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UAL's Investor Day (Highlights: Route, Gauge Changes; $ Cuts)

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UAL's Investor Day (Highlights: Route, Gauge Changes; $ Cuts)

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Old Nov 19, 2013 | 11:31 am
  #91  
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Anyone willing to speculate on the "near-term: further differentiate earnings, rewards and benefits by customer value" enhancements that I think you're going to like?

I had a series of predictions in September 2012 which were almost completely wrong (http://www.flyertalk.com/forum/19318399-post8.html).

The one prediction I still think may come is "discounted, instead of free, access to international E+ for Gold and lower elites (like DL)."
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Old Nov 19, 2013 | 11:33 am
  #92  
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Originally Posted by boss315
http://www.usatoday.com/story/todayi...45/?csp=travel


I have assumed the position...bent over with hands on ankles.
The carrier also plans a big boost in amount of the so-called "ancillary revenue" it collects from add-on fees. United says it aims to up its take from such fees by about $700 million, "with a goal of generating more than $3.5 billion in ancillary revenue by 2017."
I read this as:
- UA will sell more TOD upgrades out from under elites
- Free checked bags for elite members only. Discounted fees for others on same PNR as the elite.
- Platinum will have number of pax they can bring into E+ reduced to 2 others, 1K to 4 others, and then...all elites will have to pay for E+ seats by 2017. The fees will go down as you get higher status, but there will still be fees.
- Gold and above will lose free SDC. UA will start charging $25 SDC fees for for Platinum, $50 for Gold, $75 for Silver, and $100 for everyone else.
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Old Nov 19, 2013 | 11:33 am
  #93  
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so all these new Asia flights are IF government approves....and who knows how bad the timings may be.

(Eliminating or down-gauging
beyond-Tokyo service to
Bangkok, Hong Kong, Taipei and
Seoul)

this is just insane. giving up NRT slots is just assinine no matter how you look at them. These are valuable spots
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Old Nov 19, 2013 | 11:34 am
  #94  
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Yup, they are going to set more fees for more ancillary income and they say 2 Billion in cuts. More and More like Spirit.
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Old Nov 19, 2013 | 11:36 am
  #95  
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Originally Posted by warreng24
I am surprised there's no mention of US leaving Star Alliance and the US UA codeshares that will be terminated.
There was. It was mentioned that this would free up a bunch of flight numbers which would help operationally over time.
Originally Posted by Neil35
...and all added flights on the list are from USA.

With the de facto de-hubbing of NRT, intra-Asia flyers will have hard time staying with United.
OK, but those are not customers UA was going after in the first place. Or probably shouldn't have been. Not enough of them spending enough money with UA to justify the other investments necessary to keep them happy when JV partners can do much of the heavy lifting in their place.

Originally Posted by transportprof
I doubt the majority of FTers would be classified as valuable in Jeff's world.
Indeed; just go look in the PQD thread for a few prime examples (self included).
Originally Posted by dcsnowwake
this is just insane. giving up NRT slots is just assinine no matter how you look at them. These are valuable spots
I doubt they are giving them all up.
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Old Nov 19, 2013 | 11:37 am
  #96  
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multiple threads on this have been merged into http://www.flyertalk.com/forum/unite...nges-cuts.html
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Old Nov 19, 2013 | 11:39 am
  #97  
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Maybe they should also change the name to Ryanair
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Old Nov 19, 2013 | 11:44 am
  #98  
 
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Originally Posted by kevanyalowitz
You are missing the point. United is cutting routes that aren't making money is fine. However, they aren't making money on these routes because they are allowing the competition to own markets (SEA) where UA was once strong. SEA-NRT has been around longer than any other United international route - why did it go from being profitable over the long term to unprofitable?
With United consolidating their west coast presence to SFO & to a lesser extent LAX, it makes no sense at all to maintain SEA/NRT. It also doesn't help that DL is heavily building up SEA. Who cares if it was their first trasnpac route? With the JV they have with ANA, they will still get the revenue from the route without actually flying it.
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Old Nov 19, 2013 | 11:51 am
  #99  
 
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Originally Posted by kevanyalowitz
You are missing the point. United is cutting routes that aren't making money is fine. However, they aren't making money on these routes because they are allowing the competition to own markets (SEA) where UA was once strong. SEA-NRT has been around longer than any other United international route - why did it go from being profitable over the long term to unprofitable?
increasing revenue is great as well as cutting unprofitable routes but when an airline focuses on increasing revenue thru other means other than routes fares and service will lead to its own demise. its an airline. focusing on generating revenue thru upfares, miles program and other side means is just building a poor foundation to sustain long term profitability growth in the long run.
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Old Nov 19, 2013 | 11:51 am
  #100  
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Originally Posted by dcsnowwake
so all these new Asia flights are IF government approves....and who knows how bad the timings may be.
Don't they always say that, when its basically somebody needing to sign on the dotted line? Are there any planned routes UA was supposed to start that didn't because of government approval? IAH-LOS wasn't government approval - it was UA deciding not to fly it (IIRC).

The only I can think of is not UA - when AC planned to fly YUL-BEY and it got cancelled (I think pretty much a few days before it was supposed to start).
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Old Nov 19, 2013 | 11:56 am
  #101  
 
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Originally Posted by unavaca
SEA-NRT was never really strong. It was the last TPAC PMUA route to get IPTE (remember the dreaded recliner C 772s? Yeah, those were on SEA-NRT to the bitter end) and NH limped in with a 787.

It's a weak route that only barely makes sense with a 787 and it just happens that NH is the one to provide it.
DL and NH seem to disagree. Would love to see the data you are basing your opinion on.
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Old Nov 19, 2013 | 11:57 am
  #102  
 
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Originally Posted by dcsnowwake
this is just insane. giving up NRT slots is just assinine no matter how you look at them. These are valuable spots
Originally Posted by sbm12

I doubt they are giving them all up.
when they give up routes its lost? can they sell them or swap them or stuff like that? don't they put in money and resources to gain approval for the routes in the first place? is that an expensive process? its a commodity of some sort right?
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Old Nov 19, 2013 | 11:59 am
  #103  
 
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Originally Posted by sbm12
Originally Posted by dcsnowwake
this is just insane. giving up NRT slots is just assinine no matter how you look at them. These are valuable spots
I doubt they are giving them all up.
I have been wondering too... what happened to those NRT slots vacated by cancelled routes. United certainly has not filled them with enough flights from USA.

Is United going to sell the rights to those slots for one-time profits?
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Old Nov 19, 2013 | 12:02 pm
  #104  
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Originally Posted by STS-134
I read this as:
- UA will sell more TOD upgrades out from under elites
- Free checked bags for elite members only. Discounted fees for others on same PNR as the elite.
- Platinum will have number of pax they can bring into E+ reduced to 2 others, 1K to 4 others, and then...all elites will have to pay for E+ seats by 2017. The fees will go down as you get higher status, but there will still be fees.
- Gold and above will lose free SDC. UA will start charging $25 SDC fees for for Platinum, $50 for Gold, $75 for Silver, and $100 for everyone else.
+1, unfortunately. If they are going to hit those goals by 2017, the fees will have to come from somewhere and this seems reasonable if not almost prescient. However, if it does come to pass, UA will have again transformed itself, this time into a Spirit analog.
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Old Nov 19, 2013 | 12:06 pm
  #105  
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Originally Posted by Neil35
...and all added flights on the list are from USA.

With the de facto de-hubbing of NRT, intra-Asia flyers will have hard time staying with United. They may be able to get to their other destinations in Asia on *A or JV partner flights, but there are still significant downsides (as I mentioned in NRT-HKG thread):

1. There are no E+ seats.

2. Nothing counts toward MM lifetime status.

3. Can't use GPU on partners' routes.

4. UA has had technical difficulties from time to time selling UA and NH flights on the same ticket -- bad for USA-based MileagePlus members seeking 016 tickets.

5. A greatly inflated intra-Asia award chart now that all flights to those cities must involve *A partners.
^Oh well. I guess management will not be touting its great shrinking network in the future!

With the emphasis on getting people to fly on United metal and its seeming withdrawal (LHR got clobbered pmUA) of its fifth freedom hubs to its US international hubs, as far fetched as it sounds, could UA be deciding to be the first *A founding member to go on its own?
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