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Hi A320FAN,
Thanks for posting this, I do enjoy reading WSJ articles. I read the article with interest and had a few points I wanted to ask the community; 1. Two part question: If Southwest makes rewards flights available on any flights on its network (i.e. all the flights that SWA fly on) will this not dilute its revenue as there are a lot of Rapid Rewards customers who have racked up a hefty amount of FFM and it would mean that out of a potential of 150-200 customers on an average flight, half or more would be rapid rewards and would not yield any income to Southwest which is basically "bums on seats", OR does SWA make ancillary revenue to offset the cost of the reward seat by making all normal options of full revenue tickets such as free baggage allowance or meals a "pay to recieve" service. 2. What impact does the FFP's of foreign airlines such as the example of SQ taken in the article have on the FFP's of US based carriers which are already undeveloped to the point where in the case of US Airways, seats are just not available any more. Would appreciate the community's insights and points of view. Regards, rgpnz |
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