RANT: Grumbling on Delta Airlines SimpliFares
OK its been a while since I posted a good old fashion rant so step back from your monitor and read on...
Jeff Smisek, Continental Airlines President, is quoted in the Wall St. Journal as calling Delta Airlines "Simplifares" fare structure "stupid". He goes on to state that the estimated loss of revenue for matching Simplifares is somewhere around $100 million a year. Doug Steenland, Northwest Airlines CEO and Gerard Arpey, American Airlines CEO are right there with him. I am tired of this whining and if you want to hear why then click the Read More link.
Its time for the leadership at Continental, Northwest, American and others to STOP WHINING. Delta is not obligated to play by your good 'ol boy old school rules that allowed everyone jam yeild management down the consumers throat. Southwest, JetBlue and AirTran are driving a stake in that old and busted business plan. Delta sees that and are trying a new way to compete.
If Delta's Simplifare plan is a bad business plan then just stand back and watch it implode. Delta will either have to back out of the plan, adjust it or just quit. Then you are back where you started. If you can't manage to match their fares while this sorts out then that's too bad. You lose.
On the other hand if Delta is on to something that works for them then you all need to shut up and find a way to compete. But please, stop walking around in circles with a "The End Is Near" sign over your shoulder. Simplifares is not going to bring on the ultimate demise of the airline industry. It may bring about the demise of a couple of airlines but that, my friends, is just business.
The reality check is that Delta does not have the cash reserves to stick with this plan long term if it does not work. They have freely admitted that they will see an initial decrease in revenue but are looking long term for growth to compensate. This should not take too long to play out.
Again...to the other major airlines...stop complaining...it just makes you look bad.
Jeff Smisek, Continental Airlines President, is quoted in the Wall St. Journal as calling Delta Airlines "Simplifares" fare structure "stupid". He goes on to state that the estimated loss of revenue for matching Simplifares is somewhere around $100 million a year. Doug Steenland, Northwest Airlines CEO and Gerard Arpey, American Airlines CEO are right there with him. I am tired of this whining and if you want to hear why then click the Read More link.
Its time for the leadership at Continental, Northwest, American and others to STOP WHINING. Delta is not obligated to play by your good 'ol boy old school rules that allowed everyone jam yeild management down the consumers throat. Southwest, JetBlue and AirTran are driving a stake in that old and busted business plan. Delta sees that and are trying a new way to compete.
If Delta's Simplifare plan is a bad business plan then just stand back and watch it implode. Delta will either have to back out of the plan, adjust it or just quit. Then you are back where you started. If you can't manage to match their fares while this sorts out then that's too bad. You lose.
On the other hand if Delta is on to something that works for them then you all need to shut up and find a way to compete. But please, stop walking around in circles with a "The End Is Near" sign over your shoulder. Simplifares is not going to bring on the ultimate demise of the airline industry. It may bring about the demise of a couple of airlines but that, my friends, is just business.
The reality check is that Delta does not have the cash reserves to stick with this plan long term if it does not work. They have freely admitted that they will see an initial decrease in revenue but are looking long term for growth to compensate. This should not take too long to play out.
Again...to the other major airlines...stop complaining...it just makes you look bad.
posted by The ACK at
16:10
