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-   -   Is this an example of back-to-back ticketing? (https://www.flyertalk.com/forum/delta-air-lines-skymiles/1209839-example-back-back-ticketing.html)

ExAAerOnDL May 31, 2011 9:56 pm


Originally Posted by MarkXS (Post 16481659)
Dude, you're the one who brought up cement companies. You really can't argue against transmission jobs.

(sorry gang, couldn't resist)

Couldn't resist making no sense?

The Cement Manufacturers case is a decision of the United States Supreme Court holding that competitors can share information to combat customer fraud without violating the antitrust laws. It was not cited to compare the airline industry to cement companies. There's nothing out of the ordinary about this; in fact, the Cement Manufacturers case was cited by a District Court in ruling on an antitrust claim brought against DL, NW and US alleging that they conspired to enforce rules against hidden-city ticketing and back-to-back ticketing.

In contrast, comparing airline pricing to a transmission job makes zero sense. An airline operates with extremely high fixed costs, and low marginal costs. In contrast, an auto mechanic faces relatively low fixed costs and high avoidable/marginal costs. So the industries are totally different. Moreover, you don't have the same level of variability on the demand curve that gives rise to efficient price discrimination. So comparing one to the other in terms of pricing strategy makes zero sense.

So still trying to figure out what you couldn't resist.

ExAAerOnDL May 31, 2011 10:01 pm


Originally Posted by Allvest (Post 16481754)
Still a wanna be lawyer without a license? Save us from your holy ways!

Tell you what. I've got $10,000 to the charity of your choice that says I'm licensed to practice law. You put up $10,000 to the charity of my choice that says I'm not.

We'll find an impartial mediator to collect the $10,000 check from you and hold it in escrow until I produce my bar number.

Got the guts to put your money where your mouth is? I happen to doubt it, but feel free to surprise me. I've got a great no-kill animal shelter that could use the money.

ExAAerOnDL May 31, 2011 10:14 pm


Originally Posted by PepeBorja (Post 16481787)
Same difference.

The garage owner charges $3000 extra for the tranny job for those that A) want flexibility to fix their car whenever they want and B) want the ability to get the shop to work on the car on that day.

Fair minded people will see it for what it is: A business taking an unfair advantage over their customers' situation and needs.

I can see pricing tickets accordingly to offer convenience features, like refundable or ability to make 1 change for free. That is an option for the the customer to pick and pay more for the convenience, but to charge more simply because they know they got you by the short hairs is, well taking an unfair advantage, right?

Kind of like a roofer charging 3x or even 4x more for jobs to repair roofs after a storm. Same difference since neither the labor involved to repair the roof, nor the cost to operate that seat vary by much. But hey, supply and demand right? Need your roof fixed today? Gonna cost you 3X more. Why so much you ask? "because I can" the roofer says.

No, actually it's called economics. I'm always amused by people who say "It's so unfair that they take advantage of people in need by raising prices." A feel-good argument, but one that is completely ignorant of economic reality.

Price is a metering device in a world of unlimited wants but limited resources. Consider your roofing example. Suppose a city has enough roofers to repair 10 roofs in a week. Suppose further that a storm blows through and damages 100 roofs. So you have demand of 100, but supply of 10. How do you decide which ten homes get the roof?

Should it be first come first served? Or should the government pick who gets their roof repaired? How about a lottery? None of those is going to work. If it's the first ten, then someone will offer one of those ten a payoff to send the roofer to their house. Same with a lottery or government allocation. The only efficient way to allocate the scare resource is price - and it will be allocated that way whether you like it or not, or whether the roofer chooses to do it that way or not.

Don't believe me? How do you think ticket scalpers are in business? The NFL doesn't charge enough for tickets to the Super Bowl - so people resell them for a higher price. Or for a concert, if it's just the first people in line to buy tickets, scalpers pay people to stand in line to get tickets to resell them. If the tickets were priced higher and with more price tiers to begin with, there'd be no market for scalpers.

You can wish all you want that the laws of economics don't apply to your life - or apply some socialistic pipe dream that somehow the laws of supply and demand can be suspended in favor of some version of "fairness." But that's not how the world works. The most efficient allocator of a scarce resource is the market. That's all airline pricing is - a means of allocating a resource.

ExAAerOnDL May 31, 2011 10:33 pm


Originally Posted by Allvest (Post 16481786)
Selling seats at a fixed price seems to work for TG on domestic routes just fine. No difference between advance booking or walkup fares. If the flight us sold out people go on another flight. Where is the problem? Other businesses seem to be able to manage loads quite well without resorting to deceitful pricing mechanisms. Ever pay more
For a haircut on a Saturday morning?

Pricing confusion and deceit is to airlines what crack is to an addict. Rules of carriage are worth no more than a mafia code of conduct. And exAA seems to be happy in his role as "lawyer to the mob". Lol

Thai Airlines? Great example. Ten domestic routes, all of which I'm guessing are dominated by leisure traffic feeding off of international routes, operated by a state owned airline that is losing money. Thank you for putting it all in perspective.

As for haircuts, the place I go has a deal - first cut $10, but only on Tuesdays or Wednesdays. So that's price discrimination - both for: (a) new customers; and (b) the two slowest days of the week for them.

How about golf courses? Are they crooked, evil entities for having the gall to charge $100 to play at 7 am on Saturday, but only $70 at 11 am on Monday, and just $20 to play at 3 pm on Thursday? I mean, how DARE they.

Feel free to put up your $10k anytime. Like I said, I can't wait for all the dogs and cats to enjoy the benefits of your money.

FlyerTalker683455 May 31, 2011 10:56 pm


Originally Posted by ExAAerOnDL (Post 16482218)
Thai Airlines? Great example. Ten domestic routes, all of which I'm guessing are dominated by leisure traffic feeding off of international routes, operated by a state owned airline that is losing money. Thank you for putting it all in perspective.

As for haircuts, the place I go has a deal - first cut $10, but only on Tuesdays or Wednesdays. So that's price discrimination - both for: (a) new customers; and (b) the two slowest days of the week for them.

How about golf courses? Are they crooked, evil entities for having the gall to charge $100 to play at 7 am on Saturday, but only $70 at 11 am on Monday, and just $20 to play at 3 pm on Thursday? I mean, how DARE they.

Feel free to put up your $10k anytime. Like I said, I can't wait for all the dogs and cats to enjoy the benefits of your money.

Yea and the us carriers are earning tins of money. No I don't take the bet. I thought betting is illegal, mr law?

bpe May 31, 2011 11:06 pm


Originally Posted by ExAAerOnDL (Post 16480885)
Several points:

(1) How is charging more for nonstop service at all unethical? [...]

(2) The so-called "Southwest effect" on fares that results after their entry is not the a function of Southwest's LUV of lower fares (which doesn't actually exist - in fact, WN's fares on certain O&Ds are historically high, and were in most cases higher than FL - leading DOJ to question whether the WN/FL merger was really such a good thing). Rather, it is a function of increased capacity. Double the number of seats on a route - and dedicate most of the WN seats to local traffic - and fares will come down. It's simple economics - the more supply you have, the further down the demand curve you have to chase the marginal passenger. So when WN comes in and boosts supply by 200%, prices naturally drop.

(3) If hubs were so bad for consumers, wouldn't you see cities trying to get rid of them? [...]

(4) I agree that ticketing fraud is a question of contractual obligations. However, I find a vast difference between a breach of contract based on changed circumstances, and one that is intended from before the moment of formation. The former I have no ethical problem with. The latter I do.


(1) I wouldn't say that there is anything wrong with it, but rather that airlines are simply taking advantage of customers in their hub cities. In a similar way, hidden city ticketing is simply taking advantage of a low fare. The only difference is that the airline made up a rule saying that the latter is not allowed.

(2) Agreed, Southwest often does have high prices and the 'Southwest effect' isn't what many people make it to be. You don't get really cheap fares, just fares that aren't quite so expensive. But things like AAA-ATL-BBB being cheaper than just the AAA-ATL flights does mean that they are charging more for flights to/from ATL.

(3) Hubs don't have to be bad for customers. For convenience, they're great since you get flights to places all over the world without having to connect. Also, cities don't mind since they make a good amount of money in taxes with more flights and higher prices.

(4) If you see a moral problem with this, that's perfectly fine. But I just find it hard to really apply morals when you essentially sign a contract with a (profitable!) private company with the rules written out. If you break the rules, you might pay the price. But it's up to them to enforce it.

ExAAerOnDL May 31, 2011 11:06 pm


Originally Posted by Allvest (Post 16482283)
Yea and the us carriers are earning tins of money. No I don't take the bet. I thought betting is illegal, mr law?

Not when the proceeds go to charity. And it's not gambling when there's no contingency. It's an easily verifiable fact already in existence. You aren't taking the bet because you don't have the stones to back your smack talk up. Figures. All hat and no cattle.

FlyerTalker683455 Jun 1, 2011 3:23 am


Originally Posted by ExAAerOnDL (Post 16482317)
Not when the proceeds go to charity. And it's not gambling when there's no contingency. It's an easily verifiable fact already in existence. You aren't taking the bet because you don't have the stones to back your smack talk up. Figures. All hat and no cattle.

Hey, I didn't ask for a bet. I asked for you to either stop talking like a lawyer or show that you are one.

Besides, your kind of "bet" with you having the one-sided advantage of knowing where you stand, is kind of like airlines making the rules, changing them as they please and asking us to bend over while we also have to bring the lube (fuel surcharges).

Anyway, it used to be challenging, then slightly amusing, then annoying, then maybe funny again. But at this point, arguing with your nonsensical antiquated and pre-historic view of things, especially that you are certainly holier than the Pope Himself, has kind of gone on too far, and I agree that the best thing is to shut this post down by not taking your bait.

Meanwhile I'll take that 10000 dollars I just "saved" and invest it in a stack of back to back and hidden city tickets!

Thanks for the entertainment, Mr Law.

DeltaFan4Now Jun 1, 2011 5:24 am


Originally Posted by PepeBorja (Post 16481787)
The garage owner charges $3000 extra for the tranny job ...

Coffee. Everywhere... :D

I know it's sophomoric, but all the unintentional humor around here keeps me smiling!

ExAAerOnDL Jun 1, 2011 5:43 am


Originally Posted by Allvest (Post 16482864)
Hey, I didn't ask for a bet. I asked for you to either stop talking like a lawyer or show that you are one.

Well, based on the fact that you won't put your money where your mouth is, that shows: (a) you talk a good game but refuse to back it up; and (b) you know I am a lawyer and don't want to give $10,000 to charity.

All hat, no cattle. Live long and prosper in your ticketing fraud. Adios.

RSSrsvp Jun 1, 2011 6:32 am

I am closing this thread as IMHO you all need to take a break!

RSSrsvp - Moderator


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