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-   -   I don't get it. . . . (https://www.flyertalk.com/forum/northwest-worldperks/918163-i-dont-get.html)

spkg Feb 4, 2009 4:49 pm


Originally Posted by indufan (Post 11203492)
However, it's not their role to fix the worlds problems. They should do what they need to do to make a profit and let the competition worry about themselves.

I'm not asking WN to do something, i'm asking the government to do something, there's a antitrust law because it damages the economy, there's a anti price discrimination law because it damages the economy, why can't we have a anti what-WN-is-doing law because it damages the economy?


Originally Posted by indufan (Post 11203492)
In fact one concept that I have never completely grabbed from my series of economics courses is when a party (WN) deliberately underprices the market price and what that does to stuff.

Don't get me started on the price dumping! fair competition my a$$.

MikeMpls Feb 4, 2009 5:09 pm

It doesn't damage the economy one bit. That's your own personal bias. More people getting value and service for less $$ is a good thing.

bk42 Feb 4, 2009 5:15 pm

FYI: Southwest's streak of profitable quarters ended in Q4.

indufan Feb 4, 2009 5:17 pm


Originally Posted by spkg (Post 11203558)
I'm not asking WN to do something, i'm asking the government to do something, there's a antitrust law because it damages the economy, there's a anti price discrimination law because it damages the economy, why can't we have a anti what-WN-is-doing law because it damages the economy?

Oh dear. Surely don't want this. You think the government is better at trying to figure out what a minimum price ought to be? I am pretty sure I am going to leave it at that as this is a topic that surely shouldn't be debated in this forum. It's more suited for the WN forum or more likely OMNI/PR.

spkg Feb 4, 2009 5:19 pm


Originally Posted by MikeMpls (Post 11203665)
It doesn't damage the economy one bit. That's your own personal bias. More people getting value and service for less $$ is a good thing.

I don't know where you're getting your info, i did six months of research on this topic, and each one of the example numbers i gave have statistical backings. I didn't get my economics degree for doing nothing. Frankly that's the problem with the WN effect, becuase on the surface, i dose seem so good.

spkg Feb 4, 2009 5:21 pm


Originally Posted by indufan (Post 11203721)
Oh dear. Surely don't want this. You think the government is better at trying to figure out what a minimum price ought to be? I am pretty sure I am going to leave it at that as this is a topic that surely shouldn't be debated in this forum. It's more suited for the WN forum or more likely OMNI/PR.

yeah, we are getting quite off topic:p

MikeMpls Feb 4, 2009 5:37 pm

With all due respect, perhaps the six months of research would have been better spent on some other subject. Academicians don't necessarily serve up the right answers for the real world.

tvnwz Feb 4, 2009 5:39 pm

spkg

NW Complimentary Upgrades: 8/8 100% NW Phantom Upgrades: 2/2 100%
DL Complimentary Upgrades: 10/10 100%

Interesting. Why are you taking upgrades and not paying for a higher fare ticket to sit up there? Taking an artificially lowered cost seat just because you are a good customer hurts the airline you are flying and the economy in general, by your logic.

MikeMpls Feb 4, 2009 5:39 pm


Originally Posted by bk42 (Post 11203703)
FYI: Southwest's streak of profitable quarters ended in Q4.

If you will re-read what I wrote, you will observe that I said operating profits. WN's streak of operating profits has not ended. They have reported paper losses due to the decline in hedge values, just as almost all airlines have reported the last couple quarters.

spkg Feb 4, 2009 5:51 pm


Originally Posted by MikeMpls (Post 11203832)
With all due respect, perhaps the six months of research would have been better spent on some other subject. Academicians don't necessarily serve up the right answers for the real world.

Seeing as how i had to do it to get my degree, i choose a topic that intrests me.


Originally Posted by tvnwz (Post 11203845)
Interesting. Why are you taking upgrades and not paying for a higher fare ticket to sit up there? Taking an artificially lowered cost seat just because you are a good customer hurts the airline you are flying and the economy in general, by your logic.

I don't know how you got to that from my posts, If NW think the free upgrades are hurting them, they'll stop providing it. Also, i wouldn't put myself in the high rev catagory anyways, its not like i'd be paying for first if i don't get free upgrades, so in my case, all the airline lost was the couple of dollars of variable cost (food costs for expample) for upgrading me, or the oppertunity cost of upgrading someone, comapre to me, who might bring them more revenue in the future.

DHAST Feb 4, 2009 6:02 pm


Originally Posted by MikeMpls (Post 11203832)
With all due respect, perhaps the six months of research would have been better spent on some other subject. Academicians don't necessarily serve up the right answers for the real world.

Likewise, I'm not entirely certain the airline folk know what they're doing anyway. First things first, they don't pay enough to keep great talent in the operational units. I had two recent interviews with US Air, and I ended up accepting employment that pays about 50% more than they would have offered. Had I accepted employment with US, I would have been looking to leave within two years.

MikeMpls Feb 4, 2009 6:29 pm


Originally Posted by DHAST (Post 11203973)
Likewise, I'm not entirely certain the airline folk know what they're doing anyway.

I sure won't argue with that!


Originally Posted by spkg (Post 11203915)
Seeing as how i had to do it to get my degree, i choose a topic that intrests me.

Very good point.

terockwo Feb 4, 2009 6:35 pm


Originally Posted by wr813 (Post 11201714)
Why would it be cheaper to go from ORD/MSP/FLL than to MSP/FLL? Sorry if this is is stupid....

Wow, this thread is all over the place. I just had another example for the OP. I was looking to buy a ticket ~ 24 hours in advance flying from DAY to DCA with US Airways. The cheapest flight I could find was $495. Ouch.

I hesitated going up to Boston for the weekend instead of DC. I looked up itineraries for DAY to BOS & found a US Airways routing for $182. It was much to my surprise when I realized that the DAY - BOS routing was actually DAY-DCA-BOS. I looked closer & realized it was actually the exact same flight DAY-DCA as the $495 one.

Summary:
DAY-DCA --$495
DAY-DCA-BOS --$182 (same flight & fare class as above for DAY-DCA)

Too bad they were missing a passenger DCA-BOS that day...

indufan Feb 4, 2009 6:49 pm


Originally Posted by terockwo (Post 11204149)
Wow, this thread is all over the place. I just had another example for the OP. I was looking to buy a ticket ~ 24 hours in advance flying from DAY to DCA with US Airways. The cheapest flight I could find was $495. Ouch.

I hesitated going up to Boston for the weekend instead of DC. I looked up itineraries for DAY to BOS & found a US Airways routing for $182. It was much to my surprise when I realized that the DAY - BOS routing was actually DAY-DCA-BOS. I looked closer & realized it was actually the exact same flight DAY-DCA as the $495 one.

Summary:
DAY-DCA --$495
DAY-DCA-BOS --$182 (same flight & fare class as above for DAY-DCA)

Too bad they were missing a passenger DCA-BOS that day...

You think $495 is high for airfare. I (well, actually the company I work for) would beg for a $495 flat rate airfare anywhere in the country.

tvnwz Feb 4, 2009 9:07 pm


Originally Posted by spkg (Post 11203915)
If NW think the free upgrades are hurting them, they'll stop providing it. Also, i wouldn't put myself in the high rev catagory anyways, its not like i'd be paying for first if i don't get free upgrades, so in my case, all the airline lost was the couple of dollars of variable cost (food costs for expample) for upgrading me, or the oppertunity cost of upgrading someone, comapre to me, who might bring them more revenue in the future.

And if Southwest thought that cheap fares were hurting them they would stop providing it too.

So, in your research, what routes did you find that Southwest made a lot of money on, but all other airlines on the same routes lost money? Maybe you can lay out the top 10 routes with the biggest disparity. I am curious.


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