Delta Raises Maximum VDB Compensation to $9,950 in Vouchers
Apr 14, 2017, 5:17 pm
#91
Join Date: Dec 2009
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Does this help or hurt FCM? I just heard on the news that the offer can be up to $13,000 now. Are they better off holding back upgrades for an extra $100 or opening up more economy seats by upgrading the elites to lessen the chance of paying out a few thousand dollars and potentially up to $9-13k payout?
Apr 14, 2017, 5:25 pm
#92
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Does this help or hurt FCM? I just heard on the news that the offer can be up to $13,000 now. Are they better off holding back upgrades for an extra $100 or opening up more economy seats by upgrading the elites to lessen the chance of paying out a few thousand dollars and potentially up to $9-13k payout?
I think Delta will continue FCM with business as normal. As the Telegraph article that I posted points out Delta already has extremely low IDB numbers and the marginal cost of reducing IDB to zero, assuming that the new limit will always have takers, it very limited. Probably less than $12 million per year.
Apr 14, 2017, 7:06 pm
#93
Join Date: Mar 2014
Location: ATL
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Delta's new limit is $9,950. Maybe you heard the regulatory IDB limit of $1,350.
I think Delta will continue FCM with business as normal. As the Telegraph article that I posted points out Delta already has extremely low IDB numbers and the marginal cost of reducing IDB to zero, assuming that the new limit will always have takers, it very limited. Probably less than $12 million per year.
I think Delta will continue FCM with business as normal. As the Telegraph article that I posted points out Delta already has extremely low IDB numbers and the marginal cost of reducing IDB to zero, assuming that the new limit will always have takers, it very limited. Probably less than $12 million per year.
Apr 14, 2017, 7:09 pm
#95
Join Date: Apr 2002
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Count me among those who see this as a total PR stunt to further distract from DL's massive operational failure last week.
Because the legally required financial loss for IDB is so much lower than this in most cases, I think we will rarely see it in practice. The first manager who hands out six $8,000 vouchers will be fired. It's completely impractical.
Not only that, until now the public was pretty unaware of ceilings on compensation. Now, everybody on DL will hold out for more $$$ in every oversold situation.
Because the legally required financial loss for IDB is so much lower than this in most cases, I think we will rarely see it in practice. The first manager who hands out six $8,000 vouchers will be fired. It's completely impractical.
Not only that, until now the public was pretty unaware of ceilings on compensation. Now, everybody on DL will hold out for more $$$ in every oversold situation.
Apr 14, 2017, 7:09 pm
#96
Join Date: Jan 2012
Posts: 585
A good Daily Telegraph article on Delta's limit increase
Some interesting excepts:
Pretty neatly sums up the differences in corporate cultural...
Pretty amazing that Delta already pays over double of what AA does per pax and nearly double UA. Phenomenal customer dedication.
Some interesting excepts:
Pretty neatly sums up the differences in corporate cultural...
Pretty amazing that Delta already pays over double of what AA does per pax and nearly double UA. Phenomenal customer dedication.
Apr 14, 2017, 7:28 pm
#97
Join Date: Mar 2014
Location: ATL
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Posts: 2,038
Count me among those who see this as a total PR stunt to further distract from DL's massive operational failure last week.
Because the legally required financial loss for IDB is so much lower than this in most cases, I think we will rarely see it in practice. The first manager who hands out six $8,000 vouchers will be fired. It's completely impractical.
Not only that, until now the public was pretty unaware of ceilings on compensation. Now, everybody on DL will hold out for more $$$ in every oversold situation.
Because the legally required financial loss for IDB is so much lower than this in most cases, I think we will rarely see it in practice. The first manager who hands out six $8,000 vouchers will be fired. It's completely impractical.
Not only that, until now the public was pretty unaware of ceilings on compensation. Now, everybody on DL will hold out for more $$$ in every oversold situation.
AND at 200-400 the volunteers are slow moving. 800 usually nets all the volunteers they need. Once the 4 figures hits I have rarely seen it go further.
Apr 14, 2017, 8:15 pm
#99
Join Date: Jun 2007
Posts: 797
Sometimes it pays to be lucky. My daughter was flying from ATL to LGA recently with her two kids and when she checked in at the kiosk saw a message asking if they would volunteer to give up their seats. She asked for $300 each and as soon as she got to the gate saw the gate agent to confirm her offer. Well, it seems they needed one or two more volunteers but there were no takers for $300. Long story short the offer went up to $900 for each passenger and thats what my daughter and the kids got. They were put on another flight to LGA three hours later.
They already have reservations for Europe.
They already have reservations for Europe.
Apr 14, 2017, 8:44 pm
#101
Join Date: Dec 2010
Location: CMH
Programs: Delta SkyMiles (Silver), AAdvantage, Sun Country, FmrUS Airways Dividend Miles, Northwest WorldPerks
Posts: 353
I can't ever see it getting to the point of a $9,950 voucher being issued, but you can reroute me ATL-CMH via LAX, NRT, and MSP seven days a week for even a quarter of that.
Apr 14, 2017, 8:50 pm
#102
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Apr 14, 2017, 8:51 pm
#103
Join Date: Jan 2004
Location: MSP
Programs: AA Plat Pto, IHG Plat, HH Gold, Hyatt Globalist
Posts: 2,536
Christmas Day at MSP.
I and about half a dozen others on my CR9 pulled $1000, head count not weight. Waiting around for the next flight I heard that repeated several more times and my flight was offered a second VDB but could not get in anywhere on the east coast without an overnight so declined.
I and about half a dozen others on my CR9 pulled $1000, head count not weight. Waiting around for the next flight I heard that repeated several more times and my flight was offered a second VDB but could not get in anywhere on the east coast without an overnight so declined.
Apr 15, 2017, 12:18 am
#104
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If I am a DL lawyer, out of an abundance of caution, you have to ask the question, "what happens if... and what's the risk?" What happen if a customer gets the voucher and is travelling overseas and declares they have a financial instrument over $10K? What happens if that customer that gets the voucher then sells it to drug dealers who are attempting to launder money and in turn they flip it again (they frequently use gift cards to aid in the effort)? Although the gov can argue that DL was trying to skirt rules and should have know a large voucher like this could be used for illicit purposes, by keeping it just under $10K, it is one more added protection that at least minimizes risk.
Apr 15, 2017, 3:52 am
#105
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Both MQD and base miles use the same distance based apportioning mechanism ( segment distance / trip distance times total Delta revenue). This is not the formula used for IDB.
IDB is calculated as (Y fare for Denied segment) / (sum of Y fares for all segments on ticket individually). Walkup Y fares tend to be high-ish for everything, so this helps prevent $6 fares (which i have also experienced on SEA-YVR segments after an international trip). It's a much more generous method of apportioning cost.
IDB is calculated as (Y fare for Denied segment) / (sum of Y fares for all segments on ticket individually). Walkup Y fares tend to be high-ish for everything, so this helps prevent $6 fares (which i have also experienced on SEA-YVR segments after an international trip). It's a much more generous method of apportioning cost.