BALAX From United States of America, joined Jun 2006, 187 posts, RR: 0 Posted (6 years 8 months 1 week 2 days 20 hours ago) and read 2877 times:
I found some articles on AA's new advertising campaign out Chicago and New York. Seems like a more aggressive approach by AA. However, no mentioning of new flights or services, instead focusing on their extensive network out of both metropolitan areas. Is this a sign of what's to come in the next few months?
DeltaSFO From United States of America, joined Nov 2000, 2488 posts, RR: 24 Reply 1, posted (6 years 8 months 1 week 2 days 18 hours ago) and read 2839 times:
Probably a sign that they're concerned about protecting their market position amid the New York expansion that DL is undertaking as well as the DL-CO skirmishes that have taken place lately.
It's a new day. Every moment matters. Now, more than ever.
CHIFLYGUY From United States of America, joined Aug 2006, 141 posts, RR: 0 Reply 2, posted (6 years 8 months 1 week 2 days 11 hours ago) and read 2737 times:
Some years back, AA used to have a huge billboard in Northwestern Station reading "American means business in Chicago". Recently it has been "I flew American for $89" and "We know why you fly" with a guy holding his kid on the beach. Nothing says more about what has happened with AA. They appear to have re-focused away from the business market towards being a network LCC type carrier servicing smaller cities WN and the like can't effectively service with point to point on 737's. As a business traveller and AA flyer, that's disappointing to me. But they've got a business to run in a very difficult environment, so I guess I can't complain too much.
JetBlue From United States of America, joined Sep 2004, 388 posts, RR: 5 Reply 3, posted (6 years 8 months 1 week 2 days 11 hours ago) and read 2697 times:
I saw these new ads yesterday and think they are stunning! I had a huge smile on my face while watching the TV ads and love the print material too.
This excellent advertising campagin reminds me of our post 9/11 TV ads called "Engine" and "Way of Life." They remind me, as an employee, exactly why I take so much pride in this wonderful company called American Airlines.
The ads are fantastic, and I may hop on a plane to Chicago just to go see them.
jetBlue
We know for you it's not just a seat on a flight to a place. It's a seat on a flight to your life.
Jacobin777 From United States of America, joined Sep 2004, 14968 posts, RR: 61 Reply 4, posted (6 years 8 months 1 week 2 days 11 hours ago) and read 2670 times:
Quoting CHIFLYGUY (Reply 2): Some years back, AA used to have a huge billboard in Northwestern Station reading "American means business in Chicago". Recently it has been "I flew American for $89" and "We know why you fly" with a guy holding his kid on the beach. Nothing says more about what has happened with AA. They appear to have re-focused away from the business market towards being a network LCC type carrier servicing smaller cities WN and the like can't effectively service with point to point on 737's. As a business traveller and AA flyer, that's disappointing to me. But they've got a business to run in a very difficult environment, so I guess I can't complain too much.
CHIFLYGUY..I have to respectfully disagree on that one...according to an ATWonline.com report on AA..
"It also continues to attract a disproportionate share of business traffic. Nason (AA VP-Revenue Management Scott Nason) declines to provide specifics but says the ratio of business to leisure is "not too far from 50/50.""
Flyguy1 From United States of America, joined Jun 1999, 1691 posts, RR: 4 Reply 5, posted (6 years 8 months 1 week 2 days 10 hours ago) and read 2653 times:
Quoting DeltaSFO (Reply 1): Probably a sign that they're concerned about protecting their market position amid the New York expansion that DL is undertaking as well as the DL-CO skirmishes that have taken place lately.
AA does not seem to be taking any action to protect their international market share in NYC recently, ie: adding new flights. Though thier current network is strong, they may be missing opporunities to make it even stronger, while other carriers benefit.
Commavia From United States of America, joined Apr 2005, 10189 posts, RR: 62 Reply 6, posted (6 years 8 months 1 week 2 days 10 hours ago) and read 2642 times:
Quoting Flyguy1 (Reply 5): AA does not seem to be taking any action to protect their international market share in NYC recently, ie: adding new flights. Though thier current network is strong, they may be missing opporunities to make it even stronger, while other carriers benefit.
AA doesn't feel it needs to. When any company has limited resources, it is -- of course -- required to allocate them as efficiently and productively as possible. Clearly, AA feels that allocating limited widebody resources (767s) to the JFK-Europe market would not be the most productive use of those planes, and that the modification and setup costs of flying smaller aircraft (757s) to Europe from JFK is also not efficient because of the costs of setting up stations for less than 200 daily seats.
In addition, while Continental and Delta (mostly the latter) have talked much about the so-called "halo effect" of retaining high-value customers by being able to get them to anywhere they want to go in Europe nonstop from Newark or JFK, respectively, AA clearly sees the market dynamic differently. AA obviously feels that its European presence at JFK, consisting of the heavy-hitter Heathrow, plus a strong presence in the Paris, Brussels and Zurich markets, plus flights operated by oneworld, codeshare and AAdvantage partners, is enough to maintain a strong presence in the market and satisfy important customers.
KE086 From United States of America, joined Jul 2005, 107 posts, RR: 2 Reply 7, posted (6 years 8 months 1 week 2 days 10 hours ago) and read 2635 times:
In the Article it says that american airlines is the biggest airline in the world. Is it the biggest?
N844AA From United States of America, joined Jul 2003, 1352 posts, RR: 1 Reply 8, posted (6 years 8 months 1 week 2 days 10 hours ago) and read 2587 times:
Quoting KE086 (Reply 7): In the Article it says that american airlines is the biggest airline in the world. Is it the biggest?
By number of planes, yes. By revenue, no. By RPMs, ASMs, or similar metrics, I don't think so, but I'm not certain.
New airplanes, new employees, low fares, all touchy-feely ... all of them are losers. -Gordon Bethune
Jacobin777 From United States of America, joined Sep 2004, 14968 posts, RR: 61 Reply 9, posted (6 years 8 months 1 week 2 days 9 hours ago) and read 2569 times:
Quoting Commavia (Reply 6): plus a strong presence in the Paris, Brussels and Zurich markets, plus flights operated by oneworld, codeshare and AAdvantage partners, is enough to maintain a strong presence in the market and satisfy important customers.
add ORD-MAN as it is one of their most profitable routes...which is interesting considering they have daily competition with BD and 2x/weekly competition with PK....
JetBlue From United States of America, joined Sep 2004, 388 posts, RR: 5 Reply 11, posted (6 years 8 months 1 week 2 days 8 hours ago) and read 2480 times:
Quoting N844AA (Reply 8): By number of planes, yes. By revenue, no. By RPMs, ASMs, or similar metrics, I don't think so, but I'm not certain.
To the best of my knowledge, it is based on Available Seat Miles (ASM) figures. AA overtook United Airlines in ASMs when they acquired TWA in 2001. That also translated into the largest airline as far as # of planes.
Both UA and AA have shrank some since 9/11, but AA is still #1 in size when measured by ASMs or number of aircraft.
jetBlue
We know for you it's not just a seat on a flight to a place. It's a seat on a flight to your life.
N844AA From United States of America, joined Jul 2003, 1352 posts, RR: 1 Reply 12, posted (6 years 8 months 1 week 2 days 7 hours ago) and read 2420 times:
Quoting JetBlue (Reply 11): Both UA and AA have shrank some since 9/11, but AA is still #1 in size when measured by ASMs or number of aircraft.
Come to think of it, I think I was thinking of passengers emplaned when I said AA might not be the biggest. Thanks for the correction.
New airplanes, new employees, low fares, all touchy-feely ... all of them are losers. -Gordon Bethune
WorldTraveler From , joined Dec 1969, posts, RR: Reply 13, posted (6 years 8 months 1 week 2 days 7 hours ago) and read 2397 times:
While AA may have limited resources, DL and AA had almost identical operating profit margins in the most recent quarter. So it is possible to grow and still maintain very acceptable financial metrics.
The real question regarding AA is what they intend to do with the $6 billion in their bank accounts.
Commavia From United States of America, joined Apr 2005, 10189 posts, RR: 62 Reply 14, posted (6 years 8 months 1 week 2 days 6 hours ago) and read 2370 times:
Quoting WorldTraveler (Reply 13): While AA may have limited resources, DL and AA had almost identical operating profit margins in the most recent quarter. So it is possible to grow and still maintain very acceptable financial metrics.
The issue is not about profitability. It's about aircraft. American's fleet has been shrinking ever year for five years. AA doesn't have planes to be expanding anywhere and everywhere like Delta, and as such must be extremely selective with the markets they choose to serve.
WorldTraveler From , joined Dec 1969, posts, RR: Reply 15, posted (6 years 8 months 1 week 2 days 6 hours ago) and read 2363 times:
Which says that perhaps AA should be considering retaining some of its aircraft. If it is maintaining margins "only" as good as DL while shrinking itself at the same rate as DL who is also developing new routes, then perhaps AA could be growing which would also help keep its costs down. No growth means costs increase.
Commavia From United States of America, joined Apr 2005, 10189 posts, RR: 62 Reply 16, posted (6 years 8 months 1 week 2 days 6 hours ago) and read 2363 times:
Quoting WorldTraveler (Reply 15): Which says that perhaps AA should be considering retaining some of its aircraft. If it is maintaining margins "only" as good as DL while shrinking itself at the same rate as DL who is also developing new routes, then perhaps AA could be growing which would also help keep its costs down. No growth means costs increase.
Well, Delta is bankrupt and American isn't. So perhaps American -- which has never once filed for bankruptcy protection -- should be focusing more on its own internal strategy whether than comparing itself to a company that couldn't keep its own financial house in order.
Thebry From United States of America, joined Jan 2006, 374 posts, RR: 0 Reply 17, posted (6 years 8 months 1 week 1 day 23 hours ago) and read 2216 times:
Quoting Commavia (Reply 16): Well, Delta is bankrupt and American isn't. So perhaps American -- which has never once filed for bankruptcy protection -- should be focusing more on its own internal strategy whether than comparing itself to a company that couldn't keep its own financial house in order.
Well stated, Commavia. People forget American has been through the ringer (just like all US-based airlines have) but have NOT taken cover under the umbrella of bankruptcy. I think that's admirable.
Ckfred From United States of America, joined Apr 2001, 4652 posts, RR: 1 Reply 18, posted (6 years 8 months 1 week 1 day 21 hours ago) and read 2171 times:
The reason that AA has been reducing the number of planes it flies is costs. The 727-200 fleet was retired early, because they were gas guzzlers that required F/Es.
The Fokker fleet was retired because of the cost of maintaining them, with no customer support from Fokker, was escalating. Also, the F100 fleet was meant to fly short hops, but AA found that flying short hops meant flying with less than optimal amounts of cargo.
AA is returning the former TW 757s, because they are powered by P&W engines, while its 757s have RR engines. Maintaining a small subfleet is expensive.
Reins485 From United States of America, joined Jul 2005, 136 posts, RR: 0 Reply 19, posted (6 years 8 months 1 week 1 day 18 hours ago) and read 2118 times:
Quoting WorldTraveler (Reply 15): If it is maintaining margins "only" as good as DL while shrinking itself at the same rate as DL who is also developing new routes
New routes may make more money, however, AA is focusing on the routes that make money for them. They are cutting routes that are losing money and using the planes that they gain back to add flights to profitable routes or new ones that will make them money. Furthermore, by removing sub fleets of planes, they are lowering costs.
I think in the next year to year and half, they will resume hiring new employees, once the recall rights for the former TWA employees expire. I don't think AA wants them back and are waiting until there is no legal obligations to bring them back. The overall feeling about TWA employees are that they are unhappy and do not work well with AA crew members.
Arpey has also stated that they will not buy new airplanes until they are making money and now they are. AA will being placing an order for the 787 soon, in my opinion, and due to their gentlemen agreement with Boeing, I think they will get them sooner than people expect.
Just my two cents after talking with my parents, a retired pilot and a current flight attendent with AA.
Dutchjet From Netherlands, joined Oct 2000, 7864 posts, RR: 58 Reply 20, posted (6 years 8 months 1 week 1 day 17 hours ago) and read 2098 times:
Quoting Reins485 (Reply 19):
I think in the next year to year and half, they will resume hiring new employees, once the recall rights for the former TWA employees expire. I don't think AA wants them back and are waiting until there is no legal obligations to bring them back. The overall feeling about TWA employees are that they are unhappy and do not work well with AA crew members.
Arpey has also stated that they will not buy new airplanes until they are making money and now they are. AA will being placing an order for the 787 soon, in my opinion, and due to their gentlemen agreement with Boeing, I think they will get them sooner than people expect.
Just my two cents after talking with my parents, a retired pilot and a current flight attendent with AA.
Alex
Intersting points.
Does AA still have any airplanes in storage........ie, are there stored MD80s that could at least partially replace the ex-TW757 fleet either directly or by re-allocation of route assignments?
UAL777UK From United Kingdom, joined Nov 2005, 3355 posts, RR: 1 Reply 21, posted (6 years 8 months 1 week 1 day 17 hours ago) and read 2096 times:
Quoting Commavia (Reply 14): The issue is not about profitability. It's about aircraft. American's fleet has been shrinking ever year for five years. AA doesn't have planes to be expanding anywhere and everywhere like Delta, and as such must be extremely selective with the markets they choose to serve.
AA do what they do and it works for them, serving the destinations which make them money and will not like DL go "mad" and start so many new routes like DL have, even if they had the metal. I am sure DL will not maintain this aggresive schedule which will be scaled back once they see which routes don't perform.
CHIFLYGUY From United States of America, joined Aug 2006, 141 posts, RR: 0 Reply 22, posted (6 years 8 months 1 week 1 day 11 hours ago) and read 2038 times:
Quoting Reins485 (Reply 19):
Arpey has also stated that they will not buy new airplanes until they are making money and now they are. AA will being placing an order for the 787 soon, in my opinion, and due to their gentlemen agreement with Boeing, I think they will get them sooner than people expect.
We'll see how AA does after the travel disruptions this summer. That will probably hit profits and might put their chance at a full year profit at risk.
If AA bought:
787-3 as an A300 and 762-200 transcon replacement
787-8 as a 767-300 and low density expansion plan
787-10 as a 777-200 replacement
They could end up with nearly 200 of those babies!
BigGSFO From United States of America, joined Jun 2005, 2755 posts, RR: 7 Reply 23, posted (6 years 8 months 1 week 1 day 11 hours ago) and read 2028 times:
Quoting Dutchjet (Reply 20): Does AA still have any airplanes in storage........ie, are there stored MD80s that could at least partially replace the ex-TW757 fleet either directly or by re-allocation of route assignments?
Yes. IIRC, AA has 27 MD80's stored that can be returned to service.
Personally and I know this is not going to happen, but I feel they should resume MD80 flying to MIA. That would free up some 738's to add new transcon flights (as speculated) to Miami from Seattle, San Diego, Phoenix, etc. This way they can add much needed feed into Miami from underserved markets without the expense of buying new planes. The parked MD80's, IMO, are a resource not currently being utilized. Naturally the suits at AA know better than I, but from my naive standpoint, I think this could be temporary solution to add flights without buying planes (for the short term).
Dutchjet From Netherlands, joined Oct 2000, 7864 posts, RR: 58 Reply 24, posted (6 years 8 months 1 week 1 day 11 hours ago) and read 2013 times:
Quoting BigGSFO (Reply 23): Yes. IIRC, AA has 27 MD80's stored that can be returned to service.
Thus, AA could replace the ex-TW 752s on a one-for-one basis if they wanted to......of course, the aircraft/route allocations would have to be shuffled, but this should not be an huge problem?
Quoting BigGSFO (Reply 23): The parked MD80's, IMO, are a resource not currently being utilized.
I agree, while some of the airplanes may be in need of heavy maintainance, they are certainly not making money sitting in storage.
Quoting BigGSFO (Reply 23): Naturally the suits at AA know better than I
Dont be so sure.
Quoting BigGSFO (Reply 23): but from my naive standpoint, I think this could be temporary solution to add flights without buying planes (for the short term).
Again, I agree - this seems so logical, what are we missing?
25 BigGSFO: The personal parking space and corner desk in Fort Worth?
26 Commavia: The millions of dollars it costs to bring those planes out of the desert, refurb them, and put them through heavy maintenance checks before sending t
27 Dutchjet: I understand that.....but with no new aircraft on order and the ex-TW 752s leaving the fleet, AA's only other alternative is to keep cutting routes a
28 BigGSFO: So then, why is AA holding on to them? Surely there are expenses incurred for storage.
29 Commavia: My guess that they are hedging on an event somewhat like you described -- a cataclysmic market event that would require AA to pour new capacity into
30 FlyDeltaJets87: Ah, and thus we can boil this down to one of the basic principle of marketing and sales. Market Share does not necessarily = Profit. If the flights A
31 BigGSFO: Makes sense however it seems awfully expensive to keep those birds suntanning in the desert on the long-shot a competitor goes belly up. Nevertheless
Sponsor Message: 
From United States of America, joined Jun 2006, 187 posts, 
From United Kingdom, joined Jul 2005, 1737 posts, 
From Netherlands, joined Oct 2000, 7864 posts, 
Printer friendly format 
