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Michael |
There are about 4 threads on this topic already. But yeah, this is a new low.
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Question to all the complainers out there... If it costs US -- or any other carrier -- 1¢ per mile the 500 minimum represents $5 out of its pocket. If most of this mileage is earned flying on fares that are in the $50-$100 range, does it make economic sense for US to be taking a 5%-10% hit on revenue just for FF miles? This is another cost that needs to be gotten control of, and this move is a very sensible one. COS bonus will raise the earnings for those paying F fares, and perhaps US will ultimately move in the direction of many other carriers who have a variable mileage return based on fare, where higher fares get full mileage, lower ones a discounted level.
Time to wake up and smell the coffee... |
Preaching to the Choir
I'm just hoping that US might be listening in here.
YOU MUST BE KIDDING!!!!! This is by far the dumbest move US has made in awhile. I for one have a choice in my short hop carriers. Listen to this US... You just lost me. BYE |
Quite lame. Yet another reason to be glad they don't serve SBN.
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Same story here. Sure, they might save some revenue. But that doesn't automatically make it a smart, or the right, decision. |
That would be a good point, except for several things:
a) The cost is going to be less than $5 per segment (again, assuming the $.01/mile thing) - no segment that US flies is 0 miles. b) The cheapest fares I've seen on US Air are about $45-50 a segment for routes like PHL-PIT. Assuming a 300 mile flight (pretty close to the real thing), that represents 15 cents/mile of revenue, which is better than US normally gets on transcons or in general - and that's on the low end of the fare. c) Many (maybe most) of the short haul flights in the east are ridiculously expensive (PHL-BOS being a classic example where the price per mile is $1+). |
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These are not free bennies in anyway shape or form.. that was a flat out inaccurate statement CLT is your home but that doesn't force you to use US.. all the other majors fly to CLT.. now maybe your company forces you (but thats a different issue).. maybe you choose US due to non-stops.. thats your choice but it doesn't force you.. I live 8 miles from IAD.. and I avg < 3 RT's per year on UA and am EXP on AA.. IAD is not served well by AA either so I have to go out of my way to fly AA... however I am not forced to UA just by location. Quote:
Short haul flights are always more profitable than domestic long hauls.. I'm guessing here but I have to believe that the median sub 500 mile flight segment has got to be in the $100 or more range.. thats at a minimum 20c per mile.. you say its 5$ out of its pocket or 5% of the flight.. well if US is giving actuals.. then say DCA-BOS (399 actual miles.. or thats what AA uses anyway on this route) would have 399 (or $3.99) miles it would still be giving out.. while the 101 miles ($1.01) would be the fluff.. that in turn would be what 1% as opposed to the 5% to 10% you are using above Go ahead US try it.. if you get the others to follow.. you win.. if not.. you lose big time no matter what.. my last flight on US was 2001.. and thats the way it will stay |
Looks like US did me a favor last year when they abandonded me in PHL one night.
I have not flown US since then, and I burned all my miles for a family trip last Fall. I now have zero connection with US and it looks like it will remain that way. It's sad, since I had loved and flown them since the '70's, but I'm afraid the divorce is final. |
TROJAN HORSE -
FFP's are a bennie.. they are a bennie that I pay a premium for.. 1. I select (in my case) AA over the hometown UA.. I pay a premium in many cases to fly AA.. 2. do you think FFP's are free.. we pay for those programs in our fares.. we pay for those FFP's the way our names are sold to every marketer out there.. we pay for those FFP's in the way they keep most of us loyal to one airline over another whether we are 100K per year fliers or 1K per year fliers... YOU DO NOT HAVE TO BELONG, and ARE CERTAINLY NOT FORCED TO REMAIN LOYAL. These are not free bennies in anyway shape or form.. that was a flat out inaccurate statement CLT is your home but that doesn't force you to use US.. all the other majors fly to CLT.. now maybe your company forces you (but thats a different issue).. maybe you choose US due to non-stops.. thats your choice but it doesn't force you.. I live 8 miles from IAD.. and I avg < 3 RT's per year on UA and am EXP on AA.. IAD is not served well by AA either so I have to go out of my way to fly AA... however I am not forced to UA just by location. GOING OUT OF YOUR WAY TO FLY A CERTAIN AIRLINE IS YOUR CHOICE, I CHOSE TO MANAGE MY FLIGHTS DIFFERENTLY. PLEASE - EVERYONE IS ENTITLED TO THEIR OWN OPINIONS, AND THIS IS AN EXCELLENT FORUM FOR STATING THEM. ATTACKING OTHERS BECAUSE THEY DISAGREE WITH YOU IS NOT CONDUCIVE TO AN OPEN DISCUSSION. i AM SURPRISED AT THE ATTITUDE DISPLAYED IN YOUR POST BY SUCH AN EXPERIENCED FT'ER. |
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Case in point. I've been doing a lot of PHL-DCA lately which if memory serves is 121 miles. Now with an average ticket cost of around $400.00 that's a pretty nice chunk of change for a 242 mile R/T on an RJ even if the CASM is around 25 cents per mile. So I do the trip instead of driving partly because it's easier and it helps to keep my status. You've probably changed the equation enough that I'll drive. The company reimburses me at 50.5 cents per mile. I "make" about $125.00 on the mileage and save the company a rental car charge plus the airfare. The money I clear on the mileage is enough for me to do a mileage run to San Jose, CA for a little over $200.00 and pick up 5,350 miles. You lose the good revenue PHL-DCA and trade it for crappy revenue. Now EXACTLY how does this benefit US Airways??? Your condescending arrogance towards us makes me wonder just how high up in the Tempe Kool-aide Drinkers club you really are. I haven't bought a $150.00 ticket for YEARS dude. Neverminding that US accrues FF'er miles as a liability at about 3 tenths of a cent per mile. The issue is being able to SELL more seats. |
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Frequent flyer miles are a perk and I generally try to look at the whole miles/points business from an "I'm just lucky I got this much" perspective. This makes it easier to swallow when I can't take advantage of a megabonus promo, etc b/c I'm required to use an Amex v. a Visa card for company travel.
However, imo, most of the airlines need to rethink their miles awarding concepts. There are many instances in which higher revenue customers are not getting the highest status/perks - and short segments are one of these. I don't fly US but can understand the feelings of those who do and tend to fly shorter segments. We short segment flyers do get the short end of the stick on many occasions. On my current project, I fly a shorter segment almost every week of the year (it's pretty much an even 500 miles each way). My airline of choice (only b/c my previous airline of choice - who does have a segment based way to earn status does not fly directly between my origin and destination) does not offer a segment based alternative to earning status. Let's take a look at a simple situation (and keep in mind this does not by any means apply to all travelers): Passenger A: Flies 5 intercontinental trips per year - each earns 15,000 miles per roundtrip. Total miles flown = 75,000. Passenger A pays low, non-refundable coach fares for these flights and flies off peak season. Passenger A has been lucky to catch some nice fares and pays $800 per roundtrip ticket. Total revenue for airline = $4000. For his $4000, he receives top elite status. Passenger B: Flies 10 cross-country trips per year - each earns 5,000 miles per roundtrip. Total miles flown = 50,000. Passenger B pays low, nonrefundable coach fares as well and averages $500 per roundtrip ticket. Total revenue for airline = $5000. For his $5000, he receives middle elite status. (So he generates $1000 more for the airline and spends twice as many weeks per year on their metal - but isn't given quite as good a thank you from the airline.) Now, let's take a look at our dear Passenger C: Flies 40 short-segment flights per year. Each earns 1,000 miles per roundtrip. Total miles flown = 40,000. Passenger C also pays low, nonrefundable coach fares and averages $225 per roundtrip ticket. Total revenue for airline = $9,000. For his $9,000, (which let's remember is more than double of Passenger A's revenue and almost 4 times Passenger B's revenue AND let's also remember, he spends 8 times as many weeks on their metal as Passenger A and 4 times as many weeks as Passenger B), he gets lowest elite status - lowest bonus miles, lowest return of FF miles, lowest perks, and, on most flights, little to no chance for the free upgrade to F. So, yes, US's new policy, imo, is a bad move - and I agree others will probably follow suit - but most of us flying ridiculous amounts of short segments are aware that in many cases we generate more revenue for the airline (and are therefore more valuable customers) but get the lowliest of perks compared to some of our "more elite" brethren. It's just the way it is, unfortunately. Not the way I woud run an airline's mileage program, but the way it is. The advice in other posts is spot on - just consider each mile you earn, how ever little it is, like winning $2 on the scratch off lottery - it may not be much, but at least it's something. |
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