United to Wall Street....trust us, we will get crappier.

Discussion in 'United Airlines | MileagePlus' started by ahappyelite, Jun 21, 2016.  |  Print Topic

  1. ahappyelite

    ahappyelite Silver Member

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    Showing the utter disregard for the passenger that makes the "friendly skies "" so welcoming, the CEO of ual is promising Wall Street there are ever more ways to make travel an ordeal. Slimmer seats, more crowded planes and unspecified cuts (dismantling?) of the frequent flyer program are the promised cost cuts (degradations) being spoken of in public-imagine what's being discussed sotto voce.
    What is it going to take for Washington to get in the game and tell Wall Street to take a hike. The mergers must be undone to stop this race to the bottom.
    If you at look at UA's abysmal satisfaction ratings, they would probably already be heading towards chapter 11 had Congress/the Administration not strangled competition.
     
    Last edited: Jun 21, 2016
  2. Dublin_rfk

    Dublin_rfk Gold Member

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    Quite an interesting read, a little narrow in its focus but interesting none the less.
    As for congress/the administration strangling the competition, The competition didn't need help being strangled. I'm sure that there are others in this community that have fluged on more air carriers than I but I'm sure that they have experienced the same level of quality(?) throughout the business.
     
  3. ahappyelite

    ahappyelite Silver Member

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    Would United, an already atrociously rated company in the most loathed US industry be shamelessly and notoriously giving a blood oath to get worse if there was still a Continental, a U.S. Air etc. would frequent flyer programs be ended in unison if there were new entrants being encouraged to come in: the 30 40 or 50 airlines a continental country of a third of a billion people deserves? We have absolutely gone backwards since these totally unnecessary mergers-this gift to private equity. We have an industry that is in collusive, lockstep descent. It is a scandal that companies can be so disdainful of their customers and stay aloft. And it can only happen when the skies of the nation are gifted to five 3/4s airlines who carve up the routes and copy each other's worst practices.
     
  4. Counsellor
    Original Member

    Counsellor Gold Member

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    I'm pretty much in agreement that the domestic airline industry has collapsed from a competitive market to an oligopoly since the advent of deregulation, which was supposed to enhance competition and facilitate new entrants into the market. Obviously, that goal was missed, not so much because of government interference but rather because of government's benign neglect of anti-competitive mergers and consolidations.

    The question is what to do now. I'm not sure that a competitive market is feasible domestically, considering the numerous bankruptcies that occurred (and recurred -- how many time was TWA or Continental in bankruptcy before being absorbed or -- in Continental's case, absorbing others?).

    As a free-market believer, I hate to suggest re-regulation, but obviously the current benevolent "oversight" by DOT is not working. Is the solution perhaps to simply consider domestic air travel to be a utility and regulate/manage it as such? Instead of the pseudo-competition we have now, just divide the field as to any route between two carriers at the most (maybe more in the case of hub-to-hub travel) and require fares to be approved as is the case with electricity prices?

    The government has repeatedly shown itself singularly inept in trying to do central planning when it comes to the economy, but perhaps in this case the disease is truly worse than the cure.
     
    Last edited: Jun 23, 2016
  5. ahappyelite

    ahappyelite Silver Member

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    If you read the financial press, people like Jim Cramer have for years been crowing about how much of a killing would be made once competition was asphyxiated. Thus, the mergers are an indefensible totally foreseeable fiasco and perhaps corrrupt. . We the taxpayers pay for so many of the costs of air travel, it takes chutzpah to claim this is or was ever a free market.

    You have to allow airlines to fail-who convinced regulators and Congress that airlines have to have some sort of insurance against failure? In city after city, you have one or two airlines holding passengers hostage, with no pretense of competition. When you have "seat discipline" (price fixing) and sophisticated algorithms, you can treat customers like Gitmo detainees and still make huge profits.

    Sadly, Wall Street has a well established record of not being able to stop from pigging out-their avarice almost took the country down a few short years ago. In this rigged system, you have a company like UAL rated 3 out of 10 pledging to Wall Street they will get to 2 or maybe 1 out of 10 and the stock soars. The solution is absolutely robust government intervention with an AT&T breakup of the five majors into 10 or more companies.

    The taxpayer may end up getting hit with some costs, but heck the taxpayer is already paying through the nose for this abomination Collusion like we have now guarantees air travel will keep getting worse
     
    Last edited: Jun 23, 2016
  6. satman40

    satman40 Gold Member

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    Jim Cramer will be one of the tell you how bad an Airline investment is, now this comes from THE FNN Days when the network was only on a few hours,

    Cramer had a few boots himself,mane his port has some real losers in it .

    Airline are simply regulated to the pleasures of the politicians with free rides, and union kick backs., while milking the taxpayer,

    I have invested since the early 60sl, before FNN, and the CNBC...FNN gave away phone case=ds at DES trying to build a business, operation from a small rented building,,
     
  7. ahappyelite

    ahappyelite Silver Member

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    And exciting new lows and further destruction of trust by further devaluations which screw even their highest spenders. Fly the Friendly Skies !
     

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