Re: AA finally admits that Basic Economy is nothing more than a fare increase.

I'm not an arbiter of what is appropriate but to say 7.2% is modest, when the cash flow generated is astronomical, sounds irrational to me. First off, in the context of other industries, I do think 7.2% is quite modest. Second, in the end, profit and cash flow are the same - the only difference is ...

Re: AA finally admits that Basic Economy is nothing more than a fare increase.

3. "They only make 7.2% margins" *cues violin* I've said it before, and I'll say it again - an industry with the cost, complexity and risk of the airline business generating a net margin of 10% seems exceptionally reasonable (low, actually) to me. So if people think that number is too hig...

Re: AA finally admits that Basic Economy is nothing more than a fare increase.

Very flawed logic. The fact that people can afford something does not mean they want to pay for a lesser product. People flocking to Spirit have not "always wanted charges on carry-on", they do so because it is what they can afford. No question, so said differently - what those highly pri...

Re: AA finally admits that Basic Economy is nothing more than a fare increase.

AA didn't lie. Their press release actually said "this is not a discount" to their credit. But you're right, Bob Isom's quote can easily be misinterpreted. By "compete effectively with ULCCs," what do you suppose he means? Cut prices? Well that's what it means in your mind (and ...

Re: AA finally admits that Basic Economy is nothing more than a fare increase.

The idea that carryons should never have been free is ridiculous. What should "never have been" are fares as low as those that were common in the past - because those fares were not economically sustainable. They led to an unstable, irrational and inefficient industry that destroyed unspe...

Re: AA 777 & 787 fleets coming to CLT and PHL?

I agree with others that we'll probably start seeing the 77Es on CLT/PHL-LHR, and maybe to FCO in the summer. For the past few years there has been quite a bit of slack in the 777 fleet as mods have been in progress - just tightening up the utilization a bit (in combination with new 789s freeing up...

Re: AA finally admits that Basic Economy is nothing more than a fare increase.

Like arguing with a brick wall... :banghead: Yeah, I know the feeling. :roll: I would strongly recommend that anyone interested watch and listen to the entire presentation yesterday related to this subject. The slides, and commentary that accompanied them, was exceedingly rational and logical. All ...

Re: AA 737/321 Cabin Updates

In terms of the IFE, I'm actually happy with the change. As it is, I'm not willing to pay extra for AVOD PTVs, anyway, and would happily accept high-speed wifi, messaging and streaming IFE to my own device - especially since these planes will all be getting USB and power, too. Frankly, I think I'd a...

Re: AA finally admits that Basic Economy is nothing more than a fare increase.

ULCCs are what they are and don't pretend to be otherwise. Legacies think they can get the best of both worlds by marketing "Basic Economy" when it is the same price that previously got their customers a carry on and seat assignment, but now they have to pay for that. Of course they have ...

Re: AA finally admits that Basic Economy is nothing more than a fare increase.

Whether or not AA admitted it, why do you think it works for ULCCs? Precisely. AA, Delta and United are simply responding to what customers have demonstrated - repeatedly - that they want with their mass patronage of ULCCs. Take your pick...I'll leave it to you to read between the lines: http://www...

Re: AA finally admits that Basic Economy is nothing more than a fare increase.

Yah, I've noticed AA has the LEAST predictable fare increases from econ- to reg econ...it almost depends on the flight, but it's anywhere from $0 to $15. DL is almost always $15-20 more, and UA is always $40 more...all o/w of course. Remember - this is just at the beginning. Airlines are still expe...

Re: AA - CZ Apply for Code-Sharing

It's a bargain considering Delta paid $450,000,000 for its share in China Eastern. Yeah, no kidding - not to mention the other ~$1.5 billion Delta has spent buying partners all around the world. The partnership with a Chinese carrier most certainly is a game changer and already American benefited g...

Re: AA 777 & 787 fleets coming to CLT and PHL?

And PHL-AMS Ah, yes - forgot about AMS, too. As presently loaded, AA's S18 767 longhaul schedule requires about five aircraft each at MIA (CNF, GYE, MVD) and PHL (AMS, BUD, LIS, PRG, ZRH), plus there is still a smattering of inter-hub 767 flying (MIA-DFW, MIA-JFK, etc.) and also two 767s dedicated ...

Re: AA 777 & 787 fleets coming to CLT and PHL?

I hear that American Airlines plans to retire their Airbus A330-300 fleet by the end of the decade, around 2019. I also hear that when this happens, AA will bring their 777 and 787 fleets to the LUS hubs, CLT and PHL. Who else knows about this and what will happen? The A330 - in terms of both size ...

Re: AA - CZ Apply for Code-Sharing

Will be interesting to watch this and see where things go with AA. I do wonder what path CZ will take longer term, whether it maintains relations with both AA and DL, or decides to shed DL/Skyteam and move towards OW? Agreed. At least in terms of the transpacific relationship, it seems clear that t...

Re: AA finally admits that Basic Economy is nothing more than a fare increase.

Read the article I read the article, and still can't find anything that was "admitted." All I see are fairly articulate explanations of the obvious . It isn't - or at least shouldn't be - news that "basic economy is not a price cut." It's an alignment of the value delivered with...

Re: AA Partners with Casper for New In-Flight Sleep Products

I doubt most passengers care - or are motivated in their purchasing decisions - on the basis of whether the premium bedding is provided by a global aspirational brand or a millennial-focused brand. If this bedding is comfortable, I suspect most passengers will be happy with it - and I doubt many wil...

Re: AA - CZ Apply for Code-Sharing

AA president Robert Isom today referred to this pending codeshare, and the broader strategic relationship, with China Southern as a "game changer" for AA. I suspect he's right - this is going to dramatically improve AA's competitive position in Mainland China.

Re: Airlines at all 5 LA-basin airports

If the original post was asking about the airline itself, not including partners-- how many airlines have served all five at one time? Southwest and ... anyone else? If by "not including partners," you mean excluding regional carriers flying for the mainline carrier, AA would definitely q...

Re: Delta: C-Series What's Next

DL is the big loser in all of this. RA made the bed when he swore he wouldn't order Boeing vs. Airbus unless Airbus was more than 15% higher or some such garbage. Now they're stuck with one supplier, essentially, and a vindictive former supplier on the other hand. Plus, they have a comparatively an...

Re: UA in CLE: What's next?

Most of the people who crowed over the UA hub CLE closure were also saying that Hopkins enplanements would be severely reduced and that the airport was essentially dead. Some even said that CLE's passenger totals would be down to 4-5 million a year. They never saw WN expansion or F9/NK entering the...

Re: American adds limited-time MIA-BUF/RSW during holiday season

How hard up is American for Eagle gate space at Miami? Buffalo and Milwaukee both seem like they should have been added by now; they're similar to Louisville, Columbus, Indianapolis, and Cincinnati, which all have Eagle service. There's a reasonable case for Albany, Rochester, Providence, Mancheste...

Re: Boston Aviation - Part 13

Was doing some dummy bookings on AA's site and looks like they're putting an A321T on one of the BOS-LAX flights. They're probably doing it just to use the plane since they're reducing JFK-LAX/SFO for the winter but still nice to see another carrier putting lie flats on transcons out of BOS It's on...

Re: Is the JetBlue CEO giving us some hints for the future?

Decision to go transatlantic out soon. It's an obvious move - and seems quite likely. Personally, I think JetBlue has a significant amount of upside potential to bring Mint into transatlantic markets. The A321LR opens up numerous options for JetBlue out of JFK and especially BOS - markets in the Br...

Re: DL dropping PHL-CDG?

757usairways wrote:

Now I wonder if AA will upgrade PHL-CDG

Re: DL new summer 2018 transatlantic flights

Very cool adds - some interesting new cities and routes, and like some of United's recent announcements, it's impressive to see Delta continuing to leverage its transatlantic gateways (especially JFK) to try out some new and novel markets. LAX-AMS 4x weekly 77L LAX-CDG 3x weekly 77L Interesting. Thi...

Re: DL dropping PHL-CDG?

It's hard for me to believe that with corporate contracts, Skyteam won't serve CDG-PHL. The pharmaceutical industries alone in the Philly / Jersey / Delaware area and in France should provide a decent amount of support for the route. I agree - it is hard to believe, that Delta would exit PHL-CDG or...

Re: DL dropping PHL-CDG?

It is hard to believe that the SkyTeam JV would completely exit the transatlantic market out of PHL - PHL is obviously no JFK, WAS or BOS, but it's not exactly a tiny market. That said, I guess it's not that shocking - AA is adding material new capacity on PHL-Europe next year, including new routes ...

Re: Delta to axe NRT-GUM

I am as nostalgic as anyone about the NRT operation. I've been a lifelong DL widget-bleeding fan, and I get this - yet am sad. I'm convinced we will see Asia for DL become more like Europe for DL. A few years ago (early part of this decade?) DL stopped their last onward Europe destination of India ...

Re: When will SAT have its day?

One thing I'm sorta surprised by, is the absence of COPA in either market. IINM, all of their service is to FAA large-hubs, with the glaring exception of MSY, their only medium US market. But they've been there for a while, and appear to be doing just fine, so I'm surprised that they haven't expand...

Re: Which airlines also run bus- and or train-services?

I remember when train and bus "codeshares" were much more common for U.S. carriers, too. AA and United both used to codeshare on the Rockford Bus out of ORD, and United had lots of bus codeshares from DEN to Colorado mountain/ski cities. Both also used to codeshare on SNCF trains in and ou...

Re: United 744 utilization with full fleet

United also definitely used the 747s on the RTW flights UA1/2 that operated through LHR, DEL and HKG - resuming in 2001 after being suspended in 1999. I always thought LHR-DEL-HKG was a 763 during the time of the RTW service... It was a mix. As I recollect, LAX-JFK-LHR-DEL was a 763 and DEL-HKG-LAX...

Re: AA to set up $100mil Maintenance Center at GRU

Following up on the initial announcement from several months ago, Brazil’s government on Friday formally approved the agreement between AA and GRU's operator for AA to construct a hangar at the airport and use the land for up to 40 years. AA's plan entails a total investment of $100M, including $50M...

Re: Delta to axe NRT-GUM

So what happens when and if North Korea and South Korea start mixing it up? Looks to me like DL is whistling in the wind and hoping one will notice. First, if - hypothetical - an actual war breaks out in Northeast Asia, it's not going to matter whether an airline has hubs or JV partners in Japan vs...

Re: Delta to axe NRT-GUM

NW would have kept NRT intact as a standalone. They had nothing else. You have to understand, mergers made hubs redundant. We see it in the US all the time. No doubt STL was "marginal" for TW compared to UA at ORD, but it was all they had and it wasn't going anywhere. No one on here can s...

Re: Delta to axe NRT-GUM

How many flights and destinations did DL/NW have during the peak of the NRT hub? For instance - during the summer of 2001, just before 9/11, Northwest had 125 weekly departures (just slightly less than 18 per day) out of NRT to 17 nonstop destinations. On top of that, Northwest that summer also ope...

Re: Delta to axe NRT-GUM

Yes such a great hub that it lost NW money all 6-years prior to the merger. (source: interview with executives in the book "Glory Lost and Found") That "great hub" is a relic of a bygone era. With newer, more efficient, and longer ranged aircraft allowing the likes of LAX/SFO/et...

Re: Why didn't DL keep main services from MEM?

MEM was one of the smallest hubs - both demographically and economically - in the U.S. The fact that MEM was even a hub at all was, in and of itself, somewhat of an anachronism of a bygone era. The reality is that on September 12, 2001, the U.S. had too many network airline hubs. It took the better ...

Re: United 744 utilization with full fleet

United Airline wrote:

Initially they used a B767-300ER. Then it was upgraded to a B747-400

Re: Delta to axe NRT-GUM

GUM is being axed while SPN and ROR aren't? United dominates NRT-GUM and JAL has a presence too, whereas Delta has NRT-SPN and NRT-ROR to itself - for now. I suspect Delta's exit from those two other Micronesia beach routes will have to wait for (1) the entrance of one or multiple new competitors, ...

Re: Delta to axe NRT-GUM

mercure1 wrote:

Guess this means Delta withdrawal from Guam entirely?

Re: United 744 utilization with full fleet

codc10 wrote:

I always thought LHR-DEL-HKG was a 763 during the time of the RTW service...

Re: Delta to axe NRT-GUM

As predicted. And I continue to expect further reductions in Japan beach capacity to come - these markets are simply no longer strategically important anymore to Delta in the way that they used to be, especially back in the Northwest NRT hub days. Hawaii and Micronesia beach routes were central to m...

Re: United 744 utilization with full fleet

United also definitely used the 747s on the RTW flights UA1/2 that operated through LHR, DEL and HKG - resuming in 2001 after being suspended in 1999.

Re: DL Future Expansion

Regarding expansion, there is one contraction: NRT-GUM is being cancelled. Internal website only so far. Interesting. I'll look forward to seeing the public confirmation - but if true, I can't say I'm particularly surprised. I've long expected that as Delta's overall presence in Japan has continued...

Re: Would UA and/or AA adopt a similar p2p/focus city strategy to keep up with DL?

This idea seems to ignore the fact that WN has been running the p2p/focus city strategy very well, sure they have a few "hubs" but a large portion of their routes are O&D focused. Not at all. Nobody ever questioned whether a point-to-point network structure works - in general. Southwe...

Re: Would UA and/or AA adopt a similar p2p/focus city strategy to keep up with DL?

The major opportunity with focus cities is to set up an operation in a medium-large market with a strong local economy and offer enough services in support of that market to capture a disproportionately large share of the high value traffic. For DL, RDU is a great example - it's a decently large ma...

Re: AA 777-200ER replacement, A350 , 787-9 order potential

AA is by far the weakest of the US3 across the Pacific not because of their aircraft but because they fundamentally lack a strong transpacific fortress hub and any legacy presence in the Asian market. They don't need as large aircraft as their peers, especially has competition across the Pacific is...

Re: Would UA and/or AA adopt a similar p2p/focus city strategy to keep up with DL?

Alaska doesn't have the frequencies to those destinations and it's program is taking a huge hit recently. And who knows how much longer it can stick it out in the bos sfo market. For corporate travel, flights to Las Vegas and similar locations don't matter as much. And yes, I would say aa is better...

Re: AA 777-200ER replacement, A350 , 787-9 order potential

As has yet to fly the 77W to NRT, other than a diversion, its pretty much a given at this point that AA will never schedule the 77W to TYO. I'm not so sure it will never happen. I could envision a 77W someday making its way onto 60/61 DFW-NRT. So if AA were to replace the 777-200ERs on DFW-NRT, oth...