he thinks it's too liberal
now, and hopes to be able to be able to tighten that up.
"Frank F. Matthews" <frankfmatthews@houston.rr.com> wrote in message
news:qhfVb.10091$Ig5.893@fe2.texas.rr.com...
> Gee I thought that it meant that he was going to loosen up. Until
> lately Southwest offered a free RT to anywhere they fly in exchange for
> four RT flights. Even a cross country freebe for four short trips. And
> the FF seats aren't limited. If there is an available seat at any price
> the FF coupon is good. Sounds like he's going to make FF rewards easy
> to get. FFM
>
> None wrote:
> > It's only going to get worse as American Airlines' (AMR) CEO announced
he is
> > pretty much going to tighten the noose on Frequent Flyer award travel:
>
> > February 6, 2004
> >
> > American's CEO Says Airline Is Learning from Southwest
> >
> > By Eric Torbenson, The Dallas Morning News
> >
> > Feb. 6--NEW YORK -- American Airlines Inc.'s chief executive, Gerard
Arpey,
> > praised rival Southwest Airlines Co. Thursday, saying his company's new
> > thinking emulates what Southwest has done for years.
> >
> > "One of the reasons Southwest is so successful and has such high
customer
> > service ratings is that they promise a product that is very simple and
> > deliver on that promise very consistently," Mr. Arpey said. "It's a
better
> > paradigm ... and that's where we need to move."
> >
> > Mr. Arpey's comments to analysts at a Wall Street conference represent
> > another significant change in the corporate mindset of the world's
largest
> > airline.
> >
> > Southwest has been profitable for three decades by using one plane type
and
> > offering a no-frills point-to-point schedule.
> >
> > American's system has been far more complex. Just a few years ago, Ameri
can
> > flew 14 types of planes with 35 configurations, Mr. Arpey said, as part
of a
> > strategy to put the right planes in the right markets to bring in the
most
> > revenue.
> >
> > But complexity came at a high cost. As business travelers have grown
more
> > cost conscious, discount carriers such as Dallas-based Southwest have
gained
> > momentum. In response, American has been simplifying its operations
since
> > 2002 by cutting the number of types of aircraft it flies, streamlining
its
> > schedule and scrutinizing its processes to squeeze savings.
> >
> > By September, American will have just 5 types of aircraft, Mr. Arpey
said.
> > The carrier would move faster to simplify its fleet if the task weren't
so
> > expensive, he said.
> >
> > "The more complex your operation is, the more chances you have in
> > disappointing your customers," Mr. Arpey said at the morning conference,
> > sponsored by Goldman Sachs.
> >
> > The Fort Worth-based carrier continues to rethink how it sells itself to
> > customers, Mr. Arpey said, but wants to be sure it has services to offer
> > that fliers will pay more for. American has no plans to drop its first
class
> > cabin, for example, because its best customers value the extra legroom
and
> > other services, he said.
> > ************************************************** **********************
> > American will use its frequent flier program to drive more revenue, but
Mr.
> > Arpey said he thinks the program's mileage bonuses and incentives are a
bit
> > "too liberal." He said he hopes that a strengthening economy and airline
> > industry will let the airline "tighten them up a bit."
> > ************************************************** **********************
> > The good news is that American's financial recovery continues to take
shape.
> > American hopes its costs per seat mile flown, a standard unit of measure
for
> > airlines, will be 17 percent lower in the current quarter than in the
first
> > three months of 2003, Mr. Arpey said.
> >
> > "We must keep pedaling as hard as we can," he said.
> >
> > Some factors are making American's recovery more of an uphill ride.
Health
> > care costs for current and retired American employees run as much as
$350
> > million annually. Competitors and newly created airlines such as JetBlue
> > Airways Corp. have little or no expense for retirees, Mr. Arpey said.
> >
> > Stubbornly high fuel prices will continue to eat into American's bottom
> > line. The carrier has used financial markets to hedge some of its fuel
needs
> > for the current quarter, but it has significantly less fuel
pre-purchased at
> > lower prices for the rest of the year.
> >
> > Still, analysts have generally cheered American's overall job of
reducing
> > expenses, which are now lower than at Houston-based Continental Airlines
> > Inc.
> >
> > With leaner costs, American can now flex its muscle against both its
> > traditional foes and the surging low-cost carriers.
> >
> > "If we face carriers such as JetBlue that come into our markets, we can
> > defend them with all the tools available to us," Mr. Arpey said.
> >
> > But analysts are concerned that when American and JetBlue compete on a
> > particular route, JetBlue is winning customers in part because it has
> > satellite television in each of its seats. JetBlue offers no first class
> > service or meals.
> >
> > American has studied adding such systems to its fleet of more than 700
> > planes, Mr. Arpey said. But for now, it's focused on adding power ports
on
> > its planes to let travelers use their computers for work or for watching
> > movies.
> >
> > "You really have to ask yourself how much we are going to spend on that
kind
> > of technology on the airplane when people are bringing it on
themselves," he
> > said.
> >
> >
>
|
|
|
|
|
10-02-2004, 09:29 PM
|
#3
|
|
|
Re: American Airline Award Travel -to be more available???
In that case he hasn't really paid enough attention to Southwest to use
it as a model. It is amazing how often nutty managers try to model only
a part of a successful company and then wonder why it doesn't work.
Nutty folks. FFM
None wrote:
> The only thing Arpey is "really" mirroring Southwest with is his secret
> desire to knock all the employee's wages and benefits down as low as they
> are at Southwest.
>
> As for award travel, clearly his statement says he thinks it's too liberal
> now, and hopes to be able to be able to tighten that up.
> "Frank F. Matthews" <frankfmatthews@houston.rr.com> wrote in message
> news:qhfVb.10091$Ig5.893@fe2.texas.rr.com...
>>Gee I thought that it meant that he was going to loosen up. Until
>>lately Southwest offered a free RT to anywhere they fly in exchange for
>>four RT flights. Even a cross country freebe for four short trips. And
>>the FF seats aren't limited. If there is an available seat at any price
>>the FF coupon is good. Sounds like he's going to make FF rewards easy
>>to get. FFM
>>None wrote:
>>>It's only going to get worse as American Airlines' (AMR) CEO announced he is
>>>pretty much going to tighten the noose on Frequent Flyer award travel:
>>>February 6, 2004
>>>American's CEO Says Airline Is Learning from Southwest
>>>
>>>By Eric Torbenson, The Dallas Morning News
snip
|
|
|
|
|
12-02-2004, 05:15 PM
|
#4
|
|
|
Re: American Airline Award Travel -to be more available???
Except that the salaries and benefits at Southwest are no way as low as
you may seem to imply. The salaries are among the highest in the
industry, both for 737 pilots and flight attendants. Their benefit
package is superb, and nobody has ever been fired without reason. Oh,
and Southwest's workforce is about 80% unionized, the highest in the US
industry.
None wrote:
> The only thing Arpey is "really" mirroring Southwest with is his secret
> desire to knock all the employee's wages and benefits down as low as they
> are at Southwest.
>
> As for award travel, clearly his statement says he thinks it's too liberal
> now, and hopes to be able to be able to tighten that up.
>
>
>
> "Frank F. Matthews" <frankfmatthews@houston.rr.com> wrote in message
> news:qhfVb.10091$Ig5.893@fe2.texas.rr.com...
>
>>Gee I thought that it meant that he was going to loosen up. Until
>>lately Southwest offered a free RT to anywhere they fly in exchange for
>>four RT flights. Even a cross country freebe for four short trips. And
>>the FF seats aren't limited. If there is an available seat at any price
>>the FF coupon is good. Sounds like he's going to make FF rewards easy
>>to get. FFM
>>
>>None wrote:
>>
>>>It's only going to get worse as American Airlines' (AMR) CEO announced
>
> he is
>
>>>pretty much going to tighten the noose on Frequent Flyer award travel:
>>
>>>February 6, 2004
>>>
>>>American's CEO Says Airline Is Learning from Southwest
>>>
>>>By Eric Torbenson, The Dallas Morning News
>>>
>>>Feb. 6--NEW YORK -- American Airlines Inc.'s chief executive, Gerard
>
> Arpey,
>
>>>praised rival Southwest Airlines Co. Thursday, saying his company's new
>>>thinking emulates what Southwest has done for years.
>>>
>>>"One of the reasons Southwest is so successful and has such high
>
> customer
>
>>>service ratings is that they promise a product that is very simple and
>>>deliver on that promise very consistently," Mr. Arpey said. "It's a
>
> better
>
>>>paradigm ... and that's where we need to move."
>>>
>>>Mr. Arpey's comments to analysts at a Wall Street conference represent
>>>another significant change in the corporate mindset of the world's
>
> largest
>
>>>airline.
>>>
>>>Southwest has been profitable for three decades by using one plane type
>
> and
>
>>>offering a no-frills point-to-point schedule.
>>>
>>>American's system has been far more complex. Just a few years ago, Ameri
>
> can
>
>>>flew 14 types of planes with 35 configurations, Mr. Arpey said, as part
>
> of a
>
>>>strategy to put the right planes in the right markets to bring in the
>
> most
>
>>>revenue.
>>>
>>>But complexity came at a high cost. As business travelers have grown
>
> more
>
>>>cost conscious, discount carriers such as Dallas-based Southwest have
>
> gained
>
>>>momentum. In response, American has been simplifying its operations
>
> since
>
>>>2002 by cutting the number of types of aircraft it flies, streamlining
>
> its
>
>>>schedule and scrutinizing its processes to squeeze savings.
>>>
>>>By September, American will have just 5 types of aircraft, Mr. Arpey
>
> said.
>
>>>The carrier would move faster to simplify its fleet if the task weren't
>
> so
>
>>>expensive, he said.
>>>
>>>"The more complex your operation is, the more chances you have in
>>>disappointing your customers," Mr. Arpey said at the morning conference,
>>>sponsored by Goldman Sachs.
>>>
>>>The Fort Worth-based carrier continues to rethink how it sells itself to
>>>customers, Mr. Arpey said, but wants to be sure it has services to offer
>>>that fliers will pay more for. American has no plans to drop its first
>
> class
>
>>>cabin, for example, because its best customers value the extra legroom
>
> and
>
>>>other services, he said.
>>>************************************************** **********************
>>>American will use its frequent flier program to drive more revenue, but
>
> Mr.
>
>>>Arpey said he thinks the program's mileage bonuses and incentives are a
>
> bit
>
>>>"too liberal." He said he hopes that a strengthening economy and airline
>>>industry will let the airline "tighten them up a bit."
>>>************************************************** **********************
>>>The good news is that American's financial recovery continues to take
>
> shape.
>
>>>American hopes its costs per seat mile flown, a standard unit of measure
>
> for
>
>>>airlines, will be 17 percent lower in the current quarter than in the
>
> first
>
>>>three months of 2003, Mr. Arpey said.
>>>
>>>"We must keep pedaling as hard as we can," he said.
>>>
>>>Some factors are making American's recovery more of an uphill ride.
>
> Health
>
>>>care costs for current and retired American employees run as much as
>
> $350
>
>>>million annually. Competitors and newly created airlines such as JetBlue
>>>Airways Corp. have little or no expense for retirees, Mr. Arpey said.
>>>
>>>Stubbornly high fuel prices will continue to eat into American's bottom
>>>line. The carrier has used financial markets to hedge some of its fuel
>
> needs
>
>>>for the current quarter, but it has significantly less fuel
>
> pre-purchased at
>
>>>lower prices for the rest of the year.
>>>
>>>Still, analysts have generally cheered American's overall job of
>
> reducing
>
>>>expenses, which are now lower than at Houston-based Continental Airlines
>>>Inc.
>>>
>>>With leaner costs, American can now flex its muscle against both its
>>>traditional foes and the surging low-cost carriers.
>>>
>>>"If we face carriers such as JetBlue that come into our markets, we can
>>>defend them with all the tools available to us," Mr. Arpey said.
>>>
>>>But analysts are concerned that when American and JetBlue compete on a
>>>particular route, JetBlue is winning customers in part because it has
>>>satellite television in each of its seats. JetBlue offers no first class
>>>service or meals.
>>>
>>>American has studied adding such systems to its fleet of more than 700
>>>planes, Mr. Arpey said. But for now, it's focused on adding power ports
>
> on
>
>>>its planes to let travelers use their computers for work or for watching
>>>movies.
>>>
>>>"You really have to ask yourself how much we are going to spend on that
>
> kind
>
>>>of technology on the airplane when people are bringing it on
>
> themselves," he
>
>>>said.
>>>
>>>
>>
>
>
|
|
|
|
|
13-02-2004, 10:25 PM
|
#5
|
|
|
Re: American Airline Award Travel -to be more available???
Except that the salaries and benefits at Southwest are no way as low as
you may seem to imply. The salaries are among the highest in the
industry, both for 737 pilots and flight attendants. Their benefit
package is superb, and nobody has ever been fired without reason. Oh,
and Southwest's workforce is about 80% unionized, the highest in the US
industry.
None wrote:
> The only thing Arpey is "really" mirroring Southwest with is his secret
> desire to knock all the employee's wages and benefits down as low as they
> are at Southwest.
>
> As for award travel, clearly his statement says he thinks it's too liberal
> now, and hopes to be able to be able to tighten that up.
>
>
>
> "Frank F. Matthews" <frankfmatthews@houston.rr.com> wrote in message
> news:qhfVb.10091$Ig5.893@fe2.texas.rr.com...
>
>>Gee I thought that it meant that he was going to loosen up. Until
>>lately Southwest offered a free RT to anywhere they fly in exchange for
>>four RT flights. Even a cross country freebe for four short trips. And
>>the FF seats aren't limited. If there is an available seat at any price
>>the FF coupon is good. Sounds like he's going to make FF rewards easy
>>to get. FFM
>>
>>None wrote:
>>
>>>It's only going to get worse as American Airlines' (AMR) CEO announced
>
> he is
>
>>>pretty much going to tighten the noose on Frequent Flyer award travel:
>>
>>>February 6, 2004
>>>
>>>American's CEO Says Airline Is Learning from Southwest
>>>
>>>By Eric Torbenson, The Dallas Morning News
>>>
>>>Feb. 6--NEW YORK -- American Airlines Inc.'s chief executive, Gerard
>
> Arpey,
>
>>>praised rival Southwest Airlines Co. Thursday, saying his company's new
>>>thinking emulates what Southwest has done for years.
>>>
>>>"One of the reasons Southwest is so successful and has such high
>
> customer
>
>>>service ratings is that they promise a product that is very simple and
>>>deliver on that promise very consistently," Mr. Arpey said. "It's a
>
> better
>
>>>paradigm ... and that's where we need to move."
>>>
>>>Mr. Arpey's comments to analysts at a Wall Street conference represent
>>>another significant change in the corporate mindset of the world's
>
> largest
>
>>>airline.
>>>
>>>Southwest has been profitable for three decades by using one plane type
>
> and
>
>>>offering a no-frills point-to-point schedule.
>>>
>>>American's system has been far more complex. Just a few years ago, Ameri
>
> can
>
>>>flew 14 types of planes with 35 configurations, Mr. Arpey said, as part
>
> of a
>
>>>strategy to put the right planes in the right markets to bring in the
>
> most
>
>>>revenue.
>>>
>>>But complexity came at a high cost. As business travelers have grown
>
> more
>
>>>cost conscious, discount carriers such as Dallas-based Southwest have
>
> gained
>
>>>momentum. In response, American has been simplifying its operations
>
> since
>
>>>2002 by cutting the number of types of aircraft it flies, streamlining
>
> its
>
>>>schedule and scrutinizing its processes to squeeze savings.
>>>
>>>By September, American will have just 5 types of aircraft, Mr. Arpey
>
> said.
>
>>>The carrier would move faster to simplify its fleet if the task weren't
>
> so
>
>>>expensive, he said.
>>>
>>>"The more complex your operation is, the more chances you have in
>>>disappointing your customers," Mr. Arpey said at the morning conference,
>>>sponsored by Goldman Sachs.
>>>
>>>The Fort Worth-based carrier continues to rethink how it sells itself to
>>>customers, Mr. Arpey said, but wants to be sure it has services to offer
>>>that fliers will pay more for. American has no plans to drop its first
>
> class
>
>>>cabin, for example, because its best customers value the extra legroom
>
> and
>
>>>other services, he said.
>>>************************************************** **********************
>>>American will use its frequent flier program to drive more revenue, but
>
> Mr.
>
>>>Arpey said he thinks the program's mileage bonuses and incentives are a
>
> bit
>
>>>"too liberal." He said he hopes that a strengthening economy and airline
>>>industry will let the airline "tighten them up a bit."
>>>************************************************** **********************
>>>The good news is that American's financial recovery continues to take
>
> shape.
>
>>>American hopes its costs per seat mile flown, a standard unit of measure
>
> for
>
>>>airlines, will be 17 percent lower in the current quarter than in the
>
> first
>
>>>three months of 2003, Mr. Arpey said.
>>>
>>>"We must keep pedaling as hard as we can," he said.
>>>
>>>Some factors are making American's recovery more of an uphill ride.
>
> Health
>
>>>care costs for current and retired American employees run as much as
>
> $350
>
>>>million annually. Competitors and newly created airlines such as JetBlue
>>>Airways Corp. have little or no expense for retirees, Mr. Arpey said.
>>>
>>>Stubbornly high fuel prices will continue to eat into American's bottom
>>>line. The carrier has used financial markets to hedge some of its fuel
>
> needs
>
>>>for the current quarter, but it has significantly less fuel
>
> pre-purchased at
>
>>>lower prices for the rest of the year.
>>>
>>>Still, analysts have generally cheered American's overall job of
>
> reducing
>
>>>expenses, which are now lower than at Houston-based Continental Airlines
>>>Inc.
>>>
>>>With leaner costs, American can now flex its muscle against both its
>>>traditional foes and the surging low-cost carriers.
>>>
>>>"If we face carriers such as JetBlue that come into our markets, we can
>>>defend them with all the tools available to us," Mr. Arpey said.
>>>
>>>But analysts are concerned that when American and JetBlue compete on a
>>>particular route, JetBlue is winning customers in part because it has
>>>satellite television in each of its seats. JetBlue offers no first class
>>>service or meals.
>>>
>>>American has studied adding such systems to its fleet of more than 700
>>>planes, Mr. Arpey said. But for now, it's focused on adding power ports
>
> on
>
>>>its planes to let travelers use their computers for work or for watching
>>>movies.
>>>
>>>"You really have to ask yourself how much we are going to spend on that
>
> kind
>
>>>of technology on the airplane when people are bringing it on
>
> themselves," he
>
>>>said.
>>>
>>>
>>
>
>
|
|
|
|
| Thread Tools |
Search this Thread |
|
|
|
| Display Modes |
 Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
All times are GMT +11. The time now is 09:41 PM.
Powered by: vBulletin Version 3.0.3
Copyright ©2000 - 2008, Jelsoft Enterprises Ltd.
The Travel Forum
|
|
|
|
