United Airlines will need to copy the American Airlines for giving their passenger carry-on Bag Allowance.
AA (American Airlines) and UC (United Continental) made a decision in the past to announce basic low-cost fares and named it as the basic economy. The motive behind this was to enter into a race with the low price airlines. Both Airlines approved the number of restrictions for passengers with the low rate ticket plan. The passengers can take only personal accouterment while traveling through United Airlines and American Airlines.
However, express a regret by the American Airlines and publicized that the passenger with basic economy tickets can bring themselves carry-on bag with personal accouterment. The restriction has been removed by the American Airlines but it is putting more pressure on the United Airlines to adopt the same policy for the Passengers to compete in Airlines market.
DAL, In the Past (Delta Airlines) first time declared low price ticket in the USA. From the start of the cheap ticket, they never put limits on the passengers for the carry-on bag but they have other restrictions like no seat transfer and no alteration in flight. But an economy class can take a seat in the plane after other classes.
So, the target market for the delta is price sensitive air travelers to travel through Delta and purchase the ticket. With encouragement to a passenger, it has also discouragement as the airplane service is offering the ticket to price-conscious people at the end.
After the announcement of the second quarter earnings, the American airlines accepted that the cheap ticket offer is not adding more income as estimated.
The survey with the number of customers was done with the help of a tool by the management. In this survey the customer needs to answer a question is he like to carry on bag or without it? If the customers answer yes then the customer falls in the regular price ticket than the cheap price ticket. As the passengers start moving towards the Delta airlines due to the carry bag on, so the management of the American airlines decided to remove the restriction of the bag wall.
Now the American airlines are competing with the Delta airlines. Now it is time for the United airlines to follow American Airlines and United Airlines.
The number of United airlines passenger are moving to other lines like Delta and American Airlines with no restrictions on bag carry on. Although the United is offering economy rate tickets same as American airlines but has restriction policy on passenger carry-on bags.
The analysts are expecting that in near future the United will soon lift the ban on carry-on bags for its passengers if it wants to remain in competition with other airlines.
ValueSpectrum.com News Wire & Equity Research: +31 084-0032-842
Copyright analist.nl B.V.
All rights reserved. Any redistribution, duplication or archiving prohibited. analist.nl doesn't warrant the accuracy of any News Content provided and shall not be liable for any errors, inaccuracies or for any actions taken in reliance thereon.