Delta leads US network industry with Skymiles overhaul

[swamt]

Actually (don't shoot me folks),  I think Delta played this one out smartly.  They waited for results after VA, JB and SW first went with the same changes that Delta is looking at for 2015.  The end result (for SWA) was better overall for the company as well as the business folks.  Pretty sure Delta will see some flyers switching carriers (maybe?), but it will not be enough to change the system back.  Soon all the legacy carriers will switch too after they watch how well it works for Delta...

 

[swamt]

WT you keep trying to throw phrases out there that are not true.  You just claimed that "the reason Delta is once again leading the industry"  Dl is NOT leading the industry.  They are the first legacy carrier to "FOLLOW" VX, JB and SW.  They are the industry leaders of doing this, if I am not mistaken either VX or JB was the leader of the industry to do it.  Sorry, but DL is just another follower in the industry after realizing how the outcome affected the other carriers first.   I would love to have the bragging rights for my company, but I do not, SWA didn't implement the change until 2011.  But now I will use your rationality for SWA's bragging rights.   SWA is the leader of said changes out of all the Texas carriers period, and Delta (being one of the Tx carriers) will follow with the same changes starting Jan 2015.
Wait for it guys, here it comes.

 

[WorldTraveler]

You just posted in the other thread that Delta cannot plan financially because of Obamacare?

 
they can't plan personnel related costs.... are you unable to comprehend this is a revenue program?
 

Actually (don't shoot me folks),  I think Delta played this one out smartly.  They waited for results after VA, JB and SW first went with the same changes that Delta is looking at for 2015.  The end result (for SWA) was better overall for the company as well as the business folks.  Pretty sure Delta will see some flyers switching carriers (maybe?), but it will not be enough to change the system back.  Soon all the legacy carriers will switch too after they watch how well it works for Delta...

I am quite sure you are right, swamt. DL knows full well what VX and other LCCs have done and either recognizes they need to stem the flow of passengers those carriers are taking or, more likely, they realize what those carriers have been able to do in pulling passengers from AA and UA.

Given that DL's position of strength relative to B6 and WN has improved in recent years (DL's growth in NYC and ATL), the chances are high that DL is doing this to neutralize the advantage the low fare carriers have received and gain a benefit relative to AA and UA.

And as we have discussed before DL is by far the most aggressive legacy/network carrier in competing with low fare carriers in the US.

Either way, this isn't a flash in the pants idea that DL just thought of - and I made it clear in my original post that DL is leading the legacy/network/US global carriers in changing their FFPs.

The majority of people who really should benefit from a revenue based FFP system like it because they are the type of customer that any business needs... those who have been along for a free ride or receiving benefits at someone else's expense are the ones who won't like it.

The industry and DL are strong enough now to make revenue positive decisions.

 

[CLTUSCaptive]

Delta's FF program changes won't affect me since I gave up on flying them years ago due to their stingy SkyPeso redemption policies, but if this is such great news for their frequent travelers, why won't they publish their new reward-redemption charts? 

 

[737823]

Honestly this doesn't come as a surprise to me or anyone else that actually travels on DL as a paying customer. Yes SkyPesos falls much short of what AA currently offers or UA in terms of mileage availability and redemption opportunities but the reservations assistance and domestic upgrades I receive on DL are great. The expanded CRM capabilities enable this to easily be done-years ago it would have been much harder to track. DL receives a disproportionate amount of their revenue from a small set of customers so why not focus on rewarding them accordingly?

Josh

 

[Glenn Quagmire]

they can't plan personnel related costs.... are you unable to comprehend this is a revenue program? .

Since when is revenue non-financial?

 

[Kev3188]

As soon as that fit the narrative...

 

[Kev3188]

Honestly this doesn't come as a surprise to me or anyone else that actually travels on DL as a paying customer. Yes SkyPesos falls much short of what AA currently offers or UA in terms of mileage availability and redemption opportunities but the reservations assistance and domestic upgrades I receive on DL are great. The expanded CRM capabilities enable this to easily be done-years ago it would have been much harder to track. DL receives a disproportionate amount of their revenue from a small set of customers so why not focus on rewarding them accordingly?

Josh

It'll be interesting to see how much "poaching" this causes. How many top tier people come over to DL, how many low-to-mid level people bail, etc.

 

[737823]

People on the frequent flyer forums and on CNBC are outraged it seems but on the whole I see this sticking for DL. Many of the overseas carriers operate their programs this way and have for many years. Like I said from my perspective DL runs a great operation but the Skypesos program falls considerably short. Case in point-a round trip business class ticket to Asia or Middle East on DL generally requires the same number of miles as a round the world ticket on AA's partners with generous stop over and routing rules.

Josh

 

[WorldTraveler]

and yet DL has a SUBSTANTIAL revenue premium to the US industry and has been noted as generating the highest profit in the world among airlines, beating our LH's profit.

There are people who obviously believe that DL is genuinely delivering what they want and are willing to pay good money for it.

Every thing in life has risks but when you hide behind "we could end up worse off" because of change, then you will never succeed at your dreams.

I would hope that what DL is doing WRT revenue is exactly what Kev and some others want to do with labor.

and Q,
if you have uncertainty about only one side of the equation in finances (costs), do you necessarily stop working on the other side (revenues?) I don't think so... and apparently neither does DL.

Analysts even before this move expected that DL would exceed its last year's profit... .I am certain DL will be telling us why they are doing this from a financial reason and it isn't because they are paralyzed by the uncertainty about Obamacare.

 

[Glenn Quagmire]

I am certain DL will be telling us why they are doing this from a financial reason and it isn't because they are paralyzed by the uncertainty about Obamacare.

I highly doubt that Delta "is paralyzed by the uncertainty of Obamacare."

I think you may be losing some of your highly biased objectivity in Delta's ability to plan and succeed in the face of your bias of our current POTUS and the ACA.

 

[WorldTraveler]

my bias or not has nothing to do with the fact that business leaders across the country say they aren't creating full-time benefited jobs and the DOL's own statistics show that.

I care about building a strong, healthy America that works.... changing the rules every week because a plan - any plan by any president - is half-thought out and even worse executed is a recipe for economic paralysis.

If you want to get rid of contractors and create full-time jobs, then recognize that DL is limited by the environment that the government gives it to work with.


Specific to this initiative with the Skymiles program, the government so far doesn't control it and that is why DL can make changes that are good for the company, its employees, investors, and customers

 

[FrugalFlyerv2.0]

People on the frequent flyer forums and on CNBC are outraged it seems but on the whole I see this sticking for DL. Many of the overseas carriers operate their programs this way and have for many years. Like I said from my perspective DL runs a great operation but the Skypesos program falls considerably short. Case in point-a round trip business class ticket to Asia or Middle East on DL generally requires the same number of miles as a round the world ticket on AA's partners with generous stop over and routing rules.

Josh

True.  However, many of those overseas carriers are the only flag (or global network) carrier in that country, thus they can get away with it.  

 

[WorldTraveler]

except no carrier can survive based just on its own local market. LH, for instance, aggressively competes for global flow traffic much of which is not Germany originating or terminating.

 

[Airlinelifer]

my bias or not has nothing to do with the fact that business leaders across the country say they aren't creating full-time benefited jobs and the DOL's own statistics show that.

I care about building a strong, healthy America that works.... changing the rules every week because a plan - any plan by any president - is half-thought out and even worse executed is a recipe for economic paralysis.

If you want to get rid of contractors and create full-time jobs, then recognize that DL is limited by the environment that the government gives it to work with.


Specific to this initiative with the Skymiles program, the government so far doesn't control it and that is why DL can make changes that are good for the company, its employees, investors, and customers
 

 
If you want to get rid of contractors and create full-time jobs, then recognize that DL is limited by the environment that the government gives it to work with. 
 
LOL! what a crock of "widget sh*t."