RDU-LGW to remain B777
Feb 25, 2006, 10:46 am
#31
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Originally Posted by JonNYC
That doesn't comport-- even remotely-- with current published J-fares, ex-RDU. Published "full J" is over $4000 one-way.
Feb 25, 2006, 10:49 am
#32
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40 J seats PER DAY? I just don't get it. I work for a pharma company (albeit much smaller than GSK), but I can't fathom this much movement between the USA and UK HQ. 
I have friends that work in big pharma, and regions often work relatively independently, and meet a few times per year to collaborate, and speak on the phone often. This is withing R&D, Marketing and Business Development. Not nearly this much movement just to go between company offices.
But 40 paid J per day???
I have friends that work in big pharma, and regions often work relatively independently, and meet a few times per year to collaborate, and speak on the phone often. This is withing R&D, Marketing and Business Development. Not nearly this much movement just to go between company offices.
But 40 paid J per day???
Feb 25, 2006, 10:51 am
#33
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Originally Posted by justageek
I think he was quoting what his employer paid (?) A ~40% corporate discount isn't completely out of the realm of believability...
There is an -I- fare listed for $2670.00 r/t.
But "full J" means one thing-- full, published, J fare.
Feb 25, 2006, 10:51 am
#34
Join Date: Jan 2001
Location: Bellevue, WA - AA EXP 3MM
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Well, if the published fare is $4000 each way, that's $8000 round-trip. $2500/$8000 is 31% -- meaning the company's discount would be 31% of full-fare, or 69% off. That's a good bit more than 40% off -- but still not inconceivable, it seems to me, if the company guarantees sufficient business to AA.
Can AA turn a profit selling 50 J seats at $1250 one-way (say, filling J and F with this fare), plus a pittance in coach? That's $60k of revenue from J+F, plus perhaps 100 seats in coach at $250 each (another $25k), or $85k total revenue. Is that enough to pay for fuel, staff salaries, amortization of the 777, and AA"s other inevitable expenses? Someone could compute these expenses based on CASM, or better yet some calculation that's more specific to this route (since long-haul costs should be lower than short-haul costs, on a per-mile basis).
Can AA turn a profit selling 50 J seats at $1250 one-way (say, filling J and F with this fare), plus a pittance in coach? That's $60k of revenue from J+F, plus perhaps 100 seats in coach at $250 each (another $25k), or $85k total revenue. Is that enough to pay for fuel, staff salaries, amortization of the 777, and AA"s other inevitable expenses? Someone could compute these expenses based on CASM, or better yet some calculation that's more specific to this route (since long-haul costs should be lower than short-haul costs, on a per-mile basis).
Feb 25, 2006, 10:53 am
#35
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Originally Posted by BenjaminNYC
40 J seats PER DAY
Feb 25, 2006, 10:56 am
#36
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Originally Posted by bedelman
Well, if the published fare is $4000 each way, that's $8000 round-trip. $2500/$8000 is 31% -- meaning the company's discount would be 31% of full-fare, or 69% off. That's a good bit more than 40% off -- but still not inconceivable, it seems to me, if the company guarantees sufficient business to AA.
Can AA turn a profit selling 50 J seats at $1250 one-way (say, filling J and F with this fare), plus a pittance in coach? That's $60k of revenue from J+F, plus perhaps 100 seats in coach at $250 each (another $25k), or $85k total revenue. Is that enough to pay for fuel, staff salaries, amortization of the 777, and AA"s other inevitable expenses? Someone could compute these expenses based on CASM, or better yet some calculation that's more specific to this route (since long-haul costs should be lower than short-haul costs, on a per-mile basis).
Can AA turn a profit selling 50 J seats at $1250 one-way (say, filling J and F with this fare), plus a pittance in coach? That's $60k of revenue from J+F, plus perhaps 100 seats in coach at $250 each (another $25k), or $85k total revenue. Is that enough to pay for fuel, staff salaries, amortization of the 777, and AA"s other inevitable expenses? Someone could compute these expenses based on CASM, or better yet some calculation that's more specific to this route (since long-haul costs should be lower than short-haul costs, on a per-mile basis).
Feb 25, 2006, 11:01 am
#37
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Originally Posted by JonNYC
The person who posted that fabricated number is no longer with us (and for very good reason) and there's not a reason in the world to take ANYTHING they said seriously.
Feb 25, 2006, 11:02 am
#38
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Originally Posted by JonNYC
That doesn't comport-- even remotely-- with current published J-fares, ex-RDU. Published "full J" is over $4000 one-way.
Feb 25, 2006, 11:02 am
#39
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Originally Posted by bedelman
Well, if the published fare is $4000 each way, that's $8000 round-trip. $2500/$8000 is 31% -- meaning the company's discount would be 31% of full-fare, or 69% off. That's a good bit more than 40% off -- but still not inconceivable, it seems to me, if the company guarantees sufficient business to AA.
Can AA turn a profit selling 50 J seats at $1250 one-way (say, filling J and F with this fare), plus a pittance in coach? That's $60k of revenue from J+F, plus perhaps 100 seats in coach at $250 each (another $25k), or $85k total revenue. Is that enough to pay for fuel, staff salaries, amortization of the 777, and AA"s other inevitable expenses? Someone could compute these expenses based on CASM, or better yet some calculation that's more specific to this route (since long-haul costs should be lower than short-haul costs, on a per-mile basis).
Can AA turn a profit selling 50 J seats at $1250 one-way (say, filling J and F with this fare), plus a pittance in coach? That's $60k of revenue from J+F, plus perhaps 100 seats in coach at $250 each (another $25k), or $85k total revenue. Is that enough to pay for fuel, staff salaries, amortization of the 777, and AA"s other inevitable expenses? Someone could compute these expenses based on CASM, or better yet some calculation that's more specific to this route (since long-haul costs should be lower than short-haul costs, on a per-mile basis).
Feb 25, 2006, 11:05 am
#40
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Originally Posted by grouse
Aren't we talking about unpublished corporate discounts?
Feb 25, 2006, 11:06 am
#41
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I've taken it a few times
when I've wanted to connect though to Pisa.... never a problem getting an upgraded seat.
One other factor - Freight - often plays a big role in profits...
One other factor - Freight - often plays a big role in profits...
Feb 25, 2006, 11:08 am
#42
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Originally Posted by JonNYC
That doesn't comport-- even remotely-- with current published J-fares, ex-RDU. Published "full J" is over $4000 one-way.
What I was saying is that the fare was $2500, and it booked into J, it did not book into D or I.
Feb 25, 2006, 1:04 pm
#43
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Originally Posted by flipside
Jon,
What I was saying is that the fare was $2500, and it booked into J, it did not book into D or I.
What I was saying is that the fare was $2500, and it booked into J, it did not book into D or I.
Feb 25, 2006, 3:14 pm
#44
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Originally Posted by JonNYC
Ahhhh-- you don't say?? And you wouldn't just happen to be him, would you?
Feb 25, 2006, 3:21 pm
#45
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I know of a Boston university that pays $165 round-trip for the US Airways Shuttle for BOS-LGA, booking into U (refundable, unrestricted, fully changeable, same inventory as Y [in my experience], etc.). The published U fare is $543 (and Y fare is $615). (And that U fare is the lowest published fare that is unrestricted -- that allows reasonable flexibility as to adv purchase, change fees, inventory.) $165/$543 is 30% -- making this university's discount an incredible 70% off of the posted full fare.
Now, the US Airways Shuttle is an unusual market, and AA is not US. But 70% off really does exist in that market. RDU-LGW is clearly an unusual market too, for all the reasons discused in this thread. A huge corporate discount doesn't seem totally out of the question to me. That said, as JonNYC has repeatedly pointed out, we just don't have the information necessary to know for sure.
Now, the US Airways Shuttle is an unusual market, and AA is not US. But 70% off really does exist in that market. RDU-LGW is clearly an unusual market too, for all the reasons discused in this thread. A huge corporate discount doesn't seem totally out of the question to me. That said, as JonNYC has repeatedly pointed out, we just don't have the information necessary to know for sure.