how do they not lose money

[COLLEGERESOURCES]

how are airline companies able to give away free tickets to there employees as a perk (i have a couple of friends who families can fly free pretty much anywhere as long as they fly standby)....i understand that the plane is goin regardless, and if the seat is empty then they arent really losing money...but why wouldnt they still charge like 50% of the ticket cost to their employees instead...at least they would still make something

 

[Albis]

employee loyalty means alot for some companies

same reason why companies have profit sharing and discounted stock options

 

[jspeicher]

Most major airlines are making NO money on tickets right now. They are losing a few bucks on EVERY ticket they sell. Their profit comes from the added stuff that you choose to buylike meals, movies, etc,. So sad.

EDIT: ANd extra fees they've been adding lately.

1cent increase in fuel prices means millions/billions in costs for airlines as well. WEeeeeeeeeeeee

 

[COLLEGERESOURCES]

that makes some sense, im sure loyalty means alot to these companies...maybe i am a cynic but i think the companies would rather make money...is that the only reason or any other ideas

 

[Yossarian]

Originally posted by: jspeicher
Most major airlines are making NO money on tickets right now. They are losing a few bucks on EVERY ticket they sell. Their profit comes from the added stuff that you choose to buylike meals, movies, etc,. So sad.

I doubt that. Do you have anything to back that up?

 

[jspeicher]

Originally posted by: Yossarian

Originally posted by: jspeicher
Most major airlines are making NO money on tickets right now. They are losing a few bucks on EVERY ticket they sell. Their profit comes from the added stuff that you choose to buylike meals, movies, etc,. So sad.

I doubt that. Do you have anything to back that up?

They just had a couple specials on CBS and ABC NEWS on this. They laid out the cost of a ticket and broke it down precisely to where it all goes, the gov't takes a huge sum.

 

[TranceNation]

Originally posted by: Yossarian

Originally posted by: jspeicher
Most major airlines are making NO money on tickets right now. They are losing a few bucks on EVERY ticket they sell. Their profit comes from the added stuff that you choose to buylike meals, movies, etc,. So sad.

I doubt that. Do you have anything to back that up?

yes, the government

 

[Fingers]

This benefit is pretty much free to the company, costs a whole lot less than things such as insurance. Plus why not provide more for your employees if it's not gonna cost you a dime. Better they treat the employees the harder and better they will work for the company.

 

[COLLEGERESOURCES]

bump

 

[loup garou]

Flight attendants and pilots need to get home or to their home base airport even if they aren't working. They can't very well put an attendant on a shift out to LA from NYC and expect them to find their own way back.

 

[COLLEGERESOURCES]

im talkin bout the people in the corporate office, positions like that

 

[Descartes]

Originally posted by: werk
Flight attendants and pilots need to get home or to their home base airport even if they aren't working. They can't very well put an attendant on a shift out to LA from NYC and expect them to find their own way back.

Obiously the case for flight attendants, etc., but this offer is, as I understand it, extended to those far removed from flight attendance. I have a cousin who works as a taxi-guy (sorry, don't know what the official name is for such a vocation), and my aunt/uncle fly all over the world as a result; oh, and they get to fly first/business class in most cases!

 

[NutBucket]

Well on standby its only if there's open seats anyway so it doesn't cost a whole heck of a lot to put that person on the plane.

 

[crab]

American Airlines actually MAKES money on their non-rev program...if I can find proof, I'll post it (it was an internal communication). I've flown nonrev, and at D3 classification (employee non-dependant family and friends) and the employee still pays for the ticket, at per-mile rate. Additionally, employees get only a set amount of passes a year, and can only have a handful of people on their nonrev list. These people, once on the list, are not removeable for exactly one year. The employees themselves are allowed unlimited free travel. All nonrev travel is standby.

 

[b0mbrman]

Originally posted by: COLLEGERESOURCES
that makes some sense, im sure loyalty means alot to these companies...maybe i am a cynic but i think the companies would rather make money...is that the only reason or any other ideas

Yes, and they could charge for health insurance, retirement-matching, etc. but they don't

If you want to look at it in a way that's easier to understand, think of it as part of a gross salary that potential employees compare against other options.

 

[vtqanh]

Originally posted by: jspeicher
Most major airlines are making NO money on tickets right now. They are losing a few bucks on EVERY ticket they sell. Their profit comes from the added stuff that you choose to buylike meals, movies, etc,. So sad.

EDIT: ANd extra fees they've been adding lately.

1cent increase in fuel prices means millions/billions in costs for airlines as well. WEeeeeeeeeeeee

Not really. They're losing money on those heavily discount economy tickets (the kind that most of us pay for), but they make money on those full fare/business/first tickets.

 

[COLLEGERESOURCES]

BUMP

 

[rh71]

From another perspective, we get discounts from many many companies in every industry. We used to get discounts from AA... they have pulled it since 2002... money of course... so perhaps they are making money back in other ways... (or not losing it in other ways)

 

[GagHalfrunt]

Originally posted by: jspeicher

Originally posted by: Yossarian

Originally posted by: jspeicher
Most major airlines are making NO money on tickets right now. They are losing a few bucks on EVERY ticket they sell. Their profit comes from the added stuff that you choose to buylike meals, movies, etc,. So sad.

I doubt that. Do you have anything to back that up?

They just had a couple specials on CBS and ABC NEWS on this. They laid out the cost of a ticket and broke it down precisely to where it all goes, the gov't takes a huge sum.

Which the government then uses to bail out struggling airlines. It's a symbiotic relationship.

 

[Gibson486]

Well, look at JetBlue now...there prices are getting higher everyday.....

Boston To Orlando, 239....

Southwest...

Boston to Orlando, 79...

 

[Phoenix86]

Originally posted by: b0mbrman

Originally posted by: COLLEGERESOURCES
that makes some sense, im sure loyalty means alot to these companies...maybe i am a cynic but i think the companies would rather make money...is that the only reason or any other ideas

Yes, and they could charge for health insurance, retirement-matching, etc. but they don't

If you want to look at it in a way that's easier to understand, think of it as part of a gross salary that potential employees compare against other options.

Correct, it's all a part of compensation. When your getting hired there, you are stupid not to factor in X number of free flights as a savings to what you would have paid if you didn't work there.

The cheapest benefit a company can generaly provide to their employees is their own services. They can generate their own services for cost, where if they go and buy say health insurance they are paying cost+. When they provide a free seat it's only cost them they price of that seat. Since they don't give an employee a seat unless there is an open one (otherwise unused), there is no cost other than the extra fuel to fly the extra weight. In other words it doesn't cost the company shit, and the employee gets a good benefit.

 

[xchangx]

Originally posted by: Gibson486
Well, look at JetBlue now...there prices are getting higher everyday.....

Boston To Orlando, 239....

Southwest...

Boston to Orlando, 79...

That's true, but you have to remember Southwest operates differently than JetBlue.

Southwest has smaller planes that do not have first class, plus the way they've mapped out their routes.

We just did a case on Southwest

 

[jagec]

Originally posted by: Gibson486
Well, look at JetBlue now...there prices are getting higher everyday.....

Boston To Orlando, 239....

Southwest...

Boston to Orlando, 79...

It's really insane how cheap Southwest gets, when you consider what it takes to send a giant aluminum tube hurtling through the sky at over 400 miles an hour without incident.

 

[iamwiz82]

Originally posted by: jagec

Originally posted by: Gibson486
Well, look at JetBlue now...there prices are getting higher everyday.....

Boston To Orlando, 239....

Southwest...

Boston to Orlando, 79...

It's really insane how cheap Southwest gets, when you consider what it takes to send a giant aluminum tube hurtling through the sky at over 400 miles an hour without incident.

Southwest uses overselling to an extreme. I believe they are only second to Delta.

 

[her34]

Originally posted by: iamwiz82

Originally posted by: jagec

Originally posted by: Gibson486
Well, look at JetBlue now...there prices are getting higher everyday.....

Boston To Orlando, 239....

Southwest...

Boston to Orlando, 79...

It's really insane how cheap Southwest gets, when you consider what it takes to send a giant aluminum tube hurtling through the sky at over 400 miles an hour without incident.

Southwest uses overselling to an extreme. I believe they are only second to Delta.

can someone explain how southwest flight maps/scheduling allows them to be so much cheaper than other airlines