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AA To Pull Out Of ASU  
User currently offlineMaverickM11 From United States of America, joined Apr 2000, 17672 posts, RR: 46
Posted (8 years 10 months 2 weeks 19 hours ago) and read 7742 times:

"ASUNCION, Paraguay, Dec 16 (Reuters) - American Airlines (AMR.N: Quote, Profile, Research) plans to cancel its flights to Paraguay indefinitely after 15 years because the route is no longer profitable, a company spokeswoman said on Friday.
As of Feb. 2, Paraguay's Asuncion will become the only South American capital the carrier does not fly to."

...besides Brasilia, Paramaribo, Cayenne, and Georgetown but who's counting Wink


E pur si muove -Galileo
52 replies: All unread, showing first 25:
 
User currently offlineA300AA From United States of America, joined Sep 2004, 394 posts, RR: 0
Reply 1, posted (8 years 10 months 2 weeks 19 hours ago) and read 7720 times:

No way.....

AA is really in a very bad situation.

AA has also informed that from JAN 1 no more pretzels with the beverage will be given, systemwide.

How bad.


User currently offlineFCYTravis From United States of America, joined Sep 2005, 1191 posts, RR: 6
Reply 2, posted (8 years 10 months 2 weeks 19 hours ago) and read 7720 times:

Let's see if they blame this on the Wright Amendment too.


USAir A321 service now departing for SFO with fuel stops in CAK, COS and RNO. Enjoy your flight.
User currently offlineMaverickM11 From United States of America, joined Apr 2000, 17672 posts, RR: 46
Reply 3, posted (8 years 10 months 2 weeks 19 hours ago) and read 7703 times:

Quoting FCYTravis (Reply 2):
Let's see if they blame this on the Wright Amendment too.

Oh duh, I forgot about that. That must be the reason they're pulling out of ASU. They need that extra 763 time to fly DAL/MAF.



E pur si muove -Galileo
User currently offlineA300AA From United States of America, joined Sep 2004, 394 posts, RR: 0
Reply 4, posted (8 years 10 months 2 weeks 19 hours ago) and read 7701 times:

Its all about a new local law that allows travel agencies to charge 6 % comission on the tickets that they sell.

Thats the way AA handle its things in Latin America, by pressing the government.


User currently offlineMaverickM11 From United States of America, joined Apr 2000, 17672 posts, RR: 46
Reply 5, posted (8 years 10 months 2 weeks 19 hours ago) and read 7688 times:

Quoting A300AA (Reply 4):
Its all about a new local law that allows travel agencies to charge 6 % comission on the tickets that they sell.

The AA spokesperson said this was not the case.

"In a telephone interview from Miami, spokeswoman Marta Pantin denied the company is leaving because of a new law in Paraguay giving travel agencies a 6 percent commission on the sale of air tickets, as reported in local media."

http://yahoo.reuters.com/financeQuot...05-12-16_18-44-57_n16253420_newsml



E pur si muove -Galileo
User currently offlineSOUTHAMERICA From Colombia, joined Dec 2003, 2497 posts, RR: 10
Reply 6, posted (8 years 10 months 2 weeks 19 hours ago) and read 7668 times:

So much for the rumors of AA going nonstop to ASU, and the credibility of the user(s) who insisted on it.

It's quite unfortunate to see ASU losing the very few international services it has. Now they count no more with direct flights to the US.



SOUTHAMERICA

[Edited 2005-12-16 21:22:54]

User currently offlinePavlovsDog From Norway, joined Sep 2005, 658 posts, RR: 0
Reply 7, posted (8 years 10 months 2 weeks 19 hours ago) and read 7631 times:

Wouldn't the 6% commision affect all airlines equally? Why should that matter?

User currently offline123 From Bolivia, joined Nov 2003, 745 posts, RR: 3
Reply 8, posted (8 years 10 months 2 weeks 19 hours ago) and read 7608 times:

Quoting MaverickM11 (Thread starter):
Paraguay's Asuncion will become the only South American capital the carrier does not fly to."

Nope: They don´t fly to SRE (Sucre, Bolivia) either, which is the capital of Bolivia (many confuse LPB, La Paz, as capital, which is only Government base).

Also, I think the Guyanas are not served by AA: Any feedback on this?

And, what about Brasilia? I never heard of AA flights to Brasilia (Brazil´s Capital).


User currently offlinePdpsol From United States of America, joined Feb 2004, 1117 posts, RR: 5
Reply 9, posted (8 years 10 months 2 weeks 19 hours ago) and read 7583 times:

However, AA's 3x weekly MIA-MVD flight are, apparently, doing quite well!? AA already services MVD 4x weekly MIA/JFK/DFW-EZE-MVD. Why not keep ASU as a tag-on for the 3x EZE service that does not end up in MVD? Is there enough time to handle the destination?

MVD is a relatively small market [the city only has 1.7 million inhabitants], but is doing quite well for both AA and UA [especially during the holiday high season].

Yes, I am fully aware Uruguay is a substantially healthier market than Paraguay, but 3x weekly should do o.k. one would think, especially considering there are no other US [or European] carriers serving ASU.


User currently offlineLightsaber From United States of America, joined Jan 2005, 13271 posts, RR: 100
Reply 10, posted (8 years 10 months 2 weeks 19 hours ago) and read 7557 times:
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Quoting PavlovsDog (Reply 7):
Wouldn't the 6% commision affect all airlines equally? Why should that matter?

Price elasticity. High prices=fewer customers. And if the flight is losing money as is... there is no option to raise the fares.

More than likely the 6% commision just brought this route to attention as a money loser that AA doesn't think will make money in the near future.

Bummer...  Sad I prefer to hear about new cities/expansions.

Lightsaber



Societies that achieve a critical mass of ideas achieve self sustaining growth; others stagnate.
User currently offlineA300AA From United States of America, joined Sep 2004, 394 posts, RR: 0
Reply 11, posted (8 years 10 months 2 weeks 19 hours ago) and read 7557 times:

Quoting MaverickM11 (Reply 5):
The AA spokesperson said this was not the case.

The same reason they gave in Colombia, when they said that if the comisions dont go down they will stop flying to Colombia, because it would be unprofitable.

Will see.......


User currently offlineCV990 From , joined Dec 1969, posts, RR:
Reply 12, posted (8 years 10 months 2 weeks 19 hours ago) and read 7555 times:

Hi!

That's quite disapointing news for Paraguay!!! I feel sorry for this country! I was there in June 2004 and I actually saw an AA flight operated by the 767-300. The plane after leaving Asuncion it would stop at S. Paulo and headed to Miami! On the check-in counter there was a lot of people there so it looks quite stange that the occupation was poor... any percentages??? Besides that widebody I just saw TAM Mercosur Fokker F100's, Varig 737-300 and nothing else!!!
regards


User currently offlineBigGSFO From United States of America, joined Jun 2005, 2933 posts, RR: 6
Reply 13, posted (8 years 10 months 2 weeks 18 hours ago) and read 7506 times:

You know with all these changes at AA (ASU, DAL, DFW-LIM, etc.) Wall Street is currently loving AA - their stock is at a 52 week high. It peaked at $22.27 today. I know some people on A.net love to whack them around, but the current value of the company is growing stronger and stronger. As a comparision, LUV is $16.90, JBLU $20.91, and CAL $20.17.

User currently offlineORD From United States of America, joined Jul 1999, 1384 posts, RR: 1
Reply 14, posted (8 years 10 months 2 weeks 18 hours ago) and read 7423 times:

Quoting BigGSFO (Reply 13):
the current value of the company is growing stronger and stronger. As a comparision, LUV is $16.90, JBLU $20.91, and CAL $20.17.

You can't compare the value of a single share of stock among companies; it doesn't mean anything. It all depends upon how many shares of stock there are. If there are 100 shares of stock A at $10 and 5,000 shares of stock B at $8, stock B may be lower but the overall value of the company is much higher because there are more outstanding shares.


User currently offlineSHUPirate1 From United States of America, joined Sep 2003, 3670 posts, RR: 16
Reply 15, posted (8 years 10 months 2 weeks 18 hours ago) and read 7397 times:

Quoting CV990 (Reply 12):
The plane after leaving Asuncion it would stop at S. Paulo and headed to Miami!

Here's the bizarre part about the current situation...the flight numbers (AA995 for GRU-ASU, AA906 for ASU-GRU) continue to and from Miami (on a 777-200, whereas the ASU flights are on a 767-300), but the aircraft flies in from and out to Dallas-Fort Worth from Sao Paulo (as AA963 DFW-GRU, AA962 GRU-DFW)



Burma's constitutional referendum options: A. Yes, B. Go to Insein Prison!
User currently offlineLaxintl From United States of America, joined May 2000, 25786 posts, RR: 50
Reply 16, posted (8 years 10 months 2 weeks 18 hours ago) and read 7391 times:

Quoting BigGSFO (Reply 13):
You know with all these changes at AA (ASU, DAL, DFW-LIM, etc.) Wall Street is currently loving AA - their stock is at a 52 week high. It peaked at $22.27 today. I know some people on A.net love to whack them around, but the current value of the company is growing stronger and stronger. As a comparision, LUV is $16.90, JBLU $20.91, and CAL $20.17.

Ya, but AA's market cap is a mere 3.64Billion... Southwest is near 4times that at 13.36Billion!

AMR is just starting to recover its stock price which used to go for the $50 dollar range prior to the events of 2001. Southwest historically does not trade over the $20 or so range, and stock splits if the share price gets too high.
Also Southwest has continued to pay its shareholders quarterly dividends for well over 10 years without missing a beat. AA's last dividend was March 2000.



From the desert to the sea, to all of Southern California
User currently offlineAAgent From United States of America, joined Mar 2001, 560 posts, RR: 14
Reply 17, posted (8 years 10 months 2 weeks 18 hours ago) and read 7376 times:

Always disappointing to hear that a route is being dropped, especially an international route.

Quoting ORD (Reply 14):
You can't compare the value of a single share of stock among companies; it doesn't mean anything. It all depends upon how many shares of stock there are. If there are 100 shares of stock A at $10 and 5,000 shares of stock B at $8, stock B may be lower but the overall value of the company is much higher because there are more outstanding shares.

Although that may not have been an accurate comparison, it's still hard to argue that American isn't doing something right in the eyes of Wall Street. Consider this, AMR stock has risen from a low of somewhere in the neighborhood of $1.50 per share in April of 2003 to $22.27 now. That's an increase of approximately 1,484% in just over two and half years. How's that for a return on your investment?!?

Now I wish I'd have mortgaged the house and bought a boat load of AMR stock. Hind sight, such a pain in the....

Best Regards,
AAgent



War Eagle!
User currently offlineKahala777 From , joined Dec 1969, posts, RR:
Reply 18, posted (8 years 10 months 2 weeks 17 hours ago) and read 7323 times:

WOW..... Is American Airlines going for a record breaker as the number one airline with route cuts in one week alone? How long until they blame this one on the Wright Ammendment?

KAHALA777


User currently offlineAAgent From United States of America, joined Mar 2001, 560 posts, RR: 14
Reply 19, posted (8 years 10 months 2 weeks 17 hours ago) and read 7259 times:

KAHALA777,

You seem to be consistently biased against American Airlines. Your profile indicates that you once worked for an airline. Which airline would that be? I often quip with OPNLguy about WN, but I don't hate WN as you would appear to hate AA. What's up with that?

Best Regards,
AAgent



War Eagle!
User currently offlineSHUPirate1 From United States of America, joined Sep 2003, 3670 posts, RR: 16
Reply 20, posted (8 years 10 months 2 weeks 17 hours ago) and read 7210 times:

Quoting AAgent (Reply 19):
You seem to be consistently biased against American Airlines.

Partially true, if you spin things a bit.

He seems to be consistently biased against american Airlines. (ie. airlines based in the United States)



Burma's constitutional referendum options: A. Yes, B. Go to Insein Prison!
User currently offlineB4real From United States of America, joined Aug 2003, 2646 posts, RR: 5
Reply 21, posted (8 years 10 months 2 weeks 17 hours ago) and read 7208 times:

I think AA is in the right here. AA is not going to kill a route that is a money maker - any route - Int'l, Wright A, DFW, JFK, whatever...

I think, aside from CO, AA is the best positioned USA-based major to survive and thrive. Kudos to them for doing what it takes.



B4REAL, spelled like it sounds
User currently offlineMarambio From UK - Scotland, joined Oct 2004, 1160 posts, RR: 25
Reply 22, posted (8 years 10 months 2 weeks 17 hours ago) and read 7177 times:

Quoting Pdpsol (Reply 9):
Why not keep ASU as a tag-on for the 3x EZE service that does not end up in MVD? Is there enough time to handle the destination?

I guess because sending the aircraft from Buenos Aires to Asuncion is simply too expensive, both in money and in time. Montevideo has a great advantage there - it's just a 30-minute flight from EZE. To ASU, it should take at least 2:20 hours. I don't know about parking fees, but I suppose, given the fact that almost nobody flies there, they should be quite high.

Finally, if GRU-ASU did not work, I highly doubt EZE-ASU would do well instead.

Saludos,
Marambio

[Edited 2005-12-16 23:43:51]


Aerolíneas Argentinas - La Argentina que levanta vuelo.
User currently offline777Purser From United States of America, joined Aug 2005, 219 posts, RR: 3
Reply 23, posted (8 years 10 months 2 weeks 16 hours ago) and read 7152 times:

Quoting AAgent (Reply 19):
You seem to be consistently biased against American Airlines. Your profile indicates that you once worked for an airline. Which airline would that be? I often quip with OPNLguy about WN, but I don't hate WN as you would appear to hate AA. What's up with that?

Maybe he worked for us and we fired him for being bitter...hehehe...I have noticed the same thing. I can tell you one thing, we FA's got about 300 shares from the company at the time of the concessions. The shares were handed to the employees at a $5.00 value. I personally have made over $4,500 on them. Additionally, whenever I worked the 5 day GRU with the ASU turn the flight was empty! Let TAM take over this unprofitable route, we need to go about our business where we make money. Wall Street is loving us!!


User currently offlineMAH4546 From Sweden, joined Jan 2001, 33053 posts, RR: 71
Reply 24, posted (8 years 10 months 2 weeks 16 hours ago) and read 7151 times:

This is very surprising and unfortunate, as AA had been closely studying making this flight non-stop in the near future, but was hesitant because of the large capacity of the 763. It was going to operate non-stop, TuThSa, starting this past June, but that was canceled. Maybe in the future with their 757s with winglets we will see them return. Sad news indeed.

[Edited 2005-12-17 00:04:04]


a.
25 SHUPirate1 : Do the US-Colombia and/or US-Venezuela bilaterals (and the US-Paraguay bilateral as well) allow for fifth-freedom rights to points beyond? Those would
26 Justapassenger : So, is IAH-ASU possible with a 757?
27 MAH4546 : Possibly with a wingletted 757, I am not sure. None the less, the market is not there. MIA is the only US city that can really support ASU service, a
28 SHUPirate1 : 3955 nautical miles...even Boeing would tell you that that's optimistic without taking a significant tax in payload hit.
29 USADreamliner : OH NO!!!!!!!! WHAT A TRAGEDY!!! Anyway...So, now there's no flights from ASU to USA nonstop? USADreamliner
30 ETA Unknown : I believe the Paraguayan economy has been spiralling downward for quite some time now- probably why the service has been cancelled.
31 Dc10s4ever : Also beginning on 1/1...AA will charge $1.00 for a 12oz can of soda. A cup of ice will remain complimentry
32 Midway737 : U serious?!! Wow, now it time to bring something in from the terminal or concourse
33 Andahuailas : Iteresting, over the years most foreign airlines have pulled ot of ASU, LB, PU, AR,LA, etc. most of them in favor of a code share with PZ, I am more c
34 Kahala777 : My posts are not biased... If we sat around and fluffed every airline around the Globe this would not be a forum, it would be a bragging session! Hat
35 Incitatus : I very strongly suspect that this route was a loser all along and was maintained just for coverage. ASU is a small city and the economy of Paraguay is
36 Kahala777 : Wasnt ASU served in the past with a 757 via LPB? KAHALA777
37 MAH4546 : There hasn't been for a very long time. AA's Asuncion service is from Sao Paulo.
38 SHUPirate1 : MAH-I know I asked this above, but it seems to have gone unnoticed...do the US-Colombia and US-Venezuela bilaterals allow for beyond-gateway flights,
39 SOUTHAMERICA : Britt, I'll answer you regarding Colombia's case. Yes, the current bilateral agreement does allow any US carrier to fly between the United States and
40 123 : No: In the past, Eastern flew 727 service ASU-LPB-LIM to connect to MIA and other destinations with an aircraft arriving from SCL and maybe also EZE.
41 DBCooper : AA originally served ASU on a 3 day per week MIA-PTY-LIM-LPB-ASU routing (trivia: the other 3 day per week service via PTY & LIM was a MIA-PTY-LIM-SCL
42 AJMIA : Probably both are true... The MIA-GRU flights are almost always full of local GRU passengers. I don't think AA will have a problem filling the extra
43 2travel2know : How about MIA - MVD via ASU?
44 Post contains images MD90fan : It is Does anybody think AA can use a 75W on this route?
45 MAH4546 : BAQ may be re-introduced in 2006 as the more lax US-Colombia bilatteral may allow it. Montevideo is a very high-yielding market for AA. There is no r
46 Post contains images SkyHigh777 : What?! I am flying to Asuncion in 6 days on AA and have never done the Sao Paulo-ASU flight with them. I have done it with TAM numerous times, but the
47 Kahala777 : The current US political climate with Venezuela would never allow such a thing. This war of words between Chavez and Bush that escalates by the day i
48 Post contains links LipeGIG : Yes, the bilateral US-Brazil allows that. See www.cernai.gov.br and look for the bilateral US-Brazil. IMO, AA will add GRU-ASU PZ flight to it's code
49 2travel2know : How about MIA - SCL - ASU then? AA B737 might have the range for a SJU - ASU, but I see no point in AA flying to Paraguay via their SJU hub..
50 Post contains images Incitatus : I don't. Especially a daily flight will not fly. It is also questionable if a 3 x week operation can cover all fixed costs of keeping the destination
51 PPVRA : Waay too far. If they can't make a profit running ASU from GRU, connecting further away will only degrade things. Plus SCL bound aircraft have less g
52 Kkfla737 : Wow. Sad news. I believe this was an old Eastern and Braniff route as well, so it'll be the first time that Asuncion is not served direct by a US carr
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