US Airways Dividend Miles (Pre-FlightFund Merger) - SimpiFares vs GoFares
www.iflyswa.com
Aug 19, 04, 8:23 pm
anyone see delta's announcement of SimpiFares out of CVG? Interesting contrast to GoFares. Unlike GoFares, which SimpliFares actually offer something new to consumers. GoFares is essentially a marketing gimmic--something only offered in markets with significant low cost competition--it just puts a fancy catch phrase on something U was forced to do anyways. In contrast, it appears SimpliFares will be offered from all markets--in a hub with little low cost competition--it is truly an attempt at being proactive rather than reactive.
geo1005
Aug 19, 04, 8:31 pm
kind of like peanuts and FA's who crack jokes during the safety announcements... :rolleyes:
whlinder
Aug 20, 04, 8:26 am
Hey give US some credit, they have GoFares PHL-SYR! That has no LCC competition!
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In all seriousness, I wonder if DL read the quote from some WN executive (can't remember who) that basically said if US had GoFares before WN decided to come to PHL, they wouldn't have come at all.
I suppose DL figured it would be smarter to reduce revenue slightly through SimpliFares and look good in doing so, than to have WN or someone else come and hurt their revenue even more.
jhpark
Aug 20, 04, 9:16 am
Oh please. If *any* of the airlines had been proactive instead of reactive, there wouldn't be any LCCs. Apart from some of the majors having become them.
777lvr
Aug 20, 04, 9:27 am
Yes...
I too wouldn't crown Delta so fast as a trailblazer with the SimpiFare initiative. The reality is that this marketspace is in deep trouble and those that fail to adjust, transition and recreate themselves will ultimately fail.
At the end of the day, I think all of us should pray that GoFares don't go away with the rest of Usairways.
NeoOfTheCRS
Aug 20, 04, 10:01 am
LOL!! :D
That is too funny geo! Thanks for the laugh :D
kind of like peanuts and FA's who crack jokes during the safety announcements... :rolleyes:
www.iflyswa.com
Aug 20, 04, 10:12 am
Hey give US some credit, they have GoFares PHL-SYR! That has no LCC competition!
---
In all serious, I wonder if DL read the quote from some WN executive (can't remember who) that basically said if US had GoFares before WN decided to come to PHL, they wouldn't have come at all.
I suppose DL figured it would be smarter to reduce revenue slightly through SimpliFares and look good in doing so, than to have WN or someone else come and hurt their revenue even more.
Nicely said whlinder--by being proactive, and not waiting for low cost competition to reduce fares, Delta has markedly reduced the probability it will face low cost competition in CVG and may be able to maintain a modest fare premium. U's GOFARE strategy is essentially the same strategy it used to compete with SW in California and BWI. The outcome of the strategy is likely to be the same in PHL.