Per Bloomberg, Delta is convinced of its proven operational superiority -- so much so that Delta is now offering to refund business customers if on-time performance ever lags behind United's and American's. Now, let's unpack this, because while it is the sort of gimmicky soundbite that will grab the attention of travelers and journalists, you've…
Continue reading: Delta (Kinda) Puts Its Money Where Its Mouth Is
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Not Skybonus -- this is for corporate contract customers.
They only pay out if they lag both United and Delta for a year. It only applies to 'controllable' performance. And they only pay companies who meet 95% of their contracted spend EVEN THOUGH Delta performed so badly.
As Gary noted, if you are a large corporate customer and book away from DL due to a meltdown, NO soup for you if your revenue falls below 95% of the contracted spend. Essentially, smoke...
Further, the guarantee only applies to mainline DL, not the regional carriers. And as is normal for all the legacies, the regionals tend to drag down the mainline numbers. And the corporate contract revenues usually are DL as a whole entity including the regionals. So, if your company is having horrendous reliability issues on DL regional partners and books away, NO soup for you. Essentially, mirrors...
In sum: smoke, mirrors, and Delta. Que sorpresa!
One more addition: as Nick stated, the chances of DL mainline performance ever being caught by UA is laughable under the current Jeff'd management. AA -- who knows? Let's get through the merger and see what comes? Doubtful IME but what do I know?
But here's the thing -- DL goes through this entire smoke/mirrors exercise for ???? *SMDH*
Do you think they paid for a Lloyds of London insurance policy or are self insuring the promo?
@GringoLoco: Well, I don't think anyone's arguing that this is an especially useful announcement, but it's not like Delta is taking anything away. They're just trumpeting a new benefit that's highly unlikely to ever materialize.
Your "NO soup for you" analogy implies soup was being served in the first place. No one is worse off for this announcement. Again, not saying this is anything other than Delta's communications department figuring out a great way to get some free press, but the fervent anti-Deltites (to expand on the Seinfeld terminology ;-)) are seeing this as Delta doing something bad which I don't quite get.
Since only mainline routes are considered by the FAA in on-time/continuation stats, I'm not sure the exclusion of RJ carriers is smoke and mirrors so much. (Plus, only the mainline routes are really under Delta's control...?)
@ Nick -- this reminds me of a local furniture store running a promo tied to oil going above $85 a barrel. Except oil is more likely to occur, lol.
I used to work for a regional airline, and TBH, the notion that only mainline routes are really under the mainline carrier's control is a bunch of BS. I realize the major airline propagates that notion just as much as anybody, but...
The majors control the schedule, they control the routes, they control the slots, they control how much the regional carrier gets paid... the only thing they don't do is directly pay the pilots and the mechanics.
Would you think it is a goodwill offer if your spouse or partner pledged to be monogamous only if you never have an argument?