[X]
Write ReviewJump to 
Alaska Airlines Complaint - Price Gauging in Alaska Markets - Airfare to/from lower 48 and general airline & rewards policies as they pertain
Airfare to/from lower 48 and general airline & rewards policies as they pertain - Complaint
I feel it is warranted to investigate Alaska Airlines for price gauging their Alaska markets. Fares on flights in and out of Alaska continue to go up in-proportionately to fares in the lower 48. One might say that because they basically have a captive market in Alaska with very little competition, these higher fares might be based on supply and demand. However, since Alaska Airlines has also made decisions to cut back on flights in and out of the Anchorage (specifically) market, it seems like the airline is "creating" a higher demand and thus creating reason for higher fares. High peak travel periods in and out of the state of Alaska include Thanksgiving, Christmas, Spring break, major holidays and the end of October and March (due to school conference breaks). This November I found it impossible to get a fare to anywhere in the lower 48 for under $1000. Flights are continuously oversold and passengers are offered very little consolation for the inconvenience of being bumped. Recent policy changes award $250 credit for a bump ticket and yet an Alaskan resident cannot fly out of the state for anything close to that. The latest policy changes include changes to the award plan with regards to using mileage towards a 1/2 price ticket. The new policy reads "Beginning February 1, 2010: Money & Miles Award
Starting at 10,000 Miles One Way and 20,000 Miles Round Trip. Valid on itineraries with flights operated only by Alaska Airlines and Horizon Air. Receive up to a 50% discount on most fares. Maximum discount is $200 (USD) off of the base fare for 20,000 Miles and $100 (USD) off of the base fare for 10,000 Miles. You earn 100% of the miles flown when traveling on this award. Complimentary upgrades not allowed." These awards state that they are to be used to receive discounts up to 50% off "most" fares and yet the maximum discount has been again lowered. There is no where we can go where a $200 discount is equal to anything close to a 50% discount.
And all the while Alaska Airlines continues to increase rates and cut flights to Alaska markets, they also continue to expand their service and offer more flights to lower 48 cities and deeply discount those lower 48 fares.
In conclusion, I think it is more than fair to scrutinize these business practices as it has become apparent to Alaskans that we are being price gauged so that Alaska Airlines can broaden their wings of discount services outside of Alaska. A more fair business practice would be to add flights where the market demand is highest. We already pay some of the highest travel expenses in the nation, they could at least show some appreciation for our business by not raping us.
Starting at 10,000 Miles One Way and 20,000 Miles Round Trip. Valid on itineraries with flights operated only by Alaska Airlines and Horizon Air. Receive up to a 50% discount on most fares. Maximum discount is $200 (USD) off of the base fare for 20,000 Miles and $100 (USD) off of the base fare for 10,000 Miles. You earn 100% of the miles flown when traveling on this award. Complimentary upgrades not allowed." These awards state that they are to be used to receive discounts up to 50% off "most" fares and yet the maximum discount has been again lowered. There is no where we can go where a $200 discount is equal to anything close to a 50% discount.
And all the while Alaska Airlines continues to increase rates and cut flights to Alaska markets, they also continue to expand their service and offer more flights to lower 48 cities and deeply discount those lower 48 fares.
In conclusion, I think it is more than fair to scrutinize these business practices as it has become apparent to Alaskans that we are being price gauged so that Alaska Airlines can broaden their wings of discount services outside of Alaska. A more fair business practice would be to add flights where the market demand is highest. We already pay some of the highest travel expenses in the nation, they could at least show some appreciation for our business by not raping us.
Comments:
Posted by VF-213 on 2010-01-05:
Alaska Airlines isn't "gauging" you, there simply is little demand for air service in Alaska - Alaska and other airlines would offer more service if there was a robust market.
Alaska residents receive the bulk of of E.A.S (Essential Air Service) subsidy from the Federal government, so you currently are getting discounted tickets thanks to the lower 48 residents.
New seasonal ANC-PHL service from US Airways may help in '10
Expect a cash strapped govt to claw back many subsidies in '11, tix prices to reflect.
Alaska residents receive the bulk of of E.A.S (Essential Air Service) subsidy from the Federal government, so you currently are getting discounted tickets thanks to the lower 48 residents.
New seasonal ANC-PHL service from US Airways may help in '10
Expect a cash strapped govt to claw back many subsidies in '11, tix prices to reflect.
Posted by lmom45 on 2010-01-19:
To clarify, my comments are specifically referring to the cost of airfare out of Anchorage to the lower 48 states (which start by flying through Seattle-most often, Portland, Chicago or L.A.). I can understand the high airfares for travel WITHIN Alaska, as there is lower demand and higher costs for infrastructure.
The demand for travel from/to Alaska is very high. We are a captured customer here. The only way for us to travel is by air to the Lower 48. EVERY flight in/out of Anchorage is full and most are overbooked. The Anchorage market is most certainly robust!
And more to the point, with most flights overbooked, why is Alaska Air cutting flights in and out of Anchorage to the lower 48? I would argue that they are driving the prices higher by cutting flights. How can anyone justify a 3 1/2 hour flight to Portland costing $1100.00??? In what other market does a full flight get those kinds of fares?
Lastly, this makes it affordable for Alaska Airlines to LOSE all kinds of money as it offers deeply discounted fares within cities in the lower 48. They continue to expand into highly competitive markets in the lower 48 with low costs at the expense of their profit center here in Alaska.
I'm all for capitalism, but fare pricing should still be demanded. The airline that boasts our state name, is also the one which is putting the screws to us. Look at their frequent flier plan. It completely discriminates against Alaskan customers. Their 15,000 mile award is for a 50% discount off airfare in most markets, but has a $200 limitation. There is nowhere you can fly out of Anchorage for less than $650 super saver fare. They also changes to a multi level reward system which now strictly limits the number of FF saver award seats. Most time and entire family cannot fly at saver award miles because there aren't enough allocated seats on one flight. This forces you into a higher tier award.
My favorite new policy is their "bump" passenger compensation policy. With flights oversold between Anchorage and Seattle, the likelihood of not getting there has greatly increased. And yet, the newest policy is to compensate to a maximum of $250 if you are bumped off your flight and zero hotel compensation is rewarded. No one in their right mind would vacate their seat voluntarily anymore when traveling to/from Anchorage because the compensation is far less than the cost of the original ticket and it doesn't afford the traveler even a 50% discount off future travel. Plus, since so many of us fly red eye flights (because they are the least expensive), this increases the probability of having to overnight when bumped from a flight. There is no recourse even if you had purchased a fill fare ticket. It's crazy! Yet, if you are bumped off a $78 flight from SEA to PDX, the very same compensation is offered.
Lastly, while I am not suggesting in any way that Federal government subsidy be increased in this market, I am rather insulted at the reply that it is at the expense of the lower 48 taxpayers. Last I heard, Alaskans pay taxes in the same tax bracket as the rest of the U.S. and there are at least 3 other states with a lower taxable population.
The demand for travel from/to Alaska is very high. We are a captured customer here. The only way for us to travel is by air to the Lower 48. EVERY flight in/out of Anchorage is full and most are overbooked. The Anchorage market is most certainly robust!
And more to the point, with most flights overbooked, why is Alaska Air cutting flights in and out of Anchorage to the lower 48? I would argue that they are driving the prices higher by cutting flights. How can anyone justify a 3 1/2 hour flight to Portland costing $1100.00??? In what other market does a full flight get those kinds of fares?
Lastly, this makes it affordable for Alaska Airlines to LOSE all kinds of money as it offers deeply discounted fares within cities in the lower 48. They continue to expand into highly competitive markets in the lower 48 with low costs at the expense of their profit center here in Alaska.
I'm all for capitalism, but fare pricing should still be demanded. The airline that boasts our state name, is also the one which is putting the screws to us. Look at their frequent flier plan. It completely discriminates against Alaskan customers. Their 15,000 mile award is for a 50% discount off airfare in most markets, but has a $200 limitation. There is nowhere you can fly out of Anchorage for less than $650 super saver fare. They also changes to a multi level reward system which now strictly limits the number of FF saver award seats. Most time and entire family cannot fly at saver award miles because there aren't enough allocated seats on one flight. This forces you into a higher tier award.
My favorite new policy is their "bump" passenger compensation policy. With flights oversold between Anchorage and Seattle, the likelihood of not getting there has greatly increased. And yet, the newest policy is to compensate to a maximum of $250 if you are bumped off your flight and zero hotel compensation is rewarded. No one in their right mind would vacate their seat voluntarily anymore when traveling to/from Anchorage because the compensation is far less than the cost of the original ticket and it doesn't afford the traveler even a 50% discount off future travel. Plus, since so many of us fly red eye flights (because they are the least expensive), this increases the probability of having to overnight when bumped from a flight. There is no recourse even if you had purchased a fill fare ticket. It's crazy! Yet, if you are bumped off a $78 flight from SEA to PDX, the very same compensation is offered.
Lastly, while I am not suggesting in any way that Federal government subsidy be increased in this market, I am rather insulted at the reply that it is at the expense of the lower 48 taxpayers. Last I heard, Alaskans pay taxes in the same tax bracket as the rest of the U.S. and there are at least 3 other states with a lower taxable population.
Note: All comments are reviewed by a moderator before being published. Please be sure to read our guidelines before commenting.
Company Reps: Post your company response!
