FlyerTalk Forums - View Single Post - Jetblue bumps 15 passengers! (voluntary bumps)
Old Jan 7, 2004, 11:12 pm
  #20  
mymiles2go
 
Join Date: Jan 2002
Location: Once Seattle...then DC....now CDG.
Posts: 4,059
Actually, that statistic is a bit concerning. And I'm saying that as a stockholder.

Why?

Because bumping ALWAYS results in more money for the airline - and if done correctly (overbooking that is), then in the end the passengers don't get invol bumped often, and the airline attains maximum revenue.

Obviously, Jetblue hasn't perfected overbooking to a science as they only overbook 15 people in 9 months. What that means is one of the following:

A) They quite simply aren't filling capacity as much as one might think

or, more likely

B) They are underselling thier flights.

Either way, it's a bit concerning as a stockholder that JetBlue isn't trying to maximize revenue. Bumps are part of the airline business - obviously, the idea is to always end up with VDB's and not IDB's (that's the art part of it). If you end up with VDB's, then the airline financially always comes out ahead.. Now, if the airline starts to IDB, then they begin to sacrifice a customer impression for financial gains. That is where a carefull balancing act begings - often where many carriers go wrong. However, looking at the AA statistic given above, they've done pretty well with only 3,500 IDB's given how many flights and passengers they've had. That means that 99.99990583 percent of the time they (AA) got it correct (keep in mind, that getting is correct includes VDB's, where IDB's are getting it incorrect - from a customer service point of view).

Anyways...food for thought.
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