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Old Jun 29, 2009, 7:37 am
  #85  
MikeMpls
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Originally Posted by tonypct
Eight years ago? You're still focusing on what happened eight years ago? And then you criticize DL for doing the right thing by backtracking?

The real question is why you continue to submit yourself to what you consider a far inferior airline.

Thanks again to all the posters who were there for continuing to update us on the Q&A session.
Who criticized DL for backtracking? Do you just make it up as you go?

Their assertion that they are retaining elite backups despite its "cost" of $150M is in indication that some at DL are still stuck in a static mode of analysis where they don't evaluate the shifts in customer behavior that results from the changes DL makes in its program. Superficially, the upgrade program costs $150M, but they will lose more than $150M in business if they drop it.

Jeff of all people should understand that the costs of dropping the upgrade program far exceed $150M. He was one of the rev. mgmt. bean counters during the sLUT fare debacles. So yes, I hope his memory goes back farther than his current position.

Originally Posted by robbert
I wonder how much of the $160 fees are calculated by extrapolating prior year award travel changes and late changes. Those used to be free or cost much less so I expect these to go lower quite a bit. At $0 or even $50 I don't think much about changing the date on a ticket but $150 becomes a whole different ballgame. That alone is enough to start looking at WN for the "cherry-picked" routes.
I've already recovered almost $800 by repricing WN itins this year. It can really add up if you're diligent about it. In fairness, however, what drove us to WN for most domestic travel was NW pricing practices. DL & the merger had little or nothing to do with it.

Originally Posted by robbert
So how much of this $160 will actually translate into actual dollars in the bank this year?
Probably not $160M because it appears they haven't taken into account lost business from alienated NW elites. Their model, as usual, is too static.

A good chunk of it might be there, however, because it represents fees that DL elites were already paying. The question is, is this offset by lost of business from NW elites?

Last edited by MikeMpls; Jun 29, 2009 at 8:08 am
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