New Business means fewer seats

 
Old Sep 27, 00, 4:02 pm
  #1  
trd
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New Business means fewer seats

With the new configuration of WBC the number of FC/WBC seats declines by 15 seats on 747-400s; 12 seats on 747-200s; and 8 seats on DC-10s. This of course means fewer upgrades and less FF seat availability! Those who get upgrades or pay are in better shape but the back of the plane is where lots of us will reside more often.
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Old Sep 28, 00, 6:15 pm
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Less seats also means NW can make more money by reducing supply while demand is consistently strong.
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Old Sep 29, 00, 10:43 pm
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Originally posted by Phire:
Less seats also means NW can make more money by reducing supply while demand is consistently strong.


I'm not quite sure what economic principles you're using to come up with that idea.

If demand is strong for World Business Class, Northwest would stand to make more money with a greater number of seats (assuming no change in fares).

Of course, if they raise their fares, you could be correct. However, I doubt they would do that, due to competitive pressures. Northwest tends to be a follower, rather than a leader. In fact, they are often the last to match price increases.
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Old Oct 2, 00, 11:13 am
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Sorry about the confusion.

NW's business class is not consistently strong, in fact, from being on many flights, it would appear that NW dosn't fill up the business class everyday of the week. Therefore, by eliminating some seats, it would allow NW to not have to trash fares to fill up the plane (which NW is quite famous for doing). Given that the demand will remain strong on peak days and consistent on the off-peak days, reducing capacity would permit NW to keep the fares at its regular level.

While NW is not a leader in increasing prices, it is a leader in slashing prices.


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