Originally Posted by
FWAAA
I tend to agree, but as the forum's most vocal cheerleader for MRTC, I wonder how long AA can ignore E+ at UA and B6's latest variety (MRTC throughout the aircraft with E+ style even more room in the first few rows for an upcharge)?
Sure, the planes are full, but the yields haven't risen enough to cover increased fuel prices. So fewer low-yield seats might be the ticket.
B6 has barely broken even lately but UA's profits last year beat AA's, so E+ doesn't appear to be a money-loser (unless one argues that UA would have earned even more profits without E+, which I think is a stretch).
The longer E+ survives at UA and the longer B6 features more room, the more likely (IMO) we will see AA bring some form of coach relief to those willing to pay (if not everyone in coach).
B6 also claims the fuel savings from their reduction in seats (fewer seats, less stuff on the plane, fewer passengers and their bags etc.) have more than made up for the lost revenue. I think with planes being as full and air travel being as miserable as it is today, I think a E+ or premium economy product could work well domestically (see E+ and B6's new Super Economy and Southwest's BusinessSelect). I think if its done right, the premium you charge for the seats could more than make the difference up from a few lost O fares.