Originally Posted by LAX_Esq
(Post 32578187)
This is desperately trying to fight the analogy.
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Originally Posted by No_Name
(Post 32578246)
I really don't see how Delta, or any airline for that matter, would be able to operate in the way some posters advocate without charging significantly higher prices. Increased risk means higher costs, which means higher prices. I prefer to manage the risk of a two hour delay myself and take the reduced air fare as it is a more cost effective solution (from my perspective).
If they alter the schedule, passengers should be able to receive their money back and take their business elsewhere. After all, they pay for specific flights at specific times. If airlines want to keep passengers money, they have two options:
When you look East or West where there is REAL competition, you see much improved service and treatment of passengers. Further, the EU regulations now force airlines to be much better at organization and scheduling. KLM for instance is SUPER consistent with times, and they BARELY change schedule. When passengers buy tickets, they know with 99.99% certainty that their flight would occur at a time/day they purchased it for. |
Originally Posted by No_Name
(Post 32578273)
The hairdresser/personal trainer is a horrible analogy for this scenario in every possible way. A hairdresser does not have the cost structure nor the operational constraints of an airline. It's even worse than comparing a child's lemonade stand with McDonald's (and at least both of those care in the same sector).
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Originally Posted by No_Name
(Post 32578273)
The hairdresser/personal trainer is a horrible analogy for this scenario in every possible way. A hairdresser does not have the cost structure nor the operational constraints of an airline. It's even worse than comparing a child's lemonade stand with McDonald's (and at least both of those care in the same sector).
Originally Posted by No_Name
(Post 32578246)
I really don't see how Delta, or any airline for that matter, would be able to operate in the way some posters advocate without charging significantly higher prices. Increased risk means higher costs, which means higher prices. I prefer to manage the risk of a two hour delay myself and take the reduced air fare as it is a more cost effective solution (from my perspective).
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Originally Posted by No_Name
(Post 32578246)
and it goes the other way also. I've had flights that had delays and Delta would let me change to a more desirable time (the 8:30 vs 6:30 in your example). Things happen and sometimes you come out ahead monetarily and sometimes you don't. Getting all angsty about it is not worth the effort, unless that is something that person enjoys.
Schedule changes happen. It's fine. It's not a big deal. But if the schedule changes materially - and let's be clear, a 2 hour difference in departure on a domestic short haul flight is incredibly material - then a refund is warranted. I'm not talking about the +/- 5 minute adjustments of course. But anything over an hour is clearly material. Not just because of people's schedules, but because that is (roughly) the "time cost" of a connection which creates a very different competitive environment for fares. I really don't see how Delta, or any airline for that matter, would be able to operate in the way some posters advocate without charging significantly higher prices. Increased risk means higher costs, which means higher prices. I prefer to manage the risk of a two hour delay myself and take the reduced air fare as it is a more cost effective solution (from my perspective). |
Originally Posted by ethernal
(Post 32577915)
Depends on the context. Sometimes it's about the least-worst option. To me the more unconscionable thing is that Delta is happy to charge you a significant premium for a two-hour difference in departure time. A 6:30 AM flight may be $200 cheaper than an 8:30 AM flight. In other words, customers value a 2 hour difference in departure time and Delta is happy to reap the revenue increase from that published time. But then on the flip side, if they cancel the 8:30 AM and put everyone on the 6:30 AM, then they are saying there is zero (contractual) recourse available to the customer. Good luck getting that $200 premium you paid back.
It's certainly a debate about what's right, but it's also a "be careful what you ask for, you may just get it". It could possibly be changed by DOT policy and the DOT becomes more strict on airlines and forcing them to provide more when they change schedules by more than a certain amount (say 1 hour). But there many be other consequences, such as increased airfares or DL or other airlines becoming far less flexible with it's current schedule change policies. Right now, DL will let you rebook anything that day without a change fee or fare difference and often even switch days (I've also had luck even switching airports for no fee/fare difference). Maybe as a response, DL says "We'll only rebook you without fee or fare difference to a flight within 3-4 hours of your original time, unless no option is available". You may see some sort of step policy that says "if the schedule is changed this much more than X number of days before departure, these are your options, if changed this much Y days before departure, these are your options", etc. I can say in my own experience, I feel I've come out ahead many times more in this respect (booking cheaper flights and then due to schedule changes, getting far more desirable options) than I've come out behind, both with DL and other airlines. |
Originally Posted by ATOBTTR
(Post 32578339)
On the flip side, if you decide that you want the 6:30 AM because you value $200 over sleeping in, and DL pulls the 6:30 AM flight and shifts you to the 8:30 AM flight, DL does not come to you to ask for the $200 premium - you now get the savings of $200 and the benefit of sleeping-in.
It's certainly a debate about what's right, but it's also a "be careful what you ask for, you may just get it". It could possibly be changed by DOT policy and the DOT becomes more strict on airlines and forcing them to provide more when they change schedules by more than a certain amount (say 1 hour). But there many be other consequences, such as increased airfares or DL or other airlines becoming far less flexible with it's current schedule change policies. Right now, DL will let you rebook anything that day without a change fee or fare difference and often even switch days (I've also had luck even switching airports for no fee/fare difference). Maybe as a response, DL says "We'll only rebook you without fee or fare difference to a flight within 3-4 hours of your original time, unless no option is available". You may see some sort of step policy that says "if the schedule is changed this much more than X number of days before departure, these are your options, if changed this much Y days before departure, these are your options", etc. I can say in my own experience, I feel I've come ahead many times more in this respect (booking cheaper flights and then due to schedule changes, getting far more desirable options) than I've come out behind, both with DL and other airlines. |
Originally Posted by ethernal
(Post 32578394)
The issue is that the sleeping in was valued at less than $200 - for that individual, it was only worth anywhere from $0 to $199. It was never equal to $200 - otherwise they would have picked the 8:30 AM flight. So, no, it doesn't come out as a wash. In fact, in some cases the 8:30 AM flight may be worth even less to that individual because they really needed to be on the 6:30 AM flight. Inherently in any economic system where actors self-select for their own preferences and utility curves, reducing from 2 option sets to 1 option set will always result in a loss of total buyer value. Delta pockets the "destroyed" surplus for themselves.
I agree that Delta has been historically flexible and I've benefited from that flexibility, but candidly I would rather have clear guardrails rather than rely on Delta's goodwill. I realize this is not the case for everyone, but to me the whole exception/waiver/etc dance feels like haggling to me and I hate haggling. If Delta wants to be a customer-friendly airline, then they should be willing to be customer-friendly in their contract - and not selectively reward (or, indirectly punish) passengers based on the agent they happen to call. |
I agree that is customer unfriendly just because it technically less people qualify for the refund and this change only benefits the airline.
However in all the talk of "fairness" how many customers take advantage of the policy and hope for a schedule change to get their money back which messes with the airlines cash projections. My point is only that it is a for profit business and you can be customer friendly so much that you don't have a sustainable business. I hear that it is frustrating that you make commitments based on what you expect from other businesses and they let you down and you don't get your money back. UPS completely suspended their service commitments so you pay for 3 day service they get it there in 5. No money back and you just deal with it. Point is businesses are trying to stay alive right now, so this move isn't uncommon and as things go it isn't game changing. For me personally I couldn't care less about adding 30 minutes. Also, as an aside one thing I have learned on this forum is analogies are completely pointless. The haircut one was especially terrible. :D |
Originally Posted by defrosted
(Post 32578522)
However in all the talk of "fairness" how many customers take advantage of the policy and hope for a schedule change to get their money back which messes with the airlines cash projections.
Point is businesses are trying to stay alive right now, so this move isn't uncommon and as things go it isn't game changing. |
Originally Posted by LAX_Esq
(Post 32578569)
US airlines aren't struggling to stay alive, and there's zero indication that this change was made to help them stay alive; it's just business as usual in the airline industry -- continuing to make the experience more and more miserable for their customers. Execs know they can screw over their customers and make record profits and line their pockets handsomely, and that the US govt will bail them out the next time things go south.
This was definitely COVID-related. Delta does NOT want to issue refunds. They'll issue vouchers all day long. But refunds? They'll do everything they can to avoid it. Going from a 90 minute to 120 minute window for refunds greatly increases flexibility to Delta for eliminating flights without risking a refund. 120 minutes opens up a lot of new connecting options - or for a mega-hub like Atlanta where there are hourly flights somewhere, they can cut more half of them and guarantee that no one is refund-eligible. In this regard, it's unfortunate because they made this change in the context of COVID but it is highly unlikely they will ever go back to the old terms post-COVID. |
Originally Posted by ethernal
(Post 32578599)
I disagree with that assertion. Yes, US airlines have liquidity in the short run, but cash burn is definitely not sustainable - and it is clear that COVID will be a long drawn out affair (especially in the US). Fighting for survival is definitely the right word to use. They mortgaged their assets in order to survive - once this money dries up, bankruptcy is the next step. Keep in mind that the cash burn rate at the end of Q2 included CARES which expires shortly. Delta's projection of being cashflow-neutral by end of year assumed at least a 60-70% demand recovery by then which is looking increasingly unlikely. They are still fighting for survival.
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Originally Posted by LAX_Esq
(Post 32578569)
Among the hundreds of millions of air pax each year, probably a very very very small number of pax even know that you can get a refund if there's a long enough schedule change. And an even smaller number would even be in a rare situation where they are hoping to cancel the flight anyway and were waiting until a schedule change so they can take advantage of the system and get their money back. FlyerTalk is hardly a microcosm of the flying public.
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Originally Posted by LAX_Esq
(Post 32578673)
Let's dispel the notion that a bankruptcy filing means shutting down and going out of business. As we've seen from all the recent airline "bankruptcies," the US Bankruptcy Code is a tool that the US airlines have in their pocket to hit the reset button, restructure themselves, screw over their creditors, and help their execs get rich again. The US government made very clear that it's not going to let the US airlines go out of business. If there's no threat of going out of business, there's no fight for survival. It's just a numbers game.
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I understand the reason for DL making this change and it will effect flyers in different ways. When I am travelling for leisure to Europe for a week, and there is a 2 hour change with an additional hour at my connection, I shrug and say who cares. However, when I am going out and back for a meeting in the same day, 119 minute shifts on the outbound and return can result in serious issues. Even with the 90 minute rule, there could be issues. Fortunately, the couple of times that happened to me, DL has empowered staff to do what helped rather than follow things to the letter.
Overall, I think this is a non-issue for the vast majority of DL flyers. Joe Sixpack heading out for his weekend vacation is not going to have his vacation ruined if he arrives 2 hours later rather than 1.5 hours later. The Flyertalk road warrior that is scheduling an itinerary down to the minute can get DL to refund a 91-119 minute change if it truly effects the purpose of the trip. It should also be noted that with any change, you can request something different. Going back to the barber analogy, it would be more like the barber says he cannot do 5:00 anymore, but can do 3:01 or 6:59. If neither of those work, he'll put your money on a voucher you can use later, but the price for the haircut may change. |
Originally Posted by ethernal
(Post 32578773)
You must not be a financial restructuring / bankruptcy attorney. If you were you'd realize that senior executives that are primarily compensated with equity options that takes multiple years to vest. And that those would become worthless (or near worthless) post-bankruptcy. Because the first "creditors" wiped out are the people that own the company (equity). You're right that the airlines would - in some form - continue to operate, but everyone who has any vested interest in Delta from an equity perspective would be naked in such an event.
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Originally Posted by smartytravel
(Post 32578290)
In the end, nobody forced airlines to do business they are in. If they are not happy with keeping schedules that consumers pay for, then maybe they should consider quitting?
(I don't personally believe that's valid as a blanket excuse to justify any customer-unfriendly policies the airlines can come up with, but it's your logic...) |
Originally Posted by Zorak
(Post 32579026)
In the end no one is forcing you to buy an airline ticket either.
(I don't personally believe that's valid as a blanket excuse to justify any customer-unfriendly policies the airlines can come up with, but it's your logic...) Any business has its own peculiarities and problems. Saying that they cannot commit to a particular schedule due to a cost structure is not an excuse. Many businesses are challenged with all kinds of cost structured and they need to deliver services customers pay for. If they can't deliver, then they should probably change industries or businesses. |
None of this has to do with the simple fact that DL does not contract or otherwise agree to maintain a specific schedule and that the customer expressly agrees that DL may not be able to do so.
If you have a ticket contract which includes provisions by which DL agrees to run within 5 minutes of schedule, you have a beef. Otherwise, the assertion that DL has contractually committed to a specific schedule means that you either disregarded the contract when you purchased or read it but choose to ignore it now. |
Originally Posted by Often1
(Post 32579199)
None of this has to do with the simple fact that DL does not contract or otherwise agree to maintain a specific schedule and that the customer expressly agrees that DL may not be able to do so.
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Originally Posted by Often1
(Post 32579199)
None of this has to do with the simple fact that DL does not contract or otherwise agree to maintain a specific schedule and that the customer expressly agrees that DL may not be able to do so.
If you have a ticket contract which includes provisions by which DL agrees to run within 5 minutes of schedule, you have a beef. Otherwise, the assertion that DL has contractually committed to a specific schedule means that you either disregarded the contract when you purchased or read it but choose to ignore it now. |
Originally Posted by smartytravel
(Post 32579207)
And, that's what the conversation is about above. Just because Delta or other airlines indemnify themselves from any obligation does not mean that they shouldn't have that obligation. We provided an example of a barber who wants to shift a haircut by 2 hours and then holds on to the money without refunding.
Example 1: In most cases, if I hire a lawyer and agree to pay them for their time and expenses, I don't get a refund if the outcome is not what I wanted. When lawyers take on a client and payment is only made if you win, the lawyer is much more selective or charges more for their time. Example 2: If I want a construction contractor to finish a job on a specific date and they miss that date because the city fails to issue a certificate of occupancy, I'm going to be sued if I don't pay (or the property seized if they placed a lien). I also won't be offered a refund if I paid upfront. If I brought action to avoid paying or recover funds, I would likely fail if the contractor demonstrated that they put forth a good faith effort. |
Originally Posted by No_Name
(Post 32579427)
Many businesses indemnify themselves from certain outcomes. In many cases they don't even need to explicitly state the outcomes. In the US, the UCC codifies the concept of good faith.
Example 1: In most cases, if I hire a lawyer and agree to pay them for their time and expenses, I don't get a refund if the outcome is not what I wanted. When lawyers take on a client and payment is only made if you win, the lawyer is much more selective or charges more for their time. Example 2: If I want a construction contractor to finish a job on a specific date and they miss that date because the city fails to issue a certificate of occupancy, I'm going to be sued if I don't pay (or the property seized if they placed a lien). I also won't be offered a refund if I paid upfront. If I brought action to avoid paying or recover funds, I would likely fail if the contractor demonstrated that they put forth a good faith effort. People in this thread don't seem to like analogies, so I'll take the liberty of saying that I think your two analogies are not helpful. It seems perfectly logical and fair that a lawyer getting paid by the hour doesn't have to bear the risk of not getting paid if he loses a client's garbage case, and that a contractor doesn't have to bear the risk of not getting paid if he blew a deadline because of some governmental inaction that's outside of his hands. Further, the customers in these examples can bargain for these various outcomes -- or do business with other providers since the free market is actually at work in the legal and contractor industries. In contract, it's not at all logical for the airline pax to solely bear the consequences of the airline unilaterally shifting the flight time by two hours. Plus, the airline pax doesn't even have any bargaining power in this contract of adhesion situation in an oligopolistic industry. |
Originally Posted by smartytravel
(Post 32579207)
And, that's what the conversation is about above. Just because Delta or other airlines indemnify themselves from any obligation does not mean that they shouldn't have that obligation. We provided an example of a barber who wants to shift a haircut by 2 hours and then holds on to the money without refunding.
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Originally Posted by TomMM
(Post 32579493)
How many people prepay for a haircut?
The nature of transportation is that you can't guarantee schedules. A line must be drawn somewhere. Either 90 or 120 minutes seem reasonable to me. Do any major network carriers use a shorter cutoff? I don't know. |
Originally Posted by LarryJ
(Post 32579513)
The nature of transportation is that you can't guarantee schedules. A line must be drawn somewhere. Either 90 or 120 minutes seem reasonable to me. Do any major network carriers use a shorter cutoff? I don't know.
Airlines take advantage of speculative schedules to do demand sensing. Basically teasing consumers with schedules they never intended to fly to see if - maybe afterall - they should fly the route. And then cut it later. It's little better than false advertising. Anything that reduces this is a good thing, not a bad thing. The idea that airlines are somehow special that they should be able to advertise routes they never intend to fly (or have not done enough due diligence on) is silly. |
Originally Posted by ethernal
(Post 32579559)
Airlines take advantage of speculative schedules to do demand sensing. Basically teasing consumers with schedules they never intended to fly to see if - maybe afterall - they should fly the route. And then cut it later. It's little better than false advertising. Anything that reduces this is a good thing, not a bad thing. The idea that airlines are somehow special that they should be able to advertise routes they never intend to fly (or have not done enough due diligence on) is silly.
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Originally Posted by defrosted
(Post 32579632)
Correct me if I am wrong cancelations are still refunded.
You bought this flight departing at 8am arriving at 11am? Nope, now you gotta be catching a flight at 6am, or else you’ll lose your money. Similarly, you may be forced to take a 10am flight and miss important arrangements later in the day, just because someone else decided to change your schedule. |
Originally Posted by smartytravel
(Post 32579207)
And, that's what the conversation is about above. Just because Delta or other airlines indemnify themselves from any obligation does not mean that they shouldn't have that obligation. We provided an example of a barber who wants to shift a haircut by 2 hours and then holds on to the money without refunding.
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Originally Posted by BRITINJAPAN4
(Post 32579648)
But they give the customer a very straight forward choice. Low price but airline is indemnified in case of a schedule change within a 2 hour window, or High price but complete flexibility. seems the OP wants the low price with no restrictions, what possible incentive does the airline have to offer that ?
1. What low prices are we talking about? Can I, like in Europe, fly the distance equal to London-Athens in the US, and still pay $20-$100? No. The same distance in the US would be $200-300. US airlines just feed everyone with crap about the choice between cheap prices and no-frills flying. 2. If I want flexibility for MY OWN choices, then I purchase my own fully changeable and refundable ticket. However, I’m typically very set and certain about my decisions and I purchase flights based on specific departure and arrival times. Why am I being penalized and forced to accept something that the AIRLINE decides to do? If they want flexibility, they need to pay to passengers. The payment here is the full refund to passengers who do not agree to new departure or arrival times. |
Originally Posted by BRITINJAPAN4
(Post 32579648)
But they give the customer a very straight forward choice. Low price but airline is indemnified in case of a schedule change within a 2 hour window, or High price but complete flexibility. seems the OP wants the low price with no restrictions, what possible incentive does the airline have to offer that ?
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Originally Posted by smartytravel
(Post 32579646)
you are wrong. If they can put you on a plane that arrives within 2 hours on either side, you’re out of luck for your refund.
You bought this flight departing at 8am arriving at 11am? Nope, now you gotta be catching a flight at 6am, or else you’ll lose your money. Similarly, you may be forced to take a 10am flight and miss important arrangements later in the day, just because someone else decided to change your schedule. Not ideal, not customer friendly, sure, but reasonable all the same. |
Originally Posted by defrosted
(Post 32579661)
Not ideal, not customer friendly, sure, but reasonable all the same.
just? No killing the ideals of free market and consumer choice? Yes |
Originally Posted by smartytravel
(Post 32579653)
We seem to be talking past each other.
1. What low prices are we talking about? Can I, like in Europe, fly the distance equal to London-Athens in the US, and still pay $20-$100? No. The same distance in the US would be $200-300. US airlines just feed everyone with crap about the choice between cheap prices and no-frills flying. 2. If I want flexibility for MY OWN choices, then I purchase my own fully changeable and refundable ticket. However, I’m typically very set and certain about my decisions and I purchase flights based on specific departure and arrival times. Why am I being penalized and forced to accept something that the AIRLINE decides to do? If they want flexibility, they need to pay to passengers. The payment here is the full refund to passengers who do not agree to new departure or arrival times. |
Originally Posted by LAX_Esq
(Post 32579490)
It seems perfectly logical and fair that a lawyer getting paid by the hour doesn't have to bear the risk of not getting paid if he loses a client's garbage case,
Originally Posted by LAX_Esq
(Post 32579490)
and that a contractor doesn't have to bear the risk of not getting paid if he blew a deadline because of some governmental inaction that's outside of his hands.
According to a paper (DOI: 10.1109/IC3INA.2014.7042596), the departure delays for Garuda Airlines from Djuanda in excess of 120 minutes is less than 0.5% of the flights. Those values are also consistent for United Airlines departures from Denver. According to a NASA paper (AIAA 2002-5866), 91% of the delays (in the year 2000) are due to problems outside the control of an airline (weather, traffic delays, runway delays, and ATC equipment problems). In general, airlines have done a good job in reducing delays due to factors within their control. |
Originally Posted by defrosted
(Post 32579661)
Not ideal, not customer friendly, sure, but reasonable all the same.
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Originally Posted by defrosted
(Post 32579632)
In fairness you are confusing the issue, your example of advertising routes they never intend to fly is a cancelation not a schedule change of 90 vs 120. Correct me if I am wrong cancelations are still refunded.
As an example of what I am talking about - check out ATL-ORD on December 25th. Even in a non-COVID world, there is zero chance that Delta is actually going to fly 10 ATL-ORD flights that day (last year they flew only 6 flights). Just like United will not fly 8 flights that day. I'm picking Christmas as an extreme example, but if I was to book a flight today, there is no way I'll know which flights they will actually fly. In normal times, this is about the time of year they finally start trimming holiday schedules now that summer is on the downswing. Of course, with COVID, who knows how long they will wait to make adjustments (although I am of course willing to excuse this year for that). They're happy to keep the full schedule to collect data on when people want to fly and run optimization models for when they prune the routes system-wide. And they're also happy to charge for a specific time within a 2-hour window: one way, the 8:28 AM flight is $170. The 10:13 AM flight is $59. I can go check out and Delta is happy to extract a 288% price premium for picking a specific time within a two hour window, but interestingly there is no warning (without reading the revised CoC) when I go to book this flight that Delta could decide to put me on the 10:13 AM flight (priced 65% off) with no recourse if they like. I picked an extreme example (Christmas day) to make a point, but this kind of stuff occurs (on a smaller scale) all the time. This bothers me. Maybe it doesn't bother you, but it bothers me. |
Originally Posted by No_Name
(Post 32579667)
Governmental inaction is a good reason to miss a deadline but weather, airport delays (say due to some other flight having an emergency), etc is not a good reason to miss a deadline?
In case of airlines, we are talking about schedule changes they make weeks or months in advance of the actual flights that pax had already paid for. |
Originally Posted by LAX_Esq
(Post 32579673)
At what point does non-ideal and not customer friendly cross over into unreasonable?
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Originally Posted by ethernal
(Post 32579683)
Apologies, shouldn't have said "route" as that implies a specific city pair served nonstop as opposed to multiple.
As an example of what I am talking about ............ This bothers me. Maybe it doesn't bother you, but it bothers me. It doesn't bother me one iota. I can certainly see where you are coming from though. If there was more competition and someone could sell "no schedule changes" as a benefit, would you pay more for that? I honestly doubt there would be a market for that. I stand by my opinion that this issue is a non issue for the majority of Delta's customers. It isn't my intention to devalue your thoughts on it, I just believe you are in the minority. |
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