FlyerTalk Forums - View Single Post - AA "de-preferenced" by Expedia - "suspension" now lifted April 4, 2011
Old Dec 23, 2010, 1:42 pm
  #42  
mreed911
 
Join Date: Aug 2010
Location: Texas
Programs: AA EXP, UA Premier Plat, Alaska MVP Gold, HHonors Diamond, SPG Platinum, Hyatt Platinum
Posts: 2,053
Originally Posted by ty97
Like when a network pulls its signal from a cable or satellite provider over fees, both sides are being greedy in this and throwing the consumer in the middle of their fight for higher profits. (Neither side ever gives a crap about the consumer, of course)
In essence, you're right. Both companies (AA and Expedia) care about their STOCKHOLDERS, which is exactly what they're legally required to do.

Whether this means more of a push for business extraa, or working directly with corporate travel departments, or AA simply testing the waters to see what other airlines and travel sites do, there's certainly a plan and a calculated set of risks/benefits they're watching. They've also likely determine which consumers will be affected, and how that balance will shift out. Without knowing where AA's revenue comes from (in terms of each set on the plane, each plane on the schedule, etc.), it's hard to know where they expect to see offsetting benefits and losses, but you can be sure they've made their prediction.

Either way, while they provide services to consumers, they provide VALUE to stockholders... and that's who provides the significant source of funding for their ongoing operations.
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