Originally Posted by
LarkSFO
LOL - my highlighting - ONLY possible because of consolidation?
So, are you arguing that if we still had Northwest, Continental, American Airlines, America West, Airtran in addition to the surviving United, US Airways, Delta, and Southwest, that today, even with our improved economy, prices would be lower than they are and saver award inventory would be higher?
Capacity discipline would not have happened without consolidation?
I can't argue that you are wrong (or right), because we just can't know for certain. So we speculate.
Let's just agree that the combination of a) consolidation, b) improved economy, and c) better / more disciplined capacity management has led to a less flyer friendly (ticket cost, award availability) environment.
The degree to which a, b, and c are factors, we can still argue.
IMO B has been the minimal factor. I would hardly use it as an alibi for the airlines - "Even though (name of airline) has devalued their product, FFP and increased price it's a fair trade-off for a good economy." As mentioned, when the economy goes back down, I don't see redemptions getting better. I see more capacity shrinkage, more discounts and bonus miles, but more fees and costs to redeem said miles with limited inventory.
I see new "innovations" where "pay a fee" to access expanded redemption capacity "giving our customers a choice."
Regarding the economy, as I see it the economic recovery is widely varied. Yes the stock market is at record levels but 95% of the gains have gone to people in the 1 percent tax bracket.
Fewer and fewer companies give across the board cost of living increases
Downsizing has become corporate mantra
Corporate profits have been boosted by cutting expenses not selling more
I don't see corporate travel policies loosening up. Technology is improving compliance
If you look at the downsizing/closure of LAS (HP), STL, SJU (AA), MEM/CVG (DL), CLE (UA), MKE (F9) and DL's cutbacks in MSP it all means less network options and competition from fewer players.