United at a discount-fares and shares!

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This topic contains 3 replies, has 4 voices, and was last updated by  Alex McWhirter 3 Feb 2018
at 12:12
.

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  • Flightlevel
    Participant

    UA is going to compete with the LCCs, maybe in the same way BA does in the EU?

    With fuel and staff costs rising and now yield falling, it may be good for pax, not for shareholders?

    UA can afford it, as IAG does, because of their substantial profits on international and popular domestic routes.


    Tom Otley
    Keymaster

    It is interesting, and of course business travellers will be hoping for lower prices

    U.S. airline shares sink after United spurs price war fears

    “The best way to compete with a low-cost carrier is match their prices,” United President Scott Kirby told analysts and investors on Tuesday. “We can’t let low-cost carriers have price advantages in our hubs.”


    FDOS_UK
    Participant

    It is interesting, and of course business travellers will be hoping for lower prices
    U.S. airline shares sink after United spurs price war fears
    “The best way to compete with a low-cost carrier is match their prices,” United President Scott Kirby told analysts and investors on Tuesday. “We can’t let low-cost carriers have price advantages in our hubs.

    This only works if you have the cost base and cash reserves to see it through.


    Alex McWhirter
    Participant

    No great surprise. As we have already reported some transatlantic carriers either have, or are poised to. introduced HBO fares which means they can better compete (on price) with LCCs.

    Alitalia follows with transatlantic Hand Baggage Only fares

    United will doubtless want to match US airline Delta which will be offering transatlantic HBO fares for travel from April 10.

    Right now Delta’s UK office is keeping quiet but from mainland Europe (from where Delta operates JVs with, for example, AF/KL) Delta is selling “Basic Economy” fares.

    Pax buying a Basic Economy fare have no free checked baggage allowance.

    They will be charged US$60 for the first piece of checked luggage and a hefty US$100 for the second piece. These prices apply to each transatlantic sector.

    Surely it must be only a matter of time before Delta introduces Basic Economy fares in the UK market. And when that happens Virgin Atlantic will have to follow suit.

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