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American To Cut Planes, Intensifying Seat Crunch  
User currently offlineKarlB737 From United States of America, joined Mar 2004, 3096 posts, RR: 10
Posted (8 years 3 months 1 week 6 days 3 hours ago) and read 9054 times:

Courtesy: The New York Times

American Air To Cut Planes, Intensifying Seat Crunch

By JEFF BAILEY

Published: April 20, 2006

CHICAGO, April 19 — American Airlines said Wednesday that it planned to mothball 27 planes by July 1, intensifying a capacity squeeze that is expected to make this summer's flying the most crowded ever.

Fuller planes, of course, while aggravating for passengers, are good news for airlines. And the AMR Corporation, the parent of American, reported a narrower first-quarter loss on Wednesday on a 12.5 percent increase in revenue. Some analysts expect the airline to show a full-year profit for the first time since 2000.

For rest of article:

http://www.nytimes.com/2006/04/20/bu...974ac6b6&ei=5099&partner=TOPIXNEWS

[Edited 2006-04-20 20:01:06]

54 replies: All unread, showing first 25:
 
User currently offlineJetdeltamsy From United States of America, joined Nov 2000, 2987 posts, RR: 8
Reply 1, posted (8 years 3 months 1 week 6 days 2 hours ago) and read 8879 times:

AA is doing the intelligent thing.

Fewer seats in the marketplace will result in higher fares for the seats that remain and maybe, just maybe AA will earn a profit.

Delta should follow their lead and do the same.

Because much sooner than later, the till is going to run dry. We have to become cash positive and we have to achieve that very quickly.



Tired of airline bankruptcies....EA/PA/TW and finally DL.
User currently offlineAA737-823 From United States of America, joined Mar 2000, 5731 posts, RR: 11
Reply 2, posted (8 years 3 months 1 week 6 days 1 hour ago) and read 8765 times:

I love empty planes as much as the next guy, and I am certainly NOT an AA fan, but PLEASE let this work. If this is what it takes to keep the company and jobs, then by all means, do it.

Although I think it's interesting... AA and CO both lost money this quarter (although less than YOY 2005), but they have two different strategies: Continental has announced plans to hire thousands and bring more planes into the fleet, while AA is parking 27 mad dogs...
I guess time will tell which (or both) will work.


User currently offlineMAH4546 From Sweden, joined Jan 2001, 32620 posts, RR: 72
Reply 3, posted (8 years 3 months 1 week 6 days 1 hour ago) and read 8759 times:

What this and other over-exageratting articles mention is that 25 of the planes are already parked. Only two more are going into storage between now and July.


a.
User currently offlineN328KF From United States of America, joined May 2004, 6483 posts, RR: 3
Reply 4, posted (8 years 3 months 1 week 6 days 1 hour ago) and read 8731 times:

Quoting AA737-823 (Reply 2):
Although I think it's interesting... AA and CO both lost money this quarter (although less than YOY 2005), but they have two different strategies: Continental has announced plans to hire thousands and bring more planes into the fleet, while AA is parking 27 mad dogs...

The key is the types of aircraft involved. AA is getting rid of short-haulers, while CO is bringing long haulers online.



When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' T.Roosevelt
User currently offlineCommavia From United States of America, joined Apr 2005, 11454 posts, RR: 61
Reply 5, posted (8 years 3 months 1 week 6 days 1 hour ago) and read 8707 times:

It's about time somebody showed some domestic capacity restraint.

User currently offlineIkramerica From United States of America, joined May 2005, 21476 posts, RR: 60
Reply 6, posted (8 years 3 months 1 week 6 days 1 hour ago) and read 8656 times:

So we've gone from a over saturated market condition to a seat crunch in one year, according the press?

Hmmm. Just like the over capacity was a myth, so is the seating crunch. Both have nothing to do with being able to find a seat, but with being able to find a seat at a cheap price. Before, it was too easy to find a cheap seat. Now, it will be "too hard."

But if any person in the USA wants to fly anywhere this summer on any day, I doubt that up until that day (save a couple holidays) there won't be a seat available for you to buy on the flight you want. It will just be more expensive than you may be willing to pay...



Of all the things to worry about... the Wookie has no pants.
User currently offlineORD From United States of America, joined Jul 1999, 1381 posts, RR: 1
Reply 7, posted (8 years 3 months 1 week 6 days 1 hour ago) and read 8585 times:

Quoting Commavia (Reply 5):
It's about time somebody showed some domestic capacity restraint.

United has been doing this for the past several years.


User currently offlineBoeing757/767 From United States of America, joined Jun 1999, 2282 posts, RR: 1
Reply 8, posted (8 years 3 months 1 week 6 days 1 hour ago) and read 8585 times:

So has NW -- they've been very judicious to reduce capacity where it makes sense.


Free-thinking, left-leaning secularist
User currently offlineFCYTravis From United States of America, joined Sep 2005, 1191 posts, RR: 6
Reply 9, posted (8 years 3 months 1 week 6 days 1 hour ago) and read 8507 times:

Yeah, and guess who just confirmed orders for 87 more 737-700s? That's right, Southwest. So much for the capacity reductions.

This "capacity-shrink" is yet another quick-fix that ignores structural problems. Every time the legacy carriers shrink capacity, Southwest comes right in and fills up the gap. It is a fallacy to believe that any of these carrier reductions will materially reduce capacity nationwide over the long-term, as long as carriers like WN and FL are ready to throw hundreds of 737s into the skies.



USAir A321 service now departing for SFO with fuel stops in CAK, COS and RNO. Enjoy your flight.
User currently offlineAndesSMF From , joined Dec 1969, posts, RR:
Reply 10, posted (8 years 3 months 1 week 6 days 1 hour ago) and read 8470 times:

As a reference point, reading from my old books from the early 90's, it is surprising to see the staggering growth in airliner fleets since then. After all, WN still doesnt come close to AA fleet size, even with the addition of 79 737s.

User currently offlineGoingboeing From United States of America, joined Dec 1999, 4875 posts, RR: 16
Reply 11, posted (8 years 3 months 1 week 6 days 1 hour ago) and read 8470 times:

Travis....if Southwest and Airtran can throw hundreds of 737's in the sky AND make a profit....more power to them.

User currently offlineKULatICT From United States of America, joined Mar 2005, 120 posts, RR: 0
Reply 12, posted (8 years 3 months 1 week 6 days ago) and read 8359 times:

that's probably explained why i was rebooked on an Eagle Y seat instead of the MD 80 F seat that i booked on from ICT to DFW on June 13.... i thought they try to punk me by 'downgrading' me by selling my award ticket seat to paying customer on the original flight....

User currently offlineCkfred From United States of America, joined Apr 2001, 5181 posts, RR: 1
Reply 13, posted (8 years 3 months 1 week 6 days ago) and read 8297 times:

I was doing some cleaning and found something interesting. In 1994, I bought a ticket for ORD-ATL-ORD on AA for about $240. IIRC, that was a sale price, almost $100 off, becasue TWA was trying to get a focus city going at ATL.

The next year, 1995, I had a ticket on AA for the same trip, for $118. because ValuJet had started ATL-MDW.

The price for ORD-ATL-ORD stayed between $120 and $150 for several years. Now, it's hard to find a ticket on AA for ORD-ATL for less than $250, just slightly more than what a ticket cost in 1994.

Considering that most things cost a lot more now than what they did in 1994, air travel is still a bargain.

This also shows that a) LCCs had pricing power in the mid 1990s, and b) LCCs can't hold prices at mid-1990s levels, either.


User currently offlineIRelayer From United States of America, joined Jul 2005, 1073 posts, RR: 2
Reply 14, posted (8 years 3 months 1 week 6 days ago) and read 8240 times:

Quoting AA737-823 (Reply 2):
Although I think it's interesting... AA and CO both lost money this quarter (although less than YOY 2005), but they have two different strategies: Continental has announced plans to hire thousands and bring more planes into the fleet, while AA is parking 27 mad dogs...
I guess time will tell which (or both) will work.

AA's fleet (~700) is also roughly twice the size of CO's (~350). And CO will be getting newer, more efficient aircraft for their money while AA is stuck with a boatload of short-haul MD-80's. Totally different.

-IR


User currently offlineDAYflyer From United States of America, joined Sep 2004, 3807 posts, RR: 3
Reply 15, posted (8 years 3 months 1 week 6 days ago) and read 8213 times:

Lets see; AA shrinks capacity and WN sucks it up. DL reduces capacity and FL sucks it up......any patterns here people?


One Nation Under God
User currently offlineVegasplanes From United States of America, joined Jun 2005, 778 posts, RR: 2
Reply 16, posted (8 years 3 months 1 week 6 days ago) and read 8187 times:

Quoting MAH4546 (Reply 3):
What this and other over-exageratting articles mention is that 25 of the planes are already parked. Only two more are going into storage between now and July.

That's what I was wondering, I recall AA had parked a bunch on Mad Dogs previously, are those becoming permanently retired ?


User currently offlineGoingboeing From United States of America, joined Dec 1999, 4875 posts, RR: 16
Reply 17, posted (8 years 3 months 1 week 5 days 23 hours ago) and read 8045 times:

Quoting DAYflyer (Reply 15):
Lets see; AA shrinks capacity and WN sucks it up. DL reduces capacity and FL sucks it up......any patterns here people?

Yes....Southwest and Airtran are profitable.


User currently offlineFlagshipAZ From United States of America, joined Jan 2001, 3419 posts, RR: 14
Reply 18, posted (8 years 3 months 1 week 5 days 23 hours ago) and read 8029 times:

Vegasplanes, the MD-80s of American are just temporary parked, none are retired. AA has 362 on the roster, with some 325 in service. This will probably be reduced to around 300, more or less. American is investigating whether to re-engine the majority of the MD-80s if the PW6000 is suitable for the airframe. Also there are stage 4 hushkits out there for the aircraft as well.
AA will keep the MD-80 around as long as possible until Boeing launches the 737RG. No sense in retiring the MD-80 if there's nothing to replace with, and I don't mean that more 737NGs is the answer. The MDs & 737s complement each other within AA's fleet. Regards.



"Beer is living proof that God loves us and wants us to be happy." --Ben Franklin
User currently offlineAA737-823 From United States of America, joined Mar 2000, 5731 posts, RR: 11
Reply 19, posted (8 years 3 months 1 week 5 days 22 hours ago) and read 7926 times:

You folks that are replying to me have neglected to acknowledge that Continental is, in fact, not doing what you're saying. Yeah, they ordered two 777s, but the aircraft they are currently taking delivery of are all 737-800s.

There goes your theory.
 Smile
Anyhoo, I do agree, though, that they're different in that AA is parking fuel-guzzlers (did we ever think we'd call MD-80s guzzlers???) and CO is adding sippers, relatively.

Ikramer, I don't think that either situation was a myth. They're not as big a deal as the media makes, yeah, but there's still some truth to them.


User currently offlineSocalfive From , joined Dec 1969, posts, RR:
Reply 20, posted (8 years 3 months 1 week 5 days 22 hours ago) and read 7861 times:

Quoting ORD (Reply 7):
United has been doing this for the past several years

Several years in bankruptcy helped 'em do that.


User currently offlineAA777223 From United States of America, joined Feb 2006, 1232 posts, RR: 6
Reply 21, posted (8 years 3 months 1 week 5 days 22 hours ago) and read 7861 times:

Are these old TWA birds, or are they just some of the older AA planes? I for one am happy to see some super 80s parked. They are the bulk of the domestic AA flights from here at DFW, and I am just not a fan of them. Gimme a 738 or 757 anyday of the old mad dog. I think this is a very smart move on the part of American and is hopefully the next step on the path to profitability.


Sic 'em bears
User currently offlineFXramper From United States of America, joined Dec 2005, 7196 posts, RR: 85
Reply 22, posted (8 years 3 months 1 week 5 days 22 hours ago) and read 7801 times:
Support Airliners.net - become a First Class Member!

Less flights for me to non-rev on.  Smile

Good news for AA. All the a/c being parked are MD80?


User currently offlineB4real From United States of America, joined Aug 2003, 2629 posts, RR: 5
Reply 23, posted (8 years 3 months 1 week 5 days 22 hours ago) and read 7740 times:

Quoting IRelayer (Reply 14):
while AA is stuck with a boatload of short-haul MD-80's

AA's use of the MD-80 is not necessarily short haul. Routes like: ORD-LAX/SFO/SEA/SAN/SJD/ACA are not 'long haul' by trans-oceanic standards, but for the the domestic backbone, they do a great job. I believe they operate this series on longer routes than anyone else except FL and YX.



B4REAL, spelled like it sounds
User currently offlineMD90fan From Bahamas, joined Jul 2005, 2931 posts, RR: 7
Reply 24, posted (8 years 3 months 1 week 5 days 21 hours ago) and read 7690 times:

Quoting AA777223 (Reply 21):
I for one am happy to see some super 80s parked. They are the bulk of the domestic AA flights from here at DFW, and I am just not a fan of them. .

Yeah, go visit DFW and you see them everywhere!! it's crawling with them. MIA and SJU are like the opposite  Smile

Quoting B4real (Reply 23):
I believe they operate this series on longer routes than anyone else except FL and YX.

FL(AirTran) doesnt have any MD-80's, instead opting for 717's and 73G's, a smarter move IMO.

Regards,
MD90fan  airplane 



http://www.devanwells.blogspot.com/
25 B4real : The 717s that FL operates are what I meant by the 'series' of the DC-9/MD-8/717.
26 Post contains images Longhornmaniac : LOL. Like exactly the opposite, since neither of them see any MD-80s. DFW sees all aircraft in the mainline AA fleet except the A300. MIA sees all ai
27 LY4XELD : Isn't this old news? Or is this in addition to the MD80's they were planning to park? Am I missing your sarcasm or does your name indicate the exact o
28 NWDC10 : Low cost carriers are way under cutting legacies and trying to "push" the legacies out of the sky.That's how i see it. Robert NWDC10
29 AAden : finally an airline is out to make a profit. they will not be pushed out of the sky by lccs either. AAs has to strong of an international network to ev
30 Vegasplanes : Thanks for the info. Seems like from a financial perspective that would be the way to go. The Mad Dogs might not have too good of a re-sale value if
31 Post contains images TPASXM787 : How about parking 362 of them I hate those shitboxes too, so it's ok
32 DLKAPA : I don't buy a systemwide overcapacity argument. According to Boyd, the systemwide average load factor is steady around 70%... Where do you get market
33 Goingboeing : Of course, Southwest has 3 years before they are paying $72 a barrel for oil. In the meantime, how many tickets (and money) will AA give away to figh
34 PSA727 : I think this is great planning on AA's behalf. The cost of oil will continue to rise, and if airlines do not raise fares to cover this cost, they will
35 Post contains images Douwd20 : It really means something when your competitor is making money AND adding capacity while you are losing money and trying to shrink to profitability.
36 AAden : what ever it takes to make that shiney dime
37 Dallas74 : Southwest won't be paying the full price for oil until 2010. Can you hang on that long?
38 Dallas74 : American just gave away 20,000 vouchers for people who attended a Dallas Mavericks game the other night. The voucher was good for a trip to any place
39 Douwd20 : :D
40 Halls120 : I wish AA would either properly maintain their A300's or park those dogs and buy some decent widebody aircraft. Just the other day I had a typical A30
41 Post contains images OyKIE : FlagshipAZ, are they still looking into this? I thought we would have heard more about that by now. I would like it to happen though. Be careful abou
42 DLKAPA : CO, AA, and soon if not already UA are turning profits. It's not capacity, the problem is cost structure.
43 UAL777UK : Agreed, they are a disgrace, on a flight to SJU from JFK, flight was cancelled as the A300, went Tech, no worries, we were quickly transferred to ano
44 AA777 : The routes that AA uses their A300s on are their cash cows. Great load factors and ever greater cargo opportunities-- usually they use them on flight
45 PSU.DTW.SCE : Again, there is logic behind this move. This only accounts for an additional 2 aircraft in storage. These MD-80's were to have come out of storage thi
46 UAL777UK : I guess that makes sense, with good loads, they dont care about the crap experience some passengers have on these particular aircraft due to tech pro
47 Simpilicity : from a simple Australian's point of view, it simple looks like LCC's taking over from legacy's in hopeless shape. How much longer can these US legacy'
48 SPREE34 : SWA won't struggle a bit. They will manage the changes like they always have and stay profitable. One way will be to increase fares. Unlike many of t
49 Simpilicity : As Legacy's start failing (not chapter 11 this time) the likes of Southwest will pick up there best aircraft for giveaway prices, so lowering their o
50 Cincinnaticj : Long way of getting to the thread topic.... Couple of weeks ago I had to book a ticket on 3 day notice from Cincinnati, Ohio to Phoenix, round trip an
51 OyKIE : That might be true, but there has been a overcapacity, due to the downturn after 9/11. The airlines got other groups to fly instead and offered sever
52 UAL777UK : # I suspect you hit the nail on the head.....loads of people on these crates as part of an overall cruise package, especially into SJU.
53 Tango-Bravo : Which is because WN and FL can be profitable at fares they can -- and will -- charge to pax who are forfeited to them by the legacies. Seems like a w
54 Post contains images AAden : lets hope so
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