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Old Jul 20, 2015, 5:09 pm
  #61  
 
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Originally Posted by ATOBTTR
You state that like it's fact, and it's not a fact. It's a theory at best and more likely your (unsupported) opinion. Your theory/opinion that legacies can't compete with discounts on revenue based is disproven by the hotel industry. All major hotel brands have revenue based earning systems. Yet Marriott and other nicer hotel chains seem to compete just fine at filling rooms over Motel 6 and Super 8. Your theory/opinion also discounts the fact that, while probably shocking to many FTers like yourself, plenty of flyers have reasons other than the FF program for selecting the airline that they do when they fly, with everything from service (or lack thereof), to schedule, to total travel time, to the airline network, and other factors as well.
Let us assume that what you say is a proven fact and mine is an unproven opinion. Then finally "The Berlin Wall" between LCC and legacy carriers is down and they are on an equal playing turf!! In that case, the bet you have to make is whether point to point can give hub-and-spoke (which requires back tracking as well as more inefficient use of planes -- 9 hours in air vs. 11) a run for their money. My bet is they can as 80% of the US and global population lives in large cities which a p2p can easily serve.
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Old Jul 20, 2015, 5:16 pm
  #62  
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Originally Posted by lakersown81
I'm curious to find out if AA were to devalue their program, and everybody purchased based on price, how screwed the legacy carriers would be. I think that's a scary bet Delta/United are making... If the industry becomes even more price driven, PRASM will drop and LCCs will thrive. Especially JetBlue, if recent numbers + Mint is any indicator.
From what I can tell, the legacies could largely close the CASM gap with WN by getting rid of F and copying WN densities. They could likely sustain a modest PRASM advantage by virtue of substantially more robust networks. B6 might keep a modest CASM advantage, but I'm not sure that it would hold if you adjusted for stage length (conversely, WN might look slightly better on a length-adjusted measure).

I think the risk to the legacies from "everyone shopping on price" is overstated and I think it ignores the fact that, currently, so many people do shop on price that it isn't clear that day hasn't already come.
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Old Jul 20, 2015, 5:22 pm
  #63  
 
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Originally Posted by ATOBTTR
What your theory also discounts is that there are plenty of elite FFers who don't rank mileage earning and redemption as one of their top priorities in a FF system too.
True, might be comp UG's. But wait FCM is taking care of that. So what's left free bags. I don't think so. IRROPS, I have had 2 in the last 5 yrs. No wait the Porsche ride.
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Old Jul 20, 2015, 5:44 pm
  #64  
 
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Originally Posted by BusTrav8yrs
IRROPS, I have had 2 in the last 5 yrs.
This is exactly why DL can get away with it and UA cant!
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Old Jul 20, 2015, 5:48 pm
  #65  
 
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Originally Posted by Esltroy
I am ready to move with my wallet and not just with my posts.Who is up for moving their loyalty to AA from delta. This is my thought. I am a diamond with delta. I am willing to status challenge to AA to platinum level.

I think if we can get enough diamonds to transfer to AA we may be able to negotiate a better deal. Discuss....
Welcome to AA! I've tried statuses with a dozen of different airlines around the world (all all major ones in USA) and AA won by a mile.
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Old Jul 20, 2015, 7:09 pm
  #66  
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Originally Posted by jediwho
Let us assume that what you say is a proven fact and mine is an unproven opinion. Then finally "The Berlin Wall" between LCC and legacy carriers is down and they are on an equal playing turf!! In that case, the bet you have to make is whether point to point can give hub-and-spoke (which requires back tracking as well as more inefficient use of planes -- 9 hours in air vs. 11) a run for their money. My bet is they can as 80% of the US and global population lives in large cities which a p2p can easily serve.
Define "large city". And then you will find that either 1) plenty of "large" cities lack point to point service or 2) your figure of 80% is pulled out of thin air with nothing to back it up. Otherwise - please explain: Greensboro, NC is a "large" city. So is Wichita, KS. What airline is going to fly that point-to-point? Columbus, OH and Salt Lake City are both major cities. How come no airline is flying that point-to-point? What about Raleigh-Durham to Portland, OR? See - all these nice examples that put a bit of a hole in your theory or your figures. You can figure out which.

And also your theory discounts another important fact: most hubs are in major cities that generate sizeable O&D numbers and fly nonstop to and from the hub city. Someone flying ATL-LGA on DL is flying point to point. In fact, legacy hubs rely heavily on solid O&D numbers to keep the hub profitable. Why else do you think DL cut CVG and MEM and UA cut CLE?

Last edited by ATOBTTR; Jul 20, 2015 at 7:50 pm
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Old Jul 20, 2015, 7:13 pm
  #67  
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Thanks for all the input. FT is a an amazing place for sharing of ideas. There is a lot to think about.
A) I really do think that a sticky should be in place for folks who are tired of the devaluations so that they don't clog up the main board. This way, folks can just vent/knoodle there
B) AA could devalue their skymiles program by January 1. Then anyone can make a choice on which airlines work best for their travel policies and preferences.
C) this is not an emotional decision. If delta is working for you...stay. I'll see what happens with delta and AA. Then chose what works best for me with my crazy travel schedule and travel restrictions.

Thanks for the lively discussion.

Last edited by Esltroy; Jul 20, 2015 at 7:32 pm
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Old Jul 20, 2015, 7:17 pm
  #68  
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Originally Posted by BusTrav8yrs
True, might be comp UG's. But wait FCM is taking care of that. So what's left free bags. I don't think so. IRROPS, I have had 2 in the last 5 yrs. No wait the Porsche ride.
To each their own. I do value the IROPS handling. Access to comfort plus is nice (right now at T-72, though I will be hitting Platinum soon and will get it complimentary). I've done okay with upgrades this year too. 12/15. Heck I've even had a couple upgrades clear on AS segments. Other routes I did do FCM. The priority call line is nice during IROPS or when I'm having issues and not at an airport. It also can mean more knowledgeable and helpful agents. Status also comes with waived fees (such as mileage re-deposit) and more rule bending.

That's what I value in the FF program - a lot of the benefits that can't be assigned a straight $$$ figure. But I can't make you value it too and if you don't find value there, more power to ya.
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Old Jul 20, 2015, 7:36 pm
  #69  
 
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Originally Posted by Navig8R

Post of the day for sure.
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Old Jul 20, 2015, 7:38 pm
  #70  
 
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Originally Posted by Esltroy
C) this is not an emotional decision. If delta is working for you...stay. I'll see what happens with delta and AA. Then chose what works best for me with my crazy travel schedule and travel restrictions.
I don't wanna be hearing any rumors that Bubbles is now flying AA if/when you leave. That'd just be wrong.
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Old Jul 20, 2015, 7:39 pm
  #71  
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Originally Posted by DYKWIA2014
Post of the day for sure.
Winner winner chicken dinner.
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Old Jul 20, 2015, 7:42 pm
  #72  
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Originally Posted by DYKWIA2014
I don't wanna be hearing any rumors that Bubbles is now flying AA if/when you leave. That'd just be wrong.
You mean this Bubbles
http://www.flyertalk.com/forum/23395678-post3846.html
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Old Jul 20, 2015, 7:46 pm
  #73  
 
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Originally Posted by DYKWIA2014
I don't wanna be hearing any rumors that Bubbles is now flying AA if/when you leave. That'd just be wrong.
That would be an incredible turn of events for sure.
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Old Jul 20, 2015, 7:55 pm
  #74  
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I hope bubbles doesn't follow me. That would be bad.
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Old Jul 20, 2015, 7:57 pm
  #75  
 
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Originally Posted by ATOBTTR
Define "large city". And then you will find that either 1) plenty of "large" cities lack point to point service or 2) your figure of 80% is pulled out of thin air with nothing to back it up. Otherwise - Greensboro, NC is a "large" city. So is Wichita, KS. What airline is going to fly that point-to-point? Columbus, OH and Salt Lake City are both major cities. How come no airline is flying that point-to-point? What about Raleigh-Durham to Portland, OR? See - all these nice examples that put a bit of a hole in your theory or your figures. You can figure out which.

And also your theory discounts another important fact: most hubs are in major cities that generate sizeable O&D numbers and fly nonstop to and from the hub city. Someone flying ATL-LGA on DL is flying point to point. In fact, legacy hubs rely heavily on solid O&D numbers to keep the hub profitable. Why else do you think DL cut CVG and MEM and UA cut CLE?
First, what is your theory or hypothesis? I am still not sure. It would be great if you quantified it? How about a simple one: since we are talking about DAL and AA, do you expect DAL to be more profitable than AA in the next 1, 3 and 5 years? In the end, higher load, volume and PRASM boils down to profits. If not profits, higher growth in market share?

Regarding large cities, there are at least a dozen ways to define it. A few: Top 100 metros by population; top 50 metros by population; the same by total income level (per capita GDP * pop of the metro). Since this is about airlines and airports, let's define by top 50 airport with O&D traffic. My guess is that the top 50 O&D airports account for at least 70% and more if you count international of the total US O&D traffic.

Last edited by jediwho; Jul 20, 2015 at 8:08 pm
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