Originally Posted by
EWR764
To its credit, TK had an excellent PE product based on what was essentially a previous-generation business class seat. Certainly in a different category from what PE products were at the time and continue to be today. Pair this with an aggressively-priced business class with hard product that was already beginning to lag competitors and it's not difficult to see how TK's Comfort Class may have negatively impacted J demand. I also don't believe TK's pricing and revenue management was sophisticated enough to generate the kind of premium their PE product needed versus standard economy, given its low density and large cabin footprint; even considering TK's favorable cost structure. TK PE almost became a de facto *A Gold seating area, as I experienced several times.
I think a military coup, mass arrests, a falling Turkish economy, and a more and more repressive government has more to do with people electing to skip Turkey as a connection point. Three years ago I would have had no issues connecting in Turkey, today, no way. Much of TK's J traffic was connecting fares, my guess is that a PE like product is better suited for most of the (relatively smaller) turkish domestic middle class market.
I do think it is important to realize the income level, and the total number in each market who can pay air fares at particular levels, impacts heavily product demand. For example, Kirby was talking about how the coastal markets have much higher revenue premiums for United than its mid-con hubs. I say "well dugh": the median family income in SF/San Mateo/Santa Clara is $115,000. Marin is slightly higher, and Contra Costa and Alameda County are not far behind. The greater Detroit area? Well it's median family income is $56,142. Metro Atlanta? $56,850 (a 2014 figure).