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United does not need to compete in Newark?

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United does not need to compete in Newark?

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Old Jan 17, 2016, 11:31 pm
  #1  
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United does not need to compete in Newark?

I make this post after 5 years of incredible patience and continued loyalty despite the protracted problems of the troubled Continental/United merger.

This past week, during a call to 1K reservations for assistance in making a same day change (to a later flight) on a discounted business/first class fare on a return flight from EWR to LAX, I was quoted a fare difference of more than $1900. When I asked to speak to a supervisor, I was transferred to a gentleman who insisted that this was the additional fare and that he couldn't help me notwithstanding the same day change rules. When I expressed my shock at that fare difference, his explanation was as follows:

"Now that United is out of the JFK market, the airline does not need to compete at Newark and can charge whatever it wants."

When I asked him if I heard correctly, he confirmed that this is exactly what he meant. When I then asked him if that was the airline's position because United created a monopoly at Newark, he said that there was very little competition there and that he was sure I had other options if I didn't like the situation.

After more than 15 years as a 1K with more than 2 million flight miles, it is a disgrace what has happened to this once proud airline. Notwithstanding the recent management changes, it appears to be too late to correct the damage caused by the inept and hateful Continental management team.

With a reservation supervisor at the 1K desk disseminating such an offensive message, United may be headed on its own round trip to Chapter 11. The merged airline may have to hit bottom before we can expect any improvement.

As for me, after 5 years of patience with this unfortunate merger, it may now be time to start exploring alternatives with American.
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Old Jan 17, 2016, 11:38 pm
  #2  
TA
 
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I suggest you don't take the words of one person to be too definitive. I wouldn't trust a reservations person to turn a question about a fare difference into an accurate broad market statement that you would act on...

It is doubtful that someone you spoke to on the phone had 1) the time, or 2) the full knowledge, or 3) the explanatory abilities to speak about UA's activities and market position at EWR (if that was even significantly related to the specific fare you were quoted at the moment) to be considered official. And I would not distort my travel based on the one incident, no matter how ungracefully said.

On the question of the same day change, probably your discounted fare bucket was no longer available to SDC into, so you were quoted full-fare pricing (albeit somewhat offensively/impolitely). Even Jetblue, Virgin, and Delta have this level of >$1500 pricing for last minute one-way fares transcon. I too find it laughable/offensive when an agent quotes such a fare, as if anyone will find it reasonable.

That said, if any number of other dissatisfying factors have been building up for you, then by all means let this be the last straw...

Last edited by TA; Jan 17, 2016 at 11:54 pm
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Old Jan 18, 2016, 2:16 am
  #3  
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You expressed concern that the fare was so high, so he gave you an explanation. What is the issue?

I think it's good that employees are being frank and direct about these things. Would you have preferred a non-answer like "we value your business and price our fares to ensure that we provide the best service to our valued customers" instead?
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Old Jan 18, 2016, 5:01 am
  #4  
 
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Fortress Hubs

EWR is a fortress hub. So is IAH. Token competition at the most. No serious LCC competition.

This situation existed before the merger. PMUA did not enjoy a similar advantage in their network. Why make it out to be a UA vs. CO culture situation?


SL
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Old Jan 18, 2016, 5:10 am
  #5  
 
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United is competing to make the highest profit at EWR.
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Old Jan 18, 2016, 5:36 am
  #6  
 
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$1800 difference sounds about right. I'm guessing yours was in the $900-$1200 range. If the market supports it how can you have problems with the price of a fare? This is how they stay solvent, bankers and actors buying $$$ fares. You can go standby for free.
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Old Jan 18, 2016, 7:17 am
  #7  
 
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Originally Posted by ocn2ocn
... When I asked to speak to a supervisor, I was transferred to a gentleman who insisted that this was the additional fare ...

... When I expressed my shock at that fare difference, his explanation was ...

... When I asked him if I heard correctly, he confirmed that this is exactly what he meant...
I didn't participate in your conversation to hear everything that was said, but I've had many conversations like this before. It sounds like you were not going to be content unless you got what you wanted. The "supervisor" may be clumsy in giving you such a straightforward (and overgeneralized) explanation, but in methinks you asked for it.

FWIW, I recently had a full J ticket on JL for weekday travel. When I asked about switching to a weekend flight, the fare difference was an extra $800. You can certainly say that, because there is competition on my route, my fare difference was $800 versus your $1,300 for a shorter trip. But as far as fare rules are concerned, both of us got it by the book.
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Old Jan 18, 2016, 7:24 am
  #8  
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My guess is that the "same day change" being asked for was nt for a flight scheduled to be taking place within the free SDC window.
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Old Jan 18, 2016, 7:28 am
  #9  
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Originally Posted by Xyzzy
My guess is that the "same day change" being asked for was nt for a flight scheduled to be taking place within the free SDC window.
or rather ... it was a 'P' ticket and 'P' was not available and the agent quoted an upfare to 'J'
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Old Jan 18, 2016, 8:08 am
  #10  
 
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It'd be interesting to hear from the lawyers here. What would the take be on the DOJ finding this interesting, and a potential witness to predatory trade practice?
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Old Jan 18, 2016, 8:40 am
  #11  
 
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Originally Posted by transportbiz
It'd be interesting to hear from the lawyers here. What would the take be on the DOJ finding this interesting, and a potential witness to predatory trade practice?
It's not predatory trade practice if there were no P fare seats available on the later flight that OP wanted.
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Old Jan 18, 2016, 8:51 am
  #12  
 
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Originally Posted by ocn2ocn
Notwithstanding the recent management changes, it appears to be too late to correct the damage caused by the inept and hateful Continental management team.
OF COURSE this is a Continental issue... why, in my XX years as a 1K before the merger, I was never once charged a change fee, fare difference, surcharge or anything of the sort!

Kidding aside... do you know if the same fare basis was available?

The unnecessary editorializing of the situation by the agent is irritating (and not an accurate description of the NYC competitive market... the various airports do not exist in vacuums) but it would seem to me that this scenario is one where only a higher fare basis was available on the desired flight, and so an upfare is required to exchange the ticket. That's the way it's always been, even if agents in the past may have been more willing to give out 'waivers and favors'.

Not unlike what would be required if I wanted to SDC my T fare and only W was available on the desired flight, or any other instance where the paid fare basis is less than what is available for sale, or if a change was initiated outside of the SDC window. UPDI fares complicate matters a bit further, as the underlying economy class fare basis must also be available along with the ticketed fare the website displays. Perhaps that is the issue?

When in doubt, hang up and call back...

Last edited by EWR764; Jan 18, 2016 at 8:57 am
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Old Jan 18, 2016, 9:12 am
  #13  
 
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There are a very limited number of very cheap $600 P fares on the PS route, and they sell out very far in advance. It is not at all surprising that for SDC, only the expensive $2500 D and J fares are left. And UA apparently has little trouble selling these expensive fares to last-minute travelers. So on a route with nearly hourly flights, why would they effectively make a very cheap advance restricted discount fare freely changeable on the day of flight? This would *both* discourage the sale of unrestricted flights in advance to those who don't know for sure which flight they will want, *and* let a seat go for $600 that they could likely fill for $2500.
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Old Jan 18, 2016, 9:21 am
  #14  
 
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What he said is completely false. UA matches prices for NYC fares and competes with all the carriers from EWR, LGA, and JFK in the area. The JFK-EWR move catered to the fact that many of their elites live in the EWR area or connect via EWR. They can offer a better service and convenience this way. Also they can take more traffic and while they may match prices for NYC they can close buckets (probably the situation described here)- competing while increasing profitability.

You should report the CS agent who said this- that is completely inappropriate to say to anyone.
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Old Jan 18, 2016, 9:28 am
  #15  
 
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Originally Posted by ocn2ocn
This past week, during a call to 1K reservations for assistance in making a same day change (to a later flight) on a discounted business/first class fare on a return flight from EWR to LAX, I was quoted a fare difference of more than $1900.
Using today as an example, United currently has exactly *one* F seats available on EWR-LAX today, and that one seat will set you back over $2500.

Your ticket likely cost about $600. With no seats available in the same fare class you booked in, SDC means you don't need to pay the change fee, but you still need to pay the fare difference to the next available class - $2500-$600 = $1900.

EWR being a captive market isn't really relevant. AA ($2,525), Delta ($2,225) and Virgin ($1,999) are all charging similar prices for Business/First seats from New York area airports to LAX today - only JetBlue is (significantly) cheaper at $1,245.
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