Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
AA Market Share...all Or Nothing?  
User currently offlineRL757PVD From United States of America, joined Dec 1999, 4674 posts, RR: 11
Posted (8 years 3 months 1 day 15 hours ago) and read 3511 times:

OK maybe not all or nothing, but lets look at alot of examples for this theory..

Theory... AA either wants large market share or just provide minimal service

Examples:

BUF... small market share, lost DFW flight to MDT, one would imagine BUF-DFW would be a much stronger market than MDT-DFW, but with 5 flights their MDT market share will be much higher than BUF

PVD...AA had mainline for decades, with solid passenger #'s, Overall the market share was between 5 and 10%. PVD now had 3x ORD which makes it the smallest AA market in the entire northeast in terms of seat capacity, When PVD is in the top 10 busiest airports in the northeats.

BDL... AA was # 1 or #2 there for many years, strong presence, but since DL expanded and WN entered, AA has been in full retreat and this fall will have only 5 mainline flights at BDL..the peak near 2000 was 19.

XNA...AA has taken advantage of being able to dominate the market and provides extensive service with a large market share. XNA will have only 9 daily seats less than BDL (airport 10x the size) this fall.


Im sure there are more examples out there, but it seems with AA, they go to the big airports, or the smaller airports and go for market share, if they can't get it, they leave. Dont get me wrong, market share is always important, but seems every other airline is happy with their slice of the pie as long as its making money.


Experience is what you get when what you thought would work out didn't!
13 replies: All unread, jump to last
 
User currently offlineFlyCMH From United States of America, joined Jul 1999, 2282 posts, RR: 10
Reply 1, posted (8 years 3 months 1 day 15 hours ago) and read 3488 times:

Interesting analysis. It does definitely seem like that's the route American has been taking as of late. Other examples would be Indianapolis (where Northwest and AirTran have been dominating the market as of late, and American has pulled down service to ORD, DFW, and MIA in the form of downgrading mainline to Eagle), and Dayton (where American has discontinued MIA service and cut ORD down to only 3 RJs a day). It does seem that AA is focusing on cities where it does maintain a high profile, assumingly because the chances are better to maintain and grow their customer base, especially their frequent fliers, but that's just my own though. I'm sure there are pleantly of people in Dallas/Ft. Worth that get paid the big bucks to figure this stuff out.

User currently offlineLuv2fly From United States of America, joined May 2003, 12110 posts, RR: 48
Reply 2, posted (8 years 3 months 1 day 15 hours ago) and read 3472 times:
Support Airliners.net - become a First Class Member!

CLE has lost all mainline as well.


You can cut the irony with a knife
User currently offlineDutchjet From Netherlands, joined Oct 2000, 7864 posts, RR: 57
Reply 3, posted (8 years 3 months 1 day 15 hours ago) and read 3456 times:

The point you are missing is yeilds......AA only wants to be in markets where the yeilds are high enough to make some money and tends to reduce service in markets where LCCs have considerable presence.

The result is that AA will pull back in markets where they cannot control pricing......thus, AA has only a small presence in markets such as PVD which are dominated by other airlines (think Southwest). At the end of the story, you are correct, AA tends to play the all or nothing game in many markets.


User currently offlinePVD757 From United States of America, joined Aug 2003, 3413 posts, RR: 16
Reply 4, posted (8 years 3 months 1 day 14 hours ago) and read 3398 times:

this could be the same reason for not even bothering to open MHT as a station too. I was surprised to see what little service they have in PDX - a rather large market in general but dominated by AS with some WN service as well.

User currently offlineAeroWesty From United States of America, joined Oct 2004, 20640 posts, RR: 62
Reply 5, posted (8 years 3 months 1 day 14 hours ago) and read 3362 times:

Is this something unique to AA and not to other airlines? On a market-by-market basis the same conclusions could probably be drawn to some extent.

Out of PDX we've seen AA cut STL once they took over TW, and the red-eye to ORD after 9/11 or thereabouts, but they still maintain 2 flights a day to ORD and 5 to DFW. Sure, they're they only player in town non-stop to DFW, but we had service on DL before they drew down the DFW hub.

AA isn't exactly the biggest powerhouse out here, but they also aren't the smallest player vying for connecting traffic to the midwest, south and northeast, either. The same could be said for SEA and any number of other stations too, I believe.



International Homo of Mystery
User currently offlineMaxQ2351 From , joined Dec 1969, posts, RR:
Reply 6, posted (8 years 3 months 1 day 14 hours ago) and read 3299 times:

I would not completely agree that AA is "all or nothing".

I live in CO, so the best example I can provide is KDEN!! When I moved here, about 12 years ago now, AA had a handful of flights out of DEN (Stapleton at the time) to ORD and DFW. Now they have:

12x daily - DFW
7x daily - ORD
4x daily - LAX
1x daily - MIA

6x daily - STL (AA Connection)

They used to have 2x daily (I think it was) to SJU, but that was one of the many casualties of 9/11.

-Max


User currently offlineRL757PVD From United States of America, joined Dec 1999, 4674 posts, RR: 11
Reply 7, posted (8 years 3 months 1 day 14 hours ago) and read 3281 times:

Quoting Dutchjet (Reply 3):
The result is that AA will pull back in markets where they cannot control pricing......

That is directly realted to market share, so it could be said AA want to control they price, and if they cant, regardless fo passenger demand, the service will likely suffer.

Granted revenue is #2 priority for any airline, I guess AA chooses to go any where they can have the market share and control the price, however, is this a smart domestic strategy to have with LCC's spreading like wildfire? It doesnt seem like many other majors act the same way to market share and price control the way that AA does.



Experience is what you get when what you thought would work out didn't!
User currently offlineDartland From United States of America, joined Apr 2005, 644 posts, RR: 2
Reply 8, posted (8 years 3 months 1 day 14 hours ago) and read 3272 times:
Support Airliners.net - become a First Class Member!

Quoting Dutchjet (Reply 3):
AA only wants to be in markets where the yeilds are high enough to make some money and tends to reduce service in markets where LCCs have considerable presence.

Bingo. If you can't control pricing, you can't get revenue premium, you can't make money unless you're the low cost provider. Since AA is not the low cost provider in any market, they prefer to put capacity in those where they can influence pricing and get a premium. By default, that generally means dominating some airports, and not flying into others.

Amazingly enough, they are doing this while still being the largest airline (at least for now). But they realize that you cannot continue to grow fast with this strategy, so they shrink. As long as they are still big enough that their network alone demands a premium (which they are and they do), it works. The problem becomes when they leave enough airports or reduce service to the point that people need to look elsewhere, then their pricing power erodes, so it's a fine line. But since they are the world's largest...it's unclear how much they can shrink and still succeed.


User currently onlineMAH4546 From Sweden, joined Jan 2001, 32781 posts, RR: 72
Reply 9, posted (8 years 3 months 1 day 9 hours ago) and read 3081 times:

Quoting MaxQ2351 (Reply 6):
They used to have 2x daily (I think it was) to SJU, but that was one of the many casualties of 9/11.

AA has never, ever flown DEN-SJU. The cloest DEN came to San Juan service was when United made bookable (but never issued a PR) weekend DEN-SJU service to operate for the winter 01/02 timetable. It never started.



a.
User currently offlineHPAEAA From United States of America, joined May 2006, 1024 posts, RR: 1
Reply 10, posted (8 years 3 months 1 day 8 hours ago) and read 3029 times:

Quoting RL757PVD (Thread starter):
XNA...AA has taken advantage of being able to dominate the market and provides extensive service with a large market share. XNA will have only 9 daily seats less than BDL (airport 10x the size) this fall.

XNA gets soooo many eagle CRJ's from ORD and DFW because they have a very large MX operation there.



Why do I fly???
User currently offlineBriguy1974 From United States of America, joined Aug 2005, 133 posts, RR: 0
Reply 11, posted (8 years 3 months 1 day 5 hours ago) and read 2922 times:

SJC is an example of a city that has marginal AA existance. AA was a focus city/hub and now??? Who knows. A shame, CA 3rd largest city, home of silicon valley. You would think an airline could make a mini hub work. It seems AA never fully committed to SJC. I have never seen an AA advertisment or anything locally directed towards the flights to NRT CDG. Also, how does AA not try mexico destinations out of SJC?
The city has paid the price for AA's inability to make SJC work as a hub.


User currently offlineWillyj From United States of America, joined Oct 2005, 468 posts, RR: 0
Reply 12, posted (8 years 3 months 1 day 5 hours ago) and read 2908 times:

Quoting MAH4546 (Reply 9):
AA has never, ever flown DEN-SJU. The cloest DEN came to San Juan service was when United made bookable (but never issued a PR) weekend DEN-SJU service to operate for the winter 01/02 timetable. It never started.

I'm guessing they meant SJC (san Jose, CA)...


User currently offlineMaxQ2351 From , joined Dec 1969, posts, RR:
Reply 13, posted (8 years 3 months 1 day 4 hours ago) and read 2873 times:

Quoting Willyj (Reply 12):
'm guessing they meant SJC (san Jose, CA)...

Yea, yea!! THAT's the one!!!

Haha um DEN-SJU would be quite the flight. I did mean DEN-SJC!!

-Max


Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
AA Market Share Info? posted Fri Apr 19 2002 18:02:53 by Seatback
AA/TW/U/UA Airport Market Share Data posted Wed Jan 10 2001 07:05:08 by Imkeww
AA MAN - BOS....all Year Round? posted Wed Nov 15 2006 15:06:58 by 8herveg
SWA Market Share posted Sun Oct 29 2006 05:57:14 by Andrej
Rumor: AA To Cancel All Remaining 737-800 Orders posted Fri Sep 22 2006 18:13:18 by Dc10s4ever
No Market For 737 Or A319? posted Sun Aug 6 2006 23:49:45 by QXatFAT
AA To Go All Mainline At MSY posted Sun May 7 2006 16:15:02 by MSYtristar
Will AA Return STL-SRQ Or STL-VPS posted Sun Apr 30 2006 18:18:10 by CIDflyer
Airline Market Share In India posted Wed Mar 8 2006 02:33:16 by LAXDESI
RG Market Share Drops Further; BRA Emerges posted Mon Feb 6 2006 20:58:47 by Hardiwv