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MH to axe First Class, rebrand and reposition as Business Suites

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MH to axe First Class, rebrand and reposition as Business Suites

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Old Dec 14, 2018, 11:07 pm
  #46  
 
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Originally Posted by headinclouds
Over on the OW board, it is known that the operating carrier pays for lounge access, not FF status. So no savings for MH.
Originally Posted by d00t
That is incorrect.

The operating carrier pays if pax in biz/first
The FFP pays if pax is in economy

In the example above, MH would charge BA if the pax is travelling in Y.
Originally Posted by headinclouds
According to posts #31 & 33 in this thread, Lounges - access, cost, who pays..., it is the operating carrier that pays.
This is what I find interesting. If it's the operating carrier paying, I could see them swallowing the cost of the J lounge at KUL even if I buy a cheap ticket. The F lounge is a different matter; MH may be rather clueless in many things, but surely they would have found a way to deny OWE access to the F lounge by now if they don't get any revenue from non-Enrich customers accessing it? For that reason, unless I see a reliable source for such information, I'll assume that BAEC are having to pay MH for my claret and champagne.
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Old Dec 15, 2018, 3:32 am
  #47  
 
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Originally Posted by headinclouds
According to posts #31 & 33 in this thread, Lounges - access, cost, who pays..., it is the operating carrier that pays.
Now you have a new source with the real info ;-) My post!
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Old Dec 15, 2018, 8:25 am
  #48  
 
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Originally Posted by templar42
This is what I find interesting. If it's the operating carrier paying, I could see them swallowing the cost of the J lounge at KUL even if I buy a cheap ticket. The F lounge is a different matter; MH may be rather clueless in many things, but surely they would have found a way to deny OWE access to the F lounge by now if they don't get any revenue from non-Enrich customers accessing it? For that reason, unless I see a reliable source for such information, I'll assume that BAEC are having to pay MH for my claret and champagne.
I doubt they look at any given OWE at a singular, transactional level. They do not have to make a "profit" from every pax, no more than BA's Galleries First making money off of a OWE flying from LHR to BRU on a cheap ticket, yet enjoying the champagne bar, some JW Blue, or XO Cognac (or all of them )
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Old Dec 15, 2018, 8:52 am
  #49  
 
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Originally Posted by teemuflyer
I doubt they look at any given OWE at a singular, transactional level. They do not have to make a "profit" from every pax, no more than BA's Galleries First making money off of a OWE flying from LHR to BRU on a cheap ticket, yet enjoying the champagne bar, some JW Blue, or XO Cognac (or all of them )
That's a very good point, but are MH seriously going to accept reduced or eliminated profit margins for most OWEs flying short haul? Maybe they do. Maybe it's like chain hotels' club lounges - the benefits of being in a large hotel group outweigh the costs of feeding and watering hordes of diamond / platinum cardholders each evening. Still, I can't quite believe that MH absorb the cost of their F lounge on their own.
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Old Dec 15, 2018, 12:57 pm
  #50  
 
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Originally Posted by templar42
That's a very good point, but are MH seriously going to accept reduced or eliminated profit margins for most OWEs flying short haul? Maybe they do. Maybe it's like chain hotels' club lounges - the benefits of being in a large hotel group outweigh the costs of feeding and watering hordes of diamond / platinum cardholders each evening. Still, I can't quite believe that MH absorb the cost of their F lounge on their own.
1) Lounges have mostly flat cost to run
2) 99.9% of pax are NOT Emerald
3) How much did that Emerald spend on tickets to achieve Emerald
4) Bank and co-brand card revenue contributes to the overall member revenue (Gold/Plat much more likely to be engaged with miles earning)
5) It's my understanding that few Emerald pax purely fly on deep discount economy tickets (thus, higher RBDs)

Many more factors to look at... simple truth is that lounges are highly profitable for airlines. FFPs are highly profitable too. There is a large and intricate web of relationships between transactions that underpin the overall success of an airline.

Don't feel bad for any airline on lounge access. They're making money somewhere.
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Old Dec 15, 2018, 1:19 pm
  #51  
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Originally Posted by d00t
1) Lounges have mostly flat cost to run
True.

Originally Posted by d00t
5) It's my understanding that few Emerald pax purely fly on deep discount economy tickets (thus, higher RBDs)
I personally know quite a handful of emeralds who fly on deep discount economy tickets, particularly on very short routes like KUL-SIN, KUL-KNO, KUL-CGK (myself included), where the cost difference between Business and Economy is unjustifiable for such a short route.

FWIW, I travel purely for leisure.
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Old Dec 15, 2018, 5:36 pm
  #52  
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So, can OW Emeralds now access the former F lounge at KUL - any actual reports? if not, I will be there Monday & can confirm the situation.
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Old Dec 15, 2018, 6:10 pm
  #53  
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Originally Posted by NoY
So, can OW Emeralds now access the former F lounge at KUL - any actual reports? if not, I will be there Monday & can confirm the situation.
I would believe Emeralds are still retained access to the former F lounge, at least according to this AusBT article

https://www.ausbt.com.au/lounge-acce...-suites-flyers
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Old Dec 15, 2018, 10:47 pm
  #54  
 
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OWE still have access, at least for now. Also, the lounge still notes first class access. Didn't check the First class suite tho...


And 100% agree on this, no point flying short-distance business on flights within SEA under 3-4hrs, though access to the Golden Lounge at KLIA does keep me from flying the LCCs more...
Originally Posted by clubeurope
I personally know quite a handful of emeralds who fly on deep discount economy tickets, particularly on very short routes like KUL-SIN, KUL-KNO, KUL-CGK (myself included), where the cost difference between Business and Economy is unjustifiable for such a short route.
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Last edited by crackjack; Dec 16, 2018 at 7:18 am
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Old Dec 16, 2018, 1:49 am
  #55  
 
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Sometimes I fly on business on those short distance route. But the reason is the economy class ticket is more expensive than their business class due to extremely peak travel period, for example CNY and Hari Raya
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Old Dec 16, 2018, 4:02 am
  #56  
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Originally Posted by clubeurope
I would believe Emeralds are still retained access to the former F lounge, at least according to this AusBT article

https://www.ausbt.com.au/lounge-acce...-suites-flyers
Thanks. Will report back tomorrow.
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Old Dec 16, 2018, 11:00 pm
  #57  
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Gained access as OWE, to "First Class" lounge without any issues. Once inside, there were zero staff in the main lounge & therefore no service offered. Headed into Dining Room, & once again, no staff/host etc to greet/seat me. Took a seat & there were 2 other guests dining......that was nearly 10 mins ago &..........nothing. Not exactly First Class (or is that Business Suites?! LOL) & once again, no less than I expect from the quite pathetic MH team
EDIT: Met a very disgruntled MH Plat / First Class flyer who is might peed off at all of the MH shenanigans - I suggested he vote with his wallet
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Last edited by NoY; Dec 16, 2018 at 11:48 pm
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Old Dec 17, 2018, 12:29 am
  #58  
 
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If that case I would say the business class side will be much and much more better.

Especially if you enter during midnight, you felt that the hospitality is too much and scared....
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Old Dec 17, 2018, 3:03 am
  #59  
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Originally Posted by dici
If that case I would say the business class side will be much and much more better.

Especially if you enter during midnight, you felt that the hospitality is too much and scared....
I have no idea what this means
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Old Dec 17, 2018, 3:38 am
  #60  
 
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Lightbulb

Originally Posted by NoY
I have no idea what this means
What dici meant was the first class lounge section is way too quiet with no one around and maybe spooky to some guest. If I do want fast dining, I suggest you use the Business class section for the buffet first before you return back to First class section to relax.
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