gigneil
Posts: 14133
Joined: Fri Nov 08, 2002 10:25 am

UA Slashes/simplifies Biz Fares From ORD And DEN

Tue Jan 07, 2003 9:36 am

 
BA
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Joined: Fri May 19, 2000 11:06 am

RE: UA Slashes/simplifies Biz Fares From ORD And DEN

Tue Jan 07, 2003 9:40 am

This may hurt Frontier.

Lowering fares can be a good thing. Lower fares obviously boost load factors, however lower fares at the same time mean less income. If the income is too low, it won't matter if they are filling up planes or not.

Regardless, United has probably done the research and concluded that lowering fares in favor of higher loads is probably the best way to go even if it isn't a great way to go.

Regards
"Generosity is giving more than you can, and pride is taking less than you need." - Khalil Gibran
 
J32driver
Posts: 385
Joined: Fri May 05, 2000 2:55 am

RE: UA Slashes/simplifies Biz Fares From ORD And DEN

Tue Jan 07, 2003 10:21 am

Finally, a sign that UAL management isn't completely ignoring its core business market. There mere be a glimmer of hope yet...
 
gigneil
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Joined: Fri Nov 08, 2002 10:25 am

RE: UA Slashes/simplifies Biz Fares From ORD And D

Tue Jan 07, 2003 12:27 pm

Personally I'm excited on one hand, and annoyed on the other.

I like to think I live near IAD/DCA still, I don't, I live in DEN during a contract (also from here)... but when its over, I'll be moving back to DC and will need to frequently travel IAD-SFO.

This wouldn't apply to me then.

But in the meantime, I'll be happy.

N
 
CcrlR
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RE: UA Slashes/simplifies Biz Fares From ORD And DEN

Tue Jan 07, 2003 1:30 pm

Cool. Now if I want to take a last minute hop someplace it would be cheap! Mabye I could go to LAX for a good price!
"He was right, it is a screaming metal deathtrap!"-Cosmo (from the Fairly Oddparents)
 
User avatar
mariner
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RE: UA Slashes/simplifies Biz Fares From ORD And D

Tue Jan 07, 2003 1:33 pm

It's a very curious bankruptcy.

By its own admission UAL will be cash flow negative to the tune of $15 million a day this month. Under the terms of their DIP financing, they have to become cash flow positive by the end of February.

So I'm not sure how slashing business fares will help. They'll get some more passengers, but at what cost?

Nor am I sure how much it will hurt Frontier, BA. Those high end pax aren't targeted by F9. Yes, they may lose some, but hey, on F9 you still get some food, and, on certain flights, PTV. Although the official start up of the PTV's won't be announced until more aircraft are retrofitted, apparently they've been offering it for a while as a freebie, and on 1 January began charging the $5.

Roundabouts and swings.

cheers

mariner
aeternum nauta