Lost by Joe Brancatelli
Dec 8, 2006, 5:08 am
#1
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Lost by Joe Brancatelli
LOST By Joe Brancatelli
December 5, 2006 -- By any rational business standard, John Goldener is exactly the kind of frequent flyer that US Airways can almost never lose. By every logical business measure, John Goldener is also the kind of premium-class passenger that US Airways should never want to lose.
Goldener's disenchantment began when US Airways cut its twice-daily Paris flights back to one. It escalated when he heard that the carrier--alone among major international airlines--is slashing the size of its business class and will soon pull 12 seats from its current 42-seat cabins.
For the rest of the story you will need to visit www.joesentme.com
December 5, 2006 -- By any rational business standard, John Goldener is exactly the kind of frequent flyer that US Airways can almost never lose. By every logical business measure, John Goldener is also the kind of premium-class passenger that US Airways should never want to lose.
Goldener's disenchantment began when US Airways cut its twice-daily Paris flights back to one. It escalated when he heard that the carrier--alone among major international airlines--is slashing the size of its business class and will soon pull 12 seats from its current 42-seat cabins.
For the rest of the story you will need to visit www.joesentme.com
Last edited by safetymom; Dec 9, 2006 at 10:29 am Reason: Copyright issue
Dec 8, 2006, 6:02 am
#2
Join Date: Sep 2000
Location: Tampa, FL, USA
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Posts: 1,122
What a sad commentary . . . especially since US Airways' business class product is profoundly inferior to other international carriers.
I'm still waiting to hear back from them on a piece of my TravelPro luggage that they shredded four months ago.
I'm still waiting to hear back from them on a piece of my TravelPro luggage that they shredded four months ago.
Dec 8, 2006, 6:58 am
#3
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Wow.
What arrogance.
Dear. Mr. Christ - What percentage of revenue do CP's account for to US' bottom line? On any given trans-atlantic flight, what are the highest profit-margin seats? Who, on average, is sitting in those?
And the most important question, how can a business succeed if it alienates its customers?
If US is really doing what Mr. Christ implies then why don't they do away with the whole Dividend Miles program and elite levels today. We obviously mean nothing to them (although I for one already figured that out...)
longing4 thanks for posting that article!
What arrogance.
Dear. Mr. Christ - What percentage of revenue do CP's account for to US' bottom line? On any given trans-atlantic flight, what are the highest profit-margin seats? Who, on average, is sitting in those?
And the most important question, how can a business succeed if it alienates its customers?
If US is really doing what Mr. Christ implies then why don't they do away with the whole Dividend Miles program and elite levels today. We obviously mean nothing to them (although I for one already figured that out...)
longing4 thanks for posting that article!
Dec 8, 2006, 7:12 am
#4
Join Date: Nov 2002
Location: San Francisco, CA
Programs: US CP, *wood Gold, Marriott gold, Hilton something
Posts: 1,458
Longing, thanks for posting this.
I'll preface this by saying that in my recent experience in getting a call from someone in DP's office (there was a sticky about it) things were quite different. I got the sense that Debbie, the person I spoke with, really cared about my business and wanted to help.
That being said, its pretty clear that US intends to be the costco of carriers. And maybe that makes sense for them. There are more people out there who think 'for $300 to pairs, I'll sit in a wooden box for 7 hours..." than "My company or personal finances allow me to spend $1500 on an inferior Envoy ticket". They are catering to a market that clearly makes sense to them.
What makes me frustrated and sad is that their direction is not in keeping with my preferences. I'd like to keep flying US and have them become one of the best airlines in terms of both products and customer service. But it doesnt look that we share the same view. And as long as I'm flying for my job and away from my wife and home every week, I want a good product and good perks. It sounds like US is moving out of that market.
Perhaps the follow up question is: will other airlines follow this pattern? IF there is more money to be made in the LCC market, won't they all go that route? If not, what are my options? I guess thats up to me to sort out...and maybe I'd better do it before 2007 gets here.
I'll preface this by saying that in my recent experience in getting a call from someone in DP's office (there was a sticky about it) things were quite different. I got the sense that Debbie, the person I spoke with, really cared about my business and wanted to help.
That being said, its pretty clear that US intends to be the costco of carriers. And maybe that makes sense for them. There are more people out there who think 'for $300 to pairs, I'll sit in a wooden box for 7 hours..." than "My company or personal finances allow me to spend $1500 on an inferior Envoy ticket". They are catering to a market that clearly makes sense to them.
What makes me frustrated and sad is that their direction is not in keeping with my preferences. I'd like to keep flying US and have them become one of the best airlines in terms of both products and customer service. But it doesnt look that we share the same view. And as long as I'm flying for my job and away from my wife and home every week, I want a good product and good perks. It sounds like US is moving out of that market.
Perhaps the follow up question is: will other airlines follow this pattern? IF there is more money to be made in the LCC market, won't they all go that route? If not, what are my options? I guess thats up to me to sort out...and maybe I'd better do it before 2007 gets here.
Dec 8, 2006, 7:38 am
#5
Join Date: Jul 2003
Posts: 4,531
Smug arrogance run amok.
Indeed, this airline can't be all things to all people.
It certainly can't be anything to me anymore.
Indeed, this airline can't be all things to all people.
It certainly can't be anything to me anymore.
Dec 8, 2006, 8:45 am
#6
Join Date: Nov 2005
Location: RDU
Posts: 818
My $0.02:
"We don't arbitrarily give our product away and we think that we offer a good product for a fair price"
Really? I'm curious what AA and UA's answer to that would be with their EVIPs and SWUs. It's called rewarding your most loyal customers. The cost of "giving away" that seat (that may go out empty otherwise) is nothing compared to the loss of a high revenue customer.
The whole Costco vs Nordstroms arguement just blows my mind. Most fares in most markets across most airlines are roughly equal because for the most part, an airplane ticket is a commodity. If you undercut your competition, they'll just match your price to stay compedititve in the market. So does US think they'll just be 10-20% lower than all the other carriers (legacy and LCC) and expect them not to match? Then, when the other carriers with their live TV and flat beds match your price, what incentive do I have to fly with your crappy airline?
And where are these "discount economy fares"? Most fares I've seen over the last few months are for the most part the same as the market rate, or slightly higher. Right now I'm trying to book a BOS-TPA flight in March. DL/CO/AA all have it at $273, at with DL I can fly non-stop. US wants $429. Where's the value there?
"We don't arbitrarily give our product away and we think that we offer a good product for a fair price"
Really? I'm curious what AA and UA's answer to that would be with their EVIPs and SWUs. It's called rewarding your most loyal customers. The cost of "giving away" that seat (that may go out empty otherwise) is nothing compared to the loss of a high revenue customer.
The whole Costco vs Nordstroms arguement just blows my mind. Most fares in most markets across most airlines are roughly equal because for the most part, an airplane ticket is a commodity. If you undercut your competition, they'll just match your price to stay compedititve in the market. So does US think they'll just be 10-20% lower than all the other carriers (legacy and LCC) and expect them not to match? Then, when the other carriers with their live TV and flat beds match your price, what incentive do I have to fly with your crappy airline?
And where are these "discount economy fares"? Most fares I've seen over the last few months are for the most part the same as the market rate, or slightly higher. Right now I'm trying to book a BOS-TPA flight in March. DL/CO/AA all have it at $273, at with DL I can fly non-stop. US wants $429. Where's the value there?
Dec 8, 2006, 10:27 am
#7
Join Date: Jan 2001
Location: Los Angeles
Posts: 758
Continued things like this are the main reason I have switched to CO. They comped my silver status and on the 4 flights I had with them last week, everyone I had interactions with could not have been nicer. The aircraft interiors were clean and in good condition. I even got fed on 2 of the flights in coach.
Only downside is no power ports and pitch in coach is a little tight. Regardless, CO's getting all the business I can give it.
Only downside is no power ports and pitch in coach is a little tight. Regardless, CO's getting all the business I can give it.
Dec 8, 2006, 10:53 am
#8
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Depends on the aircraft. No power ports on ERJ's. I'm not sure about the 737-500's and 737-300's. However, all of the 737-700/800/900, 757-200/300, 767-200/400 & 777s have Empower power ports in the elite seating area (on the narrowbodies, that's the exit rows and all Y seats in front of them). CO is also undertaking a fleet renovation program to add AC power ports to its fleet over the next year...so no more need for a converter. Also, starting with the 757-200's, CO's longhaul aircraft are scheduled for AVOD upgrade (and not just in BizFirst).
Dec 8, 2006, 11:02 am
#9
Join Date: May 2001
Location: MCO
Posts: 1,598
Thanks for the article. I know how that person feels. I don't have the mileage that he does in a year but US is clueless on how to treat a frequent flyer.
What a shame they don't want our business anymore.
What a shame they don't want our business anymore.
Dec 8, 2006, 11:10 am
#10
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An attitude of arrogance that will put the airline right back into Ch. 11 or worse. What is it Ch. 33?
Dec 8, 2006, 11:16 am
#11
FlyerTalk Evangelist
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Location: A festering pit; a pustule of a fistula set athwart the miasmic swamps of the armpit of the Gulf of Mexico - a Godforsaken wart upon a dark crevasse of the World. (IAH)
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Chapter 7 is the one where the whole turkey gets carved up...
Dec 8, 2006, 11:18 am
#12
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Dec 8, 2006, 11:26 am
#13
Join Date: Dec 2005
Location: Hopefully on a plane...
Posts: 6,580
This article again reminds me why I (and most Delta flyers) are praying that US/HP doesn't get creditors approval for their takeover.
Dec 8, 2006, 11:32 am
#14
Join Date: Feb 2006
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Dec 8, 2006, 11:37 am
#15
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LOST By Joe Brancatelli
And he added another fillip: Christ suggested that Goldener should appreciate that he'd been called by the vice president of marketing of an airline. "I know a lot of Chairman's Preferred members would consider that a tangible benefit," Christ said.
And he added another fillip: Christ suggested that Goldener should appreciate that he'd been called by the vice president of marketing of an airline. "I know a lot of Chairman's Preferred members would consider that a tangible benefit," Christ said.
Why would that be a tangible benefit to hear him say they are Costco. If Nordstroms has the same price for a product and great customer service, why would I go anywhere else?