Dl - New Fare Structure

[Res]

This can not be good for US, our change fees generate alot of stress for the passengers but also $$$$ for US....although DLs publicity is generating alot of new bookings..pax stated they have tried to call DL and had no luck their phone lines just ring busy...at least we are answering, even though it may take awhile.

 

[Art at ISP]

Res,

I think that DL is overwhelmed with people calling after the changes were announced. Anything new takes some adjustment. Overall I think it is the first needed step to providing value for the business traveler. We are basically tired of subsidizing the once a year guy who wants to pay $49 for his ticket.

I was told a long time ago by a senior executive that if they could raise the lowest fares by $20 they could lower the highest by $300. When I said "So Do It" they backed off and told me it wasn't that simple. Well, it is that simple. I would bet that DL is going to have the highest load factors of the majors, and that after the shock period (60-90 days?) you will see their average fares rise a bit, which means over time this move will have been revenue positive.

Remember that both AS and HP were making money or close to it before the fuel spike--they had rational fares, and had increased traffic tremendously.

We should have been the leader here..........

 

[air chief]

Highest load factors are just numbers if it dont equate to profits!!!! DL needs cash and lots of it if U doesnt Chapter 7 soon. :angry: :angry:

 

[SpinDoc]

This can not be good for US, our change fees generate alot of stress for the passengers but also $$$$ for US....

Question: Although change fees generate a
small profit, they could be lowered to $50
or less. A larger number of customers would
likely choose to change their tickets if the
fee were smaller, in turn generating some
if not most of the previous profits.

By the way, there is no way the actual cost
to the company is $100 for reservations
processing and agent salary to make an
itinerary change to a ticket.