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Non-Tech : VJET - FAA Approval
VJET 0.6400.0%Apr 1 5:00 PM EST

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To: Robert Gelb who wrote (73)9/30/1996 9:20:00 PM
From: Nicholas J. Begich III   of 164
 
A statement from the airline itself regarding profitability.

ValuJet is famous for providing low airfares to its customers. But most people don't really understand how
ValuJet can afford to offer such low fares when many other carriers can't.

Let's start at the beginning. Most large U.S. airlines were founded before, or shortly after, World War II. When it came to creating a
system that could account for and track the sale of seats, there was one obvious model: the train ticket. Today, despite the vast
technological advances that have taken place during the past 50 years, most airlines still use antiquated paper tickets modeled on the
train ticket. At some carriers, as many as nine people must handle an airline ticket before it is finally stored away. As you can see,
old-fashioned paper tickets cost airlines that use them huge sums in materials, personnel operations, inventory management, and
storage.

ValuJet, by contrast, is a creation of the advanced electronics technology of the 1990s. Its proprietary paperless, electronic reservations
system and completely computerized accounting procedures save ValuJet tens of millions of dollars in personnel, ticket printing and
distribution, accounting, tracking and storage costs. Additionally, because ValuJet sells travel directly to its customers and to travel
agents, we don't pay the high service charges imposed by the reservations systems owned by the major airlines. ValuJet's customers
benefit from these efficiencies in the form of lower airfares.

ValuJet's customized integrated automation system is also a vital advantage in controlling overhead costs. It is particularly useful in
greatly reducing the need for hiring and training the large numbers of clerical personnel which are employed by other airlines. At
ValuJet, our computers process most information, leaving our people free to serve our customers. The majority of ValuJet's
employees are the professional pilots, mechanics, flight attendants, customer service personnel and reservations agents who directly
serve the traveling public. Because of that, ValuJet can be both more efficient, and more customer oriented.

ValuJet saves money in other ways, too. By never requiring a roundtrip purchase or a Saturday night stay for our everyday low
airfares, we avoid the costs associated with devising and administering the complex fare structures which result from such restrictions.
This not only allows ValuJet to make air travel more affordable, but simpler and more convenient, as well. Finally, while most airline
food isn't very tasty, it is expensive to prepare and to store. ValuJet chooses not to serve food (though we do offer our customers
snacks and beverages), and the savings we realize by not doing so are also passed along to you.

Safety Comes First.

There is, however, one area in which ValuJet has never saved a penny - nor do we ever intend to. That area is safety. At ValuJet, we
believe in controlling costs, not in cutting corners. To underline that commitment, we have even gone so far as to hire a "safety czar" to
oversee every aspect of ValuJet's maintenance and safety operations, policies and procedures. General James B. Davis (USAF -
Retired) conducts his duties with the full authority of the office of ValuJet's president, Lewis Jordan.

The affordable airfare. ValuJet didn't invent the idea, but we invented the technology that makes it a reality.
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