Originally Posted by
channa
I think the point is that CO doesn't believe in the idea of a premium transcon product (Larry has said as much). It's not like they're wanting to do it when they have the fleet slack to do so.
And what are they paying? The amount that you pay on CO EWR-LHR in BF will get you JFK-LAX on UA in p.s.
My point exactly. If UA could get away with it, they would operate only international flights (pacific) and the PS flight, which as I understand it is a
cash cow.
Quoting the WSJ "United's average ticket between New York and Los Angeles was $884 round trip, while regular United service between Newark, N.J., and Los Angeles averaged about half that -- only $448 round trip."
Originally Posted by
channa
That's the problem. CO's premium cabins are very often the cheapest ones out there. The concern is that CO is not charging enough, thereby leaving revenue on the table, and also affecting Elites by selling off upgrades for too small a premium.
So selling fewer F seats at a higher price, plus additional Y seats sold may result in higher revenue overall.
Revenue management probably has the numbers to refute that theory, but I am often surprised at how low CO prices their premium products. It's too easy to be CO* - depending on your travel patterns/budget.