US''s new partner changes ticketing policy - is the industry about to change?
- Thread starter RealityCheck
- Start date
UAL puts squeeze on awards, sales
CHICAGO (CBS.MW) -- Fresh from pushing its mechanics and other workers to accept pay cuts in the 10 percent range, United Airlines looked Thursday to put the squeeze on another key group: passengers.
After the bell, UAL -- the teetering parent company of the No. 2 carrier -- announced what it called "policy changes aligned with current market conditions and overall corporate objectives."
Among the actions:
Reducing the number of upgrade award levels in its frequent flier program and boosting both the purchase price and mileage level to get one.
Prohibiting waivers on fare rules by rigidly enforcing advance purchase, time limit and stay requirements.
Eliminating discounts on sale fares when writing corporate contracts.
Moving to full electronic ticketing by the middle of next year and whacking customers with a $20 paper-ticket fee in the meantime.
Opposing the practice of "back-to-back" ticketing, whereby a traveler buys multiple round-trip tickets at discount rates and uses only portions in order to avoid higher charges.
According to senior vice-president Chris Bowers, "these changes are part of United''s overall strategic plan to cut costs wherever possible, while maintaining a product that our customers have told us is important to them."
CHICAGO (CBS.MW) -- Fresh from pushing its mechanics and other workers to accept pay cuts in the 10 percent range, United Airlines looked Thursday to put the squeeze on another key group: passengers.
After the bell, UAL -- the teetering parent company of the No. 2 carrier -- announced what it called "policy changes aligned with current market conditions and overall corporate objectives."
Among the actions:
Reducing the number of upgrade award levels in its frequent flier program and boosting both the purchase price and mileage level to get one.
Prohibiting waivers on fare rules by rigidly enforcing advance purchase, time limit and stay requirements.
Eliminating discounts on sale fares when writing corporate contracts.
Moving to full electronic ticketing by the middle of next year and whacking customers with a $20 paper-ticket fee in the meantime.
Opposing the practice of "back-to-back" ticketing, whereby a traveler buys multiple round-trip tickets at discount rates and uses only portions in order to avoid higher charges.
According to senior vice-president Chris Bowers, "these changes are part of United''s overall strategic plan to cut costs wherever possible, while maintaining a product that our customers have told us is important to them."
Isn't there an old saying about..."biting the hand that feeds you?"
There are too many airlines with empty seats right now....The customer is gonna go where he gets the best price, as well as the best service, for his money...
[:knockout:]
There are too many airlines with empty seats right now....The customer is gonna go where he gets the best price, as well as the best service, for his money...
[:knockout:]
KCFlyer
Veteran
I did forget something though...the LARGEST airline in the US (American) hasn't followed suit. While their financial situation isn't great, it's a damn site better than U or UAL. I wonder...more room throughout coach...still has a first class cabin...still operating those Admirals Clubs...three convenient hubs - one conveniently located in UAL's home town...you and UAL better hope that AA follows suit, 'cause if they don't...well, it won't be pretty. I won't mention DAL,NWA or CAL (even though CAL cut costs by charging for liquor - that's not a showstopper).
KCFlyer
Veteran
And you know what's going to be kind of funny...the customer will find that he gets the best value and best service at companies named Southwest, Airtran, and JetBlue. Gordon Bethune may be a windbag...but you guys are down to cutting the cheese off the pizza.
Since the two carriers are in discussion about combining programs, the subject had to have come up about qualification. Without a consistent approach, the carrier with the more generous rules would become a back door. My guess is UA pulled back after US took the brunt of the original announcement.
[
] US/UA forgot to add one more item to the fare rules....increasing the tier level miles needed to reach the perk levels....the airlines actually want to make money like other businesses...what a concept!! The third world airlines(SW, Jetblue, Airtran) are holding seats for you...
] US/UA forgot to add one more item to the fare rules....increasing the tier level miles needed to reach the perk levels....the airlines actually want to make money like other businesses...what a concept!! The third world airlines(SW, Jetblue, Airtran) are holding seats for you...You are absolutely correct. I am a US Air CP and a UAL 1k and I was holding my breath on this. The general (although not exclusive) view on the UAL baord on flyertalk was "I can live with this". I agree with this. Everyone knows that the times are tough and the airlines have to adjust. From my vantage point UAL said, its tough, we're going to have to raise our costs a little, but stick with us and we will provide you with essaentially what we always have. To me the difference between what UAL and US Air said to me concerning how we deal with the problems are as different as day and night. AA's silence at this point is deafening I might add.
ClueByFour
Veteran
Right. UA makes their roundtrip upgrade 30k domestically, and increases the cost of purchased upgrades to around $50.
A walk on the playground compared to what U just did.
They also _increased_ the upgrade window for their bottom level elites to 48 hours, up from 24. As opposed to giving 3/4 of their elites the finger. What a concept.
[:knockout:] They are not only charging a $20 fee for paper tickets from their res centers but American, Continental, Northwest and now United are also charging travel agents the $20 fee if the agency issues a paper ticket. Thanks US for teaching me how to talk folks into etkts!!! PS American was first to do this. Also why aren't other airlines saying--if it's non refundable it's nonrefundable period??
RumorS
Senior
NEW YORK -- AMR Corp.'s American Airlines changed rules overnight on nonrefundable tickets to eliminate the one-year grace period on missed flights after Oct. 1, and to charge a $100 fee beginning next year for standby flight changes.
HMMMMMMM Guess now AA is not going to be everyones choice...they are following suit....Good for them!!!!!!
HMMMMMMM Guess now AA is not going to be everyones choice...they are following suit....Good for them!!!!!!
KCFlyer
Veteran
It looks like SWA is becoming the "airline of choice" for business passengers...
American is doing it
It's amazing.
American is doing it
It's amazing.
