Delta Sees the End of First Class Upgrades in 2018
Dec 17, 2015, 6:22 pm
#1
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Delta Sees the End of First Class Upgrades in 2018
Dec 17, 2015, 6:33 pm
#2
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Gleff is sloppy yet again. The 80% statement is clearly contradicted by a chart in the Investor Day presentation stating ~70%. Do you think the other 30% is going to go empty?
Dec 17, 2015, 6:38 pm
#3
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Dec 17, 2015, 6:48 pm
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a lot of "catchy sound-bite" points (yeah, I get it, it's basically a blog), but I think a lot of truth
I posted in one of the "new-and-improved-C+" threads a couple weeks ago that it's really starting to look like Delta's end game is "C+ is the new F" as far as the Medallion community is concerned ... the only folks riding in the pointy end will have paid for it somehow: cash, miles, UGs from advance-purchase C+, or GUCs/RUCs (and even those may be in jeopardy)
that said, though, I'm part of Delta's "70% paid FC" target metric: $350-$450 (~$200 over coach) for G/A/P on my WAS<-->SEA/LAX runs, sometimes less than 48 hrs out, is a no-brainer
I posted in one of the "new-and-improved-C+" threads a couple weeks ago that it's really starting to look like Delta's end game is "C+ is the new F" as far as the Medallion community is concerned ... the only folks riding in the pointy end will have paid for it somehow: cash, miles, UGs from advance-purchase C+, or GUCs/RUCs (and even those may be in jeopardy)
that said, though, I'm part of Delta's "70% paid FC" target metric: $350-$450 (~$200 over coach) for G/A/P on my WAS<-->SEA/LAX runs, sometimes less than 48 hrs out, is a no-brainer
Dec 17, 2015, 7:12 pm
#5
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Unless Delta begins to oversell first, which seems unlikely, they may have trouble getting up to those numbers no matter what. I flew on one flight this week (paid F fare), but I was able to secure a companion Medallion upgrade on the flight and the plane still had two seats empty (CRJ-900, which has the highest proportion of F seats). The reality is that F seats do go out empty sometimes even now, indicating that some routes have little demand even with FCM (on my trip this week I paid $135 to upgrade my ticket on a four segment trip, a no-brainer IMO).
Dec 17, 2015, 8:50 pm
#6
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I would welcome a sweeping change like this in the US. I don't usually travel to the USA on a long notice, so it is typically almost impossible to find flights with 4 first class seats for purchase...
Dec 17, 2015, 9:54 pm
#7
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The problem is DL marketing is addicted to selling people on the theoretical benefit of upgrades as a Medallion perk. Of course, it's rapidly becoming one more "benefit" than really has little to no value.
Dec 17, 2015, 10:52 pm
#8
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With a goal of 70-80% of FC seats to be sold rather than left as perishable/upgrade inventory, there may not be tons of inventory left unsold at the last minute.
Dec 18, 2015, 1:16 am
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Dec 18, 2015, 4:16 am
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Gotta love the airline execs who believe the current good times will last forever. How can they forget the cyclical nature of the economy and the airline business? It was just ten years ago that DL and NW both filed for bankruptcy.
Dec 18, 2015, 4:36 am
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On the contrary, I think they are only all too aware of that hence they are milking the current growth for as much as they can. The down curve will come regardless and airlines will react. The current execs might or might not be around but hey.. Better get those performance matrix bonuses while it is possible. Isn't the mantra here a bird in the hand (bonus in bank) worth two in the bush. They cannot predict the market nor the loyalty of their customers. And what's the use of individual loyalty if corporations cut travel budgets?
Dec 18, 2015, 4:48 am
#12
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On the contrary, I think they are only all too aware of that hence they are milking the current growth for as much as they can. The down curve will come regardless and airlines will react. The current execs might or might not be around but hey.. Better get those performance matrix bonuses while it is possible. Isn't the mantra here a bird in the hand (bonus in bank) worth two in the bush. They cannot predict the market nor the loyalty of their customers. And what's the use of individual loyalty if corporations cut travel budgets?
Dec 18, 2015, 5:20 am
#13
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Good for DL. Happy to see they are using their new found F income to improve the product with new menus and better food.
Dec 18, 2015, 5:54 am
#14
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I think you're backwards on thinking this is a good thing then. Cheap first class seats that Delta sells in advance means less first class seats available on short notice for you to buy because people have bought cheap A fares for those seats. The first upgrades don't happen until 5 days out and even then they only go through if Delta doesn't think there is a reasonable chance the seat might sell, otherwise they hold it back for the gate.
Dec 18, 2015, 6:23 am
#15
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I think you're backwards on thinking this is a good thing then. Cheap first class seats that Delta sells in advance means less first class seats available on short notice for you to buy because people have bought cheap A fares for those seats. The first upgrades don't happen until 5 days out and even then they only go through if Delta doesn't think there is a reasonable chance the seat might sell, otherwise they hold it back for the gate.