United CFO Rainey Implies Certain Elites were "Over Entitled".
#1006
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pmco 1MMers didn't ask for lifetime gold.
pmua 1MMers didn't ask for companion status.
And given that UA showered its members with life time miles on Dec 31, UA "over entitled" a vast number of members and their companions.
It was a mixed bag. Official written policy was that 1K/GS/F/J could board through the red lane at any time, but reports were that some GAs closed the lane once group 1 was called. I never experienced that though.
#1007
Join Date: Feb 2001
Location: Montebello, CA, USA
Posts: 2,362
Go back to what UA Insider said. The implication was that Golds and above were seeing a higher ability to get seated in E+, without there being a demonstrative decline in Silvers being seated in E+, while admitting some may be getting there through purchasing E+ rather than waiting for T-24. Both statements can't be true, when you think about it.
"a higher ability to get seated" - that sounds like saying only that more seats are available for Gold+, not that they are actually sitting in them. Especially if the number of Silvers in E+ is the same. I think that "a higher ability to get seated" sounds like spin in a way.
On the flip side of this though, it is still relatively early in the new system to really tell patterns. When UA switched from e500's to complimentary upgrades, we scored a bunch of those as Premiers in the early days (for previous booked reservations, you had to have an agent touch your res or you wouldn't be added to the queue), and then our percentages dropped substantially once the system was in place for awhile.
#1008
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Go back to what UA Insider said. The implication was that Golds and above were seeing a higher ability to get seated in E+, without there being a demonstrative decline in Silvers being seated in E+, while admitting some may be getting there through purchasing E+ rather than waiting for T-24. Both statements can't be true, when you think about it.
Another is that loads on UA are down (certainly my anecdotal experiences post-3/3 have been leaning that way), and thus E+ seats are easier to come by for all.
#1009
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Originally Posted by LarkSFO
Sell the stock short today then. Let us know how much money you make when they announce next quarters results.
Per Mr. Rainey's comments, I believe a gradual decline in revenue is a part of their plan. Capacity has gone down 6% since 2006. China market currently has 'too much capacity', and we should expect to see reductions.
The new United does not want to chase market share and revenue.
They want to be a profitable, viable airline and are making the changes required to achieve this objective.
The new United does not want to chase market share and revenue.
They want to be a profitable, viable airline and are making the changes required to achieve this objective.
Capacity can be cut in some ways without corresponding revenue declines, and that's more of what COdbaUA seeks than what LarkSFO's post is trying to suggest.
#1010
Join Date: Dec 2000
Location: Dallas, TX, AA 3MM EXP, WN
Posts: 1,808
One of the things not mentioned here is this could be a two fold hit on revenue. FF programs are a money making machine for the airlines, selling points to credit cards, hotels etc. A UA elite moves to AA will now use AA credit card thus UA not only loses the fare but also the FF program revenue. I would not want to be the UA credit card company right now.
#1011
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Originally Posted by dsquared37
Time will tell. I'm hoping you're wrong.
Originally Posted by njcommodore View Post
Anyone who thinks UA will have a huge drop in revenue over changes to MP isn't over entitled, they're delusional (or self absorbed).
Anyone who thinks UA will have a huge drop in revenue over changes to MP isn't over entitled, they're delusional (or self absorbed).
He said he wants to see UA in bankruptcy. Sounds like he is rooting for UA to fail.
I understand your perspective as well - you want UA to do poorly enough that Smisek and Co. are removed.
Be careful what you wish for, a new regime could just as easily be worse for elites...
I understand your perspective as well - you want UA to do poorly enough that Smisek and Co. are removed.
Be careful what you wish for, a new regime could just as easily be worse for elites...
I do want to see these crooks taken out of their roles at the head of COdbaUA
I don't root for BK, but I do root for enough short term failure that would lead to a new leadership team. Presumably one selected to not continue down the ill-advised $misek & Rainey path, but rather realize it's okay to try to make money and treat your valued customers well.
#1012
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I did find this comment in Mr. Rainey's presentation to be quite interesting. SHARES has the ability to support Dynamic seat pricing... (I assume Apollo did not?)
This certainly does mean that they have more 'levers' that they can use to adjust / fine tune the system to maximize revenue on an (almost) real time basis...
This certainly does mean that they have more 'levers' that they can use to adjust / fine tune the system to maximize revenue on an (almost) real time basis...
I'm not implying that ToD's are out-and-out intentional, and it's likely their implementation is ridden with glitches, but this is certainly something they could do with SHARES.
#1013
Join Date: Jul 2006
Location: SEA & RDM
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I did find this comment in Mr. Rainey's presentation to be quite interesting. SHARES has the ability to support Dynamic seat pricing... (I assume Apollo did not?)
This certainly does mean that they have more 'levers' that they can use to adjust / fine tune the system to maximize revenue on an (almost) real time basis...
This certainly does mean that they have more 'levers' that they can use to adjust / fine tune the system to maximize revenue on an (almost) real time basis...
#1014
Join Date: Nov 2005
Location: SFO and OAK
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Posts: 2,240
Are you saying you would dedicate the majority of your flying to United if they made a change to seating in an area of the plane where you don't sit?
#1015
Join Date: Apr 2004
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I would not want to be the UA credit card company right now.
#1016
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What annoys me is when my no-status friend on the same fare is offered a ToD (say, $89 on LAS-ORD), and I'm offered the full buy-up (say, $389), as we check in side-by-side at two kiosks. Or when at OLCI, my wife gets an offer to buy up, and I don't get one at all.
#1017
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And I wouldn't have a problem with that--hey, if they want to offer discounted F (or Y/B/M) fares at the last minute, fine and dandy--if the buy-ups were offered consistently to elites. What annoys me is when my no-status friend on the same fare is offered a ToD (say, $89 on LAS-ORD), and I'm offered the full buy-up (say, $389), as we check in side-by-side at two kiosks. Or when at OLCI, my wife gets an offer to buy up, and I don't get one at all.
#1018
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And I wouldn't have a problem with that--hey, if they want to offer discounted F (or Y/B/M) fares at the last minute, fine and dandy--if the buy-ups were offered consistently to elites.
What annoys me is when my no-status friend on the same fare is offered a ToD (say, $89 on LAS-ORD), and I'm offered the full buy-up (say, $389), as we check in side-by-side at two kiosks. Or when at OLCI, my wife gets an offer to buy up, and I don't get one at all.
What annoys me is when my no-status friend on the same fare is offered a ToD (say, $89 on LAS-ORD), and I'm offered the full buy-up (say, $389), as we check in side-by-side at two kiosks. Or when at OLCI, my wife gets an offer to buy up, and I don't get one at all.
Of course, make it a little too "dynamic" and it can get out of control pretty quickly...
#1019
Join Date: Oct 2004
Location: PDX
Posts: 2,284
Below is Shannon's quote, bolding mine:
An example of this is when our Premier tiers get access to Economy Plus seating. This change has materialized into a meaningfully better experience for our Gold members and above. In fact, in markets that have the highest proportion of Premier flyers, a higher percentage of Premier Platinum and Premier Gold members are getting access to Economy Plus (comparing February 2012 to April 2012, and comparing April 2011 to April 2012), while the percentage of Premier Silver members sitting in Economy Plus hasnt decreased meaningfully. Some of those Premier Silver members may be choosing to purchase Economy Plus seating, but, in general, Economy Plus seating remains available at time of check-in.
#1020
Join Date: Jan 2009
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Good points. UA does have the actual numbers, while we don'tit would be interesting to see what those "higher percentages" are that UA Insider referenced as a counterpoint to majortom's experiences.
Below is Shannon's quote, bolding mine:
Below is Shannon's quote, bolding mine:
An example of this is when our Premier tiers get access to Economy Plus seating. This change has materialized into a meaningfully better experience for our Gold members and above. In fact, in markets that have the highest proportion of Premier flyers, a higher percentage of Premier Platinum and Premier Gold members are getting access to Economy Plus (comparing February 2012 to April 2012, and comparing April 2011 to April 2012), while the percentage of Premier Silver members sitting in Economy Plus hasnt decreased meaningfully. Some of those Premier Silver members may be choosing to purchase Economy Plus seating, but, in general, Economy Plus seating remains available at time of check-in.