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WOW headed for bankruptcy [operations ceased 28 March 2019]

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WOW headed for bankruptcy [operations ceased 28 March 2019]

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Old Mar 28, 2019, 5:32 pm
  #91  
 
Join Date: Feb 2017
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Originally Posted by princeville
Glad you were able to find an award flight. I just saw a post here that UA is offering rescue fares as well. Might be worth calling them to see if buying one of those makes more sense than using miles.
Thanks just did but the information in the other thread was incorrect...another publicity stunt by an airline trying to look like a white knight
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Old Mar 28, 2019, 6:45 pm
  #92  
 
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Originally Posted by Braniff
Exact same experience. I booked tickets to Iceland for the summer that cost 330 Euros a few days ago [glad I did !!!]; now at 540 Euros. I am actually surprised how blatant they are in doing this when it is so obvious...
Why wouldn't they?
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Old Mar 28, 2019, 6:55 pm
  #93  
 
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Originally Posted by MSPeconomist
Since all of WOW's aircraft were leased, I wonder whether it would be possible and practical for the ones that haven't been seized to be re-leased and deployed quickly to one or more carriers that are currently cancelling flights due to the MAX grounding. Does anyone know whether this can be done?

They're new aircraft, so in the longer term, the aircraft's owners should be able easily to sell or more permanently lease them to some other carrier.
Re-leased, yes. Quickly deployed, no.

The airbus comes with a ton of different options and is configured in accordance with the airline's specifications. Our airline bought a bunch of used aircraft; it took more than a few months to reconfigure them to our airline's specifications. That includes changing out all of the seats and repainting the aircraft, as no one's going to fly those planes in WoW colors/interior.
Just a small example - I was jumpseating on another airline's airbus and I noticed that some of the exterior lights turned on and off exactly opposite of how they turn on/off at my airline.
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Old Mar 28, 2019, 7:00 pm
  #94  
 
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Originally Posted by Braniff
Exact same experience. I booked tickets to Iceland for the summer that cost 330 Euros a few days ago [glad I did !!!]; now at 540 Euros. I am actually surprised how blatant they are in doing this when it is so obvious...
A large chunk of the ticket price is government taxes and fees. Once that's stripped out, your 330 euro ticket was likely sold at below break even price.

Another reason why the price rose is that airlines use dynamic pricing models along with fare buckets. Once the lower fare bucket's sold out, the next fare bucket is always higher priced.
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Old Mar 28, 2019, 8:56 pm
  #95  
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Originally Posted by iflyjetz
Another reason why the price rose is that airlines use dynamic pricing models along with fare buckets. Once the lower fare bucket's sold out, the next fare bucket is always higher priced.
The latter sentence above is false. “Always” it isn’t.

In the current circumstances, when a low price competitor goes out of business, the price on remaining carriers is of course expected to lead to generally higher prices overall on the relevant routes. For reasons related to reduced competition on the supply side and for reasons related to some element of the demand-side needing to utilize the reduced capacity.
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Old Mar 29, 2019, 12:53 am
  #96  
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Originally Posted by iflyjetz
A large chunk of the ticket price is government taxes and fees. Once that's stripped out, your 330 euro ticket was likely sold at below break even price.

Another reason why the price rose is that airlines use dynamic pricing models along with fare buckets. Once the lower fare bucket's sold out, the next fare bucket is always higher priced.
Interestingly, the President of Icelandair was in the media yesterday saying that “of course Icelandair would not be raising their prices” following WOW’s demise. This is the same person who said that WOW’s fares were unsustainably low a few days earlier. And the head of the airline that is nearly doubling its prices in the examples shown in this thread and elsewhere.

Last edited by Braniff; Mar 29, 2019 at 1:38 am
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Old Mar 29, 2019, 1:21 am
  #97  
 
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I imagine prices may have automatically gone up purely due to seats being booked at the lower rates, not necessarily due to a conscious action to exploit the situation.

That's what happens when flights get booked.
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Old Mar 29, 2019, 6:52 am
  #98  
 
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Let's not forget about all the people who were working for WOW and now suddenly are unemployed...
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Last edited by silvermine; Mar 29, 2019 at 12:33 pm
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Old Mar 29, 2019, 6:57 am
  #99  
 
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Originally Posted by GUWonder
The latter sentence above is false. “Always” it isn’t.
OK, show an example of where a higher fare bucket is less expensive than a lower fare bucket. Please keep it in same class of service, as a deep discount F ticket isn't an apples to apples comparison with with full Y fare (not to mention that a deep discount F fare would already be sold out if only Y fares remain).
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Old Mar 29, 2019, 7:03 am
  #100  
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The problem lies in the use of the term "prices have gone up." That is true so far as it goes. But, what it means in the specific context of the carriers involved is that as seats are purchased, lower fare buckets are exhausted. Whatever random example may exist somewhere, it is certainly the case with FI.

In addition, FI is applying a discount to WOW passengers meeting its criteria. There are many passengers who may wind up with new tickets on FI and other carriers who are out very little, presuming that they paid for their WOW tickets using a facility which provides for a refund in insolvency, e.g. credit cards for most countries.
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Old Mar 29, 2019, 7:31 am
  #101  
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Originally Posted by iflyjetz
OK, show an example of where a higher fare bucket is less expensive than a lower fare bucket. Please keep it in same class of service, as a deep discount F ticket isn't an apples to apples comparison with with full Y fare (not to mention that a deep discount F fare would already be sold out if only Y fares remain).
If you check out the history of the “fare gone” threads on FT, you can try to research some examples on your own.

Premium cabin space available for sale is sometimes available at a lower price than economy class available for space at the same time. It also happens with rail travel.

The fact that there have been plenty of such situations gives the lie to the “always” claim.


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Old Mar 29, 2019, 7:53 am
  #102  
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Originally Posted by iflyjetz
OK, show an example of where a higher fare bucket is less expensive than a lower fare bucket. Please keep it in same class of service, as a deep discount F ticket isn't an apples to apples comparison with with full Y fare (not to mention that a deep discount F fare would already be sold out if only Y fares remain).
How about a higher fare bucket with more restrictive sales terms (advance sales, rebooking fees, cancellation fees, etc.) being cheaper than a lower fare bucket with less restrictions? Does that not exist?
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Old Mar 29, 2019, 8:45 am
  #103  
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I suspect that it has existed. Thus, never say never.

But, for practical purposes, with a cabin, flexibility is typically the most expensive variable.

But, that really goes OT for this thread, which focuses on one carrier's pricing.
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Old Mar 29, 2019, 12:47 pm
  #104  
 
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I'm not going to research the possible on this. I'll just concede that I'm wrong; it's possible for higher for higher fare classes to be cheaper than lower fare classes in the same cabin. Error fares would fall in that class, but that's not how the pricing system works (hence the word error).
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Old Mar 29, 2019, 3:50 pm
  #105  
 
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Just drove by DTW and the pink Airbus is sitting at the edge of the airport, very depressing. Going to miss WOW.
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