----- Original Message ----- From: "Mark Greenwood" <mgreenwood@telus.net> To: <AIRLINE@LISTSERV.CUNY.EDU> Sent: Friday, May 03, 2002 02:12 Subject: Re: If I ran United... > Wouldn't it be nice to be able to walk into > a jewelry store, buy a Timex and walk out with a Rolex because you are one of > their best customers. The jeweler wouldn't be in business for very long if > they did that would they? That analogy doesn't work for several reasons: - Rolexes aren't perishable products; FC seats are. If a FC seat remains unsold, at least the airline can use it to enhance a good customer's loyalty to the airline. - Rolexes have a large fixed cost difference vs. Timex; FC doesn't vs. Y. There is very little extra cost to upgrading an elite level flyer; the benefits from ensuring that he/she continues buying from the airline more than offset the extra costs. - The ever higher fares biz pax have had to pay over the last decade have forced companies to disallow J or F class fares to all but the highest management or on very long-hauls. The exorbitant fares in Y will have to suffice for now. - The same top managers and assorted glitterati who were formerly in FC are now prime candidates for private jet travel. Replacing F seats with even more Y seats is just going to disrupt yield management even further, IMHO. CO has had one of the most liberal domestic upgrade policy in the US over the past several years. It was also one of the most successful airlines during that period. I don't think that's in spite of the upgrades, do you? CO's policy on longhauls is no upgrades to BusinessFirst except from the top-tier economy fares. They're still going after the full-fares where they can (see my third point), but they're also ensuring that domestic biz travelers keep buying their expensive Y tickets from CO or its partners exclusively. >The airlines already reward you with free flights > as a thank you for your loyalty, what more do you want? Decent legroom and meals on long flights, for starters. And available inventory to popular destinations at reasonable times for mileage redemption...something that seems to be sorely lacking. Otherwise, the "free flights" have little value. > The airlines have > completely destroyed the integrity of their front end product because no one > pays to be there. If no one is willing to pay for FC then get rid of it. They're paying for it, just not in the obvious manner. Steven