I wonder if much of that marginal revenue is from the cost savings from eliminating one FA position from each flight when they removed the seats? (yes the real reason for EML, staff reductions)

Ruminations About United PS
 

If UaCo retains PS, then what happens?

1. We know they will repaint the exterior with the CO livery, but do they go through the trouble of changing the cabin to match the rest of the fleet, should they decide to go with a CO interior, or some, new interior scheme?

2. Do they keep PS at JFK, where the service is almost purely O&D, or do they close down the JFK station and move PS to EWR. For UA moving to EWR was not seen as feasible, given UA's minor infrastructure there, but UaCo would have--if anything--far better infrastructure than what UA currently has at T7.

Don't believe what you read, that the Hollywood types who fly PS FC would refuse to go to EWR. The limo can pick them up just as easily at EWR as it does at JFK.

3. If PS moves to EWR, this would almost certainly lead to the closure of the UA JFK operation.

4. Also, if PS moves to EWR, these flights would obviously replace the current CO transcons to LAX and SFO, and also provide connecting service for passengers using the EWR TATL gateway.

I would tend to agree; but based on visual inspection (walking by it on my way to E+) and specifications only. My hesitation would be sitting in what is traditionally considered the backwards position. While it is not a unique seating scheme in the airline industry, it is not something I would want to try for the first time on a 12 hour flight.


SunLover

My understanding of the way this marginal revenue result is calculated is simply through the buy-up receipts, not through any other cost/benefit analysis.

If you consider that these buy-ups cost up to $75/ow, I don't think $40 million/year is unlikely.

Clearly, though, if B6 had maintained an additional row or two, it would lose out on the marginal revenue, but could potentially gain revenue on the tickets sold on the added seats.

This kind of "what-if" analysis is virtually impossible, though, since there are so many unknowable factors to ponder (LF's, yields, etc.)

Zero. Revenue has nothing to do with costs. Net/profit does, but in this case it is very real money that B6 is realizing from sales of the EML product.

They've also changed their pricing model on the EML to have many different price points based on route and loads, similar to the regular seat pricing, so they're realizing even more revenue from it these days than they were previously. And I would argue that the real reason was so that they could actually fly transcons, not just to cut an FA, but that is very much a chicken/egg debate I suppose.

Air Canada, Air NZ, Virgin, Jet, Turkish 77W, Qantas, Qatar 777s, BUSINESS all have the same seat length and width flat beds as United FIRST. Same seat and sleeping comfort in terms in hard product. Please dont tell me the soft product/service/food is better on UA than any of the above mentioned carriers.

Heck, even US new envoy has more legroom.

Not saying the new business class is above average, it certainly is, which is exactly why its time to get rid of first, and concentrate on a good business product instead.

Noone is comparing United to the top 5%, there is a reason its a 3* airline.

Prices would certainly go up if PS is relocated to EWR. Right now you can get UA JFK-LAX PS flights for around $300rt, while compariable CO EWR E- flights are about $1,100rt for the identical days/times.


SunLover

Or better yet, helicopter service if they are going to Manhattan (assuming the service is still available).

LAX

US Helicopter went belly up...the only chopper service to Manhattan now would be charter.

Possible, then again, that's a narrow snapshot. I have also seen it the other way around...

For many years, you could buy an EWR-LAX fare that guaranteed automatic upgrade into CO FC (as an OP elite) for about $500-600...as a result, CO's FC was totally booked literally months in advance...

In any case, though, there will be reduced competition, so fares are likely to increase...after all, that's really the point of the merger, isn't it?

In that case, I am sure that can be arranged for those Hollywood types!:D

LAX

In any case, the limo ride from EWR to Manhattan's West Side is quite a bit quicker than from JFK...

What about:
15) ICC call centers
Anyone else out there think that the ICC's will be phased out, and some of the furloughed TPA Res Agents brought back?

I hope so, although, since the point of the merger is to save $$$, I find this highly doubtful...

Right now there is no serious transcon competition for CO at fortress hub EWR. Post merger they can move the PS to EWR and let AA/DL/B6/VX duke it out at JFK. In any case New Yorkers have a lot of travel options to JFK, and as a practical matter they consider New Jersey to be a foreign country.... :D


SunLover