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EA CO AS
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 6:57 am

SFOtoORD wrote:
VX fliers fly VX for the experience despite the other shortcomings you mention.


These VX loyalists are part of today's "brand enthusiasts" that love something deeply and passionately. Right up until they don't. And then they move on.

Point being, they're likely far more "brand agnostic" than you think, and when push comes to shove, the main drivers behind a buying decision on airline tickets are price and schedule, in that order. Brand loyalty is further down the line, and the in-depth analysis of brand loyalty among carriers showed that while VX enjoyed a nice overall following with general fliers, their elite members were only slightly more likely to recommend them than general fliers, whereas AS elites were FAR more likely to recommend AS.

And elites are where your money is. Lots of it.

AS wants to win over the VX general fliers and elites, and while they've got their work cut out for them, I don't think VX customers will turn up their collective noses at AS en masse like you seem to imply.
 
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Jamake1
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 7:10 am

Who are these VX brand loyalists anyway? Silicon Valley VC's whose job it is to fund upstarts and then capitalize on the exit strategy?

Oh the irony...
 
tphuang
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 9:44 am

ASFlyer wrote:
SFOtoORD wrote:
Your post shows you don't understand. VX fliers fly VX for the experience despite the other shortcomings you mention. Most of the ones I know used to fly UA, but the experience is so worthwhile they take VX. Without that experience they will go back to all the other differentiators of the legacies that you rationalized away.


So what, beyond TV's and on demand food/beverage, makes the VX experience so great that people completely ignore anything else? What happens inside a VX airplane that is so special?


I never bought into the mood lighting or the coolness factor, but VX did have a lot of good stuff.

Just compare MCS on VX and AS's premium product.

pitch goes from 38 inch to 35 inch. Also on A320 series, the additional width makes a big difference vs 737.

having live satellite tv to having none. Believe me, after a return transcon, there is nothing in the so called great library of tv show and movie, I want to watch anymore. Having live TV program really sets VX and B6 apart from all the competitors.

free on demand food that's healthy and tasty. VX was ranked to having the most healthy options
https://thepointsguy.com/2017/01/virgin ... iest-food/
I have experienced that myself and found it to be much better than the full meal service I got on AA's F class.

Also in terms of F seat, it's quite clear 55 inch seat is a big improvement over 41 inch. You might not think it's needed for a sub 4 hour flight. And I personally found this amazing too, but there are fliers out there who are used to having that kind of seat and has trouble with 40 inch pitch F class seat on 2 to 3 hour flights.

I don't know how large of a group VX loyalist really are, since it's a small group that's really vocal online. This group of people was paying premium over the competition to fly VX and now they won't for AS. There's already been a migration in this group over to B6 for transcon flights and that will probably continue now that VX is a thing of the past.
 
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intotheair
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 10:10 am

EA CO AS wrote:
SFOtoORD wrote:
VX fliers fly VX for the experience despite the other shortcomings you mention.


These VX loyalists are part of today's "brand enthusiasts" that love something deeply and passionately. Right up until they don't. And then they move on.

Point being, they're likely far more "brand agnostic" than you think, and when push comes to shove, the main drivers behind a buying decision on airline tickets are price and schedule, in that order. Brand loyalty is further down the line, and the in-depth analysis of brand loyalty among carriers showed that while VX enjoyed a nice overall following with general fliers, their elite members were only slightly more likely to recommend them than general fliers, whereas AS elites were FAR more likely to recommend AS.

And elites are where your money is. Lots of it.

AS wants to win over the VX general fliers and elites, and while they've got their work cut out for them, I don't think VX customers will turn up their collective noses at AS en masse like you seem to imply.


As someone who's in his mid-20s and knows many Californians who swear by VX, I would agree with this read. Friends of mine who fly a lot, whether for work or other reasons, generally fly with one of the big three, even if they're not necessarily the coolest. I've seen many friends of mine swear by VX just because it looks and feels so cool, but none of them are anything that amount to more than casual leisure fliers. Most of them don't seem to have too strong of an opinion of AS, or if they do, it's generally positive. I think the visceral reaction has more to do with VX going away as a brand, and not necessarily anything about AS. I think the reaction would have been almost exactly the same had it been B6 who won the bidding war. When I was explaining to my boyfriend, who is not much of a frequent flier, how the bidding war between AS and B6 went down, and how many in the industry assumed B6 would win, his reaction: "Ew! Why would VX want to go with B6? They're so boring and business-like." I was a little surprised that was his impression of B6. There's something about the Virgin brand that seems magical to people — just like Apple, Adidas, H&M, or Starbucks — regardless of whether the quality of the product is real or only on the surface.

Again, that's all anecdotal evidence, but take it as qualitative research from inside the marketplace of low yielding fliers in California.
 
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ikolkyo
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 11:33 am

That one inch really doesn't apply the VX since their Economy seats are 17.7in.
 
hatbutton
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 1:44 pm

tphuang wrote:
Just compare MCS on VX and AS's premium product.

pitch goes from 38 inch to 35 inch.


This statement is misleading and I'll tell you why. MCS is only 2 rows on VX. The bulkhead row and in the exit row. Those rows are 38" pitch and the exit row is that pitch not because VX made it so. Because exit rows on all airlines are. Alaska's exit rows are also 38" pitch.

What your statement is missing is that now 4-5 rows on VX aircraft will go from 32" pitch to 35" matching Alaska. That's actually an upgrade. Not a downgrade. Your 38" pitch in bulkhead and exit row stays, but now there are more seats at 35" pitch to choose from which is a better outcome for VX fliers.
 
CobaltScar
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 1:46 pm

tphuang wrote:
There's already been a migration in this group over to B6 for transcon flights and that will probably continue now that VX is a thing of the past.



When Jetblue introduced Mint there was a initial mass migration of hollywood A-listers and SFO hipsters over. That will now continue with whoever was still paying for Virgin's first class.

FLL-LAX Mint started a couple days ago. 14 new 321's in Mint configuration coming on the line this year alone. They can't train FAs in Mint service fast enough. I predict Mint in Atlanta come 2019, and Mint to Europe 2020 :P

Will be interesting to see how Mint to SEA does. It would of been nice to have gotten Virgin's gates at LAX and SFO for sure, but being able to cherry pick lucrative transcon west coast markets with the only even remotely similar competitor now destroyed by AS is a good (free) consolation prize. Plenty of new growth across the Atlantic, AS can keep the California shuttle market thanks but no thanks.

p.s. what happens when/if a ban on inflight electronics hits the domestic network? Going to be some painfully long flights on AS staring at empty seatbacks or tiny phone screens.
 
tphuang
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 2:17 pm

hatbutton wrote:
tphuang wrote:
Just compare MCS on VX and AS's premium product.

pitch goes from 38 inch to 35 inch.


This statement is misleading and I'll tell you why. MCS is only 2 rows on VX. The bulkhead row and in the exit row. Those rows are 38" pitch and the exit row is that pitch not because VX made it so. Because exit rows on all airlines are. Alaska's exit rows are also 38" pitch.

What your statement is missing is that now 4-5 rows on VX aircraft will go from 32" pitch to 35" matching Alaska. That's actually an upgrade. Not a downgrade. Your 38" pitch in bulkhead and exit row stays, but now there are more seats at 35" pitch to choose from which is a better outcome for VX fliers.


Have you flown MCS on VX?

You are basically saying it's an upgrade to go from fewer higher quality seats to more lower quality seats. And I don't see anywhere in the press release that the bulkhead row and exit row will be 38 inch. It's only an upgrade if I consider 35 inch seat to be a worthwhile upgrade, which I don't. There is no product differentiation between that and the 5 rows of MCE on AA 737 at 36 inch pitch or DL 737 at 34 inch pitch comfort plus for a frequent flyer.

The point is VX provided a significantly better experience at Y, MCS and F vs legacy airlines, which is no longer the case with these changes. So why would VX fliers continue to pay premium to fly on it? If B6 was any stronger in west coast, you would've already seen a much greater migration of ff
 
jbs2886
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 2:18 pm

hatbutton wrote:
The secret to AS's brand is not what's on the surface. It's the basics. On time flights, friendly and caring service, authenticity, generous mileage plan that make the majority of people feel rewarded (not just those who can afford first class). You make branding sound like a contact sport. Alaska is a very utilitarian brand. And that works for a heck of a lot of travelers. I respect WN because they never try to be something they're not. AS does the same. You can criticize it if you want. 34 million people and a bunch of JD Powers awards seem to indicate there's more there than what you seem to claim.

Historical performance is not a guarantee of future results. But you don't survive in this industry for over 80 years and manage to do it without ever filing for bankruptcy by accident. According to you Alaska may not understand branding, but if that were true then it would appear 80 years of history proves that brand clearly doesn't matter. I tend to believe there are plenty of fliers, new and repeat ones, who will love Alaska for what they have always done well. Alaska happily will play the underdog role yet again if people are going to give them little chance to succeed in California. It performs better from that position anyways.


This is just spot on. As a former DL loyalist, now AA, I have taken AS a fair amount (fly to SEA regularly). It isn't the newest, shiniest or fanciest, but it is a solid product that is enjoyable for mid-/transcon flight. The service is genuine and often some of the friendliest (no, it won't be 100% of the time). I also value that they support PNW businesses (the Partners crackers in the cheese plate, Tom Douglas dishes are actually quite good (and different), the Alaskan brewery, etc.). IIRC they were some of the first, at least for me, to regularly have plugs at each seat. PTVs are nice, but they aren't everything. I've never thought "utilitarian," but I agree.

Maybe every VX flier won't go to AS, but many will, as they see the value in a solid product.
 
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NameOmitted
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 2:28 pm

At the end of the day, is the VX brand relevant to the AS strategy going forward? Looking at the new city pairs that AS has announced out of the Bay Area, it appears that they are less interested in developing the highly competitive trans-con market than they are in new routes, not previously flown by VX.

I mean, it would be nice to bring in VX customers, but when you are flying routes without a VX history, is bringing in VX customers any diffrent from bringing in any other customer?
 
hatbutton
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 2:34 pm

tphuang wrote:
hatbutton wrote:
tphuang wrote:
Just compare MCS on VX and AS's premium product.

pitch goes from 38 inch to 35 inch.


This statement is misleading and I'll tell you why. MCS is only 2 rows on VX. The bulkhead row and in the exit row. Those rows are 38" pitch and the exit row is that pitch not because VX made it so. Because exit rows on all airlines are. Alaska's exit rows are also 38" pitch.

What your statement is missing is that now 4-5 rows on VX aircraft will go from 32" pitch to 35" matching Alaska. That's actually an upgrade. Not a downgrade. Your 38" pitch in bulkhead and exit row stays, but now there are more seats at 35" pitch to choose from which is a better outcome for VX fliers.


Have you flown MCS on VX?

You are basically saying it's an upgrade to go from fewer higher quality seats to more lower quality seats. And I don't see anywhere in the press release that the bulkhead row and exit row will be 38 inch. It's only an upgrade if I consider 35 inch seat to be a worthwhile upgrade, which I don't. There is no product differentiation between that and the 5 rows of MCE on AA 737 at 36 inch pitch or DL 737 at 34 inch pitch comfort plus for a frequent flyer.

The point is VX provided a significantly better experience at Y, MCS and F vs legacy airlines, which is no longer the case with these changes. So why would VX fliers continue to pay premium to fly on it? If B6 was any stronger in west coast, you would've already seen a much greater migration of ff


I have flown in MCS and I personally don't think it's that much better. Legroom is all I care about and 35" is fine with me. You are welcome to argue about the experience. I was merely pointing out that you saying it's going from 38" to 35" is not entirely true. Because exit rows will remain 38". They have to because it's a requirement for safety reasons. Not because VX felt they should make them that way for the customers benefit. You can debate the other features of MCS but I was only responding to your seat pitch comment and it is true that there will be more seats in coach with more legroom on VX than there was before, including the exit rows still remaining at 38" pitch.
 
sxf24
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 2:56 pm

tphuang wrote:
hatbutton wrote:
tphuang wrote:
Just compare MCS on VX and AS's premium product.

pitch goes from 38 inch to 35 inch.


This statement is misleading and I'll tell you why. MCS is only 2 rows on VX. The bulkhead row and in the exit row. Those rows are 38" pitch and the exit row is that pitch not because VX made it so. Because exit rows on all airlines are. Alaska's exit rows are also 38" pitch.

What your statement is missing is that now 4-5 rows on VX aircraft will go from 32" pitch to 35" matching Alaska. That's actually an upgrade. Not a downgrade. Your 38" pitch in bulkhead and exit row stays, but now there are more seats at 35" pitch to choose from which is a better outcome for VX fliers.


Have you flown MCS on VX?

You are basically saying it's an upgrade to go from fewer higher quality seats to more lower quality seats. And I don't see anywhere in the press release that the bulkhead row and exit row will be 38 inch. It's only an upgrade if I consider 35 inch seat to be a worthwhile upgrade, which I don't. There is no product differentiation between that and the 5 rows of MCE on AA 737 at 36 inch pitch or DL 737 at 34 inch pitch comfort plus for a frequent flyer.

The point is VX provided a significantly better experience at Y, MCS and F vs legacy airlines, which is no longer the case with these changes. So why would VX fliers continue to pay premium to fly on it? If B6 was any stronger in west coast, you would've already seen a much greater migration of ff


The pitch of the bulkhead (row 6) and exit rows on every AS 737s are at least 38" today and will remain so in the future. We can confidently say this, without support from a press release, because the FAA requires this amount of space. To be fair, AS' bulkhead seats are quite a bit narrower than VX MCS because they have the tray tables in the armrest. Still, customers will get the same number of seats with the same amount of legroom on AS, plus additional seats with extra legroom.
 
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flashmeister
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 3:36 pm

SFOtoORD wrote:
flashmeister wrote:
VX was going to die anyway.


A.net myth. But keep perpetuating it.


They were dead the moment they put themselves up for sale. They sold out. You admitted it earlier.

So where precisely is the myth?
 
tphuang
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 4:05 pm

hatbutton wrote:
tphuang wrote:
hatbutton wrote:

This statement is misleading and I'll tell you why. MCS is only 2 rows on VX. The bulkhead row and in the exit row. Those rows are 38" pitch and the exit row is that pitch not because VX made it so. Because exit rows on all airlines are. Alaska's exit rows are also 38" pitch.

What your statement is missing is that now 4-5 rows on VX aircraft will go from 32" pitch to 35" matching Alaska. That's actually an upgrade. Not a downgrade. Your 38" pitch in bulkhead and exit row stays, but now there are more seats at 35" pitch to choose from which is a better outcome for VX fliers.


Have you flown MCS on VX?

You are basically saying it's an upgrade to go from fewer higher quality seats to more lower quality seats. And I don't see anywhere in the press release that the bulkhead row and exit row will be 38 inch. It's only an upgrade if I consider 35 inch seat to be a worthwhile upgrade, which I don't. There is no product differentiation between that and the 5 rows of MCE on AA 737 at 36 inch pitch or DL 737 at 34 inch pitch comfort plus for a frequent flyer.

The point is VX provided a significantly better experience at Y, MCS and F vs legacy airlines, which is no longer the case with these changes. So why would VX fliers continue to pay premium to fly on it? If B6 was any stronger in west coast, you would've already seen a much greater migration of ff


I have flown in MCS and I personally don't think it's that much better. Legroom is all I care about and 35" is fine with me. You are welcome to argue about the experience. I was merely pointing out that you saying it's going from 38" to 35" is not entirely true. Because exit rows will remain 38". They have to because it's a requirement for safety reasons. Not because VX felt they should make them that way for the customers benefit. You can debate the other features of MCS but I was only responding to your seat pitch comment and it is true that there will be more seats in coach with more legroom on VX than there was before, including the exit rows still remaining at 38" pitch.

whereas my point all along was that VX loyalists are the types that pay a real premium to fly it. And if all they get as a ff to is something that's exactly the same as on legacy airline, then there is no reason for them to pay extra to fly AS. They might as well just fly B6 which has 33 inch seats in Y along with satellite TV and gate to gate wifi. That doesn't mean they won't fly AS if it's the cheapest with the best schedule.

And the type that really needs the premium experience are not going to stick around for AS, since AS experience doesn't cater to that.
 
hatbutton
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 4:18 pm

tphuang wrote:
hatbutton wrote:
tphuang wrote:

Have you flown MCS on VX?

You are basically saying it's an upgrade to go from fewer higher quality seats to more lower quality seats. And I don't see anywhere in the press release that the bulkhead row and exit row will be 38 inch. It's only an upgrade if I consider 35 inch seat to be a worthwhile upgrade, which I don't. There is no product differentiation between that and the 5 rows of MCE on AA 737 at 36 inch pitch or DL 737 at 34 inch pitch comfort plus for a frequent flyer.

The point is VX provided a significantly better experience at Y, MCS and F vs legacy airlines, which is no longer the case with these changes. So why would VX fliers continue to pay premium to fly on it? If B6 was any stronger in west coast, you would've already seen a much greater migration of ff


I have flown in MCS and I personally don't think it's that much better. Legroom is all I care about and 35" is fine with me. You are welcome to argue about the experience. I was merely pointing out that you saying it's going from 38" to 35" is not entirely true. Because exit rows will remain 38". They have to because it's a requirement for safety reasons. Not because VX felt they should make them that way for the customers benefit. You can debate the other features of MCS but I was only responding to your seat pitch comment and it is true that there will be more seats in coach with more legroom on VX than there was before, including the exit rows still remaining at 38" pitch.

whereas my point all along was that VX loyalists are the types that pay a real premium to fly it. And if all they get as a ff to is something that's exactly the same as on legacy airline, then there is no reason for them to pay extra to fly AS. They might as well just fly B6 which has 33 inch seats in Y along with satellite TV and gate to gate wifi. That doesn't mean they won't fly AS if it's the cheapest with the best schedule.

And the type that really needs the premium experience are not going to stick around for AS, since AS experience doesn't cater to that.


Again, you're in a debate about somethig I'm not debating. I merely pointed out the facts about the seat pitch. That's all. Not sure why you keep going on as if I'm countering your premium experience argument.
 
jetmatt777
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 4:35 pm

PlanesNTrains wrote:
I think branding is very much a "state of mind" or "emotional connection" if you will. That can change in a flash. If Microsoft bought Apple, do you think Apple loyalists would be happy? Doubtful. It'd now stop being "Apple" and start being "Microsoft" - that stopped being cool several versions of Windows ago. lol It wouldn't matter that Apple didn't change their product - the coolness factor would sort of whither. Lame example, but just trying to illustrate why I think VX - the brand - is as much about how their customers feel about themselves while flying them as it is about what VX actually offered. To those folks, Alaska is the Microsoft to their Apple.

Or something like that lol I'm tired.


What's funny about that is that Apple is a SFO company and Microsoft is a SEA company, fitting the VX/Apple and AS/Microsoft analogy like a glove.
 
commavia
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 4:38 pm

jetmatt777 wrote:
What's funny about that is that Apple is a SFO company and Microsoft is a SEA company, fitting the VX/Apple and AS/Microsoft analogy like a glove.


Well, okay ... except, again, for one big difference ... Apple, Microsoft and Alaska are all viable, scalable and competitively profitable (in the context of their respective industries) businesses. Virgin America was not.
 
hiflyeras
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 4:38 pm

tphuang wrote:
whereas my point all along was that VX loyalists are the types that pay a real premium to fly it.


Looking online for April 3rd...who is cheapest? VX customers are not 'paying a premium'...they're getting a bargain in FC compared to AA, DL. B6 must be desparate to be undercutting all of them.

VX $1098
AA $2148
DL $1458
B6 $808
 
jetmatt777
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 4:43 pm

commavia wrote:
jetmatt777 wrote:
What's funny about that is that Apple is a SFO company and Microsoft is a SEA company, fitting the VX/Apple and AS/Microsoft analogy like a glove.


Well, okay ... except, again, for one big difference ... Apple, Microsoft and Alaska are all viable, scalable and competitively profitable (in the context of their respective industries) businesses. Virgin America was not.


I'm not taking any sides, only referring to geographical coincidences of the analogy.

I've flown AS several times and enjoyed them all equally well. No doubt they are the Toyota Camry of the sky, which is not a bad thing. Safe, reliable, and comfortable enough for the trip. Those aren't bad things and certainly impacted my travels with them in positive ways.
 
CobaltScar
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 5:46 pm

hiflyeras wrote:
tphuang wrote:
whereas my point all along was that VX loyalists are the types that pay a real premium to fly it.


Looking online for April 3rd...who is cheapest? VX customers are not 'paying a premium'...they're getting a bargain in FC compared to AA, DL. B6 must be desparate to be undercutting all of them.

VX $1098
AA $2148
DL $1458
B6 $808



No, just more of the same: Helping usher VX out of business like they ushered UA out of JFK. Look for prices to rise now that the competition has thinned.
 
tphuang
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 5:58 pm

hiflyeras wrote:
tphuang wrote:
whereas my point all along was that VX loyalists are the types that pay a real premium to fly it.


Looking online for April 3rd...who is cheapest? VX customers are not 'paying a premium'...they're getting a bargain in FC compared to AA, DL. B6 must be desparate to be undercutting all of them.

VX $1098
AA $2148
DL $1458
B6 $808

That's meaningless. Just because VF loyalists are willing to pay more, doesn't mean they have to pay more. Clearly, there are a lot of FF and corporate clients with AA and DL who are willing to pay more for those airlines. This might surprise you, but I am in fact AA ff that regularly pays more to fly on AA, even though I think the product is pretty bad. But VX also has their legion of followers that love their products and are willing to pay more for it. And most of them chose VX not due to ff program or corporate contract or schedule, but due to the on board product itself.

And secondly, VX's FC is clearly inferior to the other 3 at the moment for tanscon market.
 
PlanesNTrains
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 7:05 pm

tphuang wrote:
whereas my point all along was that VX loyalists are the types that pay a real premium to fly it. And if all they get as a ff to is something that's exactly the same as on legacy airline, then there is no reason for them to pay extra to fly AS. They might as well just fly B6 which has 33 inch seats in Y along with satellite TV and gate to gate wifi. That doesn't mean they won't fly AS if it's the cheapest with the best schedule.


I think you just summed up why AS - the boring carrier - is successful and growing while VX - the hipster carrier - couldn't pull that off. And why AS just might be on to something by NOT going to 55", flatbed, private compartment, etc First Class cabins or carrying around IFE equipment. For all the vaunted pleasures at VX and B6 - legitimate as they are - people will often STILL fly the boring carrier if it's cheaper and/or has a better schedule.

Let's let that sink in for a minute.
 
PlanesNTrains
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 7:07 pm

CobaltScar wrote:
hiflyeras wrote:
tphuang wrote:
whereas my point all along was that VX loyalists are the types that pay a real premium to fly it.


Looking online for April 3rd...who is cheapest? VX customers are not 'paying a premium'...they're getting a bargain in FC compared to AA, DL. B6 must be desparate to be undercutting all of them.

VX $1098
AA $2148
DL $1458
B6 $808



No, just more of the same: Helping usher VX out of business like they ushered UA out of JFK. Look for prices to rise now that the competition has thinned.


I'm thinking we have the new Jetblue version of JumboJet/DL. :-) I'm guessing - somewhat tongue in cheek - that whatever Jetblue does is part of a brilliant strategy?
 
SFOtoORD
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 8:45 pm

commavia wrote:
jetmatt777 wrote:
What's funny about that is that Apple is a SFO company and Microsoft is a SEA company, fitting the VX/Apple and AS/Microsoft analogy like a glove.


Well, okay ... except, again, for one big difference ... Apple, Microsoft and Alaska are all viable, scalable and competitively profitable (in the context of their respective industries) businesses. Virgin America was not.


If you're going that route Apple and Microsoft are the two largest consumer technology players in the world while Alaska is a distant 5th place player in the US commercial airline market. That being said, the analogy is about style and nothing else.
 
tphuang
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 8:45 pm

PlanesNTrains wrote:
tphuang wrote:
whereas my point all along was that VX loyalists are the types that pay a real premium to fly it. And if all they get as a ff to is something that's exactly the same as on legacy airline, then there is no reason for them to pay extra to fly AS. They might as well just fly B6 which has 33 inch seats in Y along with satellite TV and gate to gate wifi. That doesn't mean they won't fly AS if it's the cheapest with the best schedule.


I think you just summed up why AS - the boring carrier - is successful and growing while VX - the hipster carrier - couldn't pull that off. And why AS just might be on to something by NOT going to 55", flatbed, private compartment, etc First Class cabins or carrying around IFE equipment. For all the vaunted pleasures at VX and B6 - legitimate as they are - people will often STILL fly the boring carrier if it's cheaper and/or has a better schedule.

Let's let that sink in for a minute.


well, B6 seems to be doing pretty well for an airline that started in 2001. And one might say VX did pretty well for a young airline in such a cut throat business.

Every airline has to adapt strategies based on what it's core strength are and target a certain demographics. This all started because someone was wondering what was so special about VX and I listed what I thought was good about them as someone who doesn't even fly VX that much. I can't understand why someone needing 55 inch seat for 2 hour flights doesn't just use private jet, but they do exist. And there are a lot more people who liked VX enough that they paid more and inconvenienced themselves just to fly on VX. AS made a calculated business decision to not compete for those flyers. But these pretty high yielding flyers will move to other carriers now.
 
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flashmeister
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 9:53 pm

tphuang wrote:
And one might say VX did pretty well for a young airline in such a cut throat business.


Who might say that? On the rare occasions that VX made money, it was because of low fuel prices, not because of anything they did themselves.

If the Board of Directors thought that they did "pretty well", they'd still be independent and we wouldn't be talking about their acquisition.
 
SFOtoORD
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 10:32 pm

flashmeister wrote:
tphuang wrote:
And one might say VX did pretty well for a young airline in such a cut throat business.


Who might say that? On the rare occasions that VX made money, it was because of low fuel prices, not because of anything they did themselves.

If the Board of Directors thought that they did "pretty well", they'd still be independent and we wouldn't be talking about their acquisition.


I'd put VX more into the category of "everyone has their price." The company had a strong market cap and the investors likely knew they could take a premium now or plow many more years into seeking upside (given there will be an invariable downturn at some point). It seems like the board and investors ultimately got a great return which is their main job.
 
IPFreely
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 11:00 pm

tphuang wrote:
And one might say VX did pretty well for a young airline in such a cut throat business.


Who would say that? Most people wouldn't call losing $523,000,000 doing pretty well.
 
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c933103
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 11:17 pm

probably AS need to spend more money into advertisement to shows it is not a large mega corps and instead is a small virbant growing business.
 
jeffrey1970
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Re: Alaska Airlines Brand Update Announcement 3/23

Fri Mar 24, 2017 11:50 pm

vhtje wrote:
As I see it, there are three options.

Option 1. Drop Virgin America brand and consolidate under Alaska name
Pros:
- less confusing for flying public
- cheaper as not paying royalties to the Virgin Group for use of the name
- maintains strong Alaska identity and brand goodwill
- lower marketing costs cf maintaining two brands
- able to consolidate fleet/cross-fleet
Cons:
- loss of 'cool and groovy' VX image (although incorporation of some VX amenities into AS would alleviate this)

Option 2: Drop Alaska brand and keep Virgin America brand
Pros:
- less confusing for flying public
- lower marketing costs cf maintaining two brands
- maintains VX 'cool and groovy' identity and brand goodwill
- able to consolidate fleet/cross-fleet
Cons:
- loss of very strong AS image (this is a huge con in my view - bigger than the con for option 1)
- still liable to Virgin Group for rights to use Virgin name

Option 3: Maintain both brands
Pros:
- maintains strong Alaska identity and brand goodwill
- maintains VX 'cool and groovy' identity and brand goodwill
Cons:
- still liable to Virgin Group for rights to use Virgin name
- confusion for the flying public
- makes cross-fleeting difficult and expensive
- expense of running two separate marketing and brand channels

I think, on balance, Option 1 is the winner. Shall we place bets?



I agree. Alaska has been around a lot longer. Like Virgin America, Alaska is well respected. I think sticking with Alaska just makes sense. I wonder if Alaska will try and start any routes along the east coast to places like Florida.
 
PlanesNTrains
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Re: Alaska Airlines Brand Update Announcement 3/23

Sat Mar 25, 2017 12:22 am

IPFreely wrote:
tphuang wrote:
And one might say VX did pretty well for a young airline in such a cut throat business.


Who would say that? Most people wouldn't call losing $523,000,000 doing pretty well.


They had a tough business plan that required people to want to pay a premium to choose their product. That takes a long time to cultivate which they probably underestimated a bit. Nonetheless, they still developed a following and provided a respectable service offering. If they wanted to throw that much money into the business, that much better for the consumer.

jeffrey1970 wrote:
I agree. Alaska has been around a lot longer. Like Virgin America, Alaska is well respected. I think sticking with Alaska just makes sense. I wonder if Alaska will try and start any routes along the east coast to places like Florida.


Well I think VX flies NYC-FLL. If they keep that we'll have our answer. :-)
 
tphuang
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Re: Alaska Airlines Brand Update Announcement 3/23

Sat Mar 25, 2017 12:46 am

IPFreely wrote:
tphuang wrote:
And one might say VX did pretty well for a young airline in such a cut throat business.


Who would say that? Most people wouldn't call losing $523,000,000 doing pretty well.

It seems like you kind of have to do that these days to grow quickly in an established market like USA. G4, F9 and NK have all been around a lot longer. They also started at the time of great recession when many airlines were having trouble. Do I think they would've survived long term? Probably not, because I don't think there is place for both B6 and VX at the same time when oil price goes up or the economy tanks. I'm sure that's the conclusion AS reached.
 
grbauc
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Re: Alaska Airlines Brand Update Announcement 3/23

Sat Mar 25, 2017 9:48 pm

Its hard to be a VX loyalist they don't fly to many places. They only work if your flying to cities on there limited route map. A fair amount of VX flyers then will be use to flying other airlines. For the ones that have to have the it factor the VX produced supposedly what airline mimics them the best? DL? AS? UA?
 
commavia
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Re: Alaska Airlines Brand Update Announcement 3/23

Sat Mar 25, 2017 10:14 pm

grbauc wrote:
Its hard to be a VX loyalist they don't fly to many places. They only work if your flying to cities on there limited route map. A fair amount of VX flyers then will be use to flying other airlines. For the ones that have to have the it factor the VX produced supposedly what airline mimics them the best? DL? AS? UA?


Indeed. While by no means the only challenge Virgin America faced, this was arguably the biggest - its model simply did not prove scalable. Virgin America's entire business model and product/service offering was tailor-made for basically 30 metro areas. That's not economically sustainable in 2017, and that's likely yet another reason why Alaska chose - just as everyone knew it would - not to retain the Virgin America brand. I agree that whatever alleged loss of hipster traffic Alaska may suffer is likely to be partially if not totally offset with network opportunities that were completely inaccessible to Virgin America because of its fleet and network structure.
 
SFOtoORD
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Re: Alaska Airlines Brand Update Announcement 3/23

Sat Mar 25, 2017 10:19 pm

grbauc wrote:
Its hard to be a VX loyalist they don't fly to many places. They only work if your flying to cities on there limited route map. A fair amount of VX flyers then will be use to flying other airlines. For the ones that have to have the it factor the VX produced supposedly what airline mimics them the best? DL? AS? UA?


B6
 
jeffrey1970
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Re: Alaska Airlines Brand Update Announcement 3/23

Sat Mar 25, 2017 10:31 pm

PlanesNTrains wrote:
IPFreely wrote:
tphuang wrote:
And one might say VX did pretty well for a young airline in such a cut throat business.


Who would say that? Most people wouldn't call losing $523,000,000 doing pretty well.


They had a tough business plan that required people to want to pay a premium to choose their product. That takes a long time to cultivate which they probably underestimated a bit. Nonetheless, they still developed a following and provided a respectable service offering. If they wanted to throw that much money into the business, that much better for the consumer.

jeffrey1970 wrote:
I agree. Alaska has been around a lot longer. Like Virgin America, Alaska is well respected. I think sticking with Alaska just makes sense. I wonder if Alaska will try and start any routes along the east coast to places like Florida.


Well I think VX flies NYC-FLL. If they keep that we'll have our answer. :-)



It seems like flying NYC-FLL AND NYC-TPA would be good routes.
 
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intotheair
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Re: Alaska Airlines Brand Update Announcement 3/23

Sat Mar 25, 2017 10:37 pm

SFOtoORD wrote:
grbauc wrote:
Its hard to be a VX loyalist they don't fly to many places. They only work if your flying to cities on there limited route map. A fair amount of VX flyers then will be use to flying other airlines. For the ones that have to have the it factor the VX produced supposedly what airline mimics them the best? DL? AS? UA?


B6


Maybe B6 matches VX in cool factor, but the network and business plan issues are unique to VX. B6 has grown to cover a nice range of destinations both large and small from BOS and JFK, becoming the #1 and #2 carrier, respectively, by marketshare. Obviously marketshare isn't everything, but VX's network and frequencies from SFO still leave a *lot* to be desired.
 
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NameOmitted
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Re: Alaska Airlines Brand Update Announcement 3/23

Wed Mar 29, 2017 10:13 pm

http://viewfromthewing.boardingarea.com/2017/03/29/alaska-airlines-reveals-timeline-end-virgin-america-elevate-program/

Alaska is apparently looking to use the 737-900 for trans-continental flights with the A320 and A319 North and South.

This link also has an indication as to the seat-plan for the Alaska A319 and A320.
 
airzona11
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Re: Alaska Airlines Brand Update Announcement 3/23

Wed Mar 29, 2017 10:47 pm

NameOmitted wrote:
http://viewfromthewing.boardingarea.com/2017/03/29/alaska-airlines-reveals-timeline-end-virgin-america-elevate-program/

Alaska is apparently looking to use the 737-900 for trans-continental flights with the A320 and A319 North and South.

This link also has an indication as to the seat-plan for the Alaska A319 and A320.


Seems like smart optimization. That route map is cool to see the SF growth.
 
PlanesNTrains
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Re: Alaska Airlines Brand Update Announcement 3/23

Wed Mar 29, 2017 10:55 pm

It makes sense to put the higher capacity planes on the lower frequency routes. I assume that was one reason VX ordered the A321neo.
 
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NameOmitted
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Re: Alaska Airlines Brand Update Announcement 3/23

Wed Mar 29, 2017 11:58 pm

I would be curious as to what Alaska Air Cargo (and Goldstreak) think of the Airbus aircraft. Will the potential availability of the LD3-45 be of use on flights within Alaska, or is that more of a capital investment than they want to make if they are only going to have the Airbus equipment for the duration of the leases.

Conversely, if they do start to make use of the containers, would that be an indicator of long-term thoughts of a mixed fleet?
 
IPFreely
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Re: Alaska Airlines Brand Update Announcement 3/23

Thu Mar 30, 2017 12:21 am

commavia wrote:
Indeed. While by no means the only challenge Virgin America faced, this was arguably the biggest - its model simply did not prove scalable. Virgin America's entire business model and product/service offering was tailor-made for basically 30 metro areas.


While the lack of scalability might be true, a bigger problem was that the VX business model didn't work, period. They were not successful even with service to only 30 (I think actually 24) metro areas.
 
jetmatt777
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Re: Alaska Airlines Brand Update Announcement 3/23

Thu Mar 30, 2017 1:12 am

NameOmitted wrote:
I would be curious as to what Alaska Air Cargo (and Goldstreak) think of the Airbus aircraft. Will the potential availability of the LD3-45 be of use on flights within Alaska, or is that more of a capital investment than they want to make if they are only going to have the Airbus equipment for the duration of the leases.

Conversely, if they do start to make use of the containers, would that be an indicator of long-term thoughts of a mixed fleet?


I don't believe any US carrier has the containerized version of the Airbus 320. They are all bulk loaded manual cargo holds.
 
SFOtoORD
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Re: Alaska Airlines Brand Update Announcement 3/23

Thu Mar 30, 2017 1:57 am

IPFreely wrote:
commavia wrote:
Indeed. While by no means the only challenge Virgin America faced, this was arguably the biggest - its model simply did not prove scalable. Virgin America's entire business model and product/service offering was tailor-made for basically 30 metro areas.


While the lack of scalability might be true, a bigger problem was that the VX business model didn't work, period. They were not successful even with service to only 30 (I think actually 24) metro areas.


If you say so. You forgot your favorite $540M metric too. And you should ask VX's investors how they felt about their investments.
 
commavia
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Re: Alaska Airlines Brand Update Announcement 3/23

Thu Mar 30, 2017 2:08 am

SFOtoORD wrote:
And you should ask VX's investors how they felt about their investments.


Indeed I will. I'll ask them how they felt about their investment the day before Alaska wrote them a $2+ billion check to take it off their hands vs the day after.
 
CobaltScar
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Re: Alaska Airlines Brand Update Announcement 3/23

Thu Mar 30, 2017 3:58 am

So, with the VX airbuses relegated to west coast north/south shuttle and increased pax density, the poor FAs who have the second lowest payscale for a major in the USA and the most demanding inflight work (with the RED automatic ordering from seatback) are going to be saving AS some big money for the next year or two. Poor things. I see the last intangible asset of this merger being quickly squandered, the "VX culture".

Relevant:

"More to love" ???
Here's the latest memo from ALPA
Your Joint Negotiating Committee - who were scheduled to meet this Tuesday, Wednesday and Thursday with management's negotiating team - sent an email to Alaska and Virgin America pilots this evening. If you haven't seen it, here it is:
Your JNC was scheduled to meet with management on Tuesday, Wednesday and Thursday this week. We came ready to negotiate, and began Tuesday morning at 9:30 a.m. by presenting a counter to the company’s last working document. Shortly after receiving our response, management went into caucus for the remainder of the day.
This morning, your JNC listened to Alaska’s Investor Day webcast. During the webcast, senior management stressed the strength of the company to the investors, and their ability to maintain industry-leading margins. Senior management also repeatedly emphasized the importance of harmonious labor relations in a successful merger. On this subject we agree. This Merger Will Not Fly Without the Pilots Onboard.
Contrary to the Investor Day webcast, management continues to make presentations at the table in an attempt to convince us of their inability to compensate us in line with the current industry. Additionally, management has made clear their belief that planned growth is impossible without the pilots accepting a substandard agreement.
Following the Investor Day webcast, the management negotiating team met with us in a brief session. During this meeting, their team only asked questions, which we have repeatedly answered during the past 60 days. They offered no new information, and chose not to respond to our last proposal.
Today ended with management accepting our idea that we immediately involve Mediator/Arbitrator Joshua Javits. Unfortunately, management also requested 30 days to “prep” for this mediation. It makes no sense to us that management would need a month—or a week for that matter—to prepare for a mediation unless they intend to drive this process toward arbitration.
You will soon hear from the Joint Strategic Planning Committee about what each individual pilot can do to support your Joint Negotiating Committee’s efforts to get you a contract in line with the current industry.
Fraternally,
Captain Paul Stuart, Chairman First Officer James Coffelt, Vice Chair
Captain John Allison Captain Jay Rodgers
Captain Jim Meldrum Captain Phil Haase
Bruce York, ALPA Chief Negotiator and Senior Advisor
Andrew Shostack, ALPA Assistant Director of Representation
David Hannah, ALPA Senior Labor Relations Counsel
Lauren Reed, ALPA Senior Labor Relations Counsel
 
IPFreely
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Re: Alaska Airlines Brand Update Announcement 3/23

Thu Mar 30, 2017 4:17 am

SFOtoORD wrote:
If you say so. You forgot your favorite $540M metric too. And you should ask VX's investors how they felt about their investments.


VX's business model didn't fail because I say so. Their own results prove their failure. Losing $540,000,000 is not "my metric", it's VX actual long term performance. VX fanboys may not like it but facts are facts.
 
SFOtoORD
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Re: Alaska Airlines Brand Update Announcement 3/23

Thu Mar 30, 2017 5:06 am

IPFreely wrote:
SFOtoORD wrote:
If you say so. You forgot your favorite $540M metric too. And you should ask VX's investors how they felt about their investments.


VX's business model didn't fail because I say so. Their own results prove their failure. Losing $540,000,000 is not "my metric", it's VX actual long term performance. VX fanboys may not like it but facts are facts.


Ooh, throwing out your metric and the fanboy line at the same time. But so long as you keep repeating it, then your point must be true that VX failed.
 
ASFlyer
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Re: Alaska Airlines Brand Update Announcement 3/23

Thu Mar 30, 2017 6:25 am

SFOtoORD wrote:
you should ask VX's investors how they felt about their investments.


I understood that it was the VX investors that drove VX to look for suitors. I also can't help but believe they are all extremely happy with their big fat checks that they got - they cleaned up in this deal. The only person that seems unhappy is RB, but I think his squawking is just to keep his name in the news in an attempt to keep himself relevant in the U.S. No doubt RB enjoyed his big pay day too, cause we all know he loves money.
 
PlanesNTrains
Posts: 9524
Joined: Tue Feb 01, 2005 4:19 pm

Re: Alaska Airlines Brand Update Announcement 3/23

Thu Mar 30, 2017 6:40 am

CobaltScar wrote:
So, with the VX airbuses relegated to west coast north/south shuttle and increased pax density, the poor FAs who have the second lowest payscale for a major in the USA and the most demanding inflight work (with the RED automatic ordering from seatback) are going to be saving AS some big money for the next year or two. Poor things.


Ok, so if they keep doing what they've been doing, with the same service on the same aircraft at the same pay.....why are they suddenly "Poor things"? They are adding a net of just a handful of seats per aircraft. They already have north-south flights. Some have been quoted as saying it's a lot of work dealing with the ordering system vs the traditional methods. ....

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