10 Responses

  1. Cameron Kramlich
    Cameron Kramlich at |

    It’s hard to get a PRASM premium when for most customers most of the time DL, AS, WN, B6 and maybe AA offer a better product.

    Reply
    1. Tyson Vilhauer
      Tyson Vilhauer at |

      As an AA hub captive who isn’t offered comp upgrades as an elite member (without using 500 mile E vouchers and just got off a flight where first was half empty – I sat behind the curtain) I say “maybe.”

      Reply
    2. Cameron Kramlich
      Cameron Kramlich at |

      Tyson Vilhauer if it makes you feel better United rarely offers even top tier elites upgrades; they sell them to non-elites first.

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    3. Seth Miller
      Seth Miller at |

      You guys are cute talking about elite upgrades as though they are what drives the business.

      Reply
    4. Tyson Vilhauer
      Tyson Vilhauer at |

      Seth Miller I know they don’t. I was just venting about my experience yesterday!

      Reply
    5. Cameron Kramlich
      Cameron Kramlich at |

      Seth Miller The business is driven my many factors. If elites feel the value proposition is reduced, they will become more transactional which reduces PRASM. E.g. as a UA Gold this month I’ve flown on five WN flights and two AS flights. Historically all would have gone to UA, even if at a slight premium.

      Reply
  2. Addison Schonland
    Addison Schonland at |

    Anything that drives a price war suits me fine

    Reply
  3. Golfingboy
    Golfingboy at |

    Personally, in my opinion this is the right move for UA. UA’s shrinking to profitability thinking under Glenn Tilton and Jeff Smisek is the very reason I left United for AA. Their schedule simply no longer worked for me out of PIT after so many cuts and it was so bad to the point I had to overnight several times at UA hubs due to IROPs as the alternatives were either overbooked or they didn’t have a viable alternative.

    UA has the best international route network – by a mile – and their domestic infrastructure undermined that.

    Scott Kirby came in with a goal of making UA the best of the three (currently it’s the worst) and you simply can’t be the best with a meh domestic route network.

    Wall Street wants the airlines to “indirectly” work together by following each other and leave customers with very few choices rather than actually viewing the whole thing as a competitive opportunity.

    Reply

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