Delta til halv pris

[CK]

Delta to slash fares by 50 percent
Wednesday, January 5, 2005 Posted: 12:04 PM EST (1704 GMT)
Delta also plans to overhaul its entire flight schedule.

NEW YORK (Reuters) -- Delta Air Lines Inc., the No. 3 U.S. carrier, says it will cut its fares by up to 50 percent for travel in the continental United States in order to compete with low-cost rivals.
http://www.cnn.com/2005/TRAVEL/01/05/bt.delta.fares.reut/index.html

... og de som trodde at de blodige priskrigers dager var over kan kaste DEN drømmen på bålet, mens amerikanske flyreisende kan juble i noen måneder til. Bye-bye Song

[CK]

og her er litt ra ATW:

Delta unveils SimpliFares to applause, concern
Dateline: Thursday January 06, 2005

Delta Air Lines' new simpler fare structure introduced yesterday was applauded by some analysts, while others worried about the competitive response and the effect it will have on revenue this year (ATWOnline, Jan. 5).

As expected, Delta expanded its SimpliFares pricing structure beyond its Cincinnati hub to its entire US domestic route network excluding Alaska and Hawaii. It has capped one-way economy fares at $499 and one-way first-class fares at $599. Roundtrip purchase is required for some fares, but the Saturday-night stay requirement has been eliminated from all categories (some fares do require a one-night stay). Additionally, it has cut the ticket change fee in half to $50. The leaner structure has just six basic fare categories in coach (three one-way, three roundtrip) and two in first class.
In a report released yesterday, UBS analyst Robert Ashcroft applauded SimpliFares as "a necessary step for Delta" and "the right thing to do," while observing that the impact will be "negative in the short term." The structure is expected to hit bankrupt US Airways particularly hard, as it competes heavily with Delta, and makes its liquidation "more likely," in Ashcroft's view.

JP Morgan's Jamie Baker forecast "a significantly hostile industry response," noting that by extending the fares to connecting markets that generate an estimated 30% of domestic revenue, Delta is undercutting rivals' nonstop services: "We doubt Continental Airlines can maintain a $970 one-way fare between Houston and Newark while Delta offers first class via Atlanta for $549," he stated.

Merrill Lynch's Michael Linenberg took the most pessimistic view, saying the new fare structure could cost the industry between $2.5 billion and $3 billion in foregone revenue this year as other airlines match the fares in competing markets.

In a conference call with media to discuss the move, Delta CEO Gerald Grinstein declined to provide an estimated revenue impact of SimpliFares while noting that Cincinnati-originating traffic rose 30% after the fares were introduced. He would not address the revenue impact at that hub or whether operations there are currently profitable, however.

Senior VP and CMO Paul Matsen stated that SimpliFares differs from American's 1992 Value Pricing plan because American tried to impose the structure on the entire industry, whereas "this is a Delta solution" to address the airline's unique challenges including low-fare encroachment across most of its network. "Southwest, JetBlue and AirTran are our principal competitors," he noted.--

[Blubird]

Med 50% reduserte priser - tar det da kun halvparten så lang tid før de havner i Ch. 11? :

[Trety]

Nyheten har også nådd Nettavisen

[morr]

virker som det er siste krampetrekning før de går under konkursbeskyttelse. Noen som har fulgt godt med på amerikansk luftfart og kan si at de har kostnader som forsvarer en slik prissetting? Virker jo veldig desperat.

Tipper et stort selskap må forsvinne fra markedet i USA i løpet av 05 for at det skal bli lønnsomt igjen "over there"

[dc-8-63]

At et selskap eller flere forsvinner er ingen tvil om....spesiellt US Airways er i faresonen med dette utspillet......hva Delta er ute etter er Business trafikken de har mistet til Southwest, JetBlue, Air Tran og tildels America West....sistnevnte har kjoert samme pristruktur i 2 aar naa....og det har vaert meget vellykket......spesiellt tror jeg at DL kan lykkes med USD599 for First Class....det kan bli en fin stabil inntekts kilde....vi ikke bli forundret om vi ser stoerre First Class kabiner snart....

Wall Street liker ikke Delta's utspill, aksjekursen fallt ganske saa mye i gaar...vi faar se i dag......

[Blubird]

Tydeligvis en del som har fått med seg reduserte priser, nettsidene til Delta går utrolig sakte nå, og skal etter sigende ha vært nede for telling tidligere i dag...

[CK]

og nå har AA rullet ut kanonene: det blir en blodig vår....

American matches Delta's SimpliFares in many markets
Dateline: Friday January 07, 2005

In a move that makes it significantly more likely that Delta Air Lines' new SimpliFares structure will hold, American Airlines yesterday said it had "broadly matched" the fares put in place by its Atlanta-based rival Tuesday

hele artikkelen: http://www.atwonline.com/indexfull.cfm?newsid=4878&CMP=NLC-dailynewsletter

[LN-MOW]

Ikke bare AA:

''Rivals match Delta: US Airways and Northwest changed their pricing in select markets "to match Delta's aggressive new pricing strategies," says Tom Parsons, CEO of Bestfares.com. "We expect these consumer-friendly fares and policies to be adopted by the other major carriers such as American, Continental and United. … We have not seen a major change like this since 1992 when American introduced its simplified airfare system. With Delta cutting coach airfares up to 50%, reducing the number of airfares it offers to only four and giving customers more flexibility with the elimination of a Saturday-night stay, the carrier will shake up the industry. This is great news for both business and leisure travelers," he concludes. But, some Delta frequent fliers worry the changes could make first-class upgrades more difficult. With Delta's caps on fares — $499 each way in coach and $599 each way in first class — they worry that small price difference between the sections means more people will pay to sit in the front of the cabin, The Wall Street Journal (subscription required) reports. If so, that could reduce the number of unsold first-class seats available for upgrades. America West overhauled its fares in similar fashion last year. Before it did, about 6% of first-class passengers paid to sit up front; now, about 15% do. Still, Harlan Bennett, Delta VP of revenue management, sought to calm his customers: "We expect to have plenty of availability for SkyMiles Medallion members." Posted at 6:30 a.m. " (USA Today)

Legg merke til at det kun dreier seg om overlappende markeder, dog .... Det skal bli spennende aa se hva UA gjoer .. og om de senker prisene paa 'PS' ....

[Blubird]

Fatter ikke hvordan US kan makte å kutte prisene nå som de står med 1 og et halvt bein i kista? Snakker om å grave sin egen grav.

[Trety]

Originally posted by Blubird
Fatter ikke hvordan US kan makte å kutte prisene nå som de står med 1 og et halvt bein i kista? Snakker om å grave sin egen grav.

Hvis alternativet er å ikke få passasjerer er jeg ikke helt sikker på hva som er best allikevel, de må forholde seg til resten av markedet.