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<font face="Verdana, Arial, Helvetica" size="2">Originally posted by In The Know Flyer: Also, think about consumer purchase decision processes. I'm sure only a few consumers choose a flight due to the meal. So, no meals in coach is not a significant purchase decision driver.</font> As it is NW has the worst inflight entertainment options on domestic as well, I would argue, as on international flights. If there are no PVS on the new Airbus coming into its fleet, NW will be the only big US carrier without these on any of its planes (in coach). Kind of depressing, if you ask me. |
I've thought about prices for in flight service options before... at consumer prices:
-- a whole can of soda is $.25 (12 packs for $2.99) -- a Little Debbie snack cake is $.11 (10 per $1.09 box) -- for longer flights, a McDonalds Big Mac meal is $3. -- a video tape costs $19.99; headphones cost $2; both are re-used. When passengers are paying multiple-hundreds of dollars for flights long enough to warrant meal and in-flight entertainment service, do the airlines truly save enough to compensate for lost customers? One $100 customer can more than cover the price of Little Debbies and cans of pop for a 757! |
<font face="Verdana, Arial, Helvetica" size="2">Originally posted by Viajero Joven: -- a video tape costs $19.99; headphones cost $2; both are re-used. </font> Airlines don't just go down to the local video store and buy a tape for public showing. $19.99 is not representative of their cost. |
I just did the math. According to NW's annual report (from nwa.com), the carrier's operating margin was 6.9% in 1999 and 5.0% in 2000. That's a 1.9 point decrease in only one year. I safely assume that in 2001, their margin has fallen lower than in 2000 due to even higher fuel costs and drastically weakened demand. If you then assume that the average one-way domestic coach fare is $150 and the margin in 2001 has fallen only 1 point to 4.0%, then NW makes only $6 carrying one person one-way within the US. If a meal were to cost $1.50 and you stopped serving it, you'd improve youf margin 25% from $6 to $7.50. THAT'S A LOT! So, don't put it past NW to be, at least, be contemplating this idea, especially given the strong downturn in travel.
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How will this affect first class meals?
------------------ It's great having unlimited upgrades! |
I doubt they'd change domestic first class meals much. Afterall, 30% of their customers represent 60% of their revenue. Read "business customers pay for everything."
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Oh contraire, ITKF... First Class Domestic is usually packed up with Elites (and maybe the occasional Connect First fare or two). Who throws their money away on Full Fare First Class anymore?
By your logic, NWA should be considering eliminating First Class meals on domestic flights as well. I still haven't heard any confirmations to this rumor from any other sources, btw. |
<font face="Verdana, Arial, Helvetica" size="2">Originally posted by DJMeatBall: Oh contraire, ITKF... First Class Domestic is usually packed up with Elites (and maybe the occasional Connect First fare or two). Who throws their money away on Full Fare First Class anymore? By your logic, NWA should be considering eliminating First Class meals on domestic flights as well. I still haven't heard any confirmations to this rumor from any other sources, btw. </font> |
I remember back around '93-'94 Continental eliminated all meals on flight segments less then 2-1/2 hours. This was at the same time they did the Southwest copycat called CAL lite. It didn't last long. I remember flying between IAH and IND, in First, a businessman had boarded the flight in SNA, a "direct" flight with a destination of EWR. Of course, every segment of the flight was less then 2-1/2 hours. When we arrived at IND the FA's were telling the man how to get to the terminal McDonalds so that he could get some nourishment during the 20 minute scheduled stop before continuing on his odyssey to EWR.
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NW did some interesting things with shuttle flights between ORD and MSP with "gate buffets" in '95-'97 where they had food that you grabbed before you got on (not quite bistro bags/deli bags, but several different choices--wrapped sandwiches, fruit, cheese/crackers) that you could grab and get what you wanted...maybe that is the thought?
JL |
This is giving new meaning to "pack your own lunch"! Could even be a picnic, if you stop at the qourmet deli on the way to the airporto!
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Well the following facts speak for themselves:
On a recent LAX-MSP "dinner" flight in coach, we were served an awful hot beef sandwich. On a recent DTW-LAX "dinner" flight, we were served a slice of pizza. These flights used to have hot entrees. And no inflight entertainment either direction: no audio, no Frasier, nothing. Next time, I'm trying the Kosher meal. It used to be quite large and not that bad. By contrast, on a recent UA LAX-IAD flight, we were served two meals in coach, a full breakfast, then later a resonably nice snack kit. And let's not even talk about Midwest Express. |
I've not heard anything about NW eliminating ALL food service within the 48.
I believe the only thing I've heard is elimination of meals on flights scheduled for two hours or less rather than one and a half hours or less, which operate at traditional meal times. |
DJMeatBall and DTownBrian...I didn't say I was referring to "full-fare First Class." I agree that hardly anyone buys a full-Fare F, let alone full-Y fares, anymore. Y- B- M- H- fares are considered "business" full-fares (due to their fare rules) and make up the lion's share of NW's ticket revenue, but only a small portion of their total ticket volume. NW (along with all other domestic carriers) knows this and so, you'll sometimes see these types of fares receiving an "automatic upgrade" to First Class upon ticketing (not even having to wait for the 72/48/24 hour Elite upgrades). You should also see these types of fares as being unrestricted in upgrade certificates, mileage upgrades, etc.
Hope this clarifies the situation for you both. |
<font face="Verdana, Arial, Helvetica" size="2">Airlines don't just go down to the local video store and buy a tape for public showing. $19.99 is not representative of their cost.</font> |
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