pbarnette

Who cares? Are you arguing that your purchase decision materially impacts the ability of AC or CX to sell seats on that flight?

javabytes

That's only one end of the spectrum. The other question is how many others go out of their way to travel on a sub-optimal schedule? For instance, I could fly on a more expensive non-stop ticket out of ORD on UA/AA. Or I can drive 20 more minutes and fly out of MKE instead (make up the time because parking/security at MKE is a breeze), usually on a cheaper 1-stop ticket, and on DL. Which do you think I do dozens of times a year? Saves my company money, and I get to fly who I want. My flights are usually more productive or comfortable because of the upgrades. And 98% of the time, making a stop isn't an issue because I'm traveling evenings or weekends, and ORD is a cluster that's usually delayed anyway. If that all goes away, do you think I'll bother?

AA_EXP09

AC E fare earns 50% on AC, A3, and many others
CX V fare earns 100% on CX.
I am saying if I am mid tier elite on both and they are offering those fare classes at the same price, I would go for the one with the most miles that benefit me.
So it is not MY decision. It is THEIR decision with the fare earning classes.
(However, If AC was matching CX V fares with a K fare, then I would take AC to play aerolotto and get A3 status faster.)

MSPeconomist

I think they mean the same process as for E fares: at OLCI you are given a seat assignment that you cannot change.

mother-

My company asks it's employees to use their discretion.

Perhaps that is why our margins are almost twice that?

MR_MAMA

It's being tested right now. I think they pay at check in You know how many families/couples would pay an extra 10, 20 to sit together? I was told that once people pay for the airline ticket, they consider that one transaction. When the pay the fees at the airport for luggage, seats, they don't think to add that cost to what they originally paid for the ticket in their head to get what the total they paid for their ticket, they consider it two transactions. There will be more fees at the airport to get around the new fee disclosure law. It doesn't cover seperate fees at checkin.

avidflyer

No. For an airline to be truly successful they need profitable passengers and they need volume. They are not the same and if your stance is that DL or any other airline should only cater to HVCs then why do they have a coach section? The reality, and I am quite sure you know this, is that you need a balance. If DL makes the FF program $$ based then fine, they better hope everyone else does. I do buy a lot of cheap fares but I also buy a lot of pretty expensive fares. I do not think for one minute that I am steering my business to the AL that only gives me points when I pay for the expensive fare....I will be going with the best "total cost" deal. I am also sure I am not alone.

pogopossum

Wow, quite the thread based on a rumor, but I guess all the best are.

As a 90% business traveler I book the lowest fare I can. I can usually justify a slightly higher fare with Delta if the flight is non-stop. We have a $500 limit for fare or we need to get approval. I'm a gold with 65K in miles last year and well on to gold again this year (thank you, rollover), but I am not what I would call a high value flyer, only about $8-10K a year.

Even though I am a gold, because I am in a hub and I tend to need to fly on medallion loaded routes, I am rarely upgraded. I'm not so sure the benefits I get from gold are worth continuing to play the game with Delta, especially if they change the rules. I don't drink, the meals are not worth it, it won't kill me if I don't have GoGo on a different airline. My expectations are so low even normal service comes as a pleasant surprise. Redeeming miles? Let's not go there.

When Northwest went away and a lot of FT'ers said they were abandoning ship I decided to wait and see. Well, I've waited and saw, and I don't see much.

So whether or not there are going to be changes the rumor and the thread have made me decide to look at other airlines. I can get nearly everywhere I need to in the country on Sun Country (the new hometown airline) and AirTran. Any of the other legacies all seem to have the same issues as Delta.

Since round trip to SFO on Sun Country is about $300 vs $750 for dates I want (don't worry about the details, I am just making a point here) it has come to Delta is simply too expensive to fly with, and it sounds like with fewer benefits.

I'm certainly not saying the grass is greener, just that I've decided to expand my choice of airline, so Delta may not get 95% of my air travel dollar, like it did last year.

Cheers,
Pogopossum

avidflyer

You beat me to it but yea...not all that impressive.

mother-

Supply is tough to alter in the short term and only comes in large quantized units called "a plane" that's why.

Goodies determine how price sensitive a portion of your customers are, this is that silly thing called loyalty. It helps you extract higher rents overall because some of your customers will fly you despite small price differences, or crappy schedules, or needing to connect, etc. This combined with your HVCs and cargo are where your profits come from.

But it the kettles ain't filling the first 70% of the plane you're never getting out of the black.

Some airlines, the LCC's like WN and B6, have a different formula where they fill the plane up with kettles and make money off of them. Delta could never use that model.

Denolloyd

Interesting. I spent over 10 years at a major financial institution. Our policy was "lowest logical airfare". It required us to purchase the lowest priced itinerary with the least amount of stops. We could pay significantly more for a non-stop flight vs a connecting flight. My new firm requires lowest period. Naturally, international travel, overnight business, etc. have different requirements (F/J).

DouglasBoyd

plus 1

mother-

Without knowing what specific industry, that could be an excellent or a pathetic margin...

avidflyer

Agreed. Contract manufacturer...huge. High tech/SW pathetic. Bottom line is the OP thew that number out with no qualifier. That was my point.

DHalltheway

It would be, but then again the airline industry is very seasonal. Their main profit is earned during peak travel season. (i.e.: summer, school holidays, and prior to public holidays like thanksgiving and christmas).

By not providing cheap fares during lull period, they will face more losses because they don't have enough revenue to cover operational cost. Unlike other businesses that can shut down production for several weeks when business is slow, airlines can't do that. They still need to fly, and even if they park the plane, they are still paying rent for it. So it is a matter of how much cost they can cover.

I think AA or UA are your best bet by far in terms of mileage earnings.

DL is now planning on selling the double stacked ham sandwiches!

Maybe they should change their name to Subway airlines.

Well they made sure that they can't write off that liability real good by introducing no expiry date.

+1, I am right there with you.

And I agree with everything you say.