FlyerTalk Forums - View Single Post - Smisek interview in "Buying Business Travel" article
Old Jul 27, 2015, 9:57 am
  #273  
airzim
 
Join Date: Aug 2006
Posts: 402
Originally Posted by BearX220
There are two discrete issues here that some may be commingling. There's the declining market for F in general, which is clear -- there is no longer much business rationale for providing true F on all aircraft, all routes. And then there's UA's refusal or inability to deliver a competitive F product.
Of course they are commingling, but it doesn't mean they aren't interrelated. There's a declining market because of two huge factors (which are completely out of the control of United).

1) Corporate traffic won't justify the expense
2) Corporate business jets which now allow US to Asia non stop

This has absolutely nothing to do with United's inability to compete. If United wanted to spend the money for suites with Dom and caviar, and up service standards to compete with some undefined premium over their Asian and European counterparts, they could certainly do it. They could have best in breed if they were willing to spend the millions.

But at the end of the day, if the market is not there. It's not there. They would waste millions in a product that nobody will purchase for the fare needed to justify the capital outlay. It would be a calamity.

Originally Posted by BearX220
Just because the market is narrowing doesn't mean it's evaporated. But today's UA backs away from any fight it can't dominate without really trying. UA is culturally incapable of matching the Asian or European F products, let alone the ME3.
Adults think in economic terms. There's no economic justification for First no matter how many ways you run the numbers.

The funny thing is, United is winning the fight. They know the market is gone. Spend the money on a new J seat, and improve your products where you can compete and reap the most financial benefit.

Last edited by WineCountryUA; Jul 27, 2015 at 1:29 pm Reason: Let's maintain civility and respect in our discussions
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