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Originally Posted by CO 1E
(Post 9245699)
Or, perhaps the merged entity could continue domestic E+ but reduce the number of E+ rows if necessary.
After actually looking at a narrowbody A320, UA only had to eliminate one (1) row of seats to implement E+ on that one. So they're losing 6 seats total, which usually went unfilled anyway. Going back to the earlier numbers in the thread, but using 6 seats lost, say 25% of the time you could have filled an average of 3 of them, and looking at a short-haul market of SFO-LAX with an average one-way fare of say $100 (and that may be generous), they leave $300 on the table 25% of the time (or about $75 per flight of lost revenue). After only 3 buy-ups, do they recoup this, and actually make more money. And from what I've seen, I can assure you people do buy up. And I'm not even counting the fuel savings/pax handling savings of the fewer people flown. What's funny is how much UA encourages people to buy up. Remember they're blocking all of E+ for Premiers and E+ Access members. So that means the back (E-) is packed to the gills, often overstuffed, so people have no seat assignments (this is common on UA). So you check in, have no seat assignment, get offered to buy E+ for $29 or wait for your seat at the gate. A lot of people spend the money for the E+ for the insurance of a decent seat (in reality we know they would not have been denied boarding, as a seat would have opened up, and quite possibly it would have been into E+ anyway because that's where the open seats are). But people spend the money for the buy-up. It's brilliant, actually. Having sat next to infrequent travellers on buy-ups, they're usually happy with their purchase. "Wow this is a lot more roomy," is what I usually hear. So instead of felling ripped by UA, they actually are more likely to come back (more revenue) because of the increased legroom. And some buy E+ Access for a year (again more revenue). CO is leaving a lot of money on the table by not having E+. |
Originally Posted by channa
(Post 9245966)
...CO is leaving a lot of money on the table by not having E+.
[Devil's Advocate] But could CO feel that E+ would rob them of revenue from people buying into the premium cabin due to the hideousness of coach? [/Devil's Advocate] |
Originally Posted by entropy
(Post 9245872)
I dont see CLE disappearing as a hub. Both EWR and ORD and packed to the gills, so moving some connection traffic over CLE.
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Originally Posted by Bonehead
(Post 9246021)
As well as creating cranky customers (like me), who are getting pretty fed up with the sardine-can-like conditions of coach, especially internationally.
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Originally Posted by Bonehead
(Post 9246021)
[Devil's Advocate]
But could CO feel that E+ would rob them of revenue from people buying into the premium cabin due to the hideousness of coach? [/Devil's Advocate] With the only benefit of E+ being additional legroom, I doubt any C/J traveller is gonna say that Y + 4 inches of legroom is almost as good. :D |
All those poor new hire F/As, CSAs, Pilots and ground staff....
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With the only benefit of E+ being additional legroom, I doubt any C/J traveller is gonna say that Y + 4 inches of legroom is almost as good. |
Originally Posted by channa
(Post 9243490)
Finally, looking at the hubs, CO has much more "powerhouse" hubs. Not that IAH is better than ORD or anything, but looking at where CO operates from, they carry a much larger percentage of the departures. ORD may be home base, but UA onlyhas 1 terminal out of what, 4-5? Sure, it's the biggest terminal, but they don't have even 50% of the departures. Whereas CO in IAH, they essentially own the place. Same with the other hubs -- UA doesn't "own" the airport the way CO does. So they have to be competitive and understand their customers are more of a flight risk (no pun intended :D ).
But since CO's customers tend to be more "locked," CO can afford to get away with more than UA could (e.g., 50% EQM, not catering to differentiated markets, etc.), because CO knows full well that many of its customers do not have a choice. So when CO tosses an all-Y RJ on a route, its customers suck it up for the most part. UA's customers could move to AA, hence why they put in explus and maintain things like E+. I'm not sure CO Management understand this, and if they do, I'm not sure they have experience operating in a different competitive environment out of their hubs. |
I found an interesting article this evening on the DL/NW merger. Looks like AF-KLM will invest. Also, they'll likely keep HQ in ATL and the Delta name...
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Originally Posted by xyzzy
(Post 9248297)
I found an interesting article this evening on the DL/NW merger. Looks like AF-KLM will invest. Also, they'll likely keep HQ in ATL and the Delta name...
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If there was ever a question about CO leaving Skyteam as a result of mergers, then I think the potential AF/KL investment in DL/NW settled it.
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If DL+NW merge I think its the end of SkyTeam for CO.
We've always been the odd airline out in many ways. I think CO will be great in *A. At least CO management recognizes the value of TLV... though this means there will be no CLE-TLV for the forseeable future. ORD-TLV here we come! |
Originally Posted by perezoso
(Post 9248648)
If there was ever a question about CO leaving Skyteam as a result of mergers, then I think the potential AF/KL investment in DL/NW settled it.
Originally Posted by entropy
(Post 9249003)
If DL+NW merge I think its the end of SkyTeam for CO.
We've always been the odd airline out in many ways. I think CO will be great in *A. From what I can tell, CO is not tightly integrated into ST because they don't want to be. They don't want to play ball and feed traffic to AF or KL or anybody else. Instead, they launch service from EWR to everywhere they could in Europe, trying to keep the revenue to themselves (which is perhaps the right course, BTW). I think it is telling that CLE has had LON service all this time, rather than AMS or CDG. So, unless CO decides to change their strategy, I don't think SK is going to be overly excited about CO encroaching on their territory in CPH or OSL or ARN. Same goes for LH. |
Originally Posted by channa
(Post 9245966)
What's funny is how much UA encourages people to buy up. Remember they're blocking all of E+ for Premiers and E+ Access members. So that means the back (E-) is packed to the gills, often overstuffed, so people have no seat assignments (this is common on UA). So you check in, have no seat assignment, get offered to buy E+ for $29 or wait for your seat at the gate. A lot of people spend the money for the E+ for the insurance of a decent seat (in reality we know they would not have been denied boarding, as a seat would have opened up, and quite possibly it would have been into E+ anyway because that's where the open seats are). But people spend the money for the buy-up. It's brilliant, actually. |
Originally Posted by worldwidedreamer (Post #650)
(Post 9235681)
I think both products have positive attributes. The free wifi and free booze at the PC's fits my fancy, as does the better hard product and reciprocal opportunities with the RCC. My hope is that if/when the two airlines merge CO management remains in place and they take the best parts of both products.
Originally Posted by channa (Post #655)
(Post 9243437)
The RCC has more locations and better food. The lack of free drinks and WiFi is the killer.
The Presidents Club still offers life memberships. The Red Carpet Club has not for well over a decade.
Originally Posted by entropy (Post #675)
(Post 9245872)
I dont see CLE disappearing as a hub. Both EWR and ORD and packed to the gills, so moving some connection traffic over CLE.
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