So, is all this AIR STUFF going to help......

[Lois R]

....with lowering prices?...Looks like the airlines are being supeonoed (sp)

to see if they are doing illegal things within all their "pricing structures"......think anything is going to happen?

[Zach1213]

....with lowering prices?...Looks like the airlines are being supeonoed (sp)

to see if they are doing illegal things within all their "pricing structures"......think anything is going to happen?

 

I doubt it. There's a difference between raising prices to actually cover expenses (something the airlines are doing now but weren't for decades) and outright trying to screw the customers. There is also a different between colluding and price matching - for example, if Southwest lowers prices, many others do as well. Sounds like the complete opposite of colluding for profit if you ask me...

Edited July 2, 2015 by Zach1213

[azevedan]

Probably not. To clarify - it's alleged collusion over limiting capacity, which results in fewer flights and seats available, which then increases the price. The economy is recovering, yet airlines continue to cut capacity (or, at least, not add it, even as demand increases), unlike in the past. The International Air Transport Association (IATA), at last month's meeting, had a lot of executives stressing the importance of "capacity discipline."

 

Combined with the Dept of Transportation looking into change fees that have no relationship to the true cost of changing a passenger's flight, maybe (I'm a dreamer) it will have some effect on airline behavior.

Edited July 2, 2015 by azevedan

[headhunterke]

I'm pretty sure that these kind of things that airlines implement is pretty much law suit proof

[Ashland]

Sorry a little bit off topic but just heard a report on how much the airlines are making on baggage fees :eek::eek::eek:

[FlyerTalker]

Sorry a little bit off topic but just heard a report on how much the airlines are making on baggage fees :eek::eek::eek:

Just remember that bag fees and all of the other "ala carte" items are due to two factors. The lesser reason is that the fees are not part of the "fare", and thus you don't get the federal excise tax assessed against them. But the bigger one is that the consumer looking for the "best fare" searches by price. And by moving more and more to ancillary fees, airlines can fight for that "best price" position in searches to respond to the flying public.

 

That same public that wouldn't reward AA for MRTC is the same one griping about how fees are up and service is down. Just rewards.

[gubby]

What is MRTC?

[FlyerTalker]

MRTC - More Room Throughout Coach was an initiative by American Airlines to provide a product differentiation by having greater seat pitch than their competitors. In exchange for fewer seats, AA was pricing their tickets a few (and I mean under ten) dollars more to make up for the fewer seats.

 

Consumers fled in droves. They only wanted the lowest price, and seating comfort be damned. So, what did AA do? They put the seats back in and then some and again went to competing on price.

 

It's a classic example of a company being unable to differentiate its product in the face of a marketplace that views it all as being interchangeable commodities. And a great example of how the flying public doesn't think about "value", just "price".

[Gardyloo]

What is MRTC?

"More room throughout coach." American spaced all its coach seats at 34" - 35" apart (normal = 31" - 32", even less on some airlines) during the 90s and early '00s, but kept its prices pegged at the same levels as the other airlines, and it didn't result in any improvement in passenger loads, so they eventually dropped it and went back to the tighter seat pitch. There was no revenue upside to reducing capacity by 10% or more throughout the planes. People like to complain, but if an uncomfortable seat costs a buck less than a more comfortable one, the uncomfortable seat will get filled quicker.

 

Shortly after the MRTC fiasco, United rolled out "economy plus" - a few rows of coach seats with more legroom in each plane - and charged extra for it, and badda bing, people bought. Those that chase only cheap seats (albeit there are now fewer of them) could sit in the sardine chairs, those who wanted a tad more legroom could pay for it; more money to United, everybody's happy.

 

So other airlines immediately pivoted and installed their own version of E+ ("main cabin extra" on American, for example) and also instituted making people pay for window seats, aisle seats, checked bags, etc. and the public dutifully responded with their wallets.

 

Southwest saw a marketing niche and included bags with your fare, but of course Southwest's fares are usually higher than the legacies because people are too lazy to add up the other airline's fare plus the fees and compare it to Southwest's fare; if they did they'd often see that they're still paying more for Southwest. And Southwest doesn't make it easy to do, since they don't allow OTAs or fare scrapers like Kayak to access their fares, so you can't do a side-by-side price comparison easily. The airlines have long operated (successfully) by relying on the fact that the public's gullibility is matched only by its laziness.

[azevedan]

Yep. My husband's aunt balked at paying a $236 fare for a 4-hour flight to Las Vegas. My SIL finally paid for her. Then they get to Vegas and aunt drops $125 on a 1-hour David Copperfield show. Won't pay less than $100 more to be transported safely across the country, though. :confused: I can't blame airlines for the fees given mindsets like this. Unfortunately, it makes it worse for me, because my company will not reimburse for Economy Plus, or even an aisle seat. I've sprung for it a few times out of my own pocket, but that gets expensive when you travel several times a month.

[klfrodo]

Unfortunately, it makes it worse for me, because my company will not reimburse for Economy Plus, or even an aisle seat. I've sprung for it a few times out of my own pocket, but that gets expensive when you travel several times a month.

 

Got to play the game. I figure my time and my comfort has value.

 

My company plays the same penny pinching game yours does while HQ folks fly on corporate jets. I can partially understand why they need the corporate jet and they've earned it.

 

I started waiting until a few days before travel to purchase my flights. Go to the airlines web site, search for the flights and seats I want,,, then go back to the corporate travel site, search for flights by "schedule", then the flight I want is usually listed as a first or second choice plus all the free seats are gone.

Then, as you gain status with a particular airline,, those prime seats become free for you

[azevedan]

I'm down to Gold on Delta...My company has negotiated fares and so it's tough to keep status now that dollars are also involved. Plus they took away the perk of free E+. I made the concious decision to not chase status. No more flying 2 legs when there's a non-stop on somebody else. The E+ open up day of, but they're completely full by then. I have gotten aisle seats when, for example, American stops showing them as all booked a day or two before. And heck, even when I was platinum, I wasn't getting upgrades because of the ticket price issue. (The one year I had as Diamond was not bad:D .) Cashed in most of my miles for two BC to China.