United Vacation Pass Travelers
#61
EAS contracts are set up from point to point, nothing more. There are a few airlines out there flying EAS markets with zero codeshare agreements, and don't feed a hub and spoke system. So yes, EAS markets exist without the connecting traffic being part of the equation.
#62
Gets Weekends Off
Joined APC: Dec 2018
Posts: 1,066
"The EAS carrier only sets the price for point to point traffic" - yea that is right, it is the at risk portion.
"Inventory is de facto controlled by UA - marketing agreement or not." - United can only sell what the risk carrier makes available to sell, thus making the at risk carrier in control of its inventory. Overbooking authorizations, booking classes percentages, all controlled by the risk carrier on the segment they are operating.
"But the net effect on how business is transacted is marginal as they ultimately still control sales" - the control the transaction yes, but that all falls under the marketing agreement and agreed payment percentages per transaction.
Here is a quick question for you....do you happen to know why there are no longer any CRJ 200's flying under AA code anymore?
"Inventory is de facto controlled by UA - marketing agreement or not." - United can only sell what the risk carrier makes available to sell, thus making the at risk carrier in control of its inventory. Overbooking authorizations, booking classes percentages, all controlled by the risk carrier on the segment they are operating.
"But the net effect on how business is transacted is marginal as they ultimately still control sales" - the control the transaction yes, but that all falls under the marketing agreement and agreed payment percentages per transaction.
Here is a quick question for you....do you happen to know why there are no longer any CRJ 200's flying under AA code anymore?
correct but why would OO artificially limit the inventory? It goes back to my point that EAS would not exists (at least not with 50 seaters) if it wasn’t for network connections. The economics of at risk is really a function of the network portion.
”Here is a quick question for you....do you happen to know why there are no longer any CRJ 200's flying under AA code anymore?”
I don’t know. I suspect they at a minimum want two class service with spruced up 700s everywhere.
#63
“United can only sell what the risk carrier makes available to sell, thus making the at risk carrier in control of its inventory. Overbooking authorizations, booking classes percentages, all controlled by the risk carrier on the segment they are operating.”
correct but why would OO artificially limit the inventory? It goes back to my point that EAS would not exists (at least not with 50 seaters) if it wasn’t for network connections. The economics of at risk is really a function of the network portion.
”Here is a quick question for you....do you happen to know why there are no longer any CRJ 200's flying under AA code anymore?”
I don’t know. I suspect they want two class service with spruced up 700s everywhere.
correct but why would OO artificially limit the inventory? It goes back to my point that EAS would not exists (at least not with 50 seaters) if it wasn’t for network connections. The economics of at risk is really a function of the network portion.
”Here is a quick question for you....do you happen to know why there are no longer any CRJ 200's flying under AA code anymore?”
I don’t know. I suspect they want two class service with spruced up 700s everywhere.
The AA 200 flying went away because the AA pilot union had a fit over us doing at risk flying, and having that control I have been talking about. AA didn't want the airplanes under contract, so that went away.
#64
Gets Weekends Off
Joined APC: Dec 2018
Posts: 1,066
"why would OO artificially limit the inventory?" - for the same reasons any airline either limits inventory or overbooks. That is all part of revenue management. You overbook because your no-show percentage is high, or you limit seating capacity based on some sort of operational hindrance.
The AA 200 flying went away because the AA pilot union had a fit over us doing at risk flying, and having that control I have been talking about. AA didn't want the airplanes under contract, so that went away.
The AA 200 flying went away because the AA pilot union had a fit over us doing at risk flying, and having that control I have been talking about. AA didn't want the airplanes under contract, so that went away.
as for the inventory limitation. Yes, you need to set those guardrails. But I doubt OO would “protect” seats for OO pass travel and make less than physically available to the mainline partner - effectively handing over control for the entire inventory.
And this is where this all started - pass travel and who owns the seats. At the end of the day OO is handing over practically all inventory to mainline to manage. And with it comes the pass travel priority of mainline. Could that be changed? Maybe, but I am not sure management has any interest in pushing that.
anyway, I appreciate a good fact based conversation.
#65
On Reserve
Joined APC: Aug 2020
Posts: 24
Not picking a side, but I found this article (link below)and it’s relevant to the discussion. An airline without a codeshare agreement was selected for EAS routes out of Pierre-Watertown instead of SkyWest. SkyWest is appealing the decision and one thing they cite is they offer codeshare agreements and access to a large route system.
https://www.capjournal.com/news/skywest-requests-rebid-for-pierre-watertown-eas/article_f4d13c08-adbe-11eb-b71b-27c4a0abd087.html
https://www.capjournal.com/news/skywest-requests-rebid-for-pierre-watertown-eas/article_f4d13c08-adbe-11eb-b71b-27c4a0abd087.html
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