Originally Posted by
CPRich
And how exactly did that business model pan out for the legacy US carriers? I seem to recall a Chapter 11 in their past.
To enact this policy again would mean a tremendous reduction in fare sales and price reductions, as the airline would be liable for refunds on every previously sold ticket. And you can be sure, in today's world, there would be web sites that tracked your tickets and alerted you to a fare drop/refund due.
It panned out quite well. US's stock price was flat in the two years after its 2005 reorganization when we could request a non-fee credit voucher (it was never a "refund"; the money had to be spent on a future US flight anyway). Since US began charging a fee for a lower-fare credit, US's stock is off 80%.