Post by small on Dec 1, 2018 10:16:59 GMT -8
Okay I know that the airlines have been maximizing profits by charging for everything for years now. Group 5 no-longer isn't even allowed a carry on at any price. Pay for a checked bag please...
I had heard a theory that because most shareholders of the airlines are Mutual funds they are all controlled by only a few mutual funds/ investment firms. Since Company 1 owns Fund "A" which owns X% of American, United, Et al. in a "Travel Fund" also fund "B" and Fund "C" (because one fund cannot own more than a certain percent of a individual company) Now company 2 owns a similar group of funds,(to attract similar individual investors) Companies 1 and 2 and maybe 3 and 4 own the majority of all these airlines. At a certain point they, the mutual fund company's own control and have made the internal decision to not fight each other (AA vs. United, etc) in "fare wars" anymore, or even try and gain a competitive advantage, that would give one Airline an edge over another...because they own them all of the airlines they'd be fighting themselves.
My brother cut his teeth in IT, working for United, while going to school back in the 90's. I remember him saying the United planes carried cargo for freight companies and it made up a large percentage of their revenue. 40%?? and the plane needs to be at the next airport for those next flights. So a plane leaves full or not to provide the freight side reliability and a plane for the next airport. So if you'd walked up to a counter without a ticket and ask to buy one "Now" they would generally charge you a 1st class fare and if it was available you'd sit there, but if not you sit in coach. United wanted to get top dollar, not just an another dollar. That didn't make sense to me at the time but OK. He thought people would just show up for a cheap seat the day they wanted to fly and the "liquidity" of people buying in advance would hurt the business...
For years I would have a tight schedule getting back to Mexico City to catch a 1:30? flight to Chicago. I had missed the flight a couple of times and ended up flying standby for the 4 o'clock. Now back in the middle '00's it wouldn't cost a thing. I would put my name on a list and get on the 4 o'clock if there was room, if not I'd spend the night and catch a flight the next day. Now if I wanted a seat I could pay to get a seat on the 4 o'clock, if one was available, and not run the risk of others flying standby getting in ahead of me. In the end I would just book the 4 o'clock and if I was able to get to the airport on time for the 1:30 I'd ask for a seat on the earlier flight. Again if there were spots open for those of us waiting they'd let us on. Again no additional fee. I would have thought it made sense. Some people missed the earlier flight so room would be available, and those folks would then take my seat on the 4 o'clock because I was on the earlier flight they'd missed.
Now I haven't had to be that tight with flights for a while , but a few days ago I didn't want to chance it so I booked a flight out of Newark at 9pm to Chicago. I got to the airport early, went to a gate headed to Chicago, and waited for everyone to board. I asked the United agent if there was room left and he said he hadn't been keeping track. He said I had to ask the other guy that was helping two ladies. As the other agent was finishing up with the ladies and they were thanking him, the first agent says to the second, "we have 17 no shows!" I said wow so you'll have a spot for me. The second guy says "you'er booked on the 9pm its $75 to change your ticket." I said you can't just let me on? when did you start charging for a standby ticket? He turns back to agent 1 and says "What? 5 years now?" agent 1 say "Longer than that". I said as a courtesy to a customer and with all the open seats? Agent 1 said "I'll let that plane fly with as little as one passenger." I just walked off disgusted. $75 to say go ahead and take seat whatever. As I flew home and watched their propaganda video of a "Crew member" keeping a ladies breast milk cold until the return flight and driving it out to her house. I couldn't even believe they would try and pull that off. Amazing, not saying it couldn't happen I just don't think it was very likely. Okay it did happen but its truly not anything anyone can expect for United or one of the other airlines....
Based the theory of ownership I don't see air travel getting any better...
I had heard a theory that because most shareholders of the airlines are Mutual funds they are all controlled by only a few mutual funds/ investment firms. Since Company 1 owns Fund "A" which owns X% of American, United, Et al. in a "Travel Fund" also fund "B" and Fund "C" (because one fund cannot own more than a certain percent of a individual company) Now company 2 owns a similar group of funds,(to attract similar individual investors) Companies 1 and 2 and maybe 3 and 4 own the majority of all these airlines. At a certain point they, the mutual fund company's own control and have made the internal decision to not fight each other (AA vs. United, etc) in "fare wars" anymore, or even try and gain a competitive advantage, that would give one Airline an edge over another...because they own them all of the airlines they'd be fighting themselves.
My brother cut his teeth in IT, working for United, while going to school back in the 90's. I remember him saying the United planes carried cargo for freight companies and it made up a large percentage of their revenue. 40%?? and the plane needs to be at the next airport for those next flights. So a plane leaves full or not to provide the freight side reliability and a plane for the next airport. So if you'd walked up to a counter without a ticket and ask to buy one "Now" they would generally charge you a 1st class fare and if it was available you'd sit there, but if not you sit in coach. United wanted to get top dollar, not just an another dollar. That didn't make sense to me at the time but OK. He thought people would just show up for a cheap seat the day they wanted to fly and the "liquidity" of people buying in advance would hurt the business...
For years I would have a tight schedule getting back to Mexico City to catch a 1:30? flight to Chicago. I had missed the flight a couple of times and ended up flying standby for the 4 o'clock. Now back in the middle '00's it wouldn't cost a thing. I would put my name on a list and get on the 4 o'clock if there was room, if not I'd spend the night and catch a flight the next day. Now if I wanted a seat I could pay to get a seat on the 4 o'clock, if one was available, and not run the risk of others flying standby getting in ahead of me. In the end I would just book the 4 o'clock and if I was able to get to the airport on time for the 1:30 I'd ask for a seat on the earlier flight. Again if there were spots open for those of us waiting they'd let us on. Again no additional fee. I would have thought it made sense. Some people missed the earlier flight so room would be available, and those folks would then take my seat on the 4 o'clock because I was on the earlier flight they'd missed.
Now I haven't had to be that tight with flights for a while , but a few days ago I didn't want to chance it so I booked a flight out of Newark at 9pm to Chicago. I got to the airport early, went to a gate headed to Chicago, and waited for everyone to board. I asked the United agent if there was room left and he said he hadn't been keeping track. He said I had to ask the other guy that was helping two ladies. As the other agent was finishing up with the ladies and they were thanking him, the first agent says to the second, "we have 17 no shows!" I said wow so you'll have a spot for me. The second guy says "you'er booked on the 9pm its $75 to change your ticket." I said you can't just let me on? when did you start charging for a standby ticket? He turns back to agent 1 and says "What? 5 years now?" agent 1 say "Longer than that". I said as a courtesy to a customer and with all the open seats? Agent 1 said "I'll let that plane fly with as little as one passenger." I just walked off disgusted. $75 to say go ahead and take seat whatever. As I flew home and watched their propaganda video of a "Crew member" keeping a ladies breast milk cold until the return flight and driving it out to her house. I couldn't even believe they would try and pull that off. Amazing, not saying it couldn't happen I just don't think it was very likely. Okay it did happen but its truly not anything anyone can expect for United or one of the other airlines....
Based the theory of ownership I don't see air travel getting any better...