For those who thinks increasing fares is......

ual747mech

Senior
Nov 26, 2002
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For those who thinks increasing fares is the only way to generate revenue, think again.
United fare sale nets $20M
March 03, 2003
(Reuters) — Bankrupt United Airlines said on Monday that its plan to lower airfares aimed at business travelers has led to an increase in revenue between $20 million and $25 million per month.
United and its parent, UAL Corp., filed the largest ever airline bankruptcy on Dec. 9. In early January, United slashed its priciest fares on numerous routes at its largest hubs in Chicago and Denver to determine whether lower fares would lead to increased demand.
The new fares are not refundable, but are up to 40 percent lower than unrestricted coach fares with no advance purchase and more deeply discounted for seven days advance purchase.
 

KCFlyer

Veteran
Aug 20, 2002
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To buttress that, when Southwest lowered their highest one way fare to $299, they saw their average fare paid increase. Southwest's average fare is now higher than American's average fare.
 

Segue

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Oct 31, 2002
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Its what all of us business travellers have been waiting for. Repairing the broken revenue model. America West was the first network carrier that made the move and it worked well for them.

Yes, there is price elasticity of demand for business travel. All of those with a tight travel budget and unable to pay those $2,500 walk up fares to Buffalo can now get back to business.

It also means that there will be less of those really super low fares as well - the distribution of fares will now be much more clustered around the middle.

Its a good move that should have been done a long time ago.
 
Aug 20, 2002
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Thanks for the reply Segue. Perhaps I should've focused my question.

Surely the marketers know (or should know) which overseas carrier is selected by these diehard domestic WN flyers.

Find out what is sexy to them when it comes to international flying. And do it.

Yes, I'm familiar with all the flag carriers. BA for instance is running a $198 EWR-LHR fare, they BA) just don't make everyday low-pricing their business model.

For years I've considered VS to be the international version of WN. But even VS doesn't do some things well.

Now you have the sweet spot for the competition.
 

Segue

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Oct 31, 2002
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[blockquote]
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On 3/3/2003 12:13:57 PM whatkindoffreshhell wrote:

Yes but you still cannot fly WN to LHR, FRA, MNL etc etc etc...

Does anyone know which overseas carriers all those WN domestic flyers choose??
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[/blockquote]

British, Virgin, Cathay Pacific, Singapore Airlines, Northwest, United, Contintental.....Southwest travellers look for the best value and will likely choose the carrier with the lowest fares. There is a lot less choice on international markets for sure (bilateral agreements, slot restrictions, etc), but price competition does exist - particularly on Atlantic routes but less so on Pacific routes.
 

Segue

Senior
Oct 31, 2002
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Now, what would really rock the industry is to allow cabotage. Can you imagine a transcon on Singapore Airlines vs. United? The service level is not even comparable. Singapore would get ALL of the market.
 

KCFlyer

Veteran
Aug 20, 2002
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[blockquote]
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On 3/3/2003 12:13:57 PM whatkindoffreshhell wrote:

Yes but you still cannot fly WN to LHR, FRA, MNL etc etc etc...

Does anyone know which overseas carriers all those WN domestic flyers choose??
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[/blockquote]

Yes, but you might find a lot more domestic passengers are now able to make that last minute decision to fly from Boston to Atlanta at a profitable fare. As it is, the network carriers are not even supplying the vaseline for the screwing they demand from their last minute passengers...or for passengers who don't have the flexibility to fly on a Tuesday and Stay over a Saturday. But...if y'all want to kill the domestic traffic and claim that "Southwest doesn't fly international"...so be it.