Air Travel

Question:

>         But because SJC and OAK have less problem with fog than SFO, Southwest > can keep their plane turnaround rate up.

It would be interesting to see how Southwest would react if it was the more expensive airport that had the lesser delays, and the cheaper airport had consistently longer turn around times.

Response:

> >Why quote 374 lines just to add 2? > I’m quoting these few lines >Based in sunnier San Jose, Southwest suffered fewer costly >delays, allowing it to make the most of the quick turnarounds at the >gate on which the airline and its workers pride themselves. > That’s San Jose, Texas, I assume?

No, they were referring to where WN’s Bay Area ops are centered…but they are still wrong! Southwest has nearly double the number of daily departures from OAK as from SJC. Idiot news media…yet again!

Response:

>>Based in sunnier San Jose, Southwest suffered fewer costly >delays, allowing it to make the most of the quick turnarounds at the >gate on which the airline and its workers pride themselves. >That’s San Jose, Texas, I assume?

        No, that’s SJC, San Jose CA. Southwest based most of its Bay Area operations there instead of at SFO. Then they ramped up OAK and eventually cut SFO entirely out of the picture. It’s not like SFO is actually any closer or more conveient to San Francisco than OAK is — they share the same public transport system more or less, and are both about the same distance away from downtown.         But because SJC and OAK have less problem with fog than SFO, Southwest can keep their plane turnaround rate up. — Joe

Response:

> Why quote 374 lines just to add 2?

Why quote 376 to add 1? miguel — Hit The Road! Photos and tales from around the world: http://travel.u.nu New mini photo-feature: Life in DC: http://travel.u.nu/dc/

Response:

>Why quote 374 lines just to add 2?

I’m quoting these few lines >Based in sunnier San Jose, Southwest suffered fewer costly >delays, allowing it to make the most of the quick turnarounds at the >gate on which the airline and its workers pride themselves.

That’s San Jose, Texas, I assume?

Response:

> [Lengthy article concerning the current state of America's airlines and

You could really stand a lesson on cutting and editing.... Rich -- Visit America's Aviation Headquarters: www.usaviation.com

Response:

Why quote 374 lines just to add 2?

- Hide quoted text -- Show quoted text -> [Lengthy article concerning the current state of America's airlines and > the status of the flying public.  Thought it worth posting to elicit > responses from the group.] > Troubled Airlines Face Reality: Those Cheap Fares Have a Price > Sun Aug 18, 9:30 AM ET > By DAVID LEONHARDT with MICHELINE MAYNARD The New York Times > After seething in airport lines and fidgeting on delayed flights, > Americans are unlikely to think of the last decade as a golden age of > air travel. Soon, however, a little nostalgia may begin to set in. > For all their frustrations with stingier services, millions of travelers > still count on full-fare convenience at no-frills prices. But with > businesses unwilling to pay the high fares that have subsidized leisure > fliers, and the Internet giving travelers new tools to find bargains, > that formula is giving way. > Now, suffering their worst financial losses ever, the nation’s biggest > carriers through bankruptcy filings, broad restructurings or more subtle > responses to the stark moves of their sickest competitors plan to start > bringing service more closely in line with their fares. > They will make travel less convenient for business fliers by cutting > flights and lengthening connection times at some hubs. They also hope to > exact more of a sacrifice from people flying on the most heavily > discounted tickets, with ever more spartan cabin service. > If that sounds like Southwest Airlines, it is because the industry’s > giants are trying to keep pace with Southwest, whose profitability amid > their losses has earned it a stock market value bigger than all its > rivals’ combined. > Southwest is still down about 30% recently.  No airline is immune to the > Bush market crash > Frank Matthews > "The marketplace has changed; we haven’t changed," said Gordon M. > Bethune, the chief executive of Continental Airlines. "We may be > starting to." > US Airways, battered by the growth of low-fare service on its > once-lucrative East Coast routes, filed for bankruptcy protection last > Sunday, saying it would eliminate many flights. American Airlines said > on Tuesday that it would lay off 7,000 workers and alter its schedules > to minimize the time planes sit idle, at the cost of longer waits for > passengers. United Airlines on Wednesday threatened to seek bankruptcy > protection later this year, if its unions do not agree to deep wage > cuts. > Crisis has come to the nation’s airlines before, of course. They lost > billions of dollars in the recessions of the early 1980’s and 90’s. But > the frustrations and fear created by Sept. 11 have affected travel far > more than a downturn alone, and the six biggest carriers American, > United, Delta Air Lines, Northwest Airlines, Continental and US Airways > collectively lost a record $6.9 billion from October through June. > Since the government deregulated air travel in 1978, the big carriers > have repeatedly defied predictions of their demise, in the process > outlasting upstarts from People Express to Pro Air that were expected to > slay them. > Likewise, the significance of the current overhauls could be diluted by, > among other things, the industry’s powerful unions, an unexpectedly > strong economic recovery or a slowing of growth at Southwest, the > discount carrier now in 30 states. One or more of the big carriers, > angling to gain market share, might resist the push to curtail service > and amenities. > Still, most executives and analysts say the airline business cannot > continue in its current form for long. The steady advance of Southwest > and its ilk, including JetBlue in New York, has destroyed the giant > carriers’ profits on many routes they once dominated. The Internet, > meanwhile, lets business and leisure travelers alike tinker with > itineraries and reduce fares by hundreds of dollars. Neither of those > forces is likely to recede when the economy recovers. > This leaves the traditional airlines with the biggest fleets and > broadest networks calculating ways to deliver service that is less > expensive than today’s, yet just superior enough to that of the low-fare > airlines to justify higher prices. > "People would like to be able to have assigned seats and convenient > schedules with Southwest prices," said Alfred E. Kahn, the economist who > oversaw deregulation as the final chairman of the Civil Aeronautics > Board. That was possible, he said, during the boom of the 1990’s, when > the economy grew so quickly that business travelers would pay almost any > fare. > In today’s economy, he added, "that just can’t be done." > Test Market > Discounters Deflect California Challenge > In the busy passageways of San Francisco International Airport about > five years ago, United then the world’s largest airline seemed to have > devised an effective response to Southwest’s juggernaut. > Shuttle by United, a service exclusively for the West Coast, attracted > thousands of dot-com pioneers, corporate executives and other travelers > who wanted both cheap fares and the convenience of a global carrier. > Between 1994, when Shuttle began, and 1997, United’s share of the air > travel market within California shot up to 29 percent from 22 percent, > according to Back Aviation Solutions, a research firm in New Haven. > Southwest’s share slipped to 54 percent from 56 percent. > Yet like almost every other attempt by a major airline to mimic the > discounters, United’s succeeded only briefly. > The airline had chosen San Francisco as Shuttle’s Northern California > base, despite the fog that frequently slowed operations at the airport, > because it is a hub for United flights to Asia and around the United > States. Based in sunnier San Jose, Southwest suffered fewer costly > delays, allowing it to make the most of the quick turnarounds at the > gate on which the airline and its workers pride themselves. > As with its costs, the fares at Southwest remained lower over all. So > when the slumping economy slowed traffic growth in 2000, Southwest > reasserted its dominance. Its share of the California market reached a > record 63 percent last year, and United’s share fell to 19 percent as > the bigger airline, losing more money than any other after Sept. 11, > sharply reduced service. > Since another California airline, Pacific Southwest Airlines, began > offering low fares in 1949 it cost $5.65 to fly from San Diego to > Oakland back then the state’s skies have followed a similar storyline. > Discounters suffer defeats, and even disappear. (P.S.A. was absorbed by > what then was called US Air in 1988.) But over the long haul, they > succeed in destroying the fat profit margins of full-service airlines. > In the last 15 years, the inflation-adjusted price of an average ticket > within California has fallen 31 percent, to $79.48, according to Back. > Indeed, for many travelers, the best part of the discount airlines is > not having to fly them in order to enjoy their benefits. > "I think Southwest is terrific," said Lisa Ackerly, 42, a marketing > executive from Half Moon Bay, Calif., 29 miles from the San Francisco > airport, who travels twice a month to the Los Angeles headquarters of > her employer,  Edmunds.com, an information service for car buyers. "I > wish I had invested in them." > Nonetheless, Ms. Ackerly prefers to fly out of San Jose on American, > whose fares are competitive with those of Southwest. On American, she > earns frequent-flier miles that can lead to a free ticket overseas or a > first-class upgrade. > Low-fare airlines have begun cutting into the big airlines’ business on > longer routes, as well. The two-year-old JetBlue flies from Kennedy > International in New York to Oakland and, in Southern California, to > Ontario and Long Beach. Its fares are as low as $99 each way > cross-country. On Sept. 15, Southwest will start flying from Baltimore > to Los Angeles, opening its first coast-to-coast route. > "With the huge numbers of people residing in the California cities, you > get the right price in there and you can fill up the airplane," said > Richard Sweet, executive director of sales and marketing for Southwest. > Fare Shopping > Even Corporations Want Bargains Now > These days, many airports look a lot like those in California, which was > long considered an island of airline competition in a sea of > oligopolies, where one or two big carriers dominated. Southwest flies to > 58 cities, JetBlue flies to 19, and both have invaded the once-expensive > airports of New England and New York State. > Spirit Airlines has made such inroads in Detroit that Northwest will > match its $154 round trip to La Guardia Airport starting Sept. 3. > Northwest’s current fare, with no advance purchase requirement, is $318. > The growth of discount carriers is the primary reason that the average > price to fly a mile fell 25 percent, adjusting for inflation, from 1991 > to last year. > Unable to raise the prices they charged leisure travelers for fares > booked well in advance, the biggest carriers have instead stretched the > gap between restricted fares and the last-minute tickets purchased by > businesspeople. Many companies simply paid the bill, and their employees > got on the plane. > "In the roaring 90’s, when business was good, it cost you $1,200 to fly > out to the West Coast $2,400 round trip and you didn’t think twice about > it," said Dave

… read more »

Response:

- Hide quoted text — Show quoted text – > [Lengthy article concerning the current state of America's airlines and > the status of the flying public.  Thought it worth posting to elicit > responses from the group.] > Troubled Airlines Face Reality: Those Cheap Fares Have a Price > Sun Aug 18, 9:30 AM ET > By DAVID LEONHARDT with MICHELINE MAYNARD The New York Times > After seething in airport lines and fidgeting on delayed flights, > Americans are unlikely to think of the last decade as a golden age of > air travel. Soon, however, a little nostalgia may begin to set in. > For all their frustrations with stingier services, millions of travelers > still count on full-fare convenience at no-frills prices. But with > businesses unwilling to pay the high fares that have subsidized leisure > fliers, and the Internet giving travelers new tools to find bargains, > that formula is giving way. > Now, suffering their worst financial losses ever, the nation’s biggest > carriers through bankruptcy filings, broad restructurings or more subtle > responses to the stark moves of their sickest competitors plan to start > bringing service more closely in line with their fares. > They will make travel less convenient for business fliers by cutting > flights and lengthening connection times at some hubs. They also hope to > exact more of a sacrifice from people flying on the most heavily > discounted tickets, with ever more spartan cabin service. > If that sounds like Southwest Airlines, it is because the industry’s > giants are trying to keep pace with Southwest, whose profitability amid > their losses has earned it a stock market value bigger than all its > rivals’ combined.

Southwest is still down about 30% recently.  No airline is immune to the Bush market crash Frank Matthews – Hide quoted text — Show quoted text -> "The marketplace has changed; we haven’t changed," said Gordon M. > Bethune, the chief executive of Continental Airlines. "We may be > starting to." > US Airways, battered by the growth of low-fare service on its > once-lucrative East Coast routes, filed for bankruptcy protection last > Sunday, saying it would eliminate many flights. American Airlines said > on Tuesday that it would lay off 7,000 workers and alter its schedules > to minimize the time planes sit idle, at the cost of longer waits for > passengers. United Airlines on Wednesday threatened to seek bankruptcy > protection later this year, if its unions do not agree to deep wage > cuts. > Crisis has come to the nation’s airlines before, of course. They lost > billions of dollars in the recessions of the early 1980’s and 90’s. But > the frustrations and fear created by Sept. 11 have affected travel far > more than a downturn alone, and the six biggest carriers American, > United, Delta Air Lines, Northwest Airlines, Continental and US Airways > collectively lost a record $6.9 billion from October through June. > Since the government deregulated air travel in 1978, the big carriers > have repeatedly defied predictions of their demise, in the process > outlasting upstarts from People Express to Pro Air that were expected to > slay them. > Likewise, the significance of the current overhauls could be diluted by, > among other things, the industry’s powerful unions, an unexpectedly > strong economic recovery or a slowing of growth at Southwest, the > discount carrier now in 30 states. One or more of the big carriers, > angling to gain market share, might resist the push to curtail service > and amenities. > Still, most executives and analysts say the airline business cannot > continue in its current form for long. The steady advance of Southwest > and its ilk, including JetBlue in New York, has destroyed the giant > carriers’ profits on many routes they once dominated. The Internet, > meanwhile, lets business and leisure travelers alike tinker with > itineraries and reduce fares by hundreds of dollars. Neither of those > forces is likely to recede when the economy recovers. > This leaves the traditional airlines with the biggest fleets and > broadest networks calculating ways to deliver service that is less > expensive than today’s, yet just superior enough to that of the low-fare > airlines to justify higher prices. > "People would like to be able to have assigned seats and convenient > schedules with Southwest prices," said Alfred E. Kahn, the economist who > oversaw deregulation as the final chairman of the Civil Aeronautics > Board. That was possible, he said, during the boom of the 1990’s, when > the economy grew so quickly that business travelers would pay almost any > fare. > In today’s economy, he added, "that just can’t be done." > Test Market > Discounters Deflect California Challenge > In the busy passageways of San Francisco International Airport about > five years ago, United then the world’s largest airline seemed to have > devised an effective response to Southwest’s juggernaut. > Shuttle by United, a service exclusively for the West Coast, attracted > thousands of dot-com pioneers, corporate executives and other travelers > who wanted both cheap fares and the convenience of a global carrier. > Between 1994, when Shuttle began, and 1997, United’s share of the air > travel market within California shot up to 29 percent from 22 percent, > according to Back Aviation Solutions, a research firm in New Haven. > Southwest’s share slipped to 54 percent from 56 percent. > Yet like almost every other attempt by a major airline to mimic the > discounters, United’s succeeded only briefly. > The airline had chosen San Francisco as Shuttle’s Northern California > base, despite the fog that frequently slowed operations at the airport, > because it is a hub for United flights to Asia and around the United > States. Based in sunnier San Jose, Southwest suffered fewer costly > delays, allowing it to make the most of the quick turnarounds at the > gate on which the airline and its workers pride themselves. > As with its costs, the fares at Southwest remained lower over all. So > when the slumping economy slowed traffic growth in 2000, Southwest > reasserted its dominance. Its share of the California market reached a > record 63 percent last year, and United’s share fell to 19 percent as > the bigger airline, losing more money than any other after Sept. 11, > sharply reduced service. > Since another California airline, Pacific Southwest Airlines, began > offering low fares in 1949 it cost $5.65 to fly from San Diego to > Oakland back then the state’s skies have followed a similar storyline. > Discounters suffer defeats, and even disappear. (P.S.A. was absorbed by > what then was called US Air in 1988.) But over the long haul, they > succeed in destroying the fat profit margins of full-service airlines. > In the last 15 years, the inflation-adjusted price of an average ticket > within California has fallen 31 percent, to $79.48, according to Back. > Indeed, for many travelers, the best part of the discount airlines is > not having to fly them in order to enjoy their benefits. > "I think Southwest is terrific," said Lisa Ackerly, 42, a marketing > executive from Half Moon Bay, Calif., 29 miles from the San Francisco > airport, who travels twice a month to the Los Angeles headquarters of > her employer,  Edmunds.com, an information service for car buyers. "I > wish I had invested in them." > Nonetheless, Ms. Ackerly prefers to fly out of San Jose on American, > whose fares are competitive with those of Southwest. On American, she > earns frequent-flier miles that can lead to a free ticket overseas or a > first-class upgrade. > Low-fare airlines have begun cutting into the big airlines’ business on > longer routes, as well. The two-year-old JetBlue flies from Kennedy > International in New York to Oakland and, in Southern California, to > Ontario and Long Beach. Its fares are as low as $99 each way > cross-country. On Sept. 15, Southwest will start flying from Baltimore > to Los Angeles, opening its first coast-to-coast route. > "With the huge numbers of people residing in the California cities, you > get the right price in there and you can fill up the airplane," said > Richard Sweet, executive director of sales and marketing for Southwest. > Fare Shopping > Even Corporations Want Bargains Now > These days, many airports look a lot like those in California, which was > long considered an island of airline competition in a sea of > oligopolies, where one or two big carriers dominated. Southwest flies to > 58 cities, JetBlue flies to 19, and both have invaded the once-expensive > airports of New England and New York State. > Spirit Airlines has made such inroads in Detroit that Northwest will > match its $154 round trip to La Guardia Airport starting Sept. 3. > Northwest’s current fare, with no advance purchase requirement, is $318. > The growth of discount carriers is the primary reason that the average > price to fly a mile fell 25 percent, adjusting for inflation, from 1991 > to last year. > Unable to raise the prices they charged leisure travelers for fares > booked well in advance, the biggest carriers have instead stretched the > gap between restricted fares and the last-minute tickets purchased by > businesspeople. Many companies simply paid the bill, and their employees > got on the plane. > "In the roaring 90’s, when business was good, it cost you $1,200 to fly > out to the West Coast $2,400 round trip and you didn’t think twice about > it," said Dave Barger, the president of JetBlue. > But while business fares were rising, the Internet was beginning to give > companies technological power to match what the airlines had been using > against them since the 1980’s. Yield-management systems had helped the > carriers figure out the maximum they could charge each flier. > Priceline.com, Expedia, Travelocity and other Web sites helped companies > determine the minimum they could spend on a ticket by leaving a little

… read more »

Response:

[Lengthy article concerning the current state of America's airlines and the status of the flying public.  Thought it worth posting to elicit responses from the group.] Troubled Airlines Face Reality: Those Cheap Fares Have a Price Sun Aug 18, 9:30 AM ET By DAVID LEONHARDT with MICHELINE MAYNARD The New York Times After seething in airport lines and fidgeting on delayed flights, Americans are unlikely to think of the last decade as a golden age of air travel. Soon, however, a little nostalgia may begin to set in. For all their frustrations with stingier services, millions of travelers still count on full-fare convenience at no-frills prices. But with businesses unwilling to pay the high fares that have subsidized leisure fliers, and the Internet giving travelers new tools to find bargains, that formula is giving way. Now, suffering their worst financial losses ever, the nation’s biggest carriers through bankruptcy filings, broad restructurings or more subtle responses to the stark moves of their sickest competitors plan to start bringing service more closely in line with their fares. They will make travel less convenient for business fliers by cutting flights and lengthening connection times at some hubs. They also hope to exact more of a sacrifice from people flying on the most heavily discounted tickets, with ever more spartan cabin service. If that sounds like Southwest Airlines, it is because the industry’s giants are trying to keep pace with Southwest, whose profitability amid their losses has earned it a stock market value bigger than all its rivals’ combined. "The marketplace has changed; we haven’t changed," said Gordon M. Bethune, the chief executive of Continental Airlines. "We may be starting to." US Airways, battered by the growth of low-fare service on its once-lucrative East Coast routes, filed for bankruptcy protection last Sunday, saying it would eliminate many flights. American Airlines said on Tuesday that it would lay off 7,000 workers and alter its schedules to minimize the time planes sit idle, at the cost of longer waits for passengers. United Airlines on Wednesday threatened to seek bankruptcy protection later this year, if its unions do not agree to deep wage cuts. Crisis has come to the nation’s airlines before, of course. They lost billions of dollars in the recessions of the early 1980’s and 90’s. But the frustrations and fear created by Sept. 11 have affected travel far more than a downturn alone, and the six biggest carriers American, United, Delta Air Lines, Northwest Airlines, Continental and US Airways collectively lost a record $6.9 billion from October through June. Since the government deregulated air travel in 1978, the big carriers have repeatedly defied predictions of their demise, in the process outlasting upstarts from People Express to Pro Air that were expected to slay them. Likewise, the significance of the current overhauls could be diluted by, among other things, the industry’s powerful unions, an unexpectedly strong economic recovery or a slowing of growth at Southwest, the discount carrier now in 30 states. One or more of the big carriers, angling to gain market share, might resist the push to curtail service and amenities. Still, most executives and analysts say the airline business cannot continue in its current form for long. The steady advance of Southwest and its ilk, including JetBlue in New York, has destroyed the giant carriers’ profits on many routes they once dominated. The Internet, meanwhile, lets business and leisure travelers alike tinker with itineraries and reduce fares by hundreds of dollars. Neither of those forces is likely to recede when the economy recovers. This leaves the traditional airlines with the biggest fleets and broadest networks calculating ways to deliver service that is less expensive than today’s, yet just superior enough to that of the low-fare airlines to justify higher prices. "People would like to be able to have assigned seats and convenient schedules with Southwest prices," said Alfred E. Kahn, the economist who oversaw deregulation as the final chairman of the Civil Aeronautics Board. That was possible, he said, during the boom of the 1990’s, when the economy grew so quickly that business travelers would pay almost any fare. In today’s economy, he added, "that just can’t be done." Test Market Discounters Deflect California Challenge In the busy passageways of San Francisco International Airport about five years ago, United then the world’s largest airline seemed to have devised an effective response to Southwest’s juggernaut. Shuttle by United, a service exclusively for the West Coast, attracted thousands of dot-com pioneers, corporate executives and other travelers who wanted both cheap fares and the convenience of a global carrier. Between 1994, when Shuttle began, and 1997, United’s share of the air travel market within California shot up to 29 percent from 22 percent, according to Back Aviation Solutions, a research firm in New Haven. Southwest’s share slipped to 54 percent from 56 percent. Yet like almost every other attempt by a major airline to mimic the discounters, United’s succeeded only briefly. The airline had chosen San Francisco as Shuttle’s Northern California base, despite the fog that frequently slowed operations at the airport, because it is a hub for United flights to Asia and around the United States. Based in sunnier San Jose, Southwest suffered fewer costly delays, allowing it to make the most of the quick turnarounds at the gate on which the airline and its workers pride themselves. As with its costs, the fares at Southwest remained lower over all. So when the slumping economy slowed traffic growth in 2000, Southwest reasserted its dominance. Its share of the California market reached a record 63 percent last year, and United’s share fell to 19 percent as the bigger airline, losing more money than any other after Sept. 11, sharply reduced service. Since another California airline, Pacific Southwest Airlines, began offering low fares in 1949 it cost $5.65 to fly from San Diego to Oakland back then the state’s skies have followed a similar storyline. Discounters suffer defeats, and even disappear. (P.S.A. was absorbed by what then was called US Air in 1988.) But over the long haul, they succeed in destroying the fat profit margins of full-service airlines. In the last 15 years, the inflation-adjusted price of an average ticket within California has fallen 31 percent, to $79.48, according to Back. Indeed, for many travelers, the best part of the discount airlines is not having to fly them in order to enjoy their benefits. "I think Southwest is terrific," said Lisa Ackerly, 42, a marketing executive from Half Moon Bay, Calif., 29 miles from the San Francisco airport, who travels twice a month to the Los Angeles headquarters of her employer,  Edmunds.com, an information service for car buyers. "I wish I had invested in them." Nonetheless, Ms. Ackerly prefers to fly out of San Jose on American, whose fares are competitive with those of Southwest. On American, she earns frequent-flier miles that can lead to a free ticket overseas or a first-class upgrade. Low-fare airlines have begun cutting into the big airlines’ business on longer routes, as well. The two-year-old JetBlue flies from Kennedy International in New York to Oakland and, in Southern California, to Ontario and Long Beach. Its fares are as low as $99 each way cross-country. On Sept. 15, Southwest will start flying from Baltimore to Los Angeles, opening its first coast-to-coast route. "With the huge numbers of people residing in the California cities, you get the right price in there and you can fill up the airplane," said Richard Sweet, executive director of sales and marketing for Southwest. Fare Shopping Even Corporations Want Bargains Now These days, many airports look a lot like those in California, which was long considered an island of airline competition in a sea of oligopolies, where one or two big carriers dominated. Southwest flies to 58 cities, JetBlue flies to 19, and both have invaded the once-expensive airports of New England and New York State. Spirit Airlines has made such inroads in Detroit that Northwest will match its $154 round trip to La Guardia Airport starting Sept. 3. Northwest’s current fare, with no advance purchase requirement, is $318. The growth of discount carriers is the primary reason that the average price to fly a mile fell 25 percent, adjusting for inflation, from 1991 to last year. Unable to raise the prices they charged leisure travelers for fares booked well in advance, the biggest carriers have instead stretched the gap between restricted fares and the last-minute tickets purchased by businesspeople. Many companies simply paid the bill, and their employees got on the plane. "In the roaring 90’s, when business was good, it cost you $1,200 to fly out to the West Coast $2,400 round trip and you didn’t think twice about it," said Dave Barger, the president of JetBlue. But while business fares were rising, the Internet was beginning to give companies technological power to match what the airlines had been using against them since the 1980’s. Yield-management systems had helped the carriers figure out the maximum they could charge each flier. Priceline.com, Expedia, Travelocity and other Web sites helped companies determine the minimum they could spend on a ticket by leaving a little later, for example, or using an alternate airport served by a discount carrier. "Overnight, the airlines lost control of their product," said Cameron Burr, a partner at the Burr Group, a private equity firm in New Canaan, Conn., that invests in aviation, and a son of a founder of People Express. "People can game the system." Mr. Bethune, Continental’s chief executive, said, "They can do things they weren’t even aware of a few years ago." When the economy slowed in 2000, airline executives … read more »

Response: