Now before we start another thread bashing UA
and TED, I will have to once again get on my soapbox...
From the internal publications I've read from UA
the passengers will not notice too much change from a mainline economy experience to a Ted economy experience. Same beverages, same buy-onboard, some new colors of course and different (more hip and younger) video programming (comedies and music video).
Why Ted? Why offer an only-economy seating branch of a premium carrier?
The very essence of Ted is something like this:
(this is a condensed copy of what I have on another thread similar to this one)
The facts are that UA
is targeting about 8.5 to 8.8 for their post-Ch. 11 CASM. UA
's internal publications all say that's a reality due to the enormous wage and cost concessions we've gone through over the past two years.
The reason Shuttle wasn't an effective competitor on the West Coast against it's main target, WN
, was that it was operated like mainline only with faster turns. That doesn't lower the CASM enough. The steps UA
has gone through over the past two years: wage concessions, renegotiated and rejected leases and other cost cutting measures, THAT LOWERS CASM!
By offering 156 seats on the A320 it takes UA
's lowered post ch-11 CASM and lowers it further for that division of the company. If the CASM is in the 8.5 region we can affectively compete against Frontier, B6
in a number of markets, especially if you take into account our HUGE advantage of the rest of our own global network, the Star Alliance and our award winning Mileage Plus program.
Let's talk numbers!
Let's talk about the fastest growing segment of the flying public being the leisure traveler.
Let's talk about UA's former bread and butter, the "road warrior, million mile flier" and their recent tendency to spend less on travel or cut back in travel all together.
Let's also talk about UA's disproportionate exposure to LCC's compared with the other network carriers
Let's talk about a responsible answer to this ever-changing market environment!
Call it Ted, call it Mystery Mobile, JetOrange (or as LastBaron might say: Jet in the RED), just call it responsive to market conditions!
If Nordstrom can react to changing retail market forces (the widening of the income gap between rich and poor) by opening the Nordstrom Rack, why can't a premium carrier with a competitive CASM reach for the LCC market successfully? Same logic! The market is changing, the company is reacting.
The focus of Ted is to reach new leisure markets that we weren't affectively able to compete in. The focus is also to be on the offensive in the LCC world. UA
has great reach into the business centers of the globe but not the premiere leisure markets. The Ted branch will enable us to cheaply and affectively reach those markets someday.
It's designed to catch the savvy shopper who on Saturday goes to Neiman Marcus to pick up a few nice things and then Sunday goes to Target to buy their household staples because they know a good deal when they see it!
, I'll get off my soap box
The debate continues... Starwood or Hyatt... which is better