Re: NYTimes.com Article: The Anger of the Long-Distance Flier

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Well the airline can have the best of both worlds by requiring you to =
pay a
higher fare (more revenue) in exchange for that upgrade (reduced =
liability).
You are still saving a huge amount of money over what you should
legitimately be paying to occupy that F seat.  You are both winners in =
my
book.

Mark

-----Original Message-----
From: The Airline List [mailto:AIRLINE@xxxxxxxxxxxxxxxxx] On Behalf Of
Michael C. Berch
Sent: Tuesday, September 23, 2003 8:01 PM
To: AIRLINE@xxxxxxxxxxxxxxxxx
Subject: Re: NYTimes.com Article: The Anger of the Long-Distance Flier


On Tuesday, September 23, 2003, at 07:40 PM, Mark Greenwood wrote:
> There is a cost associated with operating frequent flier programs, I=20
> believe the going rate is 3 to 4 cents a point and the carriers carry=20
> a liability
> for those points. Air Canada took the same step a couple of years ago.
>  They
> even went so far as to restrict the fares that one can upgrade from.
> If you
> have paid any of the three lowest fares on domestic or transborder
> routes,
> you can't upgrade.  Times have changed, you can't expect a First Class
> seat
> for the cheapest fare the airline offers.  It is only good business to
> tie
> the reward to the amount of revenue generated for the carrier.

What you say is correct, but remember to compare "revenue" with =
"removing
liabilities". Both have impact on the bottom line.  In other words, I =
don't
feel whiny about trying to obtain an F seat as a FF upgrade from my =
cheap
fare, or using FF miles entirely, because I'm offering to reduce the
liability on their balance sheet (the miles I have accrued) in exchange =
for
that seat.

If that flight leaves with a bunch of F seats empty because the airline
declined the opportunity to reduce its liability by redeeming miles from
cheap fare customers, too bad for them.

--
Michael C. Berch
mcb@xxxxxxxxxxxxxx

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