United To Cut Transcons
- Thread starter Dizel8
- Start date
UAL is not cutting transcons. They are reguaging the route with aircraft that offer more of a luxury product versus the LCC competition in the market.
There will still be the same number of flights, just fewer seats in the market due to aircraft and configuration. The upside is the high revenue seats that are being placed in the aircraft.
There will still be the same number of flights, just fewer seats in the market due to aircraft and configuration. The upside is the high revenue seats that are being placed in the aircraft.
This is not necessarily an upside. I can't tell you how many fliers domestic are on a upgrade coupon of some type. With more pax in MPI we have electronic upgrade certs for them which is a plus but on the downside these certs do NOT require higher class fare types as in the past. You can upgrade on any fare type.
Let me crystalize United's strategy for those who are confused:
Ted - Increase seats on A320s to gets costs more in line with Frontier and IAir.
Transcon - Decrease seats on 757s to offer a better product than JetBlue
or is it...
Ted - Increase seats on A320s to offer an inferior product to Frontier and IAir
Trancon - Decrease seats on 757s to drive costs into the stratosphere so they can't possibly make money.
It's all making sense now.
Ted - Increase seats on A320s to gets costs more in line with Frontier and IAir.
Transcon - Decrease seats on 757s to offer a better product than JetBlue
or is it...
Ted - Increase seats on A320s to offer an inferior product to Frontier and IAir
Trancon - Decrease seats on 757s to drive costs into the stratosphere so they can't possibly make money.
It's all making sense now.
jimntx
Veteran
Is the article correct when it states that there will be only 110 seats on a 757? Even with the cabin divided into 3 classes, that seems really low. That's fewer than an AA-configured MD80.
Globetrotter11
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This should give an idea how it will look.
http://www.unitedps.com/presskit/
Actually pretty nice I think - and it reminds me of Lufthansa/Privat Air's excecutive flight between Germany and USA.
http://www.unitedps.com/presskit/
Actually pretty nice I think - and it reminds me of Lufthansa/Privat Air's excecutive flight between Germany and USA.
jimntx
Veteran
Pretty cool! Will the entire coach cabin be Economy Plus? I know that at AA I continuously got comments from passengers about how they flew AA just for the extra room in coach.Globetrotter11 said:This should give an idea how it will look.
http://www.unitedps.com/presskit/
Actually pretty nice I think - and it reminds me of Lufthansa/Privat Air's excecutive flight between Germany and USA.
WorldTraveler
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It is a very nice product - just as United has done for years.
On counterpoint, however, it seems very problematic to dramatically raise unit costs in a falling revenue environment - and the transcons have seen RASM declines in the 25% plus neighborhood. Business class fares are now available for under $1000 roundtrip w/ a corporate discount. I have a hard time seeing how the math can possibly add up. The 757's costs except for maintenance (since the average age is lower) are not that much lower; the number of seats is dropping far faster than average revenue will increase. American still offers a 3 class international product which isn't that much worse and Delta uses international aircraft on some of its transcon flights (although only w/ Business class). I don't expect those companies will lose their premium traffic to UA and will probably pick up alot of revenue in the back that UA will no longer be able to carry. That will be especially valuable in the winter months when transcons do poorly anyway.
On counterpoint, however, it seems very problematic to dramatically raise unit costs in a falling revenue environment - and the transcons have seen RASM declines in the 25% plus neighborhood. Business class fares are now available for under $1000 roundtrip w/ a corporate discount. I have a hard time seeing how the math can possibly add up. The 757's costs except for maintenance (since the average age is lower) are not that much lower; the number of seats is dropping far faster than average revenue will increase. American still offers a 3 class international product which isn't that much worse and Delta uses international aircraft on some of its transcon flights (although only w/ Business class). I don't expect those companies will lose their premium traffic to UA and will probably pick up alot of revenue in the back that UA will no longer be able to carry. That will be especially valuable in the winter months when transcons do poorly anyway.
HPearlyretiree
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So, less seats with the F and C seats populated by FF's paying no more than they would as regular flyers, less coach seats and the same number of FA's and Pilots (obviously) and the same cost to operate a 757.
Um, hm..."we will lose money on every passenger, but think of what we will make up in volume!!!"
Um, hm..."we will lose money on every passenger, but think of what we will make up in volume!!!"
coolflyingfool
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Yes, I am certainly interested to see if UA goes down to 3 F/As or stays at 4. 1 F/A for FC is fine, but if 2 have to share the rest of the plane, service will suffer. Just my thoughts........
HPearlyretiree
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Didn't National prove that less than 150 people on a 757 ain't that profitable?
Nothing is worse than the 218 that ATA puts on their 757-200's. And the complete lack of pitch. Used to nonrev them to HNL all the time, but a pain killer made it slightly more tolerable.
Nothing is worse than the 218 that ATA puts on their 757-200's. And the complete lack of pitch. Used to nonrev them to HNL all the time, but a pain killer made it slightly more tolerable.
JAMAKE1
Veteran
I just viewed the press kit for United's new "p.s." product and I am very pleased. I am really encouraged by the fact that United is finally taking the lead in many areas of its operation. I am glad to see United becoming the launch U.S. flag carrier for new service to Vietnam. I am happy to see the inauguration of Chicago-Shanghai flights, westcoast to Mexico flights, the resumption of Chicago-Hawaii service, and now this; an enhanced premium transcon service. When I was flying I was always so proud of our product in the SFO/LAX-JFK market. I am hopeful that United will succeed in offering a diverse aray of inflight products, from TED, to United Express, to the international product, to premium transcon service. In this era of service downgrades, it is refreshing to see United investing in an enhanced product. I have long believed that British Airways had the right idea by investing its resources to attract the high yield international business traveller. I think United is finally getting it. There is money to be made in chasing the high-yield traveller. I hope it will be a success and am looking forward to sampling the new product (in first class, of course).
