Delta's Announces New SimpliFares(TM) for Cincinnati area
Aug 18, 2004, 9:31 pm
#1
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Delta Announcement Tomorrow at CVG
Greetings, I was just browsing delta.com for a ticket and clicked the news link. Apparently some of the new customer service initiatives may be announced tomorrow at a press conference at CVG. The Press Relase stated:
Delta Air Lines to Announce Innovative Customer
Media Advisory
WHAT: Delta Air Lines will implement a bold, new customer focused program from Greater Cincinnati Northern Kentucky International Airport. The new program is the first of many initiatives Delta will be launching over the next several months as part of a far-reaching transformation.
WHO: Paul Matsen, Senior Vice President and Chief Marketing Officer
WHEN: Thursday, August 19, 2004
10:30 a.m. – 11 a.m.
WHERE: Greater Cincinnati Northern Kentucky International Airport
Terminal One in the Navigation Room
RSVP: Please contact Delta Corporate Communications at (404) 715-2554 to confirm your attendance at the event.
Satellite Uplink: Thursday, August 19, 2004
AMC-9 Transponder 18, Analog KU-band
Sat Coordinates: 85 degrees West Longitude
Information Page: ses-americom.com/satellites/amc-9.html
Feed is from 2:00-2:30 Cincinnati Time
http://media.delta.com/article_displ...rticle_id=9394
Regards,
TRIFlyer
Delta Air Lines to Announce Innovative Customer
Media Advisory
WHAT: Delta Air Lines will implement a bold, new customer focused program from Greater Cincinnati Northern Kentucky International Airport. The new program is the first of many initiatives Delta will be launching over the next several months as part of a far-reaching transformation.
WHO: Paul Matsen, Senior Vice President and Chief Marketing Officer
WHEN: Thursday, August 19, 2004
10:30 a.m. – 11 a.m.
WHERE: Greater Cincinnati Northern Kentucky International Airport
Terminal One in the Navigation Room
RSVP: Please contact Delta Corporate Communications at (404) 715-2554 to confirm your attendance at the event.
Satellite Uplink: Thursday, August 19, 2004
AMC-9 Transponder 18, Analog KU-band
Sat Coordinates: 85 degrees West Longitude
Information Page: ses-americom.com/satellites/amc-9.html
Feed is from 2:00-2:30 Cincinnati Time
http://media.delta.com/article_displ...rticle_id=9394
Regards,
TRIFlyer
Aug 18, 2004, 9:32 pm
#2
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Nothing like have a Delta news conference in a terminal that they don't use.
Aug 18, 2004, 9:42 pm
#3
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Originally Posted by TRIFlyer
Delta Air Lines will implement a bold, new customer focused program from Greater Cincinnati Northern Kentucky International Airport. The new program is the first of many initiatives Delta will be launching over the next several months as part of a far-reaching transformation.
Aug 18, 2004, 9:58 pm
#4
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Originally Posted by Cholula
If this is THE big announcement we’ve all been waiting for, it’s a week early...isn’t it?
Aug 18, 2004, 10:22 pm
#5
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Originally Posted by DLfan
No way this is THE announcement, Cholula. Can't believe they'd let Matsen announce in CVG, and a week early. This is probably something CVG focused. The biggie is still forthcoming, IMHO.
Aug 19, 2004, 4:44 am
#6
Join Date: Feb 2004
Location: ATL/SLC
Posts: 3,540
Delta's Announces New SimpliFares(TM) for Cincinnati area
"Instead of driving to nearby cities for lower air fares, Cincinnati-area business and leisure customers can now enjoy hometown convenience with Delta Air Lines' DAL new, low SimpliFares. Effective immediately, Delta is introducing bold, simple, affordable air fares from Greater Cincinnati Northern Kentucky International Airport. Unrestricted fares will drop by as much as 60 percent on some routes.
SimpliFares do not require a Saturday-night stay. And with SimpliFares, no Cincinnati fare, including last-minute walk-ups, will be higher than $499 one way in economy or $599 one way in first class, within the 48 contiguous United States*. Customers can purchase the new fares and check in online, earn 1,000 bonus SkyMiles for roundtrip travel, all with no booking fees at delta.com.
SimpliFares are providing even more value with savings on the ticket change fees, down from $100 to $50. Cincinnati-area customers will continue to enjoy access to Delta's more than 500 daily non-stop departures to 134 cities and Delta SkyMiles frequent flyer program.
With SimpliFares, there are just two first class and six economy fares on each flight. Customers can choose refundable or non-refundable tickets and save even more by purchasing tickets three, seven or 14 days in advance of travel. Roundtrip purchase is required for some fares, but customers never have to stay over a Saturday night. "
Full press release here.
SimpliFares do not require a Saturday-night stay. And with SimpliFares, no Cincinnati fare, including last-minute walk-ups, will be higher than $499 one way in economy or $599 one way in first class, within the 48 contiguous United States*. Customers can purchase the new fares and check in online, earn 1,000 bonus SkyMiles for roundtrip travel, all with no booking fees at delta.com.
SimpliFares are providing even more value with savings on the ticket change fees, down from $100 to $50. Cincinnati-area customers will continue to enjoy access to Delta's more than 500 daily non-stop departures to 134 cities and Delta SkyMiles frequent flyer program.
With SimpliFares, there are just two first class and six economy fares on each flight. Customers can choose refundable or non-refundable tickets and save even more by purchasing tickets three, seven or 14 days in advance of travel. Roundtrip purchase is required for some fares, but customers never have to stay over a Saturday night. "
Full press release here.
Aug 19, 2004, 5:19 am
#7
Join Date: Mar 2004
Location: CVG & Scottsdale, AZ
Posts: 118
Delta to Slash Cincinnati Fares, Simplify Fare Structure
Thursday, August 19, 2004
Delta slashes Cincinnati fares
Airline seeks to recapture local passengers
By James Pilcher
Enquirer staff writer
Delta Air Lines today will unveil a major fare restructuring that lowers the price of flying out of Cincinnati by as much as 60 percent. The plan may remove the airport from the list of the nation's most expensive air travel venues.
"We're trying to give our local customers reason not to drive to Dayton, Indianapolis, Louisville, or Columbus," said Delta chief marketing officer Paul Matsen. "This is not just another fare sale - this demonstrates that we have heard our customers and that we are committed to operating as a customer focused company."
Atlanta-based Delta, struggling with billions of dollars in losses, hopes the lower fares will recapture as many as 2,500 daily travelers from Greater Cincinnati who choose to drive up to 2 hours to regional airports served by discount carriers.
The restructured fare system, called Simplifares, caps the most expensive domestic coach fares from Cincinnati at $499 each way.
It also pares down the fare structure, offering just six levels for coach travel. The airline said it is especially targeting business travelers.
The new system does not apply to international travel or flights to Hawaii or Alaska. But it does apply to all other flights that originate or end in Cincinnati.
Travelers welcomed the fare news. Delta has long been criticized for a fare structure that makes Cincinnati Northern Kentucky International the nation's second most expensive airport. "If fares are lower, that would obviously be attractive to save us money," said Tim Murphy, 48, of Dayton, who arrived at airport after a business trip to Kansas City. "If lower prices means they will maintain an active presence in Cincinnati, then I'm all for it."
The fare plan is the first initiative to emerge from the carrier's turnaround plan, which was presented to the company's board of directors for review Wednesday. Other details were not released.
Wall Street welcomed news that the restructuring plan was being considered. The company's shares closed Wednesday at $4.07, up 48 cents or 13 percent.
Delta is trying to turn around its economic fortunes, losing more than $5 billion since the Sept. 11 terror attacks, including $1.96 billion in the second quarter of this year alone. The company has said it may file for Chapter 11 bankruptcy protection if it cannot get $2 billion in cost cuts, including $1 billion annually in concessions from its pilots union.
According to the most recent Department of Transportation report, the Cincinnati airport - Delta's second-largest hub - had the second-highest fares in the country in the second quarter of 2003.
The agency's fare report measures "fare premiums," or percentages above the national average comparing similar flights, and during that period, Cincinnati travelers paid a 61 percent premium.
That situation was created in part by Delta's hub dominance here. The carrier and its Erlanger-based subsidiary, Comair, control more than 90 percent of the local market, based upon available seats.
For example, a last minute flight to Las Vegas from Cincinnati cost $1,171 Monday evening on Delta.com. But the most expensive flight from Indianapolis to Las Vegas on Southwest for the same itinerary was a little more than $600.
Under the new system, the most expensive flight to Las Vegas from Cincinnati would cost just under $1,000, excluding taxes and fees.
That pricing discrepancy has led to travelers to use other airports. A November 2003 study commissioned by local airport officials found that about one in four local fliers - or 2,500 a day - left the area to fly cheaper fares from such airports as Dayton, Louisville or Indianapolis.
The total impact on those airports of Delta's new fare plan is unclear.
However, Bluegrass Airport in Lexington could see up to a 5 percent drop in traffic, spokesman Tom Tyre said, adding that the impact would depend on which routes are affected and how deep the fare cuts are.
Matsen said that reclaiming those travelers, especially those who fly for business for local corporations such as Procter & Gamble, Federated Department Stores and Kroger Co., was a key motivation for the plan.
"We'll be out with mobile billboards in areas around those companies on Monday and Tuesday," Matsen said, adding that Delta is planning a major marketing blitz throughout Greater Cincinnati in the coming weeks.
While Delta is largely targeting business travelers, leisure fares will be lower as well, Matsen said.
Cincinnati travelers will still get discounts for booking early and for round-trips. Starting today, a leisure trip to Orlando, Fla., costs about $200 round trip before taxes and fees, compared with nearly $300 before the change.
But there will only be six coach fares available for any given flight - 14-day advance; 7-day advance; 3-day advance but non refundable; 3-day advance but refundable and changeable; walkup but non-refundable; and walkup that is fully changeable and refundable.
Previously, any given flight might have as many as 40 different fares, as Delta and other airlines used sophisticated computer systems to match supply with demand.
In addition, only a one-night stay will be required for advance tickets, not the Saturday night that was previously required. That move will help business travelers get more affordable tickets, Matsen said.
Delta also is lowering the ticket change fee to $50 from $100 for Cincinnati travelers.
Matsen said the company could see revenue drop initially with the fares going down, but hopes to offset that by reclaiming local fliers who use other airports.
Even with the new system, some Delta fares will still be higher to some markets than from the surrounding regional airports. The goal is to make Greater Cincinnati residents reconsider flying from here at somewhat lower fares for the convenience of not driving to a remote airport and connect back through the local airport.
"We really think we're going to stimulate the local market with this," Matsen said.
AT A GLANCE
Here are some key points about Delta Air Lines' new fare system:
•*Domestic coach tickets are capped at $499 one way; first class are capped at $599 each.
•*Change fee falls to $50.
•*One-night stay, not necessarily on a Saturday, required for lowest leisure fares.
ONLINE POLL
Are you more likely to fly from Cincinnati/Northern Kentucky International Airport because of Delta's fare cuts?
Yes
No
No change
*
Delta slashes Cincinnati fares
Airline seeks to recapture local passengers
By James Pilcher
Enquirer staff writer
Delta Air Lines today will unveil a major fare restructuring that lowers the price of flying out of Cincinnati by as much as 60 percent. The plan may remove the airport from the list of the nation's most expensive air travel venues.
"We're trying to give our local customers reason not to drive to Dayton, Indianapolis, Louisville, or Columbus," said Delta chief marketing officer Paul Matsen. "This is not just another fare sale - this demonstrates that we have heard our customers and that we are committed to operating as a customer focused company."
Atlanta-based Delta, struggling with billions of dollars in losses, hopes the lower fares will recapture as many as 2,500 daily travelers from Greater Cincinnati who choose to drive up to 2 hours to regional airports served by discount carriers.
The restructured fare system, called Simplifares, caps the most expensive domestic coach fares from Cincinnati at $499 each way.
It also pares down the fare structure, offering just six levels for coach travel. The airline said it is especially targeting business travelers.
The new system does not apply to international travel or flights to Hawaii or Alaska. But it does apply to all other flights that originate or end in Cincinnati.
Travelers welcomed the fare news. Delta has long been criticized for a fare structure that makes Cincinnati Northern Kentucky International the nation's second most expensive airport. "If fares are lower, that would obviously be attractive to save us money," said Tim Murphy, 48, of Dayton, who arrived at airport after a business trip to Kansas City. "If lower prices means they will maintain an active presence in Cincinnati, then I'm all for it."
The fare plan is the first initiative to emerge from the carrier's turnaround plan, which was presented to the company's board of directors for review Wednesday. Other details were not released.
Wall Street welcomed news that the restructuring plan was being considered. The company's shares closed Wednesday at $4.07, up 48 cents or 13 percent.
Delta is trying to turn around its economic fortunes, losing more than $5 billion since the Sept. 11 terror attacks, including $1.96 billion in the second quarter of this year alone. The company has said it may file for Chapter 11 bankruptcy protection if it cannot get $2 billion in cost cuts, including $1 billion annually in concessions from its pilots union.
According to the most recent Department of Transportation report, the Cincinnati airport - Delta's second-largest hub - had the second-highest fares in the country in the second quarter of 2003.
The agency's fare report measures "fare premiums," or percentages above the national average comparing similar flights, and during that period, Cincinnati travelers paid a 61 percent premium.
That situation was created in part by Delta's hub dominance here. The carrier and its Erlanger-based subsidiary, Comair, control more than 90 percent of the local market, based upon available seats.
For example, a last minute flight to Las Vegas from Cincinnati cost $1,171 Monday evening on Delta.com. But the most expensive flight from Indianapolis to Las Vegas on Southwest for the same itinerary was a little more than $600.
Under the new system, the most expensive flight to Las Vegas from Cincinnati would cost just under $1,000, excluding taxes and fees.
That pricing discrepancy has led to travelers to use other airports. A November 2003 study commissioned by local airport officials found that about one in four local fliers - or 2,500 a day - left the area to fly cheaper fares from such airports as Dayton, Louisville or Indianapolis.
The total impact on those airports of Delta's new fare plan is unclear.
However, Bluegrass Airport in Lexington could see up to a 5 percent drop in traffic, spokesman Tom Tyre said, adding that the impact would depend on which routes are affected and how deep the fare cuts are.
Matsen said that reclaiming those travelers, especially those who fly for business for local corporations such as Procter & Gamble, Federated Department Stores and Kroger Co., was a key motivation for the plan.
"We'll be out with mobile billboards in areas around those companies on Monday and Tuesday," Matsen said, adding that Delta is planning a major marketing blitz throughout Greater Cincinnati in the coming weeks.
While Delta is largely targeting business travelers, leisure fares will be lower as well, Matsen said.
Cincinnati travelers will still get discounts for booking early and for round-trips. Starting today, a leisure trip to Orlando, Fla., costs about $200 round trip before taxes and fees, compared with nearly $300 before the change.
But there will only be six coach fares available for any given flight - 14-day advance; 7-day advance; 3-day advance but non refundable; 3-day advance but refundable and changeable; walkup but non-refundable; and walkup that is fully changeable and refundable.
Previously, any given flight might have as many as 40 different fares, as Delta and other airlines used sophisticated computer systems to match supply with demand.
In addition, only a one-night stay will be required for advance tickets, not the Saturday night that was previously required. That move will help business travelers get more affordable tickets, Matsen said.
Delta also is lowering the ticket change fee to $50 from $100 for Cincinnati travelers.
Matsen said the company could see revenue drop initially with the fares going down, but hopes to offset that by reclaiming local fliers who use other airports.
Even with the new system, some Delta fares will still be higher to some markets than from the surrounding regional airports. The goal is to make Greater Cincinnati residents reconsider flying from here at somewhat lower fares for the convenience of not driving to a remote airport and connect back through the local airport.
"We really think we're going to stimulate the local market with this," Matsen said.
AT A GLANCE
Here are some key points about Delta Air Lines' new fare system:
•*Domestic coach tickets are capped at $499 one way; first class are capped at $599 each.
•*Change fee falls to $50.
•*One-night stay, not necessarily on a Saturday, required for lowest leisure fares.
ONLINE POLL
Are you more likely to fly from Cincinnati/Northern Kentucky International Airport because of Delta's fare cuts?
Yes
No
No change
*
Aug 19, 2004, 5:28 am
#8
Join Date: Mar 2004
Location: CVG & Scottsdale, AZ
Posts: 118
If they do this right, I'll be saying goodbye to DAY, IND, SDF, and LEX. 
Great move, especially if the fare structure is simplified systemwide.
Great move, especially if the fare structure is simplified systemwide.
Aug 19, 2004, 5:38 am
#9
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I am going to merge these 2 threads on the same subject.
Rssrsvp - Moderator
Rssrsvp - Moderator
Aug 19, 2004, 6:02 am
#10
Join Date: Feb 2003
Location: Cincinnati, OH
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Posts: 6,789
Seems that Delta hasn't gotten the new price structure loaded in the system yet but I have noticed that all others carriers have dropped prices significantly. Most prices are now just $90 more that rival airports which is certainly better than the $100 plus difference we were seeing. Now the dilemma, unless the fare difference is under $60, I'd probably still opt for the rival airports.
Aug 19, 2004, 6:24 am
#11
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The key here is the lower unrestricted fares. You make money selling as many of those as possible.
Aug 19, 2004, 6:25 am
#12
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Posts: 672
Delta is playing defense. Good to see . . . makes a hell of a lot more sense than continuing to see passengers defect to other airports and carriers. I'm a Platinum Medallion, but I fly AirTran everywhere they fly because they're the ones that bring the low fares to the market out of Atlanta.
Maybe Delta is realizing that it's Simply Good Business to provide reasonable fares to their customers. I'd bet money that this is a big part of the program that they're about to roll out nationwide.
Maybe Delta is realizing that it's Simply Good Business to provide reasonable fares to their customers. I'd bet money that this is a big part of the program that they're about to roll out nationwide.
Aug 19, 2004, 6:49 am
#13
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Originally Posted by JoeFlyer
Delta is playing defense. Good to see . . . makes a hell of a lot more sense than continuing to see passengers defect to other airports and carriers. I'm a Platinum Medallion, but I fly AirTran everywhere they fly because they're the ones that bring the low fares to the market out of Atlanta.
Maybe Delta is realizing that it's Simply Good Business to provide reasonable fares to their customers. I'd bet money that this is a big part of the program that they're about to roll out nationwide.
Maybe Delta is realizing that it's Simply Good Business to provide reasonable fares to their customers. I'd bet money that this is a big part of the program that they're about to roll out nationwide.
It would be great to have last minute fares of that nature. Although, I was disappointed it doesn't apply to Hawaii. Average "A" fare right now out of ATL-HNL is $1360 or so.
Aug 19, 2004, 6:51 am
#14
Join Date: Jan 2001
Location: Washington, DC
Posts: 1,035
Nice to see DL roll out a reasonable fare strucuture in a hub where there is no immediate LCC threat. This is unlike USAirways which is only offering their GoFares in markets where LCC's are present.
I think DL might have actually taken Herb Kelleher's words to heart. He warned that if USAirways had simply offered reasonable fares to begin with, WN would never have invaded PHL. However, because US kept gouging the PHL area customers, it made PHL a prime target for a WN invasion.
I think DL's hope is that if they can offer a more reasonable fare structure, they can keep a lock on the CVG market plus deter people from driving to DAY, SDF, LEX, etc.
I think DL might have actually taken Herb Kelleher's words to heart. He warned that if USAirways had simply offered reasonable fares to begin with, WN would never have invaded PHL. However, because US kept gouging the PHL area customers, it made PHL a prime target for a WN invasion.
I think DL's hope is that if they can offer a more reasonable fare structure, they can keep a lock on the CVG market plus deter people from driving to DAY, SDF, LEX, etc.
Aug 19, 2004, 7:17 am
#15
Join Date: May 2003
Location: Florida - Delta Charter DM/3.3MM; Lifetime SPG Plat; HH Gold;
Posts: 1,789
This is definitely a move in the right direction. The name of the fares is not as catchy as US AIRWAYS "GO FARES" but it gets the point across. Seems a much fairer pricing structure and appears to be modelled after the pricing structure of Jet Blue and Southwest.
This is definitely a good start in retructuring for the "new Delta" in the 21 st century!
This is definitely a good start in retructuring for the "new Delta" in the 21 st century!