Actually it's possible to implement such a program so that the airline only risks 1.5 empty seats. At seat selection, ask which seat the first purchaser would like. The next person buying a half-empty seat would only have the option to buy the seat on the same row.

As for Crabbing's questions, if the airline wants to put someone in the seat you have already paid for they should pay a bump fee. Seat poachers would be ejected.

I'm still convinced that airlines have already run simulations/models if not enough live implementations of this to confirm whether or not it works in their markets.

Many European carriers do exactly what we're talking about...that's effectively what the short-haul business class product is. (The middle seat folds down into a small table.)

But they've realized that for long-haul the market audience that would pay a big premium for an empty middle is the same target audience that they want buying their existing business class seats.

They probably look at it as a cannibalization problem: firms that currently permit their employees to travel in premium cabins would be tempted to fly the new product, pitching it internally as "cost effective but not too awful". But few firms that have always required coach travel (e.g., the majority of firms) would add this to their travel policy, thus raising their travel costs by 50% or whatever.

I think airlines are more inclined to find ways to pamper and nurture the few firms left that still fly their employees in C/J, not tempt them to move back into Y.

The company policy from the OP is a rarity.

I agree with most of what you have to say. It's a shame that the airlines sell their luxury product by making their coach product as miserable as possible, but that's essentially what they are doing.

I wish perhaps I had gotten some more information from my former neighbor and his son's empty-seat program. I still see him from time to time, but really can't run up to him and demand more info about this. Perhaps at some point I'll be able to find out more.

All they are doing is booking an extra seat in the PNR. Anybody could do it. The $1,500 makes this worth the lack of pitch, the lousier meal and the lack of arrivals suite and the like. To the person suggesting 150% of fare for 2 seats, why would carrier do that unless it has empty seats to fill? Not many want middle seats, but if it's all there is, they sell just fine.

To add to that: the airlines are doing a pretty good job right now as a group of keeping supply tight and loads high. It's a bit different from previous expansionary periods where they all added planes and chased market share at the expense of yields.

Therefore, they're filling most of those middle seats without too much trouble.

Maybe this kind of product would sell better in a softening economy...but one short of a technical recession where airlines are more likely to ground planes.