Originally Posted by
Bay Area Blue
Remember that AS is a business that is trying to make a profit while providing customers with low fares. Less seats equals a higher CASM and more seats equals lower CASM. If AS were to remove seats but stil try to be competive in terms of costs with other carries, they would start to see negative margins on flights. I am all for rewarding those Elites who travel with a sepcific carrier as a way of "Thank You for Your Business" but remember the bottom line that the airlines are in the business of making a profit and being competitive at the same time. Just my 2 cents.
You're right in pointing this out. But CASM would also drop somewhat due to lower fuel costs and lower FA costs (in the case of the 738). I don't know if that would be enough to offset the increase as you describe, but it would at least ameliorate it somewhat. And if my theory is right, as an upsale product, even to elites, it could generate additional revenue, ultimately increasing RASM. Again, though, the only way to be sure is to test the concept.