Originally Posted by
SocalApproach
AA....Last time I checked this is a how is VX still in business thread..the last thing I want to see is a snap shot of what AA is "planning" when they are probably in just as much jeopardy as VX in terms of how much longer they will be around especially with all the bad press AA has been creating itself lately. Sure lie down flat seats on a A321 sounds great but if people wont pay for it on VX what makes you think they will on AA? Surly AA will charge a premium to fly on that aircraft. UA already does with their 787...its way more expensive to fly on that as opposed to flying on a different aircraft on the very same city pair! You cant honestly think that AA can get away with not charging a premium for that product. It will not be a simple AA Advantage miles upgrade like it is now to upgrade on one of their busted cramped 767s.
About the bolded portion: VX's failure to sell enough of its premium cabin doesn't have anything to do with AA's ability to sell its premium cabin.
VX is bleeding money because it has failed to sell enough of the premium cabin seats for profitable fares. AA already sells a fair portion of its 10 First Class and 30 Business Class seats on its 10 daily flights between JFK and LAX each way every day, so its plans to duplicate its three class cabins on its new planes is simply a continuation of what's been working for AA in that market.
AA's average fare between JFK and LAX is substantially higher than the average fare collected by VX. That's not because AA gets a much higher economy fare than does VX; that's because of the effect of the F and J fares.
Branson figured he could sell premium cabin fares between the coasts and thus take away business from UA and AA (and DL, now that it has entered the market in a big way). VX has certainly been an annoyance to those competitors, but has been unable to price its product anywhere near profit-making, despite its ridiculously low labor costs.
How is VX still in business? Hope springs eternal.