With all due respect, AA lost $200 million flying to Asia over just the past 3 quarters.
Yeah, kind of like how Delta lost money for years in NYC because management thought it was a worthwhile long-term investment. Rome wasn't built in a day.
This isn't about "bigness" or anything else but maximizing shareholder returns.
Absolutely right. And in that regard, AA and United have materially narrowed the gap in terms of both profitability and shareholder return compared to where they were relative to Delta several years ago. I expect that gap to keep narrowing.
AA might feel a strategic need to build a transpacific hub at LAX but DL and UA never said that they wouldn't challenge AA at every step AA makes at LAX.
Appreciate the update - Delta and United can say and do whatever they want, just as can AA. Got it.
They also are using their hubs at SFO and SEA to do a better job of connecting traffic via their west coast hubs while maximizing their LAX to Asia flights to serve the local LAX market.
Sounds like U.S. air travel consumers have a pretty vibrant, competitive environment between the west coast and Asia. Good.
You do realize that even though DL was the last of AA, DL and UA to start LAX-PVG, it now carries the most traffic of the 3 both in the local LAX-PVG market and on the flight as a whole?
I should hope Delta does well on LAX-PVG considering it's the only U.S. carrier with an equity "strategic" partner's megahub at the PVG end.
Do you also realize that DL carries more passengers from LAX-HND in both the local market and the flight overall even though AA has a JV in Japan?
I should hope Delta carries the most local passengers LAX-HND considering that, unlike AA, it enjoys almost zero online connectivity at the HND end.
so, as much as you want to think that securing LAX-PEK will lead to a great strategic win for AA, it simply ups the level of competition, one at which AA hasn't ended up in top place in any LAX to Asia market that DL and UA have also entered.
Cool story. And in the meantime, AA now has more transpacific flights from LAX than United and double the number of Delta. AA has carved out a leading position in the LAX transpacific market and at LAX overall, just as United and Delta have done at other hubs up the coast. Once again, good - sounds like a win for the industry and consumers to me.
As much as some people get all excited about the ins and outs of this route case, the end result is not really going to change that UA will remain the largest US carrier to Asia including to China followed by DL and then AA.
Yeah, once again, thanks for the update on the obvious.
Last edited by commavia
on Fri Jul 14, 2017 8:54 pm, edited 2 times in total.