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-   -   DL response to CO changes? (https://www.flyertalk.com/forum/delta-air-lines-skymiles/1025264-dl-response-co-changes.html)

WBurcham Dec 8, 2009 10:09 pm


Originally Posted by redtailshark (Post 12952331)
Jeff, it's bad luck that the DL beancounters won't listen to you as well as CO management listens to Scott. The DL RM calculus is in need of some in-depth simulation based on different customer decision metrics before it can be relied upon to shape the FFP effectively.

I think we may actually agree on something.

mersk862 Dec 8, 2009 10:11 pm


Originally Posted by redtailshark (Post 12952331)

Jeff, it's bad luck that the DL beancounters won't listen to you as well as CO management listens to Scott. The DL RM calculus is in need of some in-depth simulation based on different customer decision metrics before it can be relied upon to shape the FFP effectively.

This cannot be emphasized enough.

MikeMpls Dec 8, 2009 10:15 pm


Originally Posted by WBurcham (Post 12951987)
I don't think that Jeff is the problem as much as the Ghost of Uncle Leo who resides in Revenue Management. One thing that Jeff made clear at the DO was that he has to justify the "costs" of his program (remember the $100M price tag for domestic upgrades). THOSE people are driving this program into the ground.

Who are you kidding? Jeff came from Rev. Mgmt. He's one of Uncle Leo's beancounters through & through.

I've long maintained that Leo was a product of Delta every bit as much as he influenced Delta. Until there's some wholesale cleaning throughout the executive ranks, these cycles of bad decision making & customer alienation will continue.

That said, Jeff does have some good points -- he's very personable, and he's shown himself to be very adept at resolving customer issues when they're brought to his attention. He'd make a great fixer/ombudsman, just get him the heck out of SkyMiles!

Stripe Dec 8, 2009 10:17 pm


Originally Posted by redtailshark (Post 12952331)
Jeff, it's bad luck that the DL beancounters won't listen to you as well as CO management listens to Scott. The DL RM calculus is in need of some in-depth simulation based on different customer decision metrics before it can be relied upon to shape the FFP effectively.

We do have to remember that. In a FT interview a few months back COInsider specifically discussed SWUs and noted the negative loyalty effect that an overly restrictive instrument creates. He clearly learned that lesson and CO management backed him up.

IMO this bodes well for CO going forward. There has been some uncertainty about how things will change when Kellner leaves at year end and Smisek takes full control. There will be some changes -- the free hockey puck meals in Y are sure to go -- but today's announcement shows that Smisek values his best customers.

GUWonder Dec 8, 2009 10:18 pm


Originally Posted by WBurcham (Post 12952383)
So DL is middle of the pack... not the worst (from your own admission)?

In regards to what sparked this thread, DL is the worst and nowhere close to being the middle of the pack until and unless DL management has a change of heart and starts shedding its customer-unfriendly disposition.

In some aspects, yes; in other aspects, no. For most customers who earn the overwhelming majority of their miles from flight activity and want to use the miles on award tickets, I find that DL is the worst amongst the US majors in terms of delivering award tickets at the most marketed "standard" mileage pricing levels.

This is "[f]rom someone who has been top tier in more than three different programs over the past 6 years and has settled on recognizing DL as the worst deal amongst the US majors."


Originally Posted by WBurcham
As for AAward availability... I guess we're looking at different markets. Take at look at LHR and find me 2 saaver seats other than next Oct.

In that case you'd be mistaken. I do often look at award redemption availability to/from LHR. I was looking at it today for travel later this month. I had no issue -- but then I am an AA EXP and AA seems to be willing to do for me what DL is not willing to do for me as a DL Platinum.

GUWonder Dec 8, 2009 10:23 pm


Originally Posted by MikeMpls (Post 12952425)
Who are you kidding? Jeff came from Rev. Mgmt. He's one of Uncle Leo's beancounter through & through.

I've long maintained that Leo was a product of Delta every bit as much as he influenced Delta. Until there's some wholesale cleaning throughout the executive ranks, these cycles of bad decision making & customer alienation will continue.

You are correct. Not speaking of the Jeff of Enron infamy but speaking of the Jeff of SkyMiles infamy:


Robertson joined the airline in 2002 as director of Customer Insight and Analytics, responsible for corporate CRM objectives, Marketing Research and Customer Analytics.

Prior to Delta, Robertson held various management positions at McKinsey & Company, American Airlines and PricewaterhouseCoopers. Robertson holds an MBA with a concentration in Marketing from the Kelley School of Business at Indiana University, and a BS in Accounting from the University of Notre Dame in South Bend, Ind.
Leo Mullins was indeed running DL when this infamous beancounter was brought into DL.

runninaway Dec 8, 2009 10:24 pm


Originally Posted by mersk862 (Post 12952112)
The other big thing that hurts CO with upgrades is their (over)reliance on ERJ-145s/CRJs, which can tend to push elites onto a mainline flight rather than deal with RJs. Add in CoEx facilities at IAH/EWR are bleh-ish (B84 at IAH is one of the worst RJ experiences out there right now), and people do make a concerted effort to avoid those flights.

Sopt on. The entire B terminal is one of the worst airport experiences out there, worse IMHO than the RJ ride that follows (assuming no impromptu layovers in RST).

ONTRandy Dec 8, 2009 10:37 pm


Originally Posted by mersk862 (Post 12952112)
Aside from the 737-500s (which are a small set of the fleet and only have 8F), most of the CO fleet compares quite well to the DL fleet. The 737-700s both have 12F, the 737-800s have between 16-20F domestically (the Guam-based ones still only have 14F), and the 737-900s have 20F.

The thing where CO lacks is the lack of a 757-200 Domestic, as all of their 757-200s are in an international configuration - that being said, they're using occasionally on domestic routes - not much to make/break the system. The 757-300s both have 24F.

The biggest difference with CO is that (a) it's reasonably-priced F so people will pay for it and (b) the ease of elite upgrades from higher fares that clear straight into F. A Platinum needs to book a M fare and will clear into F immediately at the time of ticketing (Golds I think can do this on a B fare). There are a good number of Plats out there that will buy the M fare and take the confirmed upgrade immediately at the time of purchase.

The other big thing that hurts CO with upgrades is their (over)reliance on ERJ-145s/CRJs, which can tend to push elites onto a mainline flight rather than deal with RJs. Add in CoEx facilities at IAH/EWR are bleh-ish (B84 at IAH is one of the worst RJ experiences out there right now), and people do make a concerted effort to avoid those flights.

I would tend to agree with all of this. I left CO for NW because for my level of flying (200+/yr) there was no incentive to stay after 75k, whereas with NW there was (EEP, SWUs). CO's product was superior to NW, but the extra benefits made the trade worth while. Upgrades on CO are, like anywhere else, dependent on route/date/time. Forget EWR-LAX on a Friday afternoon. The new "invite" level will likely solve some of this problem.

I have been looking to go to AA (due to SWU and companion upgrade issues), but this has me looking back to CO (though the new AA CR7s with F cabins vs. ERJs may be enough to make me stick with AA). Will I sit in the back more than I do now? Probably. Is it worth it to spend time with my wife (who has to deal with me flying 200+/year) in J on international? You betcha (happy wife=happy life).

Will DL lose customers to CO/UA over this? I'm sure they will. Does DL think the revenue hit is greater than the cost (though I struggle with that, if the seat will likely go out empty there really is no "cost" to filling it with a low bucket SWU flier, but there is an increase in goodwill/likelyhood of future business) of letting a low bucket SWU fly in J? who knows. Same question for business lost to AA.

As many have stated, there is no way I could work for DL and tell people (with a straight face, anyway) that Skymiles is the "best in class." If the people in ATL keep doing this, this will be evidence that DL and reality parted company a few miles back and are now traveling away from each other at speeds that would cause most objects to leave Earth orbit.

WBurcham Dec 8, 2009 10:37 pm


Originally Posted by MikeMpls (Post 12952425)
Who are you kidding? Jeff came from Rev. Mgmt. He's one of Uncle Leo's beancounters through & through.

I did not realize that... thought that he'd come from marketing et al..


Originally Posted by MikeMpls (Post 12952425)
That said, Jeff does have some good points -- he's very personable, and he's shown himself to be very adept at resolving customer issues when they're brought to his attention. He'd make a great fixer/ombudsman, just get him the heck out of SkyMiles!

I can agree with that.


Originally Posted by GUWonder (Post 12952441)
In regards to what sparked this thread, DL is the worst and nowhere close to being the middle of the pack until and unless DL management has a change of heart and starts shedding its customer-unfriendly disposition.

Why do you say that? Based on what matrix would you rate that? I've clearly spelled out what I consider my rationale. Then again an SWU is only a SMALL part of the picture.


Originally Posted by GUWonder (Post 12952441)
In some aspects, yes; in other aspects, no. For most customers who earn the overwhelming majority of their miles from flight activity and want to use the miles on award tickets, I find that DL is the worst amongst the US majors in terms of delivering award tickets at the most marketed "standard" mileage pricing levels.

This is "[f]rom someone who has been top tier in more than three different programs over the past 6 years and has settled on recognizing DL as the worst deal amongst the US majors."

If you've done that much travel and find DL provides you with little to know value, why do you continue to patronize?


Originally Posted by GUWonder (Post 12952441)
In that case you'd be mistaken. I do often look at award redemption availability to/from LHR. I was looking at it today for travel later this month. I had no issue -- but then I am an AA EXP and AA seems to be willing to do for me what DL is not willing to do for me as a DL Platinum.

Ah I guess that is the difference you get, availability wise, as an EXP. As a lowly general member, getting seats on AA is tough. Especially when you have to find saver as part of a Oneworld Award (fantastic value however).

pcheyne Dec 8, 2009 10:51 pm

Stupid question: What's and LUT customer? I'm new to this site. Obviously....!

GUWonder Dec 8, 2009 10:54 pm


Originally Posted by WBurcham (Post 12952524)
Then again an SWU is only a SMALL part of the picture.

It's the largest part of the picture. Just go look at the actual thread on FT where this got started. ;)



Originally Posted by WBurcham
If you've done that much travel and find DL provides you with little to know value, why do you continue to patronize?

No use in crediting that many flights to DL since the first half of 2008 in order to still be DL Platinum. The writing was on the wall since at least the first half of 2008. ;)

Unless something extraordinary happens or DL management has a serious change of heart, don't expect me to be DL Platinum or Diamond next year -- I may not even be DL Gold or Silver after February 28, 2010. ;)


Originally Posted by WBurcham
Ah I guess that is the difference you get, availability wise, as an EXP. As a lowly general member, getting seats on AA is tough. Especially when you have to find saver as part of a Oneworld Award (fantastic value however).

For general members of the "new" DL SkyMiles program, getting award seats on DL is no walk in the park -- at best, it's more like a walk through limbo and, at worst, it's more like a visit to Hades. In other words, for general members of the "loyalty" programs, DL is even worse than AA in terms of "standard" award availability -- the kind of award pricing that is most commonly marketed by the airline and its affiliate(s) trying to bait in customers.

MikeMpls Dec 8, 2009 10:54 pm


Originally Posted by pcheyne (Post 12952575)
Stupid question: What's and LUT customer? I'm new to this site. Obviously....!

L-U-T aka "sLUT" fares are Delta's three cheapest fare classes. Delta has a long history of trying to roll back the benefits of elites purchasing these fares.

c_d Dec 8, 2009 10:57 pm


Originally Posted by pcheyne (Post 12952575)
Stupid question: What's and LUT customer? I'm new to this site. Obviously....!

L, U, and T are deeply discounted economy fares. Those are the bread-and-butter customers who fill up the plane but do not create high revenues.

TheMadBrewer Dec 8, 2009 10:58 pm


Originally Posted by pcheyne (Post 12952575)
Stupid question: What's and LUT customer? I'm new to this site. Obviously....!

Someone who buys tickets in the lowest 3 of Delta's fare classes (L, U and T). So somebody not buying last minute, refundable, or BE tickets, etc.

GUWonder Dec 8, 2009 11:00 pm


Originally Posted by pcheyne (Post 12952575)
Stupid question: What's and LUT customer? I'm new to this site. Obviously....!

LUT customers are the overwhelming majority of DL's customers -- these are the customers who buy economy class fares of the L, U, and T fare basis and booking inventory variety.


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