GwailoSIN

Why is PE ex Asia (checked HKG and SIN) so extremely expensive when compared with ex-US? I understand that there is a premium ex Asia due to better brand recognition but still?
I somewhat understand ex-SIN (home market, Singaporeans love SQ) but why ex-HKG where there is a super strong competitor with CX which offers direct flights?

E.g., ex-HKG SQ is extremely competitive with longhaul economy fares (obviously to compete with CX which offers direct flights) but the PE fares are ridiculous. Don't they even try to compete with CX on PE?
Load factors can't be that great if they sell it for cheap ex US?

From the US SQ is currently selling PE for USD 1,150 rt only!! ex HKG the price is double or even trip that!?

Am I missing something?

Source for ex US sale: http://onemileatatime.boardingarea.c...omy-good-deal/

GwailoSIN

Same for Europe btw. PE fares are also ridiculous.

GwailoSIN

Has anyone any thoughts on this?

Duke787

PE isn't a particularly well-known or popular product in the US since none of our big 3 have it (yet) whereas it is quite popular in Asia (and ex-HKG both SQ and CX have PE).

This sale is likely to entice some people who ordinarily buy Y to give PE a try with the hopes that long-term it'll convert them to PE for their future travels from the US to Asia.

garykung

Simple - Price discrimination:

https://en.wikipedia.org/wiki/Price_discrimination

UA's E+, DL's EC and AA's MCE are responses for PE.

FWIW - the big 3 are more interested in a la carte pricing rather than an inclusive PE package.

Duke787

Well I wouldn't quite say C+, E+, and MCE are responses for PE. Comparing E+, C+, and MCE to PE is not an apples to apples comparison. All 3 are simply Y seats with extra pitch / legroom, they don't even offer extra width compared to the rest of Y (with the exception of AA's 77W all are in the same configuration as the rest of Y just with more legroom). The only other benefit is priority boarding but those seats on DL/UA/AA don't even come with free bags unless you are an elite much less "Book the Cook."

AA and DL are rolling out true PE (AA's first 789 with true PE has been delivered though not sure if it is in service) and I would guess UA will eventually match that. AA's new PE is similar to the SQ PE in that the seats are basically the same as domestic F and will allegedly include some enhanced services as well.

garykung

Don't forget - this option has to be evaluated during the mergers.

Kacee

Airfares in general are silly expensive ex-HKG (except for LCCs).