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UA CFO Rainey on Bloomberg: Global First "Effectively the Same" as J

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UA CFO Rainey on Bloomberg: Global First "Effectively the Same" as J

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Old Feb 27, 2015, 6:15 am
  #331  
 
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Originally Posted by Always Flyin
"Greatly reduced"? Hmmm. Care to expand on that? LH has adjusted it first class offerings, but I haven't seen great reductions elsewhere on major foreign carriers.
Lufthansa is gutting the number of North American destinations that will consistently feature a First Class cabin.

Cathay Pacific has taken delivery of 777-300ERs for North American (and other longhaul) flights that do not feature an F cabin.

The F footprint on JAL and ANA continues to shrink as both airlines progressively adopt the Boeing 787 as their primary medium-haul and longhaul operating platform.

And many other airlines that continue to keep longhaul F on a portion of their network have reduced its capacity.
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Old Feb 27, 2015, 7:23 am
  #332  
 
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Originally Posted by swm61230
I agree. And then they think GF is worthless because they have treated it so poorly in the last few years that they have a self fulfilling prophecy of it not worth having.

But if they would invest in it and get a real GF experience like most other airlines do then they would have the revenue passangers that pay the big dollars for it.

Really how bad would it be to allow your GF to use the GS checkin and board with GS. Would it really cost them that much? And it is such a small thing to offer but it shows you care about the money that was spent on it.
+1 ^ UA is full of self-fulfilling prophecies.
Just an FYI - at EWR, GF passengers can use GS checkin, but not board with GS.
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Old Feb 27, 2015, 7:30 am
  #333  
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Originally Posted by Always Flyin
It shouldn't. UA isn't getting the revenue GF passengers, the first category on the list and thus the most important.
You said it wasn't an employee cabin, implying that it's full of all the other categories that you mentioned it should be full of (revenue plus upgrades and mileage redemptions) if it was a truly premium experience .
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Old Feb 27, 2015, 7:37 am
  #334  
 
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Originally Posted by Always Flyin
Used to be that when flying GF, you were GS for the day. Did they stop that?

Probably a silly question. It's UA. Of course they stopped it.



The LH Honors Terminal and Lounges at FRA and MUC (lounges) are nothing to sneeze at either.
Having flown GF several times lately, GF is not treated like GS. They board with Group 1 (*A Gold, GF, BF, 1K, Platinums). On my ORD-LHR flight recently, I was actually the last person in Group 1 to board because I left the lounge just in time to board. What that meant is that everyone boarding pushed passed me and I couldn't easily even access the overhead.

There was a day that GF and GS boarded with a break to allow them to settle in; then BF then *AGold, 1K with breaks to allow the prior group to settle in. It was great and resulted in a relaxing boarding process - there was a value to the early boarding other than just stashing the bags in the overhead. Now its a mad rush and anything but a relaxing experience. If someone is paying GF fare, they deserve to have as stress free experience as possible - its one of the things they are paying for.
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Old Feb 27, 2015, 8:11 am
  #335  
 
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Originally Posted by uber1K_Flyer

There was a day that GF and GS boarded with a break to allow them to settle in; then BF then *AGold, 1K with breaks to allow the prior group to settle in. It was great and resulted in a relaxing boarding process - there was a value to the early boarding other than just stashing the bags in the overhead. Now its a mad rush and anything but a relaxing experience. If someone is paying GF fare, they deserve to have as stress free experience as possible - its one of the things they are paying for.
Actually for international I remember that the pmUA boarding was
1. First, GS, 1k
2. Business, premier exec, *gold
3. All other premiers
4. Standard economy boarding.

They did used to treat global first class passengers as GS.
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Old Feb 27, 2015, 8:56 am
  #336  
 
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Now its a mad rush and anything but a relaxing experience.
If boarding a plane is stressful, stop traveling and stay home. Honestly, thats an invented FWP.

From an airline perspective, someone either buying a one time GF ticket or J>>F upgrade shouldn't be treated the same as a HVF defined by GS. I can see how that makes sense.

Just an FYI - at EWR, GF passengers can use GS checkin, but not board with GS.
The actually can board with GS, as most of us don't board at the GS call. Only the DYKTIAGS board then.
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Old Feb 27, 2015, 9:02 am
  #337  
 
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IMHO, as recently as 4 or 5 years ago, UA used to have one of the best international F products in the market. Now it does not. It is not even close. Everyone who flies international F knows this. No one will pay for UA GF unless there are no other options on the route.

UA management deliberately wrecked the GF product.
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Old Feb 27, 2015, 9:27 am
  #338  
 
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Originally Posted by nerdbirdsjc
Lufthansa is gutting the number of North American destinations that will consistently feature a First Class cabin.

Cathay Pacific has taken delivery of 777-300ERs for North American (and other longhaul) flights that do not feature an F cabin.

The F footprint on JAL and ANA continues to shrink as both airlines progressively adopt the Boeing 787 as their primary medium-haul and longhaul operating platform.

And many other airlines that continue to keep longhaul F on a portion of their network have reduced its capacity.
1. Count the number of international F seats now versus 3 years ago, 5 years, 10 years ago.

2. Count the number of international F "suites" versus 3, 5 and 10 years ago.

3. Count the number of airlines that are currently or continually upgrading the quality of their international F seats.

4. Count the number of airlines that are converting medium haul business seating to flat bed.

While UA is ruining and shrinking their international F product, it is not a global trend.
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Old Feb 27, 2015, 9:49 am
  #339  
 
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Originally Posted by 5khours
While UA is ruining and shrinking their international F product, it is not a global trend.
The global trend is absolutely to shrink the longhaul F footprint. In fact, United was a holdout on the trend, being one of two global airlines to retain F on all longhaul routes until closing the merger with Continental.
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Old Feb 27, 2015, 9:52 am
  #340  
 
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Originally Posted by Bonehead
You said it wasn't an employee cabin, implying that it's full of all the other categories that you mentioned it should be full of (revenue plus upgrades and mileage redemptions) if it was a truly premium experience .
Nobody else seems confused.

But to clarify for you since my last apparently didn't do it, F is full of upgraders and award tickets. It is NOT full of revenue passengers.

Originally Posted by LaserSailor
From an airline perspective, someone either buying a one time GF ticket or J>>F upgrade shouldn't be treated the same as a HVF defined by GS. I can see how that makes sense.
Sorry, but I strongly disagree. OK on domestic flights, but UA should want to encourage revenue F bookings on international flights--not make GF passengers feel like 2nd class passengers.

Originally Posted by 5khours
IMHO, as recently as 4 or 5 years ago, UA used to have one of the best international F products in the market. Now it does not. It is not even close. Everyone who flies international F knows this. No one will pay for UA GF unless there are no other options on the route.

UA management deliberately wrecked the GF product.
Self-fullfiing prophecy.

Originally Posted by 5khours
1. Count the number of international F seats now versus 3 years ago, 5 years, 10 years ago.

2. Count the number of international F "suites" versus 3, 5 and 10 years ago.

3. Count the number of airlines that are currently or continually upgrading the quality of their international F seats.

4. Count the number of airlines that are converting medium haul business seating to flat bed.

While UA is ruining and shrinking their international F product, it is not a global trend.
While some carriers are right-sizing F to routes where they can sell the seats, it is a small percentage of the int'l F marketplace.

Your comments above are spot on.
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Old Feb 27, 2015, 9:57 am
  #341  
 
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Originally Posted by nerdbirdsjc
The global trend is absolutely to shrink the longhaul F footprint. In fact, United was a holdout on the trend, being one of two global airlines to retain F on all longhaul routes until closing the merger with Continental.
United isn't shrinking GF--it's eliminating it.

Being UA, it is just too cheap to pay the refurb prices to put new (6-year-old design) seats on existing aircraft.
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Old Feb 27, 2015, 10:31 am
  #342  
 
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Originally Posted by nerdbirdsjc
The global trend is absolutely to shrink the longhaul F footprint. In fact, United was a holdout on the trend, being one of two global airlines to retain F on all longhaul routes until closing the merger with Continental.
The FT did something on this not too long ago.

The actual numbers of first class seats have grown because of the rapidly growing airlines in China and number of planes being flown by the Middle East carriers (even if they are having F on a smaller % of planes...still net increase in seats).

But of course among Americas and European carriers it's declined rapidly and UA was an outlier.

http://www.ft.com/intl/cms/s/2/b710d...44feabdc0.html
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Old Feb 27, 2015, 10:33 am
  #343  
 
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Originally Posted by Always Flyin
United isn't shrinking GF--it's eliminating it.

Being UA, it is just too cheap to pay the refurb prices to put new (6-year-old design) seats on existing aircraft.
Question. Do you cast similar aspersions upon the following major global airlines?

Delta
American
Air Canada
Air France
KLM
Etihad Airways
Singapore Airlines
All Nippon Airways
Qantas Airways
Air New Zealand
South African Airways
Japan Airlines
Cathay Pacific
Iberia
US Airways
Lufthansa
Asiana


Since the mid-1990s, all of the above have eliminated F on some or all of their longhaul fleets, either through refurbishment programs that removed F cabins, or through acceptance of new aircraft without F cabins.

The criticism in this thread loses credibility if delivered without an objective embrace of the reality that longhaul F is a shrinking violet in the marketplace.
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Old Feb 27, 2015, 10:34 am
  #344  
 
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UA has become a undifferentiated airline focused solely on hostage customers, unwilling to compete on routes or product. It may work in the short term, but it won't over the long term. It's no surprise that UA had far more HVF than CO, and that many of those HVF have left.

UA removing GF and sticking with a lame J product is just part of its it becoming an airline no one paying premium fares actually wants to fly. The pax that have bought into the Business'First' marketing speak and willing to over pay for a 'good enough' J product me be the only 'HVF' left soon.

As far as GF being full of upgrades...I pay substantially more for J if I can upgrade. When UA only offers 2-cabin I buy the cheapest possible P/Z fare or upgrade from Y. One could also use this same logic to argue that most domestic F capacity should be cut on many routes.
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Old Feb 27, 2015, 10:45 am
  #345  
 
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Originally Posted by kevanyalowitz
The pax that have bought into the Business'First' marketing speak and willing to over pay for a 'good enough' J product may be the only 'HVF' left soon.
Major longhaul airlines have heard from consumers, loudly and clearly, that the general preference is for a quality hybrid "Business/First" offering over a Business Class diluted to favor an upscale F cabin that is increasingly off-limits due to tightened corporate travel policies.

As a result, the industry has shifted overwhelmingly to a model favoring flat bed seats and nice soft touches in rather upscale Business Class cabins, with F offered on a steadily shrinking footprint. Indeed, we're likely just one more global economic downturn (and corp travel belt-tightening cycle) away from the industry -- except perhaps BA and the ME3 -- walking away from longhaul F altogether.
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