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Chp 11 Filings, Leads To Expansion?  
User currently offlineAa777jr From , joined Dec 1969, posts, RR:
Posted (9 years 11 months 6 days 18 hours ago) and read 1746 times:

I do not understand the current trend of legacies UA DL etc expanding destinations while they are sinking into Chp 11. Also US announced more destinations and they are sinking just as fast. Please explain?

AA777jr

7 replies: All unread, jump to last
 
User currently offlineGigneil From United States of America, joined Nov 2002, 16347 posts, RR: 85
Reply 1, posted (9 years 11 months 6 days 18 hours ago) and read 1734 times:

They need to offer service to higher-yielding destinations. US has announced lucrative Caribbean destinations, UA has announced new Asian services since announcing bankruptcy.

N


User currently offlineAa777jr From , joined Dec 1969, posts, RR:
Reply 2, posted (9 years 11 months 6 days 18 hours ago) and read 1722 times:

AA has a lock on Caribbean destinations, and there are so many carriers flying in Asia, how can UA make a huge profit?

AA777jr


User currently offlineGigneil From United States of America, joined Nov 2002, 16347 posts, RR: 85
Reply 3, posted (9 years 11 months 6 days 18 hours ago) and read 1715 times:

US-Asian routes are extremely lucrative, only NW offers a competitive number of routes from the US, and the Caribbean is underserved even with AA's service. Both are very high yield.

N


User currently offlineAa777jr From , joined Dec 1969, posts, RR:
Reply 4, posted (9 years 11 months 6 days 18 hours ago) and read 1707 times:

NW is huge at NRT. Is there really a huge demand for all those destinations in Caribbean? Can you name any high yield routes that AA isn't serving in Carbbean now? Thanks

User currently offlineAzul320 From United States of America, joined Jun 2004, 281 posts, RR: 0
Reply 5, posted (9 years 11 months 6 days 18 hours ago) and read 1707 times:

It's not really expansion. DL just de-hubbed DFW and US also de-hubbed PIT. This means cancelling hundreds of daily flights systemwide, the airplanes can't be grounded. All that they are doing is shifting their operations to other cities where there is a larger possibility of profit with their existing fleets to make up for the de-hubbed areas.


Excuse me, while I kiss the sky
User currently offlineGigneil From United States of America, joined Nov 2002, 16347 posts, RR: 85
Reply 6, posted (9 years 11 months 6 days 18 hours ago) and read 1685 times:

NRT is not the only airport in Asia, and still there is room for two carriers.

I doubt there are any unserved high yield caribbean routes, but there is more than enough traffic for the two carriers to compete.

Some 17 airlines fly between London and Sydney, but it is still a very high yield routes.

N


User currently offlineUal777contrail From , joined Dec 1969, posts, RR:
Reply 7, posted (9 years 11 months 6 days 7 hours ago) and read 1490 times:

In my opinion Asia is the better route vs the caribbean. AA is trying like hell to get a finger hold on Asia, anybody can get into the caribbean.

My guess is that while uinder chap. 11 you have more money to start new routes. you restructure aircraft leases, and off you go, a new destination.

UAL 777 CONTRAIL


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