Since it’s a lazy Saturday in May I thought you may really like the above video I found (and a few million others). Now the math and the logic is NOT Delta specific and we can tweak it a bit to focus on our favored airline.
So how does this basic video compare to Delta? They are clearly working to up-sell that “filled up space” into something more. Move anyone from C- to C+ (i.e. by paying for it) and think what a jump in revenue that is. Move them from C- to 1st (or Delta One) and you are talking another big jump no matter how much they charge in the end. With the new large PE cabins it can mean even more money!
Then we have all the other ancillary revenue to get something out of those just taking up space in coach – that is, selling anything like drinks, food etc.
Now there is a clear difference between a domestic and international bid and the selling logic. But sticking with international for a bit we can see why Delta is so “scared to death” from airlines like NAI that is almost solely focused on coach passengers vs. Delta that is not. The rich field of income is truly threatened by an all (or almost all) coach approach model.
What do you think of this little education in aviation income. Agree? Disagree? Any other Delta specific thoughts on the model? Let us know in the comments below! – René
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