Originally Posted by raptor288

Unless the flight is oversold, it seems that an MR itinerary might add revenue to United. (If it is oversold than the connection probably gave united less money than a pax on a 'normal' route).

from what I recall, each additional segment in a MR sometimes adds a little to the price of the ticket (but i might be wrong). i.e. those 20 minute emb-120 flights off of LAX and SFO that used to get 500miles for like 20 miles traveled still cost like 10 or 15 dollars each way. Even though that is definitely under the marginal cost of the seat, if the flight isn't going to be full, than at least it is earning more money.

Additionally, one could argue that the ability to do the MR means someone gets the extra miles to get status which then could lead to increased loyalty and long term value. Even the lowest level of status at United gives a lot of perks, which could make a customer loyal and choose to stay with United. if you are premier at United, and nothing at American, you might be likely to try to book only on united, if you had 23000 (or even 24.5k) and thus got no status on United, you might split between the two.

Personally, I think allowing MRs is good for business becuase it rarely blocks out someone who would have paid more, and the people who actually care enough to do an MR are the people that might actually stay loyal because they recognize the value of the benefits.