Delta Raises Maximum VDB Compensation to $9,950 in Vouchers
Apr 15, 2017, 3:53 am
#106
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Count me among those who see this as a total PR stunt to further distract from DL's massive operational failure last week.
Because the legally required financial loss for IDB is so much lower than this in most cases, I think we will rarely see it in practice. The first manager who hands out six $8,000 vouchers will be fired. It's completely impractical.
Not only that, until now the public was pretty unaware of ceilings on compensation. Now, everybody on DL will hold out for more $$$ in every oversold situation.
Because the legally required financial loss for IDB is so much lower than this in most cases, I think we will rarely see it in practice. The first manager who hands out six $8,000 vouchers will be fired. It's completely impractical.
Not only that, until now the public was pretty unaware of ceilings on compensation. Now, everybody on DL will hold out for more $$$ in every oversold situation.
I can only believe this is a PR move that won't make much of a difference in reality, given agents are certainly going to start low, and can still IDB. Unless this limit increase was paired with an order to go as high as necessary to avoid an IDB essentially at all costs, it's not all that interesting.
Apr 15, 2017, 4:20 am
#107
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Unless it's already been mentioned, but I wonder if the algorithm for overselling will be tweaked upwards? That is, will the incremental step to 100% load result in a higher net than the added VDB expense? But you'd think would've already been considered long ago, as though there was a cap on what they HAD to pay, there wasn't a cap on what they COULD pay.
And what about cargo vs pax? More VDBs for higher value cargo? The higher VDB $$ will allow more flexibility while still maintaining high pax net promoter scores.
And what about cargo vs pax? More VDBs for higher value cargo? The higher VDB $$ will allow more flexibility while still maintaining high pax net promoter scores.
Apr 15, 2017, 4:22 am
#108
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Unless it's already been mentioned, but I wonder if the algorithm for overselling will be tweaked upwards? That is, will the incremental step to 100% load result in a higher net than the added VDB expense? But you'd think would've already been considered long ago, as though there was a cap on what they HAD to pay, there wasn't a cap on what they COULD pay.
And what about cargo vs pax? More VDBs for higher value cargo?
And what about cargo vs pax? More VDBs for higher value cargo?
Hasn't been mention in the thread so far.
Apr 15, 2017, 5:07 am
#109
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The only cases where this is likely to come into play would be, conceptually, a major downgauge a la JetBlue: An A321/320 or A320/319 sub or a B737-900/737-700 might do the trick. Basically if DL suddenly has to come up with 30-50 volunteers (including a chunk of F/J) because of a situation I could see vouchers running high.
Aside from that, though, odds are pretty good that enough folks will bite at $1-2K. Depending on circumstances, travel flexibility, etc. (and with a clear understanding about how restricted/not-restricted a voucher is) that's probably my "bite point".
Aside from that, though, odds are pretty good that enough folks will bite at $1-2K. Depending on circumstances, travel flexibility, etc. (and with a clear understanding about how restricted/not-restricted a voucher is) that's probably my "bite point".
Apr 15, 2017, 5:24 am
#110
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+1
I can see this dropping IDB to zero. I don't care where I am going if a Delta rep comes onboard and says we will give you $9000 to take a flight tomorrow I would be RUNNING off the flight. Heck, I bet there would be a stamped of folks off the jet (humm... Ruh Roh)!
I can see this dropping IDB to zero. I don't care where I am going if a Delta rep comes onboard and says we will give you $9000 to take a flight tomorrow I would be RUNNING off the flight. Heck, I bet there would be a stamped of folks off the jet (humm... Ruh Roh)!
Apr 15, 2017, 5:41 am
#111
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The only cases where this is likely to come into play would be, conceptually, a major downgauge a la JetBlue: An A321/320 or A320/319 sub or a B737-900/737-700 might do the trick. Basically if DL suddenly has to come up with 30-50 volunteers (including a chunk of F/J) because of a situation I could see vouchers running high.
Apr 15, 2017, 5:49 am
#112
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That's the largest "weather bump" I've heard of (I've heard of a few 5-6 ones). Understandable, but still impressive.
Apr 15, 2017, 6:37 am
#113
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Apr 15, 2017, 8:31 am
#114
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Apr 15, 2017, 8:55 am
#115
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Why does anyone think this is a positive change? they can still involuntarily bump people for $1350, so they could raise the max to fourteen xillion dollars and it doesn't mean anyone is actually going to get that.
Apr 15, 2017, 8:57 am
#116
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I can only believe this is a PR move that won't make much of a difference in reality, given agents are certainly going to start low, and can still IDB. Unless this limit increase was paired with an order to go as high as necessary to avoid an IDB essentially at all costs, it's not all that interesting.
Apr 15, 2017, 9:01 am
#117
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Apr 15, 2017, 9:03 am
#118
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While this was surely, at least, planned somewhat for publicity, imagine how much publicity they'd get if they plan in advance to bump 1 or 2 people.
Giv'em each the $9950 - - OR - - even make it a $9950 Amex gift card!! They'd get their money's worth in advertising value many times over!
Have cameras there! Hope it's MEEEEEEEE!!!
Giv'em each the $9950 - - OR - - even make it a $9950 Amex gift card!! They'd get their money's worth in advertising value many times over!
Have cameras there! Hope it's MEEEEEEEE!!!
Apr 15, 2017, 9:05 am
#119
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Actions by other airlines regarding denying boarding: http://viewfromthewing.boardingarea....ing-one-hasnt/
Apr 15, 2017, 9:05 am
#120
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I think the motivation is certainly there for Delta to avoid IDB for PR reasons.
This Telegraph article points out that if Delta paid $9,950 to every passenger it IDBs in a year it would only cost them only $12 million. The real number will be much lower as they won't need to even get close to $9,950 to eliminate IDB on most flights and since Delta Dollars cost Delta a fraction of their face value.