Isn't this exactly the problem of the airlines are facing? Loyalty is about giving something back to the customers and hoping the customers will return in the future. When bankrupcy is imminent, the future is now. If airlines really are trying to avoid going under, they should try to squeeze every penny possible out of every flight and other operation NOW. When the economy recovers, they sure can raise the price again.

The fact that airlines are giving away potentially revenue away by holding biz class fare high is simply suicidal. Just 2 years ago, my company actually URGED me to fly biz class to Europe for $7000 when I SUGGESTED that I didn't mind flying $1000 coach. This year, the same company is heavily SCRUTINIZING my $400 domestic ticket. What am I trying to say? The vast majority biz class paying pax are real business travelers. And biz travelers' behavior is strongly related to how the economy performs. The fact that airlines are not recognizing our economy is in deep trouble really have me worried. I just pulled out a typical biz class ticket for $3276.50 SFO-JFK on UAL.com. I'll bet that all of the biz class tickets will be unsold and become upgrade baits for mileage runners.

As for retaining brand quality, you think having a whole bunch of mileage runners in business class paying $150 SFO-BNA really help the brand?

Why not trying to sell these tickets at a reasonable level now? Maybe someone will pay a few extra dollars for them?

Just an exercise:
United airlines says they are losing a million dollar a day, and they are flying ~2000 flight daily. That means they are losing ONLY $500 per flight. If 3 coach pax are willing to pay $200 more to secure biz seat, UAL can actually be profitable...

[This message has been edited by FT wannabe (edited 08-24-2002).]

[This message has been edited by FT wannabe (edited 08-24-2002).]