FlyerTalk Forums - View Single Post - Do You Think UA Will Lose a Lot of Revenue With Fewer MR?
Old Jul 2, 2013 | 7:58 am
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STS-134
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Originally Posted by vandrei
The problem is that without many of those perks, UA is uncompetitive on some routes.



VX and UA are frequently the same price on IAD-SFO and IAD-LAX. The majority of my friends refuse to fly UA economy but love VX economy. Others swear by WN and have asked me why I continue to drink UA "Kool-Aid."
That's the problem. When you have a crappy product, you are forced not to match your competitors' prices, but to significantly undercut them. One of the things keeping UA's prices in line with its competitors is the fact that UA elites will pay a premium for the opportunity for upgrades, and to get the miles to maintain their elite status. If that goes away due to the PQD requirements, Jeff & Co will be forced to either match the competitors' quality of service, or lower prices further. Given that Jeff & Co don't seem to be capable of doing the former, they'll probably be doing the latter, which will hurt UA's numbers even more.
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