UA will extend BE/International change fee waiver (In response to AA?)
Nov 20, 2020, 8:02 am
#1
Original Poster
Join Date: Jun 2005
Location: Tel Aviv
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UA will extend BE/International change fee waiver (In response to AA?)
United started off with dropping domestic change fees, but left international fees in place.
Now that American has dropped them, will UA match?
Now that American has dropped them, will UA match?
Nov 20, 2020, 8:52 am
#2
Join Date: Sep 2014
Posts: 2,531
https://ca.reuters.com/article/us-un...-idCAKBN280067
United, American Airlines to scrap change fees for overseas flights
"United said it will announce an extension of its change fee waiver for basic economy and international tickets later this year “to continue to offer more flexibility to all customers who travel with us.”"
I guess American is "committing" to permanent change whereas United is "committing" to extending the waiver.
Not sure the semantics matter much here.
United, American Airlines to scrap change fees for overseas flights
"United said it will announce an extension of its change fee waiver for basic economy and international tickets later this year “to continue to offer more flexibility to all customers who travel with us.”"
I guess American is "committing" to permanent change whereas United is "committing" to extending the waiver.
Not sure the semantics matter much here.
Nov 20, 2020, 9:56 am
#4
Join Date: Jul 2013
Location: SJC
Programs: Southwest, Alaska, United, American Airlines
Posts: 994
In fairness, I do think United will eventually match American's move of permanently ditching change fees, but it's not a structural move UA can make unilaterally or instantly. Recall UA has a more extensive set of bilateral and multilateral joint venture relationships with foreign carriers than American, and even when the partners agree on the policy it takes time to work through the commercial/financial implications and process implementation issues.
Nov 20, 2020, 1:15 pm
#5
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Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,262
It's all marketing semantics. Nothing is "permanent".
The grass is also not necessarily greener. The loss of change fee revenue and the effective creation of "flex for all" will wind up costing a lot more for those who enjoyed deep discounts under the penalty fee system.
The grass is also not necessarily greener. The loss of change fee revenue and the effective creation of "flex for all" will wind up costing a lot more for those who enjoyed deep discounts under the penalty fee system.
Nov 20, 2020, 4:33 pm
#6
Join Date: Jan 2018
Programs: UA LT GS | UA LT Club | Marriott LT Titanium
Posts: 1,250
Remember, each of the big 3 typically bring in $2B of cash/month for travel that won't take place for 6 months.
Travelers are ready to book international summer travel, however, the change fees and lack of residual value credit are gating this spend.
AA needs the cash badly, so they've removed all barriers and are hoping to bring in $6B in cash during Dec/Jan/Feb.
UA's warning to investors today shows they're also worried about this advanced cash not flowing in. “There has been a deceleration in system bookings and an uptick in cancellations as a result of the recent spike in Covid-19 cases,’ United said in a regulatory filing.
UA will likely match:
1. Eliminating all change fees
2. Offering residual credit
Travelers are ready to book international summer travel, however, the change fees and lack of residual value credit are gating this spend.
AA needs the cash badly, so they've removed all barriers and are hoping to bring in $6B in cash during Dec/Jan/Feb.
UA's warning to investors today shows they're also worried about this advanced cash not flowing in. “There has been a deceleration in system bookings and an uptick in cancellations as a result of the recent spike in Covid-19 cases,’ United said in a regulatory filing.
UA will likely match:
1. Eliminating all change fees
2. Offering residual credit
Nov 20, 2020, 5:59 pm
#7
FlyerTalk Evangelist
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Programs: UA Silver, Hilton Silver. Life: UA .57 MM, United & Admirals Clubs (spousal), Marriott Platinum
Posts: 15,051
It is quite logical that with all the cancellations, and the difficulties or delays in obtaining refunds, consumers are now quite skittish in making advance purchases.
UA will need to do something to overcome this resistance, or adapt to a much higher percentage of "last minute" reservations.
UA will need to do something to overcome this resistance, or adapt to a much higher percentage of "last minute" reservations.
Nov 21, 2020, 11:26 am
#9
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Nov 21, 2020, 12:29 pm
#10
Join Date: Jan 2018
Programs: UA LT GS | UA LT Club | Marriott LT Titanium
Posts: 1,250
Title: Will UA match Southwest's Fee Policy (except luggage)?
- No domestic change fees
- No int'l change fees
- No mileage usage fees
- No mileage redeposit fees
- No standby fees
- No call center fees
- Full credit for residual value (i.e. changing to a lower-priced ticket)
AA matched Southwest, see below...
- No domestic change fees
- No int'l change fees
- No mileage usage fees
- No mileage redeposit fees
- No standby fees
- No call center fees
- Full credit for residual value (i.e. changing to a lower-priced ticket)
AA matched Southwest, see below...
Nov 21, 2020, 12:31 pm
#11
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Join Date: Sep 1999
Location: New York, NY, USA
Posts: 12,482
UA will extend BE/International change fee waiver (In response to AA?)
What about: Will UA extend BE/International change fee waiver in response to AA?
Nov 21, 2020, 12:35 pm
#12
Moderator: United Airlines
Join Date: Jun 2007
Location: SFO
Programs: UA Plat 1.995MM, Hyatt Discoverist, Marriott Plat/LT Gold, Hilton Silver, IHG Plat
Posts: 66,854
https://ca.reuters.com/article/us-un...-idCAKBN280067
United, American Airlines to scrap change fees for overseas flights
"United said it will announce an extension of its change fee waiver for basic economy and international tickets later this year “to continue to offer more flexibility to all customers who travel with us.”"
I guess American is "committing" to permanent change whereas United is "committing" to extending the waiver.
Not sure the semantics matter much here.
United, American Airlines to scrap change fees for overseas flights
"United said it will announce an extension of its change fee waiver for basic economy and international tickets later this year “to continue to offer more flexibility to all customers who travel with us.”"
I guess American is "committing" to permanent change whereas United is "committing" to extending the waiver.
Not sure the semantics matter much here.
Nov 21, 2020, 12:38 pm
#13
FlyerTalk Evangelist
Join Date: Sep 1999
Location: New York, NY, USA
Posts: 12,482