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If AA Leaves MIA?  
User currently offlineDoug From United States of America, joined Jul 1999, 858 posts, RR: 0
Posted (11 years 9 months 3 weeks 2 days 20 hours ago) and read 3529 times:

If it were to come to fruition do you think that another carrier would take over AA's carribean,latin and south american routes in Miami.

23 replies: All unread, jump to last
 
User currently offlineUal747 From , joined Dec 1969, posts, RR:
Reply 1, posted (11 years 9 months 3 weeks 2 days 19 hours ago) and read 3455 times:

Um, yeah.

AA won't leave MIA though.

UAL747


User currently offlineDutchjet From Netherlands, joined Oct 2000, 7864 posts, RR: 56
Reply 2, posted (11 years 9 months 3 weeks 2 days 19 hours ago) and read 3435 times:

Why would AA leave MIA? The AA MIA hub is the gateway to its money-making caribbean and south american routes.

User currently offlineUsairways85 From United States of America, joined Nov 2001, 3473 posts, RR: 7
Reply 3, posted (11 years 9 months 3 weeks 2 days 18 hours ago) and read 3414 times:

Huh, what brought up this crazy idea.

User currently offlineScottysAir From , joined Dec 1969, posts, RR:
Reply 4, posted (11 years 9 months 3 weeks 2 days 18 hours ago) and read 3413 times:

No, I don't think so either with AA won't not leave from MIA either. I am sure that everything is doing fine for the more passengers used flying out of MIA to Latin American, Caribbean, Canada and Europe, too. Well, catch ya later!

Regards,

Scott W.


User currently offlineChepos From Puerto Rico, joined Dec 2000, 6234 posts, RR: 11
Reply 5, posted (11 years 9 months 3 weeks 2 days 18 hours ago) and read 3387 times:

I guess he meant if AA ever went under.
But dont even think the eagle will give up it's nest anytime soon.
Chepos



Fly the Flag!!!!
User currently offlineAA 777 From United States of America, joined May 2002, 808 posts, RR: 13
Reply 6, posted (11 years 9 months 3 weeks 2 days 17 hours ago) and read 3336 times:
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South America is one place these days where they are still making money....If AA **WERE** to leave AA there were be so many openings in slots because AA has over 50% of the slots in MIA

AA 777
Matt



CRJ-700 FO
User currently offlineUsairways85 From United States of America, joined Nov 2001, 3473 posts, RR: 7
Reply 7, posted (11 years 9 months 3 weeks 2 days 17 hours ago) and read 3332 times:

IF in the VERY slightest possibility of AA leaving MIA, i would think US would want MIA because of their existing extensive operation in the Caribbean

User currently offlineHlywdCatft From United States of America, joined Jan 2001, 5321 posts, RR: 6
Reply 8, posted (11 years 9 months 3 weeks 2 days 17 hours ago) and read 3316 times:

The Delta/Continental/Northwest Alliance would move in.

That would be the last place AA would close other than DFW.

First of all STL would be gone first, then probably ORD before Miami would be closed.


User currently offlineJetdoctor From United Kingdom, joined Aug 2001, 257 posts, RR: 0
Reply 9, posted (11 years 9 months 3 weeks 2 days 16 hours ago) and read 3302 times:

If this "dream" were to happen, to disagree with the ORD hub going before MIA. It is just too "central" to give up.

Jetdoctor



Break ground, and head into the wind. Don't break wind and head into the ground.
User currently offlineCannedSpam From , joined Dec 1969, posts, RR:
Reply 10, posted (11 years 9 months 3 weeks 2 days 15 hours ago) and read 3273 times:

Matt,

Slots? MIA is not slot controlled.


User currently offlineMAH4546 From Sweden, joined Jan 2001, 33273 posts, RR: 71
Reply 11, posted (11 years 9 months 3 weeks 2 days 14 hours ago) and read 3238 times:

MIA is thier most profitable hub operation, despite being the next to last smallest. AA would definitley hold on to it as long as possible, because the fact remains that even when a plane goes out 50% full to Bolivia (which they never do), they are still making money. Latin America is soft right now, do not get me wrong, but the fact that AA has barely cut back service to the region from MIA (two flights a week less to MGA, GIG, and SAL is it) is a sign of how well it continues to perform profitwise.

If it were to come to the point, however, trust me, Delta will have zero qualms about making MIA a hub. They have a huge FF base in the area and would love to get thier hands on those Latin route authorities. They could build up a domestic network easily, and add an RJ network with Comair and ASA. Plus takeover the MAD/CDG flights, maybe add in LON, MUC, FRA, BCN, and FCO to the mix, plus with AZ to MXP and AF to CDG. You'll have a nice operation. I am sure Delta would love to get back into Rio and Buenos Aires, but they definitley would need a hub like MIA to do it.

However, I don't think this is a situation we have to worry about. Miami is building AA a nice $1.7B terminal, and I am sure AA will be happy there when it opens in about 22 months.



a.
User currently offlineBA From United States of America, joined May 2000, 11154 posts, RR: 59
Reply 12, posted (11 years 9 months 3 weeks 2 days 2 hours ago) and read 3126 times:

South America is one place these days where they are still making money....

Depends where in South America. Argentina isn't doing too hot right now.



"Generosity is giving more than you can, and pride is taking less than you need." - Khalil Gibran
User currently offlineHlywdCatft From United States of America, joined Jan 2001, 5321 posts, RR: 6
Reply 13, posted (11 years 9 months 3 weeks 2 days 2 hours ago) and read 3078 times:

I know shortly after Sept 1, MIA was the U.S.'s busiest International hub. Apparently South American flights weren't as badly effected as European or Asian.

User currently offlineMxCtrlr From United States of America, joined Nov 2001, 2485 posts, RR: 35
Reply 14, posted (11 years 9 months 3 weeks 2 days 2 hours ago) and read 3072 times:

AA will leave MIA when you can pry Bob Crandall's cold dead hands off it!!!! The only way they would close MIA is if they went through an extreme meltdown (and the problems they are having today do not constitute that high of a meltdown). No, AA isn't leaving MIA anytime soon - I think they'd shut DFW down first!

MxCtrlr  Smile/happy/getting dizzy
Freight Dogs Anonymous - O.O.T.S.K.  Smokin cool



DAMN! This SUCKS! I just had to go to the next higher age bracket in my profile! :-(
User currently offlineDoug From United States of America, joined Jul 1999, 858 posts, RR: 0
Reply 15, posted (11 years 9 months 3 weeks 1 day 23 hours ago) and read 3022 times:

I was just playing with the idea if AA were to leave.You read and hear so many bad things about the airline industry as a whole is why I threw the question out there.I have no doubt that AA would leave MIA.If it did come to it STL and ORD yes ORD would go before MIA.Dont forget that while the ORD hub has 150+ more mainline daily departures than MIA,MIA still carries as many pax as AA's ORD hub .

User currently offlineDoug From United States of America, joined Jul 1999, 858 posts, RR: 0
Reply 16, posted (11 years 9 months 3 weeks 1 day 23 hours ago) and read 3014 times:

Let me clarify I have no doubt that AA would never leave MIA.I

User currently offlineScottysAir From , joined Dec 1969, posts, RR:
Reply 17, posted (11 years 9 months 3 weeks 1 day 21 hours ago) and read 2963 times:

Mark,

Are you exactly sure about new world gateway on AA hub will be opens for next 2 more years later into 2005. If I will looking forward see with the new concourse at the MIA; I do exactly expansion on the concourse D gates as for additional more gates with AA/AE, too. I do knew about AA will be takeover at the concourse A and replace with international concourse to old AA gates. I'm guess that will be everything doing fine at Caribbean, Latin American, and etc. Well, catch ya later!

Regards!

Scott W.


User currently offlineSegmentKing From , joined Dec 1969, posts, RR:
Reply 18, posted (11 years 9 months 3 weeks 1 day 21 hours ago) and read 2949 times:

actually AA picked up most of the tab for their remodeling efforts @ MIA..

-n


User currently offlineScottysAir From , joined Dec 1969, posts, RR:
Reply 19, posted (11 years 9 months 3 weeks 1 day 20 hours ago) and read 2940 times:

I postive sure that will be remodeling for AA @ MIA. You won't not wait until into 2005 will be ready into Spring 2005. I think. Will be very good to see how is they was doing into the world gateway into the airport and ticket counter space, too. Well, talk ya later!

User currently offlineMAH4546 From Sweden, joined Jan 2001, 33273 posts, RR: 71
Reply 20, posted (11 years 9 months 3 weeks 1 day 18 hours ago) and read 2889 times:

actually AA picked up most of the tab for their remodeling efforts @ MIA..


Hmmm...not according to the media. AA put in a very and generous nice amount, but the bulk was the City of Miami. LanChile also put in a nice little chunk. It's the Star terminal that is mostly being paid for by airlines.



a.
User currently offlineMAH4546 From Sweden, joined Jan 2001, 33273 posts, RR: 71
Reply 21, posted (11 years 9 months 3 weeks 1 day 18 hours ago) and read 2886 times:

Never mind very generous. AA is paying for $200M of that $1.7B.

http://www.miamitodaynews.com



a.
User currently offlineScottysAir From , joined Dec 1969, posts, RR:
Reply 22, posted (11 years 9 months 3 weeks 1 day 18 hours ago) and read 2881 times:

Here it is with the story about North Terminal at MIA:

By Paola Iuspa
American Airlines' future is clouding as the Miami-Dade Aviation Department reaches the quarter-way mark on a $1.7 billion terminal for the airport's largest carrier.
With 192 flights a day, American last year served almost 52% of the 30 million passengers at Miami International Airport, aviation officials said.
But its parent company, Dallas-based AMR Co., lost about $3.5 billion in 2002 and $1.8 billion the year before, company officials said. AMR's stock price performance is significantly below market and some fear it may follow the steps of United Airlines, which recently filed for bankruptcy. Chapter 11 allowed United Airlines to continue operations while developing a plan of reorganization. But if a company chooses Chapter 7, another route to bankruptcy, its business would shut down at once.
American is not the only airline facing tough times.
All the traditional network carriers at Miami International are now struggling to find a new business model, said Angela Gittens, Miami-Dade aviation director.
"By the end of this year," she said, "those airlines will have lost more money than they earned in the five best years commercial aviation ever had, from 1995 to 2000."
Airlines and transportation analyst Ray Neidl, with Blaylock & Partners of New York, an investment banking and securities brokerage, said AMR bankruptcy is not imminent.
"There is a long way to go," he said, "before American Airlines goes bankrupt.
"Miami is one of its key hubs to handle passengers to the Caribbean and South America. Miami is the key to their success. And even if they declare bankruptcy, it does not mean they will stop flying."
But Miami-Dade County may have reasons to be less optimistic, since Miami International Airport is footing most of the bill for the $1.7 billion North Terminal, now under construction.
To be occupied by American Airlines and American Eagle, the terminal is scheduled for completion in June 2006. Of the estimated cost, about 55%, or about $948 million, is already under contract and about $481 million worth of work is already in place, said Carlos Bonzon, aviation department deputy director for the airport's expansion program.
American Airlines is responsible for pitching in $200 million, of which $46 million would go to build an American Eagle facility. The rest would pay for construction of American Airlines' clubs, lounges, equipment and airport systems for the exclusive use of American, Mr. Bonzon said.
"Payment will take place as facilities are built," he said.
If financial problems force American to cease operations, such proposed amenities could be scratched.
Aviation consultant Rick Elder, Miami-Dade aviation director in the 1990s, when the North Terminal expansion was being studied, said elected officials took a big risk years ago by agreeing to American's demand for a larger terminal.
"When the airline was demanding its own terminal and asking the airport to build it so American could rent it from us," he said, "I was watching the red ink flow all over the industry, especially from American."
Mr. Elder said he is currently writing a book detailing many of the negotiations that took place.
American began in 1991 pushing for a mega-concourse, estimated to cost about $500 million, said Mr. Elder, who opposed the expansion. But eventually elected officials and American teamed up behind the new terminal, whose price tag ballooned from $500 million in 1991 to the existing $1.7 billion, he said.
While the airport is funding the job with airport-generated revenues, anyone flying to and from Miami International is paying for the construction as well. To pump up revenues, the aviation department had to increase airline ticket counter rentals, a ticket tax and airline landing fees, he said.
"Those expenses are passed directly to the passengers," he said.
The current North Terminal is part of the airport's $4.8 billion capital improvement program, which is under way and aimed at serving more passengers at a faster rate, aviation officials said.
Ms. Gittens said if American Airlines needed to shrink its operations as a result of any corporate reorganization, the North Terminal project could be used to increase capacity and efficiency for other carriers.
"Those elements that are specifically designed for a one-airline connecting operation, such as the people mover and the baggage system, would not be needed," she said, referring to items designed explicitly to meet American Airlines' needs.
The current design consists of 3.2 million square feet, of which 1.9 million square feet is new construction and the rest is remodeling of existing space, Mr. Bonzon said. The terminal will be 1.3 miles long with a four-station people mover, he said.
But if American cut its services in Miami, it would be hard to find carriers willing and able to fill the space now being built for it, Mr. Elder said.
"The industry is in crisis," he said. "It is not the '90s anymore, when we successfully absorbed the void left by Pan Am and Eastern Airlines when they went bankrupt. Back then, we had airlines waiting to come to Miami International Airport. The economy was thriving and the future was looking bright."
Today, the sluggish economy, high fuel prices, concerns over terrorism, a drop in tourism, new security costs since 9/11 and the possibility of a war in the Middle East are some of the factors driving AMR to its current financial state, which could have a domino effect on Miami-Dade's economy.
The carrier employs about 9,000 at Miami International Airport and leases 38 gates at Miami International on a monthly basis.
"We are a company in crisis in an industry in crisis," said Martha Pantin, American Airlines' spokeswoman in Miami. "That is why we asked our employees for a reduction of $1.8 billion. We have already identified $2 billion in recurring cost savings."
Nationwide, AMR is asking labor leaders and employees to trim $1.8 billion in salaries and benefits. Its management and support staff have already suffered a 22% reduction, company officials said.
"It hurts the Miami-Dade economy if its major carrier lays off a lot of people," Ms. Gittens said. "So far, American Airlines has not laid off a lot of people here. But this could change."

Regards!

Scott W.


User currently offlinePSU.DTW.SCE From United States of America, joined Jan 2002, 7767 posts, RR: 27
Reply 23, posted (11 years 9 months 3 weeks 1 day 15 hours ago) and read 2822 times:

See, this topic is complete nonsense...

Yes, the airline industry is in trouble, including AA.

However, AA has yet to go into Chapter 11, and even if they do, the odds of them completely liquidating are very, very slim. Reorganization is very much possible. Its simple, AA enters Chapter 11, cuts union contracts, cuts some of their aircraft leases, and bascally cuts a lot of the fat out of their operation. They can emerge from Ch. 11. MIA, being as steady a performer as it is, will not be one of the first things to be cut by AA. There is a lot of less performing routes to be cut before MIA is touched.


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