Any potential they extend status again in '21?
#91
FlyerTalk Evangelist
Join Date: Nov 2003
Location: Wesley Chapel, FL
Programs: American Airlines
Posts: 30,040
Spirit, ,Frontier and Allegiant are going to slaughter the big 4 if they choose to compete on price in leisure markets. With higher cost structures AA, DL, WN, and UA need to incentivize travel for customers who buy F and last minute Y. Seems like giving a few SWU, free bags, and extra RDM through extended status is a small price to pay. We will see.
#92
Suspended
Join Date: Sep 2006
Programs: AAdvantage PP
Posts: 13,913
My hunch is that if business travel remains in the dump for much longer the US3 will target (even more) the leisure flyer that is willing to pay more but not a king's ransom to get out of coach. The leisure flyer that will be impressed with a big seat, free booze and some free high school cafeteria food. Also, the leisure flyer that might have a cc that will get them into the AC or be willing to spring for the $59 day pay. Where they will get a nicer seat than at the gate, free booze and free high school cafeteria food.
#93
Join Date: Dec 2013
Location: ORD, sadly...
Programs: AA Exec Plat
Posts: 599
My hunch is that if business travel remains in the dump for much longer the US3 will target (even more) the leisure flyer that is willing to pay more but not a king's ransom to get out of coach. The leisure flyer that will be impressed with a big seat, free booze and some free high school cafeteria food. Also, the leisure flyer that might have a cc that will get them into the AC or be willing to spring for the $59 day pay. Where they will get a nicer seat than at the gate, free booze and free high school cafeteria food.
#94
FlyerTalk Evangelist
Join Date: Nov 2001
Location: Wanting First. Buying First.
Programs: Lifetime Executive Diamond Platinum VIP with Braniff, Eastern, Midway, National & Pan Am
Posts: 17,492
My hunch is that if business travel remains in the dump for much longer the US3 will target (even more) the leisure flyer that is willing to pay more but not a king's ransom to get out of coach. The leisure flyer that will be impressed with a big seat, free booze and some free high school cafeteria food. Also, the leisure flyer that might have a cc that will get them into the AC or be willing to spring for the $59 day pay. Where they will get a nicer seat than at the gate, free booze and free high school cafeteria food.
I'm fine with AA monetizing F. I'd be even better with FCM if it was more expensive but worth it. AA should take out a row of F seats on 321s and 738s, go to a 12-seat F cabin at something like 42" (minimum) pitch, bring back decent food, and make paying for first the primary means of occupying a seat in F.
Anyone remember VX F? That was a product that was well worth the cost.
There's got to be a giant market positioned well below NetJets/Wheels Up/ad-hoc charter and well above current US airline offerings.
#95
Join Date: Mar 2005
Programs: Continental Onepass, Hilton, Marriott, USAir and now UA
Posts: 6,447
Why don't they target high end leisure travelers as well as business travelers by offering a better first class product worth paying for?
I'm fine with AA monetizing F. I'd be even better with FCM if it was more expensive but worth it. AA should take out a row of F seats on 321s and 738s, go to a 12-seat F cabin at something like 42" (minimum) pitch, bring back decent food, and make paying for first the primary means of occupying a seat in F.
Anyone remember VX F? That was a product that was well worth the cost.
There's got to be a giant market positioned well below NetJets/Wheels Up/ad-hoc charter and well above current US airline offerings.
I'm fine with AA monetizing F. I'd be even better with FCM if it was more expensive but worth it. AA should take out a row of F seats on 321s and 738s, go to a 12-seat F cabin at something like 42" (minimum) pitch, bring back decent food, and make paying for first the primary means of occupying a seat in F.
Anyone remember VX F? That was a product that was well worth the cost.
There's got to be a giant market positioned well below NetJets/Wheels Up/ad-hoc charter and well above current US airline offerings.
(Flame retardant suit is donned)
If F was limited to purchase only (whether by cash, miles or stickers/upgrade instruments), then you could price in all the extra "sweeteners" that come with the class....food, soft product, club admission.
European airlines have no free upgrades, you pay for what you get (and I know that EuroBusiness is not the same thing as US F). The old argument that frequent flyers "pay" for their upgrades by their purchase of tickets and flights just doesn't cut the mustard anymore. F passengers should be treated better than business Y passengers because they pay real money for the actual trip that they are taking .This is not the case with Mr/Mrs ExPlat on a cheap Y fare who got upgraded because they spent $12K last year at AA. For all AA knows, these elites would have spent the same amount even if AA had given them nothing more a plane ride to the destination they paid for.
One can award elites other benefits. First to board or lounge access or extra AA miles.
But get rid of the upgrades and make F the premium product it is suppose to be.
(And I know that all the elites are going to come after me. This is the problem with our system. It develops "elitism". We think that we are better than the ordinary passenger. But we are not. We just feel more entitled
#96
FlyerTalk Evangelist
Join Date: Nov 2001
Location: Wanting First. Buying First.
Programs: Lifetime Executive Diamond Platinum VIP with Braniff, Eastern, Midway, National & Pan Am
Posts: 17,492
If F was limited to purchase only (whether by cash, miles or stickers/upgrade instruments), then you could price in all the extra "sweeteners" that come with the class....food, soft product, club admission.
One can award elites other benefits. First to board or lounge access or extra AA miles.
But get rid of the upgrades and make F the premium product it is suppose to be.
(And I know that all the elites are going to come after me. This is the problem with our system. It develops "elitism". We think that we are better than the ordinary passenger. But we are not. We just feel more entitled
One can award elites other benefits. First to board or lounge access or extra AA miles.
But get rid of the upgrades and make F the premium product it is suppose to be.
(And I know that all the elites are going to come after me. This is the problem with our system. It develops "elitism". We think that we are better than the ordinary passenger. But we are not. We just feel more entitled
Heck go to an 8-seat F cabin with the VX 50" near sleeper seat pitch if that's what it takes...
And make Main Cabin Extra better at the same time. It's a ridiculous JOKE that AA MCE is basically the same awful pitch that regular Y was 10 years ago.
#97
Join Date: May 2008
Location: PHL (kinda, no airport is really close)
Programs: AA Exp, but not sure for how long. Enterprise Platinum woo-hoo!
Posts: 4,551
I know nothing about the economics of operating an aircraft. I do know that the 3-cabin (J/W/Y) birds offer a product worth paying for. I don't care much if I get $20 sparkling wine or $50 champagne in F. I know that for several years I've been happily paying pre-COVID F fares to ride the A332 Envoy Suites. Admittedly it wasn't all that expensive, $615 PHL-LAX-LAS (obviously A332 only on the transcon) although it was $1274 for just PHL-LAX. (Fortunately I didn't have to use HCT since yes, I was actually going to Sin City.)
I'd think that the cost of operating an aircraft works out to a certain amount per pax and a certain amount per square foot of floor space, spreading the fuel cost and the capital cost by area. It obviously costs more per mile to fly 5000 miles than 2500 because for the first 2500 miles of a 5000-mile flight you're carrying all the fuel you're going to burn on the second half of the trip.
If there is a "giant market positioned well below Netjets and well above current US airline offerings, it would be that. It's clearly not impossible to fly the 3-cabin widebodies on domestic long-haul routes, and W with free drinks should be a perfectly acceptable product for free elite upgrades. In most cases, AA prices 3-cabin J as domestic F and W as MCE. The idea seems to work for the A321T's, although that pricing is a bit above what I think most people would pay. Certainly not $3K+ for F. Maybe I'm just spoiled.
I'd think that the cost of operating an aircraft works out to a certain amount per pax and a certain amount per square foot of floor space, spreading the fuel cost and the capital cost by area. It obviously costs more per mile to fly 5000 miles than 2500 because for the first 2500 miles of a 5000-mile flight you're carrying all the fuel you're going to burn on the second half of the trip.
If there is a "giant market positioned well below Netjets and well above current US airline offerings, it would be that. It's clearly not impossible to fly the 3-cabin widebodies on domestic long-haul routes, and W with free drinks should be a perfectly acceptable product for free elite upgrades. In most cases, AA prices 3-cabin J as domestic F and W as MCE. The idea seems to work for the A321T's, although that pricing is a bit above what I think most people would pay. Certainly not $3K+ for F. Maybe I'm just spoiled.
#98
Join Date: Oct 2019
Posts: 253
Here's the thing though... All it takes is one sales team flying to force competitors to do the same. A zoom call can't match an in person meeting. It definitely can't beat a paid lunch, dinner, team happy hour, whatever. Zoom is good to fill the gaps but I am betting my days off getting away with multitasking on vendor calls are quickly going to become a thing of the past.
#99
Suspended
Join Date: Sep 2006
Programs: AAdvantage PP
Posts: 13,913
Number one business travelers don't pay for their fares and companies over the years (with the help of technology) have been increasingly more like leisure travelers. In other words book the cheapest option within reason. The days of the "businessman specials" (remember those ads) are gone.
Upgrades were a way of keeping the business traveler or the corporate travel manager hooked. If you fly our airline on a very regular basis we will give you a nice freebie. Unfortunately for the airlines over time the cost benefit analysis wasn't there but it would have been suicide for one airline to do away with the upgrade game or at least significantly restrict it. Certainly the change to EQDs and 12 month rolling spend (or fare class for other airlines) was one major way airlines changed to the program to more efficiently align rewards with profitability. Back in the days of first come first serve I as a $5-$6K a year EXP I got upgraded before someone that may have spent over $50K a year.
Now some level of business travel, and we really don't know how much, is going away for good leaving airlines with an F cabin to fill. And they've determined through extensive data mining if they make the product "affordable" there will be demand. And that demand for the price isn't expecting full hot meals, pre departure drinks and blankets and pillows. I'm certainly not if I spend an extra $100-$200 to upfare.
Upgrades were a way of keeping the business traveler or the corporate travel manager hooked. If you fly our airline on a very regular basis we will give you a nice freebie. Unfortunately for the airlines over time the cost benefit analysis wasn't there but it would have been suicide for one airline to do away with the upgrade game or at least significantly restrict it. Certainly the change to EQDs and 12 month rolling spend (or fare class for other airlines) was one major way airlines changed to the program to more efficiently align rewards with profitability. Back in the days of first come first serve I as a $5-$6K a year EXP I got upgraded before someone that may have spent over $50K a year.
Now some level of business travel, and we really don't know how much, is going away for good leaving airlines with an F cabin to fill. And they've determined through extensive data mining if they make the product "affordable" there will be demand. And that demand for the price isn't expecting full hot meals, pre departure drinks and blankets and pillows. I'm certainly not if I spend an extra $100-$200 to upfare.
#100
Join Date: Mar 2007
Posts: 4,975
I certainly hope AA does. I’m down from 250k per year to less than 50k. And if I lose EXP then I will just go free agent as west coast losses at LAX mean flying to DFW anytime I need to go to Asia. Not ideal. And AS joining OW makes it a new viable choice.
#101
Join Date: Jan 2015
Location: NYC
Programs: AA - EXP
Posts: 233
Keeping an eye on this question for sure. Only taken a few flights in the last 12 months, all Delta as AA didn't have any options direct that suited my travel plans.
My conundrum is I have a trip to NZ/AU in August (NZ Citizen). Outbound I need to confirm flights in the next 2-3 weeks to confirm GOVT mandated quarentine space and they essentially only allow you to fly ANZ, SQ, EK and QR (atleast those are the only options from NY/US). QR is prohibitally expensive in J. Coming back from Sydney could do the AA flight but currently looking at $1.4k in Y, $2.6 Y+ and $5.5k in J none of which are that appealing as I'm out of SWU's and currently have a J EK award home with AS miles.
Also hoping to sneak a JFK-LHR and JFK - LAX trip this year. Even if those where in J I sitll fall far short of hitting PP or EXP.
Alas, maybe it is free agent time as I don't care about domestic upgrades all that much!
My conundrum is I have a trip to NZ/AU in August (NZ Citizen). Outbound I need to confirm flights in the next 2-3 weeks to confirm GOVT mandated quarentine space and they essentially only allow you to fly ANZ, SQ, EK and QR (atleast those are the only options from NY/US). QR is prohibitally expensive in J. Coming back from Sydney could do the AA flight but currently looking at $1.4k in Y, $2.6 Y+ and $5.5k in J none of which are that appealing as I'm out of SWU's and currently have a J EK award home with AS miles.
Also hoping to sneak a JFK-LHR and JFK - LAX trip this year. Even if those where in J I sitll fall far short of hitting PP or EXP.
Alas, maybe it is free agent time as I don't care about domestic upgrades all that much!
#102
Join Date: Jun 2011
Location: I 35 south bound, finally stopped
Programs: LT Plt, 4mm, *A GLD, burned out medical provider, executing our estate plan
Posts: 1,665
Hosting friends from LA this weekend. Both P Pro FF with AA 90% business travel. They are definitely going free agent now. They just booked 5 ppl in J, Delta LAX to AMS for August and if it doesn't go they have a year to fly it with Delta. The legacy folks should be rethinking loyalty post pandemic. And stop to think about it. A lot of TATL and TPAC seats in J were bulk cruise fare, and the cruises are still not going.
#103
FlyerTalk Evangelist
Join Date: Nov 2003
Location: Wesley Chapel, FL
Programs: American Airlines
Posts: 30,040
Hosting friends from LA this weekend. Both P Pro FF with AA 90% business travel. They are definitely going free agent now. They just booked 5 ppl in J, Delta LAX to AMS for August and if it doesn't go they have a year to fly it with Delta. The legacy folks should be rethinking loyalty post pandemic. And stop to think about it. A lot of TATL and TPAC seats in J were bulk cruise fare, and the cruises are still not going.
#104
Join Date: May 2011
Location: NYC (LGA, JFK), CT
Programs: Delta Platinum, American Gold, JetBlue Mosaic 4, Marriott Platinum, Hyatt Explorist, Hilton Diamond,
Posts: 4,897
A lot of people saying they "will go free agent if my airline doesn't do X." Well if none of the airlines do X (and I would bet none of the major US airlines just extend status for a another yet), then the "free agents" will just reallocate themselves among the major US airlines.
#105
Suspended
Original Poster
Join Date: Jul 2011
Posts: 524
I think you want to look to asian airlines as your example. Eurobiz is a disaster. You pay astronomical fares for a coach seat with no legroom and a blocked middle + a tray of slop. Give me the exit row. At least on asian airlines it's often a widebody with a proper seat and a real meal.