Kirby thinks airfares should be double
Sep 15, 2018, 2:09 pm
#46
Join Date: Dec 2014
Location: Haze gray and underway
Programs: UA 1K 2MM, HH Diamond, Marriott 'clink clink' Titanium
Posts: 1,784
Mr. Kirby, under your leadership we have seen wonderful things like fees fro baggage, fees for priority check in, fees for food in economy, seat pitch shrinking more and more, fees for an extra 3 inches of seat pitch, fees for changes, fees for international upgrades, devaluations of the value of our miles, longer wait times at counters, fewer and fewer real people, more and more machines....Should I go on? I fly because it is a quick, sometimes, and efficient way for me to get where I need and want to go. When it is no longer quick and cheap I will find another way.
Sep 16, 2018, 11:10 am
#47
Join Date: Aug 2013
Location: New York Area
Programs: Mileage Plus Platinum
Posts: 161
I am an economist and I can tell you that there is no link. Kirby's argument is totally bogus.
Sep 16, 2018, 1:53 pm
#48
FlyerTalk Evangelist
Join Date: Mar 2012
Posts: 19,502
Sep 16, 2018, 2:55 pm
#49
Join Date: Nov 2017
Posts: 3,359
Those comments, if accurate, are extremely close to price signaling, which is a form of collusion and thus prohibited under the Sherman Anti-Trust Act.
Companies can't agree amongst themselves to set prices. A statement like "airfare should be twice what it is today," can easily be interpreted as a promise to double United prices if the competition were to double theirs.
It's not an open-and-shut case, but sincx is correct; Kirby would be better off keeping his opinions about pricing to himself.
Companies can't agree amongst themselves to set prices. A statement like "airfare should be twice what it is today," can easily be interpreted as a promise to double United prices if the competition were to double theirs.
It's not an open-and-shut case, but sincx is correct; Kirby would be better off keeping his opinions about pricing to himself.
In all seriousness the legacies can complain till they're blue in the face, it won't matter - the cat is already well of the bag! If UA doesn't want to offer the lowest fares, the likes of Allegiant, Spirit, Norweigian, Wow, etc. would be more than happy to take that demand off their hands! The only upward pressure I could see for fares would be surging fuel prices or a tightening in the credit market, something the airlines have never seen before
. Either event could also threaten the ULCCs who operate on razor thin margins. Side note: I've got a minor in economics.Safe Travels,
James
Sep 16, 2018, 4:02 pm
#50
Join Date: Feb 2003
Posts: 4,115
$1780. I remember the price well. That's how much it used to cost on a coast to coast flight without a Saturday night stay in it in 1997, in coach, no matter how far in advance you purchased it. My employer at the time paid it many times for me. I cannot imagine paying that in today's $$ under any circumstances. I don't need to revisit those awesome times.
Sep 16, 2018, 5:58 pm
#53
Join Date: Mar 2015
Programs: UA
Posts: 114
I'm more interested in the competitive landscape than what Kirby chats to keep stockholder happy.
In my memory up to 2017, business class SFO-FRA was about $3k, now it is about $5k. Mayor difference i can see is Air Berlin going out of business since then.
Aka: Love to fly United, especially as MM, but whenever i have to pay myself, i am very happy if there is a lot of low cost competition. Alas, there's less now ;-(
In my memory up to 2017, business class SFO-FRA was about $3k, now it is about $5k. Mayor difference i can see is Air Berlin going out of business since then.
Aka: Love to fly United, especially as MM, but whenever i have to pay myself, i am very happy if there is a lot of low cost competition. Alas, there's less now ;-(
Sep 16, 2018, 6:20 pm
#54
Join Date: Jun 2015
Posts: 710
CEOs make stupid public statements all the time. One Fortune 50 CEO recently made a statement in a public forum that 1/2 of his US facilities were non core and he would shortly be closing half of those. This without any prior notice to the employees at those facilities. What kind of impact do you think that had?
Sep 16, 2018, 8:13 pm
#56
Join Date: Jan 2017
Programs: UA
Posts: 324
Lol. UA has pretty much doubled the fares out of IAH, even on routes that theyre not the most convenient route. IAH-CPH was more than double AA in economy, for example. Ill be flying AA. In December, UA wanted 500 bucks more for economy, than AM charges for business class on SCL and EZE. In that case, Ill just make a stop in MEX. UA has shown massive fare discrepacies on flights to CDG in all classes, and UA doesnt fly that route either. Earlier this year, UA was more for business class to CDG than AF, which flies it directly, and 5000 more than AM, which was about the same travel time. And that was for advance purchase. At some point, people are going to just fly someone else. Im willing to pay slightly more for UA, but not double or triple. If UA expands the Houston premium systemwide, there will be a lot of defectors like me. I dont see all the airlines matching those price rises, and if they do, it will just encourage more carriers like Norwegian to enter the market.
Sep 16, 2018, 8:43 pm
#57
FlyerTalk Evangelist
Join Date: Oct 2001
Location: Austin, TX
Posts: 21,400
If they could, they already would have. UA is able to charge a premium on some flights because of nonstop service, and competitors like to offer discounts to try to poach customers. That doesn't work systemwide, where they're more likely to be on an even footing with the competition.
Sep 16, 2018, 10:04 pm
#59
FlyerTalk Evangelist
Join Date: Mar 2012
Posts: 19,502
