Originally Posted by
superangrypenguin
Also, if AC is announcing 10 across 777, then UA has to announce 10 across 777 otherwise it loses fare wise. And since customers are cheap/tight with their money, if AC charges $300, and UA charges $350 with 9 across, what do you think customers are going to pick? I'm seriously asking here.
Also, based on your theory, why doesn't an airline just charge $400 for a 25" pitch?
I'm seriously asking. Why would that not work? (there is an answer in my head)
AC would only charge $300 if it had to lower fares to stimulate demand. If sufficient demand already exists at $350, it won't lower fares. At that point, UA is only losing profit-wise, not fare wise. Not that UA's Hawaii 777s are competing with AC's (cabotage and all).
Besides, as you pointed out, more people are flying today. Densifying helps airlines capture volume efficiently. What's the other option: letting the competitors take them all?
I'm not sure about the physical applicability of a 25" pitch, but I will point out that AC is charging >$400 for 29", which is literally multiples of what FR is charging for the same physical product. Is the pax cheap or is the airline inefficient?