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UA CFO Rainey on Bloomberg: Global First "Effectively the Same" as J

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UA CFO Rainey on Bloomberg: Global First "Effectively the Same" as J

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Old Sep 4, 2014, 6:47 pm
  #61  
 
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haha that interview. well at least he's honest.
bob_the_d is offline  
Old Sep 4, 2014, 6:50 pm
  #62  
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Originally Posted by rankourabu
Of course it matters!
I am asking who in their right mind would spend their own money on United GF. The premise being if you have enough money for F, who would buy United?

Are you saying that paying with OPM vs paying your own money, you would behave the same when making purchasing decisions?
Yes.
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Old Sep 4, 2014, 6:58 pm
  #63  
 
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Coming from an over-entitled elite, I would have to say he is right... for a change.
Get rid of the GF now and make some space in the BF cabin!
Enough of this 6 across on the 777 and 763.
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Old Sep 4, 2014, 7:34 pm
  #64  
 
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The new United, modeled after CO is not a premium airline anymore. GF worked well at PMUA as it sought premium travelers and provided them with a differentiated service, even down to the ticket color. Today, The new UA resembles CO which was bland airline which service that was not premium. Hopefully if they get rid of F they will improve business as it is not premium feeling today. It is too bad to see United moving away from 3 classes as it was one of the reasons I flew them for years. I guess I will just fly American, Lufthansa, British Airways who still find value in F. I was hoping to here them make the 787s 3 classes as the J product on them does not feel premium in a 2-2-2 lay payout for 11-14 hr. Flights to Asia and Australia.
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Old Sep 4, 2014, 7:34 pm
  #65  
 
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Originally Posted by rankourabu
You paid, or was it a business/expensable/work related purchase?
That was my question.

Also, if you are paying for GF, why would you not pay for LH A380 that departs about an hour apart from the UA flight??
I paid. And as I noted in my post, it was an A fare, which was less than the cheapest UA business class fare; LH virtually never offers A fares SFO-FRA. If I was paying F, which between my firm (of which I am the principal) and I privately have done >100 times, I certainly would have booked LH, with whom I have flown over 500,000 BIS miles.
Marin 1K is offline  
Old Sep 4, 2014, 7:35 pm
  #66  
 
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Originally Posted by rankourabu View Post
Of course it matters!
I am asking who in their right mind would spend their own money on United GF. The premise being if you have enough money for F, who would buy United?

Are you saying that paying with OPM vs paying your own money, you would behave the same when making purchasing decisions?




Originally Posted by Baze
Yes.
+1
Marin 1K is offline  
Old Sep 4, 2014, 7:48 pm
  #67  
 
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Originally Posted by bob_the_d
it's only the same because they made it the same. it doesn't have to be.
Very, very true. Fly SQ, LH, NH, etc and see a real First Class.
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Old Sep 4, 2014, 7:57 pm
  #68  
 
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Originally Posted by rankourabu
Which brings on an important question:
Do people actually pay for GF? Like actual people, not someones employer, clinet or as a business expense.

Its great to hear all the GS declaring that *I* pay for GF when its not really them paying, but do actual people pay for it?

I know that people do pay for the likes of EK and CX F, but UA, I have a hard time imagining anyone but corporate spending money on GF.
I have several customers who occasionally pay for GF out of their own pockets. They generally fall into two categories:

1) GF was cheaper than BF -- this happens more frequently than one might expect with P-up, Z-up, and D-up fares for some markets.

2) They have substantial amounts of domestic travel where UA is a necessary evil, and the GS program is the only thing that makes it remotely tolerable.

I'll also add that relative comfort, privacy, and ability to fly nonstop rather than connecting are all far more important than food or other soft product considerations. I'm intensely skeptical that meaningful investment in soft product would pay dividends on any but a small subset of premium routes (which is why AA is ripping First Class out of all but a small handful of the fleet).

Edited to add: improving Business Class (across the board), on the other hand, is something I firmly believe in.
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Old Sep 4, 2014, 8:32 pm
  #69  
 
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Originally Posted by rankourabu
You paid, or was it a business/expensable/work related purchase?
That was my question.

Also, if you are paying for GF, why would you not pay for LH A380 that departs about an hour apart from the UA flight??
Do you pay for BF, or do you just upgrade into it? By the same logic, why would anyone pay for BF if a foreign carrier is available?

Originally Posted by Sykes

2) They have substantial amounts of domestic travel where UA is a necessary evil, and the GS program is the only thing that makes it remotely tolerable.
This.

Last edited by FlyinHawaiian; Sep 5, 2014 at 5:21 am Reason: multi-quote should be used
kevanyalowitz is offline  
Old Sep 4, 2014, 8:58 pm
  #70  
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Originally Posted by 1Konsultant
One of the many problems of the current UA is the lack of understanding around aspirational branding... And with Rainey's comments, it's clear the UA leadership just doesn't get it.
With the current management, part of "running the airline like a business" is the implicit view that branding and brand marketing are stupid, frivolous concerns -- a policy endorsed by some who post on this board, who have argued that branding has no influence on purchase decisions and people choose based on price or price/schedule.

But I don't think UA has the service culture to pull off the soft aspects of a true international F proposition anyway. It is not true that F doesn't matter. It is more true that, in the global airline competition, UA itself no longer matters.
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Old Sep 4, 2014, 9:01 pm
  #71  
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Smisek and Rainey - Masters of the self-fulfilling prophecy.
mahasamatman is offline  
Old Sep 4, 2014, 9:08 pm
  #72  
 
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To me, the most telling thing in the interview is the point where he says that United had a 3-class fleet, while "we" had a 2-class fleet. Looks to me as though the merger integration problems start in the C-suite.
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Old Sep 4, 2014, 9:22 pm
  #73  
 
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Originally Posted by Marin 1K
I paid. And as I noted in my post, it was an A fare, which was less than the cheapest UA business class fare; LH virtually never offers A fares SFO-FRA. If I was paying F, which between my firm (of which I am the principal) and I privately have done >100 times, I certainly would have booked LH, with whom I have flown over 500,000 BIS miles.
^^My company pays for my travel in J and, when fares allow (like when F is cheaper than J), F. But given the need to manage an expense budget and the need to be vested in my business, I would not go far at my company if I did not treat the company's money as if it were my own.
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Old Sep 4, 2014, 9:34 pm
  #74  
 
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Originally Posted by sogboulder
To me, the most telling thing in the interview is the point where he says that United had a 3-class fleet, while "we" had a 2-class fleet. Looks to me as though the merger integration problems start in the C-suite.
This is exactly the problem. People always wonder why we still say sUA and sCO. The higher ups think everything "they" did was
Wrong compared to how "we" did it.

This management team is clueless and very out of touch. It amazes me.
LASUA1K is offline  
Old Sep 4, 2014, 9:38 pm
  #75  
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Originally Posted by sogboulder
To me, the most telling thing in the interview is the point where he says that United had a 3-class fleet, while "we" had a 2-class fleet. Looks to me as though the merger integration problems start in the C-suite.
Great observation!
One more on the subject of "merger of equals" .......
cesco.g is offline  


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