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Airlines Confidential Podcast
200 - Doug Parker, Fmr Chairman & CEO, American Airlines
Aug 16, 2023
Former Chairman & CEO of American Airlines, Doug Parker, discusses challenges facing the airline industry, the importance of consolidation, and CEOs' responsibility to employees and addressing social issues. The hosts analyze Frontier Airlines' year-long passes and pricing strategies for new routes. They also celebrate reaching 200 episodes and discuss the decision to use International Arrow engines for Spirit A319.
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Quick takeaways
- Frontier's year-long passes experiment with pricing and customer response to fill seats and attract customers.
- Ticket prices on new routes are primarily determined by demand and market dynamics, considering historical pricing data from existing routes as a reference point.
Deep dives
Frontier's year-long passes are an experiment to determine pricing and customer response
Frontier's year-long passes are an experiment to determine pricing and customer response. The airline offers various types of passes and sets different price points. The pricing strategy is focused on filling seats and attracting customers. Frontier considers factors like demand, historical pricing, and revenue generation when setting prices. The success of these passes will be evaluated over time to make adjustments and determine if they can be reintroduced in the future.
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