13 Responses

  1. jetsetr
    jetsetr at |

    Re: The operational performance data in the chart, for the legacy carriers, is that only mainline, or does it also include regional operators?

  2. AnonCHI
    AnonCHI at |

    Good post Seth. I think it will be interesting to see how this plays out.

    “Earned” vs. “earnt”. Both are correct but the latter is 0.5% as often used as the former.

  3. legalalien
    legalalien at |

    Well…if these fares are going to be like the DL’s E fare, then we *do* know a bit about them. What I’m not sure about, is how introduction of these fares is going to benefit me, a frequent business traveler who now consciously picks AA over NK to get a better product and enjoy flexibility that FF status provides.

  4. Erick Grana
    Erick Grana at |

    One innovation we would all support: an improved, consistently good domestic First Class product, since their present product sucks.

  5. Dave
    Dave at |

    Kirby / Parker are smart. This analysis is right-on from a business perspective, whether or not customers like it. And – sigh of relief that they know airline within airlines don’t work in the US!

  6. travelsavant
    travelsavant at |

    Good analysis Seth. Currently, not too frightened by the announcements as it appears that if I want the full package & pay for it, I’ll get it, whereas, if all I need is a cheap seat for a quick flight, that’s available too. Until proven otherwise, sounds like a workable plan for both AA & me.

  7. Michael D
    Michael D at |

    From the 87:13 ratio you can say the frequent flyer contributes about 6.7 times then the one time customer. But if the frequent flyer flies 7 times a year then flight to flight the frequent flyer is paying less per ticket.

    If I weren’t able to use my GPUs to defer the cost of TPAC BF/GF travel for myself and cheap miles for TPAC BF/GF for my wife I wouldn’t be nearly as loyal to United.

    Looking at American’s ratio of frequent to non-frequent travel is making me seriously consider giving them a try. I just don’t see/hear of American selling so many and so cheap of miles as United. At the same time if award tickets become harder or more expensive then this won’t be such a strong factor.

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