Originally Posted by
jetsfan92588
I don't invest in Delta and don't know anything about the analysts, but this strikes me as a planned question and answer from a "friendly" to hype up investor day.
It sounds like an awful idea to me (from a passenger as well as company) perspective. And the comparison to the success of basic for main cabin is a bit bizarre.
It does seem like the dynamics of business class are quite different than main cabin, so I agree that direct comparison is tough.
That said, Delta is hardly the first carrier (albeit the first US carrier) to offer "basic business" so presumably they have seen it be successful for other airlines.
It's just meant to expand margins, not drive loyalty. Which I am sure it will. Corporates will graciously accept the "discount" which will probably be on the order the average income statement cost of Delta providing SkyMiles minus a bit of extra for Delta. Just as a hypothetical example, If it costs Delta about .65 cents per SkyMile, this likely means a 4-5% discount on the price - with 1-2% going as margin expansion.
It could absolutely backfire though as business travelers may be more amenable to avoid gaming booking systems to book Delta in order to gain status and/or miles.