I get it. Running an airline is a hard business. You fuel up a plane that you lease or buy for 100’s of millions of dollars, with expensive fuel–after selling tickets months and weeks ahead of time based on assumptions as to your costs. If you’re lucky you sell out the plane, and then, if […]
milenomics
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Using Demand Schedules to Target Earnings
We’ve been slightly sidetracked by the recent United news that came out early today. Please focus discussion on that devaluation either on FT or in the comments of the earlier post here. I’ll do my best to get us back on track with regular Milenomics posts. I also have a special piece I’m working on […]
Quick Analysis of United’s Recent Devaluation Announcement
Both Will Run For Miles and Frugal Travel Lawyer wrote today about United’s recent devaluation. If you haven’t heard yet–it is pretty bad for Business/First travelers. I wouldn’t just call it a devaluation as much as a shift in how United Mileage Plus works as a program. You’re now looking at two tiers for premium cabins–one […]