Originally Posted by
sbm12
Not all them are. But some are and many of those are, historically, the most vocal when changes like this come along. They bemoan the loss as though they deserve more because they give all their MR business to UA. That's not the customer the company wants.
Apparently I'm not very good at math. I have no idea what your point is here.
Actually, so long as the revenue from the "last" customer is higher then the marginal cost (which is pretty much fuel) then that customer is valuable to UA. The alternative is that the seat goes empty. I am not a MRer but reality is that those folks fill otherwise empty seats. UA sets the price they think they can get from that seat. This notion that they should rid themselves of MRers is silly. They should size their capacity so that they come as close as possible to filling it at a reasonable price (i.e., profitable in the context of the entire plane). If they simply got rid of all the folks that bought tickets at below their average cost (CASM) then they would actually be in worse shape by far. And yes - I do understand P&L and have decades of business experience to support that.