UA CFO Rainey on Bloomberg: Global First "Effectively the Same" as J
#136
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#137
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http://www.bloomberg.com/video/u-s-a...OmRFt_uow.html
Rainey is first asked about the fuel price outlook, but then the anchor asks about UA possibly getting rid of F class like Delta. Answer: "We're moving more toward a two-cabin plane, with Economy Plus."
Rainey does not do much of a job justifying either the existence of GF or paying extra for it:
"It's effectively the same service: you've got essentially the same food... even the seat is very similar."
He concludes by complaining about taxes. "A crushing tax burden.... higher rate than alcohol, tobacco, firearms... we shouldn't be discouraging air travel in our country."
Rainey is first asked about the fuel price outlook, but then the anchor asks about UA possibly getting rid of F class like Delta. Answer: "We're moving more toward a two-cabin plane, with Economy Plus."
Rainey does not do much of a job justifying either the existence of GF or paying extra for it:
"It's effectively the same service: you've got essentially the same food... even the seat is very similar."
He concludes by complaining about taxes. "A crushing tax burden.... higher rate than alcohol, tobacco, firearms... we shouldn't be discouraging air travel in our country."
And boy am I tired of the airlines whining about taxes. Taxes stink. We all agree. Get over it.
#139
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I've been reading this but have a question, what is Global First? Is this international first class? In a plane with first, business, E+ and economy?
Is it somehow related to global services which seems to be some sort of invitation only group which get more attention and service (having dinner orders taken first)
Is it somehow related to global services which seems to be some sort of invitation only group which get more attention and service (having dinner orders taken first)
#140
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I've been reading this but have a question, what is Global First? Is this international first class? In a plane with first, business, E+ and economy?
Is it somehow related to global services which seems to be some sort of invitation only group which get more attention and service (having dinner orders taken first)
Is it somehow related to global services which seems to be some sort of invitation only group which get more attention and service (having dinner orders taken first)
#141
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Sterile and Uninspring with a touch of Osco bunco, blueberry yogurt, Pork chop, worse than cosco rigatoni / ravioli. And don't forget broken cashews.
I saw the alleged changes to the menu - its as is nothing changed
#142
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#143
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That this hasn't happened supports the conclusion the label he used applies across the board.
#144
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You can almost hear the disdain he has for his airlines' own GF product (and therefore the people who buy GF tickets).
Its one thing to say GF is going to be transitioned out in favor of BF on most or all flights. That is a decision many airlines are contemplating or have already executed. It is a statement that is made without disparaging a product UA currently offers and charges a premium for over and above J.
It is something else altogether to disparage an existing premium product level that people pay money, miles or upgrades for, over and above J.
Its one thing to say GF is going to be transitioned out in favor of BF on most or all flights. That is a decision many airlines are contemplating or have already executed. It is a statement that is made without disparaging a product UA currently offers and charges a premium for over and above J.
It is something else altogether to disparage an existing premium product level that people pay money, miles or upgrades for, over and above J.
As has been mentioned earlier, the product is virtually the same as J because that's how they have made it.
I do think, however, that on the few markets where a true overseas F could command a substantial premium over J, that UA doesn't have the management acumen, the reputation, the built-in demand to pull off a truly profitable premium overseas F.
#145
Join Date: Apr 2013
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They have shown with Premier Qualifying Dollars, minimum spend and mileage reward levels which groups are more important. Once low annual spend 1Ks are unhappy about their loss of status and instruments. They cry about their loses the most here on FT IMO.
There's not much difference between the 2007 F product on UA and the new F put on the 777-300s on AA. Sure the finishes are newer, some different cubbies, but nothing revolutionary.
F seats had two big differences over J: 1) full lie flat, and 2) not having to step over a neighbor.
With direct aisle lie flat J those two differences are gone.
F seats had two big differences over J: 1) full lie flat, and 2) not having to step over a neighbor.
With direct aisle lie flat J those two differences are gone.
What was this?
#146
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The fact that FT seeks out ANY comment made by UAL management and chooses to be offended speaks volumes about the fundamentally flawed relationship we have with a corporation.
#147
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Financial community does not live in vaccumm. Also, some of those same people are GF consumers. So one needs to watch what one says in a public forum.
#148
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International F is usually the most unprofitable cabin on a SF basis. There are a few markets in the world that justify it and most airlines maintain it for prestige purposes.
#149
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That Rainey made a statement to "financiers and investors" is irrelevant since it later went public.
#150
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My point exactly. These people pay serious money for GF. I had a guy standing in line with me on IAD - KWI (may have been DXB) Pre-merger who paid $32K for the round trip. That's why you keep it alive.
Personally, I would prefer more BF seats.
Personally, I would prefer more BF seats.
Last edited by denuaflier; Sep 6, 2014 at 10:07 am