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Old 07-07-2009, 04:27 PM
 
Location: Chapel Hill
1,246 posts, read 4,375,061 times
Reputation: 312

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Quote:
Originally Posted by born2fly View Post
We just moved from living overseas in Singapore for a few years. Over there airlines don't increase their prices 20 or 30 days before flights. Just one price. The industry over there is booming and is one of the few areas where airlines are making money, besides the middle east. The American and European airlines here shouldn't impose these insane flight surcharges to fly at the last minute. Crazy that AA would fly an empty flight to London rather than fill it with reasonably priced tickets. I think for summer 800 is a fair price.

What airline are you flying with from Greensboro to London? I think the flight you found is a great.
Our airline is Delta.
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Old 07-07-2009, 04:29 PM
 
1,112 posts, read 2,855,730 times
Reputation: 900
Quote:
Originally Posted by Beermat
American refuse to negotiate and will fly empty seats rather than reduce the prices on the Raleigh to London flight - in fact they often put the prices up in the days before a flight even though there maybe a 100 empty seats. It's something that baffles me in this economy but obviously they know how best to run their business

Quote:
Originally Posted by wheelsup View Post
If people knew they discounted the tickets at the last minute then everyone would wait until the last minute to book...

Still think it's a dumb idea?
my comment was not about discounting last minute tickets but the fact that 'specifically' on the Raleigh to London direct flight that American frequently increase the prices in the 2 weeks prior to the flight even though there up to 100 empty seats.

This is based on facts; when my wife decided to travel with me on a recent trip to London, and whilst my ticket (booked 8 weeks in advance) cost $650, the price had gone up to $900 2 weeks before departure; then increased to $1600 the following week, and 5 days before departure the price was $2250. I sat on the flight and counted over 100 empty seats exactly as shown on the AA seat selection web link for the previous 2 weeks. In fact they obviously did not sell a single additional ticket for that flight during the 2 week period that we tracked the flight pricing on a daily basis. My wife actually flew with AA to London via Boston for $650, same as I had paid for the direct flight but worth the inconvenience

I have read the comments by other posters and even though I will never understand the issues and complexity of airline pricing structure it is economic madness to fly empty seats the way that AA continues to do on the Raleigh - London direct flight. Unless of course they have an agenda to reduce the frequency from daily to 3 or 4 times a week and need to demonstrate that the service does not justify the daily service currently provided. Face it in this economic climate they do not need to worry about the competition introducing competing services as we saw when Delta 'cancelled' the new service they planned from Raleigh to Paris before it even started.
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Old 07-07-2009, 04:47 PM
 
2,459 posts, read 8,050,225 times
Reputation: 1788
Airline pricing and load management strategies are truly a black art. Seats would certainly seem to be a perishable commodity with low incremental costs to fill.

I remember listening to a talk Bob Crandall gave here back when AA had a hub at RDU. He stated that since the inception of the airline business investors would have achieved greater returns buying Government T bills than buying stock in AA. As the then CEO of AA, he said he was on a mission to fix that ...

Frank
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Old 07-07-2009, 07:01 PM
 
Location: Raleigh NC
3,644 posts, read 8,549,503 times
Reputation: 4505
Well, now that I think about it why should the airlines or any megacompany decrease their rates for anything these days? They don't have to. They can drive the company into the ground and our fantastic gov't will just bail them out. Heck with the small business.
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Old 07-08-2009, 01:11 PM
 
90 posts, read 225,583 times
Reputation: 78
Quote:
Originally Posted by born2fly View Post
We just moved from living overseas in Singapore for a few years. Over there airlines don't increase their prices 20 or 30 days before flights. Just one price. The industry over there is booming and is one of the few areas where airlines are making money, besides the middle east. The American and European airlines here shouldn't impose these insane flight surcharges to fly at the last minute. Crazy that AA would fly an empty flight to London rather than fill it with reasonably priced tickets. I think for summer 800 is a fair price.

What airline are you flying with from Greensboro to London? I think the flight you found is a great.
Asian air markets are both highly regulated and highly international. It isn't a fair comparison. US Airlines make a comparable amount of money on international routes, but lose a ton of money on their domestic networks, which Asian airlines do not have to the same extent. Also, Southwest has been profitable every year since 1973, despite the standard 14, 7, 3 and walkup fair scheme. JetBlue has also managed a profit most years with that scheme. Ryanair...I could go on. The problem is not changing fares.
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Old 07-08-2009, 01:16 PM
 
90 posts, read 225,583 times
Reputation: 78
Quote:
Originally Posted by Beermat View Post


my comment was not about discounting last minute tickets but the fact that 'specifically' on the Raleigh to London direct flight that American frequently increase the prices in the 2 weeks prior to the flight even though there up to 100 empty seats.

This is based on facts; when my wife decided to travel with me on a recent trip to London, and whilst my ticket (booked 8 weeks in advance) cost $650, the price had gone up to $900 2 weeks before departure; then increased to $1600 the following week, and 5 days before departure the price was $2250. I sat on the flight and counted over 100 empty seats exactly as shown on the AA seat selection web link for the previous 2 weeks. In fact they obviously did not sell a single additional ticket for that flight during the 2 week period that we tracked the flight pricing on a daily basis. My wife actually flew with AA to London via Boston for $650, same as I had paid for the direct flight but worth the inconvenience

I have read the comments by other posters and even though I will never understand the issues and complexity of airline pricing structure it is economic madness to fly empty seats the way that AA continues to do on the Raleigh - London direct flight. Unless of course they have an agenda to reduce the frequency from daily to 3 or 4 times a week and need to demonstrate that the service does not justify the daily service currently provided. Face it in this economic climate they do not need to worry about the competition introducing competing services as we saw when Delta 'cancelled' the new service they planned from Raleigh to Paris before it even started.
But everyone knows that airline tickets are cheaper the earlier you book, and where there is more route competition. Airlines can reduce capacity as they wish. They do not have to demonstrate to any governmental authority that they need to do so, if that is what you meant.

Also, whereas for domestic flights the profit margin is usually about 80% (meaning 80% of seats have to be filled to turn a profit), it is often lower for international flights, though the losses are much more hurtful when they come. Trust me, if AA were not making money on the RDU-LHR route, it would be dropped faster than a hot potato. I'm sorry their pricing scheme was inconvenient for you and your wife, but always remember the 5 P's: Proper Planning Prevents Poor Performance.
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Old 07-09-2009, 08:17 AM
 
1,162 posts, read 2,100,228 times
Reputation: 360
My daughter just paid $600 on British Airways flying out of JFK. Paid $29 each way on Jet Blue to and from NY. Not too bad.
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Old 07-09-2009, 08:35 AM
 
133 posts, read 423,410 times
Reputation: 57
Asian air market is semi-regulated. But some countries do not subsidize their airlines. For instance, Singapore airlines, is owned by a group that is controlled by the government, but is expected to turn a profit and gets little to no money from the government. In this downturn economy they had to cut routes and sell planes to stay semi-profitable. The Asian domestic market is growing very fast. Vietnam airlines flies brand new planes, as well as 777 for international routes. In India, Kingfisher airlines is getting A380s.

For the USA, southwest, jetblue and i think continental are doing well financially in this economy.

Amcjap, your daughter's fare on british airlines is great. I need to find something like that.
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Old 07-09-2009, 04:17 PM
 
Location: Chapel Hill
1,246 posts, read 4,375,061 times
Reputation: 312
Quote:
Originally Posted by amcjap View Post
My daughter just paid $600 on British Airways flying out of JFK. Paid $29 each way on Jet Blue to and from NY. Not too bad.
Wow, that's a great price. Is she flying this summer or later?
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Old 07-09-2009, 04:23 PM
 
1,162 posts, read 2,100,228 times
Reputation: 360
Her trip was in June. Great weather!
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