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Lowest Delta Fare Class does not earn MQMs? Yes It Does, Says Delta Air Lines

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Lowest Delta Fare Class does not earn MQMs? Yes It Does, Says Delta Air Lines

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Old May 18, 2011, 8:26 am
  #256  
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If you read through the thread (all 17pgs of it, hahaha) it is mentioned multiple times that an E fare has been around for a while and was previously a free ticket for promotional awards or skybonus travel. What is new is that E is now going to be used as a revenue ticket instead of free/award so all of the wording needs to be updated to reflect the new purpose of the fare bucket.
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Old May 18, 2011, 8:40 am
  #257  
 
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Originally Posted by avidflyer
On the phone right now with a DM supervisor in Chisholm. She has made at least 3 calls to other parts of DL and here is here response:

"E fares will be the only Delta Revenue fare to not earn full mileage". "I have spoke to several people and they are telling me there will be an announcement soon on this"
I'm afraid this may be the real story, all signs sure seem to point this way. US to China for $1100 may be a good fare especially in today's market, but it is not a nonprofit fare worthy of being stripped of a portion of the base eqms imo.

Frankly, these days its the eqms that are more valuable to me on Delta than their already devalued Skymiles.
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Old May 18, 2011, 10:43 am
  #258  
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Originally Posted by ryandc99
I think everyone will sleep well tonight! Thanks for the update SMI!
Not the people who want to "thin the ranks" and be the only elites in SM by eliminating MQM earnings for LUT/E fares!
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Old May 18, 2011, 12:26 pm
  #259  
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Originally Posted by DiverDave
Airline economics is actually rather simple.

Maximize revenue.
I understand what you're saying on a micro level (each individual flight), but on a macro level that kind of thinking can quickly bankrupt an airline. Airline economics are indeed quite complex, but to boil it down, an airline (just like every business) must strive to maximise profit (and, by proxy, shareholder value); expenses are at least as important as the revenues. An extreme example would be buying up second-hand 744s to operate between ATL and DEN--they could probably sell lots of extra sLUT tickets on that plane, especially during winter months, which would definitely increase revenue--but that marginal revenue would come at much higher marginal cost, and would actually decrease profit.
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Old May 18, 2011, 1:59 pm
  #260  
 
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Originally Posted by DL_TIDE
The profit logic being that a airline can exist with just BE passengers?
A lot of airlines have tried that. They refit a 737 with nothing but luxe business class seats, offer nice meals and attentive service and easy boarding to all the passengers with lots of freebies and fly routes like JFK-LHR or LAX-JFK. They usually peter out in a few months.

They just don't have the customer base to support the volume and diversity of routes and size of planes and scale of operations that make running an airline economical.

Turns out that the sLUT passengers are the stale bread that the tiny lucrative mold spores of BE profit need to grow on.
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Old May 18, 2011, 2:02 pm
  #261  
 
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Originally Posted by HongKonger
Not the people who want to "thin the ranks" and be the only elites in SM by eliminating MQM earnings for LUT/E fares!
I think I coined the frase " thin the ranks" on this thread and slept pretty well. I did fly ATL /SYD And arrived to see that the thread crescendoed with partial SMI announcement. So we are still in the dark on real facts.

I'm still holding out for some reduction in benefits in E class or even LUT. Holding my breath but I think it's 50/50 at this point.
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Old May 18, 2011, 2:35 pm
  #262  
 
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Originally Posted by WildUtah
Turns out that the sLUT passengers are the stale bread that the tiny lucrative mold spores of BE profit need to grow on.
Hehe, an appropriate analogy.
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Old May 18, 2011, 2:43 pm
  #263  
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Originally Posted by dean1121
I think I coined the frase " thin the ranks" on this thread and slept pretty well. I did fly ATL /SYD And arrived to see that the thread crescendoed with partial SMI announcement. So we are still in the dark on real facts.

I'm still holding out for some reduction in benefits in E class or even LUT. Holding my breath but I think it's 50/50 at this point.
See?
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Old May 18, 2011, 3:03 pm
  #264  
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I guess we can say goodbye to the sLUT acronym to describe cheap fares... its time for fLUTE
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Old May 18, 2011, 3:26 pm
  #265  
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Originally Posted by WildUtah
A lot of airlines have tried that. They refit a 737 with nothing but luxe business class seats, offer nice meals and attentive service and easy boarding to all the passengers with lots of freebies and fly routes like JFK-LHR or LAX-JFK. They usually peter out in a few months.

They just don't have the customer base to support the volume and diversity of routes and size of planes and scale of operations that make running an airline economical.

Turns out that the sLUT passengers are the stale bread that the tiny lucrative mold spores of BE profit need to grow on.
Very true. Few airlines have succeeded with an all premium model. Interestingly, the reverse is not true. Quite a few airlines have done well with an all Y product (not to say that they don't charge a premium though). Delta's business model relies on both.

Originally Posted by ryandc99
I guess we can say goodbye to the sLUT acronym to describe cheap fares... its time for fLUTE
I think I like sLUT-E.
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Old May 18, 2011, 3:40 pm
  #266  
 
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Originally Posted by TTT
I think I like sLUT-E.
After the "sometime in 2012" full alignment of AF/KL/DL(/AZ?) fare classes, the three lowest classes are supposed to be LQT, I believe. Not sure what sort of jokes we'll be able to make about that. I believe U is moving up to right after M.
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Old May 18, 2011, 3:48 pm
  #267  
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Originally Posted by mtkeller
After the "sometime in 2012" full alignment of AF/KL/DL(/AZ?) fare classes, the three lowest classes are supposed to be LQT, I believe. Not sure what sort of jokes we'll be able to make about that. I believe U is moving up to right after M.
To bad it won't be before M, or we could have YUM Fares.
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Old May 18, 2011, 3:50 pm
  #268  
 
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Originally Posted by ryandc99
To bad it won't be before M, or we could have YUM Fares.
That would be much more appealing than Y-BM fares.
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Old May 18, 2011, 5:53 pm
  #269  
 
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Originally Posted by Microwave
...but that marginal revenue would come at much higher marginal cost, and would actually decrease profit.
When the marginal revenue is equal to the marginal cost, profit is maximized. It's an economics law and not even Delta IT can change that.
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Old May 18, 2011, 6:17 pm
  #270  
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Originally Posted by WildUtah
A lot of airlines have tried that. They refit a 737 with nothing but luxe business class seats, offer nice meals and attentive service and easy boarding to all the passengers with lots of freebies and fly routes like JFK-LHR or LAX-JFK. They usually peter out in a few months.

They just don't have the customer base to support the volume and diversity of routes and size of planes and scale of operations that make running an airline economical.
Open Skies airline is still around. Not sure when they started and how long they will last.
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