Originally Posted by
bocastephen
The number of customers willing to pay $1.5-2k for F is a tiny fraction of the number of customers who would pay $900. We're not exactly in an economic boom here.
You have to model the numbers, but there are fares much higher than $2,000 out there, and people do pay those fares.
So what are you going to pay now? $600 instead of $900? There are only 8-20 F seats on the plane, so call it say 15 on average. So if they lose $300 x 15 = $4,500 in lost B-fare revenue, and they sell say just 3 F seats at the higher premium prices, they break even.
That leaves 12 more seats to sell as economy seats, and run UDU. That's the gravy.
I simply no longer trust the decisions and changes coming from CO's new leadership -
It's worth keeping in perspective that 1) this is how UA did it; 2) UA has outperformed CO and the industry in terms of revenue generation for years; and 3) Management from the former CO now has access to UA's data.
If this were not the right thing to do for the COmpany, they would not be doing it.
and without our Insider here to add context to these changes, it's just too easy to expect the worst...and I think that's exactly what's coming (ripping out 25-50% of the F cabin).
I'm fine with that, so long as there's E+. I didn't see much of CO's F cabin anyway (except for B-Ups).
