Now That AA Is Adding Fuel Surcharges...Will UA Follow?

Discussion in 'United Airlines | MileagePlus' started by EyeOnTheSkies, Aug 28, 2013.  |  Print Topic

  1. EyeOnTheSkies

    EyeOnTheSkies Silver Member

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    It was posted this AM on OM@AT that AA would, as of today, impose a fuel surcharge on all int'l partners, I'm curious how long everyone thinks we have until UA does the same...
     
  2. snod08
    Original Member

    snod08 Gold Member

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  3. ssullivan
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    ssullivan Gold Member

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    It doesn't really matter how long we think it will be. People here could be right or wrong. Only UA knows the answer, and truthfully, their opinion on the matter is the only one that really counts, since everyone else's opinion doesn't really change how much we pay for international award tickets.
     
  4. Wandering Aramean
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    Wandering Aramean Gold Member

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    Until there is actual confirmation of what AA is changing - something which even their Twitter and call center folks don't seem to have yet - it seems silly to speculate on what will follow.
     
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  5. Misplaced Texan
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    Misplaced Texan Gold Member

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    What is OM@AT? That's one I'm not aware of... (ETA: Never mind, I figured it out. I'm used to just having this called "lucky's blog" or more less nice things for the folks who aren't fans of his. Totally forgot what it was actually titled).

    And who the heck knows what UA will do?

    I've said before that it looks a lot like we're heading in the direction of very different approaches across the three major (maybe four now until US/AA figure out if they'll be able to talk the DOJ into merger approval) FF programs.

    DL has three level awards and higher J award levels than others. Also no access to partner F cabins. And they've long had surcharges on ex-Europe awards even on own-metal.

    AA has charged YQ on BA awards for a while, which is a major chunk of their partner lift (IB too, but it's small).

    None of the other domestics copied the DL 3-tier chart and, so far at least, none have followed the J increase. UA didn't follow AA in adding surcharges when it was just one or two major partners and, as far as I know, never added surcharges ex-Europe or elsewhere.

    So to assume UA will go down the same road as others is probably presumptuous.
     
  6. LarryInNYC

    LarryInNYC Gold Member

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    According to Lucky, this was a false alarm -- the change was only intended to apply to revenue tickets (or something -- not sure I understand why they weren't charging YQ on those tickets before).
     
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  7. FortFun
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    FortFun Gold Member

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    More specifically, according to an official response from AA that he is quoting:
     
  8. Captain Oveur
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    Captain Oveur Gold Member

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    Male American Airlines pilot sits down to urinate, will male United Airlines pilots follow?

    Sorry, just sick of these threads.
     
  9. Mike Reed

    Mike Reed Gold Member

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    I get your point, but I think there's significant thought given now because of current airline events as to what collusion looks like in this market. Certainly in every market if one competitor is able to raise prices, others will follow until something changes (lower demand, new competitor, etc.); if one lowers others may lower to match. That's normal market forces at work. The larger question here, though, is "With deregulated airlines, are prices still inextricably linked?"
     
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  10. Photonerd71

    Photonerd71 Silver Member

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    It is the internet...where overeaction is the new normal.
     
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  11. Misplaced Texan
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    Misplaced Texan Gold Member

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    I'm not totally sure what you're driving at with bringing route/fare regulation into the equation here. I'm not sure it matters, but I still don't get it.

    Also, while I'm sure that you're right that price signaling and following is likely to increase with less players, I'm not sure it follows that we'll see incentive (or, if you must, loyalty) programs become more alike.

    I probably sound like a broken record here, but with fewer players and more lattitude to experiment due to actually being sustainably profitable we may very well see each of the legacy carriers go more or less it's own way trying to find the profit-maximizing set-up for its incentive program. This would mirror the way that the, historically much more sustainably profitable, hotel programs have behaved.

    I'm not saying that this is better for us as flyers by any means. It may well be that each program just finds it's own unique way to devalue itself. But I just don't think that it's a given that they'll all behave in lock-step any more.
     

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