Will High Fuel Prices Lead to DEQM?

Discussion in 'General Discussion | Miles/Points' started by Colonel G, Apr 1, 2011.  |  Print Topic

  1. Colonel G
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    Colonel G Silver Member

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    Ok, so I finally figured out what MP was missing - a DEQM speculation thread!

    Anyway, I was thinking that fuel just keeps going higher due to a number of reasons and it is hard to see it coming down until after the summer driving season is over, It is anyone's guess how high it will get since it has already broken the $4/ gallon rate in many places.

    This obviously will translate into substantially higher ticket prices and a commiserate decline in sales. Historically, DEQM has been an attempt to reinvigorate sales.

    Might we see something this summer if people start cancelling vacations or such? And once one of the airlines goes DEQM, they all go so as not to get left behind.

    Anyone buying my theory?:confused:
     
  2. JohnDeere19
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    JohnDeere19 Gold Member

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    I hope the airlines use your logic and go through with it. I could use a DEQM promo from AA that don't have insane restrictions (must live in 1 of 4 states and buy full fare Y or greater...come on).
     
  3. Canadi>n
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    Canadi>n Gold Member

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    I don't really see your logic of higher fuel prices leading to DEQMs. Yes, fares are rising but business has recovered and business travel seems pretty strong and likely to last that way. This is the real source of airline profits, so even if discretionary travelers drop off, UA and other carriers are compensating for this by continuing to reduce capacity so loads are higher overall across the system. DEQMs would not serve any purpose other than boosting elite numbers and thus costs to the airline. UA will also have to deal with the impact of larger elite ranks with the merger of the CO and UA programs and is unlikely to want to deal with any more in those ranks. For the moment, there is a stasis in numbers and meeting the anticipated needs of elites from the combined programs. More elites unable to get UDUs only creates disappointments in the lower ranks. And adding any new 1Ks will only piss off those current 1Ks who have more competition.

    I seriously doubt we'll see across the board DEQMs for a while. At least not for the reasons suggested by the OP.
     
  4. DestinationDavid
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    DestinationDavid Milepoint Guide

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    I agree with you. The reduced capacity across the board and the rebound in business travel is looking pretty strong for the airlines (unless you're AA). I still hold out a little hope for a possible DEQM from UA/AA when Virgin America starts their ORD routes. That's more for selfish, personal reasons though!
     

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