Chicago to LA for $170 roundtrip on US airways

[Yellow]

What do you guys say?
Good deal?

[aussiebochur]

Yup

[Yaalili]

Good deal, many more here too - http://www.flyertalk.com/forum/mileage-run-deals/1418665-us-ewr-las-167ai.html - such as Newark to Las Vegas for $170 roundtrip, us is targeting ua hubs.

[PlatinumGuy]

us is targeting ua hubs.

Good luck. Nothing like the bloodbath UA is gonna give VX on SFO-EWR

[myb821]

Good luck. Nothing like the bloodbath UA is gonna give VX on SFO-EWR

and lax

[Dan]

Good luck. Nothing like the bloodbath UA is gonna give VX on SFO-EWR

UAs trying to bully VX into pulling out before they even start.  May even work.

[PlatinumGuy]

UAs trying to bully VX into pulling out before they even start.  May even work.

And Smisek has the chutzpa to complain the airline industry has a low entry bar

[Yaalili]

Good luck. Nothing like the bloodbath UA is gonna give VX on SFO-EWR

UAs trying to bully VX into pulling out before they even start.  May even work.

What is this referring too? Did they make a sale EWR to SFO?

[AJK]

No, they began (or will be beginning) a route.

[PlatinumGuy]

What is this referring too? Did they make a sale EWR to SFO?

VX announced service from EWR to SFO and LAX. UA retaliated by adding 5 daily flights to both EWRSFO and EWRLAX. In theory, UA can now match VX, and prevent them from charging anything more than the minimal amount until they sell out their capacity. Then, UA with greater capacity can start raising prices and getting the higher end of the market.

UA will likely lose a little money, but like in Chess, if both parties lose an equal amount, it's worth it for whoever is in a greater position, as an equal negative effect will harm the weaker party more than the stronger.

[Yellow]

if I book this ticket on orbitz do i get 24 hours to cancel?

[Dan]

Then, UA with greater capacity can start raising prices and getting the higher end of the market.

-1.
Greater capacity will mean dirt cheap EWR transcons on UA and VX if VX sticks this out.  UA will be happy to forgo higher revenue so long as VX backs off.

When AA got serious about taking on B6 transcons back in '03 they dumped huge amounts of CA/FL capacity and added tons of flights to LGB as well.
Prices fell well below $200 and AA did the famous AVNYC and AVBOS for 1 free flight systemwide if you flew twice between BOS/NYC and CA/FL.
With an AVNYC ticket I flew from GRU-DFW-JFK (stopover)-NRT (dest)-LAX (stopover)-MIA-GRU.

B6 had huge losses but they stuck it out and won the battle.

Doesn't always work that way.  But CO was particularly good at guarding their fortress hubs (CLE/EWR/IAH) and was rewarded for that in the long term with huge market shares and high fares.

[Dan]

if I book this ticket on orbitz do i get 24 hours to cancel?

You get until 11pm EST the next day.

[Yellow]

You get until 11pm EST the next day.

Thanks very much
Just booked my ticket 

[PlatinumGuy]

-1.
Greater capacity will mean dirt cheap EWR transcons on UA and VX if VX sticks this out.  UA will be happy to forgo higher revenue so long as VX backs off.

When AA got serious about taking on B6 transcons back in '03 they dumped huge amounts of CA/FL capacity and added tons of flights to LGB as well.
Prices fell well below $200 and AA did the famous AVNYC and AVBOS for 1 free flight systemwide if you flew twice between BOS/NYC and CA/FL.
With an AVNYC ticket I flew from GRU-DFW-JFK (stopover)-NRT (dest)-LAX (stopover)-MIA-GRU.

B6 had huge losses but they stuck it out and won the battle.

Doesn't always work that way.  But CO was particularly good at guarding their fortress hubs (CLE/EWR/IAH) and was rewarded for that in the long term with huge market shares and high fares.

Not sure where you're disagreeing with me is. The idea is that UA ensures it will never have less capacity than VX, because if that happens, VX can raise prices. Since UA has more capacity than VX, once VX sells out their planes, UA can raise fares. VX will never be able to raise, because UA will always have capacity to sell for cheaper.

The only variable is that at a very low price point, UA would sell a lot faster than VX because of mileage runners

[Dan]

With this much capacity neither UA or VX will sell out capacity and neither will have any ability to raise fares to a profitable level.

Like you said, the only possible winner here is UA as long as they're willing to endure heavy short term losses.

[Yaalili]

VX announced service from EWR to SFO and LAX. UA retaliated by adding 5 daily flights to both EWRSFO and EWRLAX. In theory, UA can now match VX, and prevent them from charging anything more than the minimal amount until they sell out their capacity. Then, UA with greater capacity can start raising prices and getting the higher end of the market.

UA will likely lose a little money, but like in Chess, if both parties lose an equal amount, it's worth it for whoever is in a greater position, as an equal negative effect will harm the weaker party more than the stronger.

Oh wow, i see a flight basically every hour now between sfo and ewr on ua!

[Yaalili]

When AA got serious about taking on B6 transcons back in '03 they dumped huge amounts of CA/FL capacity and added tons of flights to LGB as well.
Prices fell well below $200 and AA did the famous AVNYC and AVBOS for 1 free flight systemwide if you flew twice between BOS/NYC and CA/FL.
B6 had huge losses but they stuck it out and won the battle.

Where was i when this deal came around? Link?

[Dan]

Oh wow, i see a flight basically every hour now between sfo and ewr on ua!

Yup, hourly service between EWR and LAX and SFO.  Insane amount of capacity.

Where was i when this deal came around? Link?

You'd have to go wayyyy back to the bochurim.tk days!
Anyone here remember that forum?

[Yaalili]

You'd have to go wayyyy back to the bochurim.tk days!
Anyone here remember that forum?

Lol - it is nowhere on dd or ddf?