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May 13, 2010Issue 263A US Airways Employee Publication
INSIDE
CLT paves the road to Rome page 2March DOT report shows improvement page 3Frequently Asked Questions page 4
Revenue Management: The Numbers Game
While not the largest, Revenue Management is surely one of themost important work groups when it comes to making a directimpact on the company’s bottom line Industry estimates are thatrevenue management techniques have an additional impact of four to six percent on a company’s revenue – this translates toan estimated $400-$600 million a year that is generated for USAirways by our Revenue Management teamThe Revenue Management department, located at CHQ inTempe, is responsible for a myriad of tasks relating to seatinventory allocation and pricing Primary responsibilities includesetting authorization and overbooking levels and monitoring andimplementing pricing changes The department’s ultimate goal:
Maximize revenue on a given ight by nding the right “mix” of leisure and business trafc. This is done by selling the right seat
to the right customer at the right time – a complex dance that theRevenue Management department handles very astutely
“The goal of the department is to make the most money we canwith the schedule produced,” said
Tom Trenga
, vice president,
Revenue Management. “While we have sophisticated tools to
help us achieve this, at the end of the day, the experience and
judgment of our analysts is what produces results.”
From left to right, Revenue Management team members
Trey Romero
,
Pam Simmermon
,
Emma Yarusinsky
,
Randeep Ramamurthy
,
Allysen Roberts
,
Levon Johnson
,
Sarah Stockton
and
Abhinav Verma
attended a recent departmental training class.
By the Numbers
• US Airways pricing analysts review an average of 100,000fare changes a day and monitor 15,000 domestic and
international markets (city pairings)
•Yield Management allocates booking class inventory for about one million ights on any given day.• Four percent of all of system revenue comes from U.S.
government contract revenue
• The department has 114 employees specializing in four
areas:o Pricing
o Yield Management
o Revenue Analysiso Operations Research
Did You Know...
• Revenue Management developed an in-house pilot program
that looks at PNR data to better forecast and set authorization
levels. Class authorization levels (Y, B, M, etc.) for a givenight are set using about one year of historical data.• Revenue Management also works with Marketing and
Schedule Planning to assist where needed such as anunderperforming market, by either offering a fare sale or theallocation of additional seats at an already great price
2
On Tuesday, volunteers,
DannielleO’Brien
, supervisor, RevenueAccounting and
Julie Valenzuela
,manager, Refunds and DocumentControl, accompanied assistance dogs
Smitty and Rusty on their rst ight at
PHX as part of Puppies In Flight Thesix-month-old pups were surrounded by passengers as they waited to board their
ight to San Diego, Calif. (SAN).
Puppies In Flight is a partnership withAssistance Dogs International (ADI), a
coalition of non-prot organizations that
train and place assistance dogs aroundthe world US Airways volunteers use
their ight benets to familiarize the dogs
with aircraft and air travel in preparation
for ights with their disabled partners.Over the past 10 years, employees have
transported dogs everywhere fromCalifornia to CroatiaJulie has volunteered for Puppies InFlight for more than four years and has
accompanied more than 25 dogs onights around the world. “Puppies in
Flight is a showcase for US Airways
volunteer opportunities,” she said. “It
allows us to meet the public in the bestof circumstances, bringing together great people with great dogs"At this time, the program is not takingon any new employee volunteers, but tolearn more about Puppies In Flight visitthe Community Relations page on Wings
Puppies learn to y with US
Above,
Dannielle O’Brien
gives Rusty some love. At left, Smitty is ready for his close upwith
Julie Valenzuela
.
US Airways launched new, daily nonstop service betweenits CLT hub and Rome (FCO) this week. The new ightcomplements daily nonstop service rom the airline’sinternational gateway in PHL to FCO.
Customers, employees, elected ofcials and members of the presscelebrated the inaugural ight with an event at CLT that culminated
with a ribbon-cutting ceremony Thursday afternoon
SVP, Airport Customer Service, International and CargoOperations,
Suzanne Boda
, Vice President, CLT Hub,
TerriPope
and Director, Government Affairs and CommunityRelations,
Chuck Allen
joined City of Charlotte Mayor AnthonyFoxx, Italian-American Chamber of Commerce Claudio Carpano
and members of the crew to launch the ight.
The event follows a press conference held at FCO last Thursdaythat presented details of the new service and US Airways’operation to members of the media
The ight will be operated with Airbus A330-300 aircraft with
seating for 30 in Envoy, US Airways’ trans-Atlantic businessclass, and 263 in the main cabin
CLT paves the road to Rome
At left, Aeroporti di Roma’sSergio Berlenghi (left) and US Sales and Marketing Manager, Italy and Greece,
Salvatore Merola
spoke to the press in Rome about new serviceto CLT on May 6. Photo courtesy of Telenews. Above, US Airways’
Chuck Allen
,
Suzanne Boda
and
Terri Pope
inaugurate CLT-FCO service with Charlotte Mayor Anthony Foxx, Italian-American Chamber of Commerce President Claudio Carpano and CLT Aviation Director Jerry Orr.
For more photos rom FCO and CLT, visit Wings.
3
March DOT On-Time Performance
(Percent o ights arriving within 14 minutes o published time)
1. United
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
83.8
2. US Airways
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
80.9
3. Delta
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
80.34. Continental
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
77.75. American
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
76.1
March DOT Mishandled Baggage Reports
(Reports fled per 1,000 passengers)
1. Continental
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.50
2. US Airways
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.92
3. United
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.724. Delta
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.805. American
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.33
March DOT Customer Complaints
(Complaints per 100,000 enplanements)
1. United
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.322. American
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.373. Continental
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.52
4. US Airways
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.83
5. Delta
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.27
March DOT report shows improvement
This week the Department o Transportation (DOT) issuedthe Air Travel Consumer Report or March. Overall, Marchwas a pretty solid operating month or US Airways – andmuch better than February, as we improved in on-timearrivals and baggage perormance. Unortunately ourperormances in those metrics weren’t enough to rank USfrst among our Big Five peers and we didn’t hit our PinchHitter on-time departure (D:00) target. As a result, wewon’t be making a Triple Play payout this month.
Because of a lag in time in which the DOT receives customer complaints, our March ratio is a reection of our customers’
experience in January and February when winter stormsimpacted our operation As a result of weather in March,complaints may run a little high for the next few months
Looking ahead to April, we ended the month with our best A14(arrivals within 14 minutes of published time), mishandled baggage reports (MBR) ratio and completion factor since our merger in September 2005. We also nished the month with on-
time departures (D:00) of 787 percent, ensuring that we’ll make
our rst 2010 Triple Play payout next month when the DOT
releases April results
Read COO Robert Isom’s complete TriplePlay letter on Wings.
In celebration of Asian-American and Pacic Islander Month,the US Airways Asian-American Pacic Islander (AAPIN)
Employee Resource Group hosted their fourth annual heritageday celebration earlier this week at CHQ Attendees feasted onchicken katsu and Hawaiian-style barbeque chicken and weretreated to a variety of live entertainment including the sightsand sounds of Tausala, a Polynesian dance group, a solo Tahitiandance and a Tai Chi demonstration
At right, Vice President, Human Resources,
Dan Pon
(far left)busts a move with the Tausala dance group. See more pictureson Wings!
A taste of the islands
S h u t t e r b u g s
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