Re: If I ran United...

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> But FC does earn revenue for the airlines....paid fares, paid upgrades,
> and mileage redemptions.

Paid upgrades do not earn as much revenue for the airline as selling the
ticket for full price.  Mileage redemptions are not a source of revenue for
the airline since all of those miles are a liability on the airlines books.
By allowing the use of miles for upgrades they are simply decreasing that
liability.

>
>
> > > I don't hate first class.  I
> > > > just think the airlines would make a hell of a lot more money if
> they
> > > forced
> > > > people to pay for their premium product instead of giving it away.
> > > Uh, they're already charging what used to be FC rates for Y these days
> (or
> > > at least before mid-2001).
> >
> > And if you pay full Y you get First Class on a lot of airlines.
> Northwest's
> > YUP fares spring to mind.

If people were paying for FC then the airlines wouldn't have to try to bribe
people to at least pay full Y.  As I mentioned in a previous post, people
aren't even paying Full Y these days.

>
>
> > Filling that First Class Seat costs them more money.
> Costs are greater, but apparently so are the revenues, and by a larger
> margin.

As I said earlier, mileage upgrades are not a source of revenue

>
>
> Poor upgrade policies on one airline's part is no reason to throw out the
> baby with the bathwater.

If it was just one airline I might agree with you.  You are supporting my
point that upgrade policies are poor.

>
>
> I'd be willing to bet 50% - 75% of upgrade eligible FFs with average
> segment lengths over 1 - 1.5 hours would switch immediately.  It might be
> interesting if you were to try a poll on that subject over on
> www.flyertalk.com sometime.

Perhaps there is a cultural factor at play as well. I am speaking from a
Canadian perspective and you are speaking from an American perspective.

>
>
> > You don't think TAs buy the tickets?  TAs buy them on behalf of the
> customer
> > and if the customer doesn't have a preference for carrier you can be
> damned
> > sure that it's the travel agent who is deciding what airline the
> passenger
> > travels on.
> General travel, yes.  Corporate travel?  More likely either the passenger
> or the company will dictate the choice of carrier.

Yes corporate travel.  There are many small to medium size businesses that
don't travel enough to qualify for a "deal" from an airline.  Many of those
people don't care what airline they travel on, they just want the best price.


Mark

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