The Travel Adviser: A plea to US Airways to cut its Philly fare

US Airways has had the dubious honor among SmarterTravel's readers to be picked as the worst airline.

By MARK FELDMAN
us airways 88 (photo credit: )
us airways 88
(photo credit: )
Airlines, like politicians, love to be ranked, and a plethora of studies exist, purporting to see the best… and the worst. Recently, SmarterTravel.com debuted its Readers' Choice Awards, claiming that over 7,000 readers voted in an array of categories, ranging from "best value" to "best customer service." My focus is not on the winners, but on the losers. US Airways had the dubious honor among SmarterTravel's readers to be picked as the worst airline, the "least favorite" domestic US airline and the "dirtiest airline cabin" among American carriers. Not being a huge fan of polls, it also struck me as humorous when I remembered that Israel's Ministry of Tourism and US Airways had recently announced that they would launch flights from from the US to Israel next July. This Arizona-based carrier, the fifth largest in the US, has decided to begin flying next summer nonstop to Philadelphia, the cradle of American democracy. Adding to the skies crowded with airlines flying nonstop to North America, US Airways will be competing with Air Canada, Delta, Continental and Israel's national carrier, El Al. No doubt enthused by the glowing statistics attained by Delta, which started flying from Tel Aviv to Atlanta a few years ago, US Airways has elected to bring in a spanking new airplane, the Airbus 330, and fly it to its main hub on the East Coast. But why has the hybrid company that resulted from a merger between American West based in Phoenix and US Air, based in Philadelphia, elected to enter an already crowded market? Using Philadelphia as a gateway, its market studies must have shown the potential to carve out a profitable position. Travellers should be ecstatic; more competition should result in lower fares. Far better to be able to make a choice from several airlines to which you'll give your hard earned savings. In fact, last month there was a luncheon arranged by US Airways bigwigs who took copious notes as an assessment of the local market factors were dissected. With speakers strenuously pointing out that price along with safety was the foremost factor for clients choosing an airline, their bobbing heads left observers with a warm feeling that comprehension was complete. Now fast-forward to their vaunted press conference in Tel Aviv, reported in The Jerusalem Post last week. Eager to tout another airline entering our skies, the Ministry of Tourism lauded US Airways' decision to begin the service. This is indeed something that the government of Israel should applaud. Its Open Skies policy of prodding and pushing, and probably assisting financially, can only benefit everyone who flies. The US Airways representatives were quite proud of their decision and spoke glowingly of their new aircraft. Reporters documented a multitude of numbers being presented. The number of economy seats, the number of business-class seats and the hours of the flights were all ceremoniously announced. Unfortunately, the bean counters apparently had not internalized that the price of the ticket might be of some interest as well. If we look at the history of when airlines begin flying a new route, the record is quite clear. Grab those clients by offering discounted fares. Get them to try your product and, if it's as good as you say, they'll keep coming back. Delta entered the Israeli fray by ensuring its fare was $100 less than El Al's. Clients might complain about the aircraft Delta uses on its route to JFK, but nobody feels they're overpaying. A quick check on the travel sites shows US Airways' cheapest round trip-fare to Philadelphia next summer is $1,909, with all the taxes included. One would assume that El Al and Continental's nonstop fare to Newark - an hour away from Philadelphia - would be more. Wrong. Both Continental and El Al are asking $1,633, with all the taxes included. Both airlines fly nonstop, both have excellent equipment and both will keep their market share unless US Airways changes its exaggerated prices. Look deeper and you see airlines that fly direct to Philadelphia via Europe, such as Lufthansa and British Airlines, are also requesting $300 less than US Airways. It just amazes me that an airline can invest hundreds of thousands of dollars in developing a route, hiring qualified personnel, creating a marketing campaign, and calling a press conference without investigating thoroughly what they should charge. My final hope is that with over seven months to go, US Airways will realize the folly of its fares and price its seats at a level that will fill its planes. For while Philadelphia may be the cradle of US democracy, the famous Liberty Bell that hangs there is cracked. And no airline wants cracks in its business models. Mark Feldman is the CEO of Ziontours, Jerusalem. For questions and comments email him at mark.feldman@ziontours.co.il