THE EMPIRES STRIKE BACK : U.S. LEGACY AIRLINES' PAINFUL COST CUTS COULD BEAR FRUIT IN 2005

United States legacy carriers are starting 2005 with promising futures, after suffering through money-losing years trying to compete with low-fare counterparts. The promise comes from their ability to cut unit costs, such as pilot pay and work rules. If US Airways emerges from bankruptcy, its pilot pay will be about 4 percent lower than JetBlue and 20 percent less than Southwest. United Airlines has tentative deals with cabin staff and mechanics that will save it as much as $239 million annually. Together, American, Continental, Delta, Northwest, United and US Air have reduced their unit costs to 1997 levels while keeping or increasing their unit rate of return. The down side is the high price of fuel and record-low ticket prices in the competitive market. Another key is restructuring fares so they are more appealing to budget-minded business travelers, like dropping Saturday-night stay restrictions at Delta and capping one-way walk-up fares. At the same time, two low-fare carriers are in very serious condition.

• Availability:
  • Find a library where document is available. Order URL: https://www.library.northwestern.edu/find-borrow-request/requests-interlibrary-loan/lending-institutions.html
• Authors:
  • Flint, P
• Publication Date: 2005-2

Language

• English

Media Info

• Features: Figures; Photos;
• Pagination: p. 54-55
• Serial:
  • ATW: Air Transport World
  • Publisher: Penton Media
  • ISSN: 0002-2543

Subject/Index Terms

• TRT Terms: Airlines; Costs; Discount fares
• Subject Areas: Aviation; Finance;

Filing Info

• Accession Number: 00986943
• Record Type: Publication
• Source Agency: UC Berkeley Transportation Library
• Files: BTRIS, TRIS
• Created Date: Mar 2 2005 12:00AM