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Why did SYD prices increase 40-100% overnight

 
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Old Aug 5, 2009, 12:10 pm
  #31  
 
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Originally Posted by MikeMpls
It's entirely reasonable that the price increases are part of a plan to pull out of the market entirely if fares don't increase. Delta has been retrenching in quite a few international & domestic markets.

A valid arguement. I hope it's not true. Anybody have numbers on DL's maturing debt obligations for 2010?
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Old Aug 5, 2009, 12:24 pm
  #32  
 
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Originally Posted by jjglaze77
I tend to wonder if it's not anything more than the Revenue Management people trying to get some data on the market. I mean, it's completely new for them... Perhaps they just want to establish some kind of relationship to cost/demand to help them price the market more appropriately in the future.

I'm going to go out on a limb and say the fares will be back to their previous levels (or very near to) within 24 hours...
You hit the nail on the head. Obviously, for anti-trust reasons, DL can't call up UA and QF and say, "Hey, let's get this price up on the LAX-SYD route." So, this is the way they communicate. DL knows that the other carriers probably won't follow right now (although if the other a/ls did, DL would happily keep the fare higher), and within a few days, DL prices will come back to the market. However, it does put the idea in the back of the minds of the other carrier's Rev Mgmt departments that if a fare increase is needed in the future, DL will play along. Kind of analogous to arguing with the referee, you aren't going to get that call reversed, but you may get a call later in the game.
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Old Aug 5, 2009, 12:24 pm
  #33  
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Originally Posted by SLC777RES
A valid arguement. I hope it's not true. Anybody have numbers on DL's maturing debt obligations for 2010?
One thing we have to keep in mind is that two of the competitors are very weak. Notwithstanding Branson's bravado, VA/DJ are stretched thin. By the end of the year UA might not have enough reserves to avert credit card holdbacks.
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Old Aug 5, 2009, 2:19 pm
  #34  
 
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Originally Posted by ADLFO
You hit the nail on the head. Obviously, for anti-trust reasons, DL can't call up UA and QF and say, "Hey, let's get this price up on the LAX-SYD route." So, this is the way they communicate.
Years ago the airlines got busted for communicating intent through the fare codes over Sabre and Apollo, things like:

LHITTINGUAHARDINMARKET7NR $50

YLETSBUMPUPTHEPRICETOGETHERANDBELIKEENRON14NR $5000

-=tg=-
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Old Aug 5, 2009, 2:32 pm
  #35  
 
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Originally Posted by tgtg
LHITTINGUAHARDINMARKET7NR $50

YLETSBUMPUPTHEPRICETOGETHERANDBELIKEENRON14NR $5000

-=tg=-
Really?!?!? I really did LOL on that one!
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Old Aug 5, 2009, 2:32 pm
  #36  
 
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Originally Posted by tgtg
Years ago the airlines got busted for communicating intent through the fare codes over Sabre and Apollo, things like:

LHITTINGUAHARDINMARKET7NR $50

YLETSBUMPUPTHEPRICETOGETHERANDBELIKEENRON14NR $5000

-=tg=-
LMAO
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Old Aug 5, 2009, 2:36 pm
  #37  
 
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I think (as has been alluded upthread) this is probably price signaling. Delta bumped up prices indicating they no longer want to compete in this market and they are hoping that everyone else raises prices as well. It will be interesting to see what happens. I would speculate that if this price increase does not take hold, Delta will drop the route.
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Old Aug 5, 2009, 2:54 pm
  #38  
 
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I've seen DL do this before in other markets. I will book with other airlines if I need to go *then*, otherwise wait.

I was looking at award travel during Nov/Dec and it's almost ALL at the high level. I'll go elsewhere before I spend that much.
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Old Aug 5, 2009, 2:57 pm
  #39  
 
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You Missed The REALLY Low LAX-SYD Fares That Ended On June 30th

Fares were as low as US$584 roundtrip including all taxes and fees.
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Old Aug 5, 2009, 3:02 pm
  #40  
 
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Originally Posted by ADLFO
You hit the nail on the head. Obviously, for anti-trust reasons, DL can't call up UA and QF and say, "Hey, let's get this price up on the LAX-SYD route." So, this is the way they communicate. DL knows that the other carriers probably won't follow right now (although if the other a/ls did, DL would happily keep the fare higher), and within a few days, DL prices will come back to the market. However, it does put the idea in the back of the minds of the other carrier's Rev Mgmt departments that if a fare increase is needed in the future, DL will play along. Kind of analogous to arguing with the referee, you aren't going to get that call reversed, but you may get a call later in the game.
As a referee I agree with that sentiment....
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Old Aug 5, 2009, 3:10 pm
  #41  
 
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Originally Posted by yellow77
Does anyone have the fare rules for the old cheap DL fare? Is it possible it just expired and they forgot to file a replacement? I mean, the lowest NW fare on LAX-SYD is in H class at the moment, which isn't exactly bargain basement stuff. (Similar price to the lowest DL fare, which is in L.)
I think I win, because the DL and NW prices are back down with everyone else below $800 for LAX-SYD. (Although they do seem to have raised fares $40 roundtrip. Currently the DL U fare and the NW V fare expire August 7, though I wouldn't bet against an extension...)

(edited to add: I see this on ita, not yet on nwa.com, but I bet it's coming.)

Last edited by yellow77; Aug 5, 2009 at 3:21 pm Reason: tried to book
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Old Aug 5, 2009, 3:22 pm
  #42  
 
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Anyone have a rough idea what Delta needs to charge for LAX-SYD in coach to break even?
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Old Aug 5, 2009, 3:32 pm
  #43  
 
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Hmm, interesting. At least on ita, DL have now filed a bunch of through fares in markets like LAX-BNE and LAX-CBR allowing a connection for SYD-Australian city on DJ. Were those there before? I don't recall them.
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Old Aug 5, 2009, 4:01 pm
  #44  
 
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[QUOTE=Angeleno228;12179365]Somehow I have a feeling the Deltabot will post all bonii regardless


While I have no way of knowing, DL may not consider this a "Delta Skymiles or Skyteam" promotion, but strictly an Amex promotion and thus combinable, if Amex is the one giving the bonus miles.
Dave
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Old Aug 5, 2009, 8:07 pm
  #45  
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From DTW to SYD, DL and NW want me to layover in LAX for 23 hours otherwise the fare is $100.00 more. It seems like the DL/NW reservation system is offering the worst possible layover connections. Why do they do this?
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