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Old Jul 31, 08, 11:52 am   #1
 
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Staff meeting- Management concerned no other airline cut elite bonuses

Been told by US Airways staff member that at a meeting last week it was admitted that US senior management very concerned that no other carrier has followed them in cutting elite bonuses and instead responded by offering status matches.

it is really worth piling on the pressure an encouraging friends and family to call the Executive Offices and join Randy's petition. I had 6 other people sign up today.
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Old Jul 31, 08, 12:31 pm   #2
 
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That's because US Management is out of touch with what real consumers want... If all they want is Ma and Pa Kettle, fine... but then they will lose to Southwest and Jet Blue...
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Old Jul 31, 08, 12:34 pm   #3
 
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Mercifully, other airlines execs realized that pissing off our core, repeat customer was not the way to profitability.
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Old Jul 31, 08, 12:52 pm   #4
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Quote:
Originally Posted by USCHAIRMANS View Post
Been told by US Airways staff member that at a meeting last week it was admitted that US senior management very concerned that no other carrier has followed them in cutting elite bonuses and instead responded by offering status matches.

it is really worth piling on the pressure an encouraging friends and family to call the Executive Offices and join Randy's petition. I had 6 other people sign up today.
Which US airline would match this FFP devaluation aspect when it's the elite bonuses that are the main driver in the FFPs to retain the primarily/exclusively premium cabin-fare-paying repeat customers who have a choice of carrier? Not one with even screwed up management that had their head screwed on even half way.

The only way this benefit reduction would make sense for US is if it were to be phasing out the premium cabins and planning on competing even more just on price -- that too as a single-class coach-only airline with an even more gutted frequent flyer program -- or trying to lead all the airlines off the cliff by thinking it could be the leading lemming on the march to compete even more on just price. Unfortunately for US management, the other US airlines are too afraid of losing premium cabin-fare paying repeat customers to follow them and pay the price for losing high-margin business.
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Old Jul 31, 08, 12:54 pm   #5
 
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I concur with GUWonder.

US thought it'd be a trendsetter and every other airline would say, "If you can't beat them, join them." Instead the other airlines just said "let's beat them" and showered US VFFs with status matches.

Stupid. Stupid. Stupid.
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Old Jul 31, 08, 2:43 pm   #6
 
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Originally Posted by USCHAIRMANS View Post
Been told by US Airways staff member that at a meeting last week it was admitted that US senior management very concerned that no other carrier has followed them in cutting elite bonuses and instead responded by offering status matches.
Point of clarification: To my knowledge, none of US's competitors actively sought out US elites for the purpose of status-matching. US's elites actively sought out status matches to other carriers......who were more than happy to match their status (without a fee attached). I think that speaks volumes on how US's elites feel about the loss of bonus miles.

Travis was wrong that CP's "have all the miles they need."
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Old Jul 31, 08, 4:58 pm   #7
 
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US's elites actively sought out status matches to other carriers......who were more than happy to match their status (without a fee attached). I think that speaks volumes on how US's elites feel about the loss of bonus miles.
Not to mention that fact that since CO is now joining *A, a FF could match to CO, earn bonus miles, and the 500 mile minimum while still earning *A miles.
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Old Jul 31, 08, 5:21 pm   #8
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US management shouldn't worry too much. They will all be out of a job in 12 months time max anyway.
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Old Jul 31, 08, 6:47 pm   #9
 
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Quote:
Originally Posted by SS255 View Post
Point of clarification: To my knowledge, none of US's competitors actively sought out US elites for the purpose of status-matching. US's elites actively sought out status matches to other carriers......who were more than happy to match their status (without a fee attached). I think that speaks volumes on how US's elites feel about the loss of bonus miles.

Travis was wrong that CP's "have all the miles they need."
Didn't Delta offer bonus miles from US's hubs when US dropped the 500 minimum? Not a direct marketing of US elites but close to it.

Edit: Found the link http://biz.yahoo.com/pz/080320/138624.html

The writing was on the wall for US elites when they cut down the size of the first class cabins last year. I've sat a few times this year on Delta's 26 seat first class on a 757 (with individual TV's & real first class service) and was so glad I made the move.

I may have to fly PIT-BDL on US in September and it's killing me. I checked Delta and NW and neither has times that will work (I'm willing to connect in DTW or CVG even though I'm backtracking).

Last edited by debbieb; Jul 31, 08 at 6:55 pm.. Reason: added link
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Old Jul 31, 08, 8:54 pm   #10
 
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Originally Posted by USPhilly View Post
Not to mention that fact that since CO is now joining *A, a FF could match to CO, earn bonus miles, and the 500 mile minimum while still earning *A miles.
Ding ding! We have a winner. Unlimited domestic upgrade program, 500 mile minimum, and soon to join *A- i think CO is going to be the biggest beneficiary of US's idiocy.

I concentrated my flying on CO/NW this year and got to mid-tier, instead of bottom tier on CO and US like last year. Thank you, US, for showing me the light!
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Old Jul 31, 08, 9:28 pm   #11
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US trails every other legacy in cash generation and unit revenue increases; yet the brain trust in Tempe thought that limiting the number of miles it printed to award to its own elites was the ticket to right the sinking ship. Now, US trails the industry not only in cash generation and unit revenue increases but also in elite frequent flyer satisfaction.

Way to go, Parker. Nice Hat Trick. Have another on me.
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Old Jul 31, 08, 9:29 pm   #12
 
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Quote:
Originally Posted by USCHAIRMANS View Post
Been told by US Airways staff member that at a meeting last week it was admitted that US senior management very concerned that no other carrier has followed them in cutting elite bonuses and instead responded by offering status matches.

it is really worth piling on the pressure an encouraging friends and family to call the Executive Offices and join Randy's petition. I had 6 other people sign up today.
Hopefully it will be rescinded quickly by US and other the other airlines will learn from US' stupid, stupid move.
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Old Jul 31, 08, 10:37 pm   #13
 
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Originally Posted by USPhilly View Post
Not to mention that fact that since CO is now joining *A, a FF could match to CO, earn bonus miles, and the 500 mile minimum while still earning *A miles.
moreover, earn bonus miles at a significantly higher rate than the soon-to-be-discontinued DM levels...
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Old Aug 1, 08, 1:03 am   #14
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The problem they face is that this move has proven that they'll throw elites under the bus if it suits them, leaving aside the number of other things they've done to make that point clear. Even a reversal of the policy at this point is not enough to mitigate the damage.
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Old Aug 1, 08, 6:33 am   #15
 
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The problem they face is that this move has proven that they'll throw elites under the bus if it suits them, leaving aside the number of other things they've done to make that point clear. Even a reversal of the policy at this point is not enough to mitigate the damage.

I agree that substantial damage has been done. Indeed, last night I spent time on Seatguru, Continental.com, and United.com reviewing seat maps and schedules for my commonly flown destinations.

Lots of 757s and lots of A320s which means at least as many upgradeable seats as on US. Since I will be only SP soon, I will at least have the * Silver status to bring to UA and that will at least allow me to avoid the baggage fees....
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