Skymiles Change Rumor?
#1351
Join Date: May 2008
Programs: DL AA UA
Posts: 2,359
I really have enjoyed the great majority of DL employees that it has been my pleasure to meet over the years. I wish nothing but the best for them. For the execs who are on a crusade against the customer or just willingly ignorant of those efforts by those under them at DL, those are the people who I hope will be moving on in short order.
Like I said before, I hope DL does institute an all revenue based FFer program soon. Get rid of those gamers and all the people who have managed to educate themselves on the intricate and detailed systems and rules that you created. I think DL will survive, but just with new management. In my humble opinion, that would be a good thing.
#1352
Join Date: Mar 2012
Location: DCA, IAD, BWI
Programs: National Parks Annual Pass
Posts: 316
Smaller, leaner is nice, but there are significant economies of scale in the airline business. That means larger aircraft and it's very difficult to fill every seat with only HVACs.
I realize that some people spend more $ and generate more profit than others, but since when does buying tickets and sending money to DL qualify as "blood sucking"? After all, they set the price.
#1353
Suspended
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Location: HKG
Programs: DL FO, UA, AA, AsiaMiles, SPG, HHonors
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#1354
FlyerTalk Evangelist
Join Date: Jun 2006
Location: LAX/BOS/HKG/AMS/SFO...hmm, I need a life.
Programs: United1K, AA ExPlAAt, DL MM/Gold, Hilton Diamond, Avis First
Posts: 13,316
I doubt that all it would take to sustain the world's largest airline would be the O&D traffic in and out of ATL, MSP, DTW, SLC, CVG and MEM.
Smaller, leaner is nice, but there are significant economies of scale in the airline business. That means larger aircraft and it's very difficult to fill every seat with only HVACs.
I realize that some people spend more $ and generate more profit than others, but since when does buying tickets and sending money to DL qualify as "blood sucking"? After all, they set the price.
Smaller, leaner is nice, but there are significant economies of scale in the airline business. That means larger aircraft and it's very difficult to fill every seat with only HVACs.
I realize that some people spend more $ and generate more profit than others, but since when does buying tickets and sending money to DL qualify as "blood sucking"? After all, they set the price.
Now, I believe they are all going there sooner or later but it will certainly be a huge disadvantage to the airline who moves first and alone and a potential massive pick-up of volume for the one who stays traditional FF program.
#1355
Suspended
Join Date: Dec 2009
Location: HKG
Programs: DL FO, UA, AA, AsiaMiles, SPG, HHonors
Posts: 7,982
I doubt that all it would take to sustain the world's largest airline would be the O&D traffic in and out of ATL, MSP, DTW, SLC, CVG and MEM.
Smaller, leaner is nice, but there are significant economies of scale in the airline business. That means larger aircraft and it's very difficult to fill every seat with only HVACs.
I realize that some people spend more $ and generate more profit than others, but since when does buying tickets and sending money to DL qualify as "blood sucking"? After all, they set the price.
Smaller, leaner is nice, but there are significant economies of scale in the airline business. That means larger aircraft and it's very difficult to fill every seat with only HVACs.
I realize that some people spend more $ and generate more profit than others, but since when does buying tickets and sending money to DL qualify as "blood sucking"? After all, they set the price.
#1356
Join Date: May 2008
Programs: DL AA UA
Posts: 2,359
And keep in mind: It only takes one of the big guys (UA/AA) to NOT do this and the choice for business travel will be clear. If left to Employees they will take the airline that gets them a little somethin-somethin over one that blanks them. If the price is the same and FF points can be had with one airline and not another (based on fare class) then guess where everyone will go.
Now, I believe they are all going there sooner or later but it will certainly be a huge disadvantage to the airline who moves first and alone and a potential massive pick-up of volume for the one who stays traditional FF program.
Now, I believe they are all going there sooner or later but it will certainly be a huge disadvantage to the airline who moves first and alone and a potential massive pick-up of volume for the one who stays traditional FF program.
#1357
FlyerTalk Evangelist
Join Date: Oct 2011
Location: Anywhere I need to be.
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Kind of like WS transborder.
#1358
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I'm not sure if this is directed at me or not. Their $4.5 billion skymiles liability is about 10% of DL's total liability (it's classified as deferred revenue). I had seen somewhere (I think a previous Delta filing) that they value skymiles at about half a cent each. So a $4.5 billion liability means there are 900 billion skymiles floating around. DL says that 275 billion skymiles were redeemed in 2011 so it seems like it's in the ballpark.
#1359
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Join Date: Oct 2011
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And keep in mind: It only takes one of the big guys (UA/AA) to NOT do this and the choice for business travel will be clear. If left to Employees they will take the airline that gets them a little somethin-somethin over one that blanks them. If the price is the same and FF points can be had with one airline and not another (based on fare class) then guess where everyone will go.
Now, I believe they are all going there sooner or later but it will certainly be a huge disadvantage to the airline who moves first and alone and a potential massive pick-up of volume for the one who stays traditional FF program.
Now, I believe they are all going there sooner or later but it will certainly be a huge disadvantage to the airline who moves first and alone and a potential massive pick-up of volume for the one who stays traditional FF program.
#1360
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#1361
Join Date: Aug 2011
Location: JFK/LGA/EWR
Posts: 1,296
Amex bought $1 billion in 2011 (part of that is a current liability) and is expected to buy another $2 billion over 3 years. The credit card business is very very good for Delta. Sell to kettles at 3.5 cpm, discount them to 2 cpm with their 75% bonuses to make it sound like a good deal, and then sell them to Amex at maybe 1.5-2 CPM. All while they are being redeemed at around 1 cpm.
#1362
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#1363
FlyerTalk Evangelist
Join Date: Jun 2006
Location: LAX/BOS/HKG/AMS/SFO...hmm, I need a life.
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I think it will be a game of who will hurt you less for some time. I am not sure about the WN analogy as I am talking about the vast majority of flyers today: Consultants/employees traveling on somebody else's dime. The airlines implemented FF programs to win the "hearts and minds and backsides" of the hoards of business travellers who have SOME choice in who they fly. It seems to me that dismantling that will take a little more than DL launching a fare based program and everyone jumping in line to follow. I know I would look at it (if I were one of the competing airlines) as a weakness to exploit if I wanted to pick up market share...at least in the short term.
#1364
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If they keep them within the typical +/- 5% then *most* employers are OK with employees sticking with their program. If I were UA/AA and DL did this I would be testing that limit for sure as the FF program itself would be a real differentiator.
#1365
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Amex bought $1 billion in 2011 (part of that is a current liability) and is expected to buy another $2 billion over 3 years. The credit card business is very very good for Delta. Sell to kettles at 3.5 cpm, discount them to 2 cpm with their 75% bonuses to make it sound like a good deal, and then sell them to Amex at maybe 1.5-2 CPM. All while they are being redeemed at around 1 cpm.