Just wondering what you consider to be proper profit margin, maybe I can tell UA management so they can make you happy and not the people who own the company a.k.a. shareholders.? Does the gas station "stick it to the consumer" when they raise prices, Starbucks? Whole Foods? General Mills? is doing something to increase your profits "sticking it to the consumer" ? Just wondering.....
There is no real answer. I've also asked repeatedly to no avail. Some members of the public seem so conditioned to an airline industry determined to self-immolation, and have so come to expect the benefits of that capital destruction that accrued to them, that they simply cannot and will not accept that airlines are now being run as responsible businesses that have to make responsible business choices.
The shareholders sit around as their investment makes money, and they do not own the company that is a misunderstanding of the concept.
Ha, yeah ... shareholders "sit around" while other people, usually in another city who they've never met, make decisions about how to invest, spend and, hopefully, grow their retirement savings, children's college funds, etc. And oh by the way, along with those shareholders just "sitting around" counting their money, the other massive beneficiaries of an airline industry aligning value with cost and generating reasonable returns have been workers
. Ask just about any worker, at any U.S. airline, whether or not consolidation has been good for them - I'm pretty confident of the common answer.
The level of disconnection from economic reality in some quarters is truly remarkable.
The customer is unwilling to pay for a better experience. This has been proven over and over again. Why get upset at a corporation for adapting to a changing environment. Instead be upset at the consumer who is the driver behind the changes.
Interesting that UA is going with 50 seats in J. This is the same at the PMCO 777-200ER which currently have 50 in J. Obviously UA knows much about their market and that they can fill 50 J seats with mostly paying customers on most of their 777 routes.
On the other hand I wonder why DL I believe is going with just 24 J for their new suites product. I guess they can increase the prices for J to squeeze more yield but if demand is for much higher than 24 seats I could see DL losing some premium customers that cant get a seat.
It is, indeed, very interesting to see how the three airlines are configuring their 777s going forward. United is clearly going much bigger on the premium (or, perhaps more specifically, the most premium
cabin) cabin, but will lack PE, at least for now. AA and Delta will both have smaller J cabins, but will also both have PE cabins, with AA 9-abreast and Delta 8-abreast. In the end, though, it looks like they're all going to end up with very similar total capacities on their 777s.