Should UA provide a premium travel option for leisure travelers: lounges, lieflats, …
#61
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If it made sense for UA and others to fly a limited WB schedule between two points vs a heavier NB schedule, wouldn't they have been doing it all along? I don't see how COVID-19 changes that equation other than, perhaps, making it even more desirable to fly a NB schedule. Ultimately, the frequent flyer wants frequency first and everything comes after that.
It was done this way before, it can be done this way again, and if the volume truly comes back many years in the future, they can adjust yet again. As mentioned upthread, should virus strains start poking around the vaccines, and the risk of infection persist with updated vaccines and booster shots being rushed out with every new strain taking hold, the world of today will continue to be the world of tomorrow and all bets are off.
#62
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International true F is toast because its expensive to "produce" - between all the exotic F&B, and especially huge amount of floor space dedicated to it, there simply isn't demand for it when J has lie-flat seats. - and there will still be plenty of J demand from UA's hubs post pandemic.
One of the easiest ways to accomplish this is by removing capacity and frequency, and since all the airlines are in the same boat, suffering the same loss of volume, it's not like United would cut a few flights and Delta will suddenly add 5 more. The pie is smaller, so everyone needs to take a smaller slice and the best option is rolling 6+ 737 flights into 2-3 777/787 flights.
Anyway, if you're right about the end of business travel, then (a) UA is going to start taking out rows of domestic F, squeezing E+ together by another inch, and try to fit one more row onto the plane, and (b) you're not going to see 737s replaced by 787s. You'll see 737s replaced by E75s, to as great a degree as the contract allows.
As mentioned upthread, should virus strains start poking around the vaccines, and the risk of infection persist with updated vaccines and booster shots being rushed out with every new strain taking hold, the world of today will continue to be the world of tomorrow and all bets are off.
#63
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They used to do, certainly Continental did ~20 years ago, and I enjoyed my time in BusinessFirst on those DC10s. However your question seems to ignore the current and future impact of coronavirus on the travel industry. What any airline did from Jan 2020 and prior is now irrelevant - there is new world now and airlines need to find a way to adjust to the reality of drastically lower business travel, with recovering leisure travel. One of the easiest ways to accomplish this is by removing capacity and frequency, and since all the airlines are in the same boat, suffering the same loss of volume, it's not like United would cut a few flights and Delta will suddenly add 5 more. The pie is smaller, so everyone needs to take a smaller slice and the best option is rolling 6+ 737 flights into 2-3 777/787 flights.
It was done this way before, it can be done this way again, and if the volume truly comes back many years in the future, they can adjust yet again. As mentioned upthread, should virus strains start poking around the vaccines, and the risk of infection persist with updated vaccines and booster shots being rushed out with every new strain taking hold, the world of today will continue to be the world of tomorrow and all bets are off.
It was done this way before, it can be done this way again, and if the volume truly comes back many years in the future, they can adjust yet again. As mentioned upthread, should virus strains start poking around the vaccines, and the risk of infection persist with updated vaccines and booster shots being rushed out with every new strain taking hold, the world of today will continue to be the world of tomorrow and all bets are off.
Most businesses have competition. In fact, about the only ones without competition are those in markets where few wish to play. Right now, my competitors aren't physically visiting customers, who generally aren't accepting visitors due to health concerns anyway. When my competition starts visiting my customers face-to-face, you can bet my company is going to find a way to respond that goes beyond making another phone call or scheduling another video conference. Right now is not that time, though, but this won't last forever.
#64
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Considering we (wifey and I) paid close to 2X as much to travel on an open jaw EWR-SFO-SAN / SFO-EWR rather than just doing EWR-SAN / SFO-EWR in November 2021, I have to say the answer is yes.
Completely agree, however given the surplus of aircraft currently parked, no airline is in any position to be buying new aircraft to exactly meat their needs. This is an opportunity to reduce your inventory on existing aircraft to move the supply curve to the left a little, while using what you already have.
So your way has lower costs and lower revenues. My way has higher costs and higher revenues. What we don't know is who's revenues are superior to the costs. If international travel never returns ( as in > 4-5 years), this is something worth exploring.
Would you pay extra for lieflat? say 50% (seats take >2x space)
This means flying more expensive to operate aircraft, leading to greater negative cash flow unless you are willing to pay significantly more for those seats. Note most UA's lieflat fleet have more seats upfront than domestic F aircraft, so inventory to be sold would increase, not reduce (exception the 752s with 16 seats up front are already in full use)
This means flying more expensive to operate aircraft, leading to greater negative cash flow unless you are willing to pay significantly more for those seats. Note most UA's lieflat fleet have more seats upfront than domestic F aircraft, so inventory to be sold would increase, not reduce (exception the 752s with 16 seats up front are already in full use)
So your way has lower costs and lower revenues. My way has higher costs and higher revenues. What we don't know is who's revenues are superior to the costs. If international travel never returns ( as in > 4-5 years), this is something worth exploring.