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AA Close To Returning To Asuncion; Adding Cordoba  
User currently offlinemah4546 From Sweden, joined Jan 2001, 32176 posts, RR: 72
Posted (2 years 10 months 3 weeks 15 hours ago) and read 7813 times:

American Airlines is all but ready to resume service to Asuncion, Paraguay, with three non-stop flights a week to Miami. The service will resume on the condition that American Airlines is exempted by a hefty 6% travel agent commission fee that not only was the reason that AA left in 2005, but has brought Paraguay air traffic growth to virtually zero. A Paraguay delegation met with AMR in Miami recently, and elimination of the tax is the only hurdle left.

Article, in Spanish:
http://www.ultimahora.com/notas/4333...es-interesada-en-volver,-sin-el-6-

Furthermore, plans are underway to open new service to Cordoba, Argentina and the major newspaper in Cordoba has apparently received confirmation from an AA executive for a November launch date:

http://www.turisticaonline.com/1/not..._airlines_se_acerca_a_cordoba.html


[Edited 2011-05-31 19:19:57]


a.
47 replies: All unread, showing first 25:
 
User currently offlinecommavia From United States of America, joined Apr 2005, 11116 posts, RR: 62
Reply 1, posted (2 years 10 months 3 weeks 15 hours ago) and read 7849 times:

Would be cool to see AA back in ASU - especially nonstop from MIA, and not via GRU, this time.

3x per week - would that be 757, or 763? And I'm guessing it would be an evening redeye MIA departure, and daylight return (a la SSA/REC, LPB/VVI, etc.), or would they use a whole airplane just to do a double-overnight?

Not likely to happen, but it would be cool to see AA do a MIA-ASU-COR 757 flight.


User currently offlinemah4546 From Sweden, joined Jan 2001, 32176 posts, RR: 72
Reply 2, posted (2 years 10 months 3 weeks 15 hours ago) and read 7825 times:

Quoting commavia (Reply 1):
3x per week - would that be 757, or 763? And I'm guessing it would be an evening redeye MIA departure, and daylight return (a la SSA/REC, LPB/VVI, etc.), or would they use a whole airplane just to do a double-overnight?

I would assume a 763, redeye to and daylight return. No need for double redeye in this market.

Quoting commavia (Reply 1):
Not likely to happen, but it would be cool to see AA do a MIA-ASU-COR 757 flight.

No, but MIACOR is inevitable by itself. Just actually edited the original post. In fact, maybe that's tomorrow's announcement...



a.
User currently offlineSCL767 From Chile, joined Feb 2006, 8604 posts, RR: 5
Reply 3, posted (2 years 10 months 3 weeks 14 hours ago) and read 7693 times:
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Quoting mah4546 (Thread starter):
American Airlines is all but ready to resume service to Asuncion, Paraguay, with three non-stop flights a week to Miami.

Hopefully the Paraguayan Government will eliminate that ridiculous 6% commission fee charged by travel agents as it only serves as a deterrent for new air services into ASU. This service is long overdue and should do very well considering that many people have been waiting for years for AA to return to ASU.

Quoting mah4546 (Reply 2):
No, but MIACOR is inevitable by itself. Just actually edited the original post. In fact, maybe that's tomorrow's announcement...

The Argentine press has already "announced" that AA will launch a direct service to Córdoba in November. Looks like COR is turning into a oneworld focus city!
http://www.lavoz.com.ar/american-air...es/american-airlines-desde-cordoba


User currently offlineTalaier From Spain, joined May 2008, 490 posts, RR: 0
Reply 4, posted (2 years 10 months 3 weeks 7 hours ago) and read 7213 times:

Interesting to see AA starting to develop into more secondary cities in LatAm.

I wonder if, with AA exempt from the 6% tax, IB can get an exemption too and start to fly to ASU, potentially as a tag on from GRU or GIG?

Fernando


User currently offlineRCS763AV From Colombia, joined Jun 2004, 4373 posts, RR: 12
Reply 5, posted (2 years 10 months 3 weeks ago) and read 6920 times:

Great news for Paraguay! Indeed, that 6% (which isn't even a tax, it's a ridiculous comission they have to give to travel agents) has made growth stagnant. It's amazing how few air connections Paraguay has to the outside world. Let's hope they abolish that thing altogether (not only for AA) and we see a lot of newcomers into the market.

User currently offlineAJMIA From United States of America, joined Dec 2005, 729 posts, RR: 15
Reply 6, posted (2 years 10 months 3 weeks ago) and read 6880 times:

Quoting Talaier (Reply 4):
I wonder if, with AA exempt from the 6% tax, IB can get an exemption too and start to fly to ASU, potentially as a tag on from GRU or GIG?

It would not seem fair to make AA exempt from the 6% commission yet require other airlines to pay it.

Maybe they will do away with it all together.

AJMIA



Lady it's a jet... not a kite.
User currently offlineRAGAZZO777 From Uruguay, joined Jul 2010, 579 posts, RR: 1
Reply 7, posted (2 years 10 months 3 weeks ago) and read 6754 times:

Quoting mah4546 (Thread starter):
American Airlines is all but ready to resume service to Asuncion, Paraguay, with three non-stop flights a week to Miami. The service will resume on the condition that American Airlines is exempted by a hefty 6% travel agent commission fee that not only was the reason that AA left in 2005, but has brought Paraguay air traffic growth to virtually zero. A Paraguay delegation met with AMR in Miami recently, and elimination of the tax is the only hurdle left.

That's great news for Paraguay ! I really hope AA resumes service to ASU as soon as posible. By the way, I'm not sure but I think the 757-200WL could make MIA-ASU-MIA without any problems.



JESÚS, TE AMO !!
User currently offlineSTT757 From United States of America, joined Mar 2000, 16691 posts, RR: 51
Reply 8, posted (2 years 10 months 3 weeks ago) and read 6746 times:

Quoting commavia (Reply 1):
3x per week - would that be 757, or 763?
Quoting mah4546 (Reply 2):
I would assume a 763

I think a 757 would be fine, MIA-ASU is actually shorter than EWR/JFK-BCN. ASU has an 11,000ft runway and altitude is not a factor.



Eastern Air lines flt # 701, EWR-MCO Boeing 757
User currently offlineasuflyer From United States of America, joined Jan 2007, 135 posts, RR: 0
Reply 9, posted (2 years 10 months 2 weeks 6 days 23 hours ago) and read 6576 times:

This is great news for Paraguay, although nothing can be certain until an official announcement is made, simply because there have been rumors of AA's return for 4 years now. Most likely it will be a 763 because cargo is necessary for the flight to be viable.

AA said it would return to Paraguay, when the 6% tax was eliminated or when they were made exempt of it. Before the service ended in 2005, then AA served ASU through GRU.


User currently offlineincitatus From Brazil, joined Feb 2005, 3964 posts, RR: 13
Reply 10, posted (2 years 10 months 2 weeks 6 days 23 hours ago) and read 6538 times:

I've read about AA back in ASU so many times, I will believe it when I fly it.

User currently offlineSJOtoLIR From Costa Rica, joined Jul 2007, 4339 posts, RR: 4
Reply 11, posted (2 years 10 months 2 weeks 6 days 22 hours ago) and read 6433 times:

Quoting mah4546 (Thread starter):
plans are underway to open new service to Cordoba, Argentina


CM PTY-COR has been in service since 2007 and their frequencies have been gradually increased up to 7x weekly nowadays as it matches with CM PTY-MIA and back. This arrangement is available every day.

Regards.



"Goin' up to the spirit in the sky"
User currently offlineSCL767 From Chile, joined Feb 2006, 8604 posts, RR: 5
Reply 12, posted (2 years 10 months 2 weeks 6 days 22 hours ago) and read 6374 times:
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Quoting SJOtoLIR (Reply 11):
CM PTY-COR has been in service since 2007 and their frequencies have been gradually increased up to 7x weekly nowadays as it matches with CM PTY-MIA and back. This arrangement is available every day.

And AA offers MIA-COR daily as well via SCL way before CM entered COR, what's your point?
AA0957 MIA-SCL
AA7742 SCL-COR
AA7735 COR-SCL
AA0912 SCL-MIA

*AA7742/AA7735 operated by LA for AA.


User currently offlineTBYO787 From Colombia, joined Feb 2008, 195 posts, RR: 0
Reply 13, posted (2 years 10 months 2 weeks 6 days 21 hours ago) and read 6234 times:

Quoting SCL767 (Reply 3):
Hopefully the Paraguayan Government will eliminate that ridiculous 6% commission fee charged by travel agents

Ridiculous?? Why ??

Fee?? is Commission for doing a task that they can not handle.

In capitalism nobody works for free. Now Airlines and their employees are trying to make it obvious that paying commission is ridiculous.
Thanks god Airlines are more than aware that they can not handle it themselves.
A probe of what I'm saying is that every day we get more and more commission offers from the Airlines.
Here in the USA all International Carriers pay commission one way or the other.

Regards,

TBYO787
 


User currently offlineSCL767 From Chile, joined Feb 2006, 8604 posts, RR: 5
Reply 14, posted (2 years 10 months 2 weeks 6 days 21 hours ago) and read 6210 times:
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Quoting TBYO787 (Reply 13):
Here in the USA all International Carriers pay commission one way or the other.

Do they pay 6% commission on every ticket sold in the U.S.?


User currently offlineTBYO787 From Colombia, joined Feb 2008, 195 posts, RR: 0
Reply 15, posted (2 years 10 months 2 weeks 6 days 20 hours ago) and read 6061 times:

Quoting SCL767 (Reply 14):
Do they pay 6% commission on every ticket sold in the U.S.?

Even More. Your beloved LA pay 8% commission. as well as many others that pays up to 15%, depending on the class of service.

I'm surprised that you are not aware of it.

Regards,

TBYO787


User currently offlinemah4546 From Sweden, joined Jan 2001, 32176 posts, RR: 72
Reply 16, posted (2 years 10 months 2 weeks 6 days 19 hours ago) and read 5985 times:

Quoting TBYO787 (Reply 15):
Even More. Your beloved LA pay 8% commission. as well as many others that pays up to 15%, depending on the class of service.

I'm surprised that you are not aware of it.

On every ticket sold, regardless of channel? I don't think so.

The Paraguayan government decided in 2005 to place a 6% fee on all tickets, to be given to travel agents, even if a travel agent never sold the ticket. Paraguay is welcome to create whatever laws it wants - and since then there has been absolutely no air traffic growth in a country that could desperately use it.



a.
User currently offlineSCL767 From Chile, joined Feb 2006, 8604 posts, RR: 5
Reply 17, posted (2 years 10 months 2 weeks 6 days 19 hours ago) and read 5950 times:
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Quoting TBYO787 (Reply 13):

Check LAN's policy in regards to its' fare classes and main distribution points, then come back again! Technology is a great thing, it makes travel agencies redundant!


User currently offlineTBYO787 From Colombia, joined Feb 2008, 195 posts, RR: 0
Reply 18, posted (2 years 10 months 2 weeks 6 days 18 hours ago) and read 5815 times:

Quoting mah4546 (Reply 16):
On every ticket sold, regardless of channel? I don't think so.

We are talking about Travel Agencies Upfront Commission only. Contracts are for Store Front Agencies only.

OTA's have a different treatment, but they also get between 3 and 8 percent.

TBYO7878


User currently offlineLAXdude1023 From India, joined Sep 2006, 7320 posts, RR: 24
Reply 19, posted (2 years 10 months 2 weeks 6 days 18 hours ago) and read 5778 times:

Quoting SCL767 (Reply 14):
Do they pay 6% commission on every ticket sold in the U.S.?

On flights to South American from the US operated by LAN, yes.



Stewed...Lewd...Crude...Irreverent...Belligerent
User currently offlineTBYO787 From Colombia, joined Feb 2008, 195 posts, RR: 0
Reply 20, posted (2 years 10 months 2 weeks 6 days 18 hours ago) and read 5753 times:

Quoting SCL767 (Reply 17):
Check LAN's policy in regards to its' fare classes and main distribution points, then come back again!

What do you means about that??.



Let me tell you that in 30 years in the business from a Booking Agent at EA going thru Sales Dept and ending as an independent contractor for more than 10 years, I don't think I know everything.

Even when I don't have Commission on a particular Airline, I just check with friends and always found someone who has it.

Quoting SCL767 (Reply 17):
it makes travel agencies redundant!

Definitely you have not idea on this industry.

Just for your knowledge we still control 55% percent of sales worldwide

TBYO787


User currently offlinePZ From Paraguay, joined Oct 2007, 171 posts, RR: 0
Reply 21, posted (2 years 10 months 2 weeks 6 days 18 hours ago) and read 5695 times:

It is about time to have a nonstop flight from ASU to MIA again. Paraguay is changing a lot in many aspects, so I think that if AA returns they will face a totally different situation from the one they had before. In 2010, Paraguay experienced the greatest economical expansion of the zone and the highest of South America (also one of the highest in the world), with a GDP growth rate of 14,5%.
Many businesses and industries are establishing in Paraguay. Here are some financial facts about Paraguay for this year:

-Currently there is a construction boom in Paraguay. There are many commercial/business/residential towers being constructed. The World Trade Center is starting to build 4 new towers in Paraguay. Also many prestigious Hotel brands are establishing in the country.
-Last year the world's largest titanium deposit was found in Paraguay.
-Rio Tinto/Alcan will invest 2.5 billion US dollars in an aluminium smelter in Paraguay.
-Paraguay was in 2010 the world's No. 4 soy exporter.
-Paraguay is also one of the biggest beef exporter. Argentina has now been overtaken by Paraguay in beef exports.

Also, if we look at the number of passangers that traveled in ASU in 2010 we have the following stats:
-When AA left ASU in 2005, the traffic of passengers in ASU was of 435.211 passengers. Last year (2010), the traffic of passengers was of 733.810 passengers. That's almost a 69% increase!

I'm pretty sure that AA is aware of how the economy is changing in Paraguay and they probably see now a better scenario and a good opportunity to resume ASU.


User currently offlinesomething From United Kingdom, joined May 2011, 1633 posts, RR: 21
Reply 22, posted (2 years 10 months 2 weeks 6 days 16 hours ago) and read 5216 times:

First of all, Paraguay must have the highest density of beautiful women I have ever seen. Kudos!

Second of all, while Paraguayos aren't some backwards mountain people, internet plays a much smaller role in people's everyday lives there than it does in most ''western'' countries. That may not necessarily be true for the younger generations, but it's usually not them who go out and buy intercontinental tickets. Or who have large cargo shipments to make.

Thirdly, even in Europe it is (still) quite common for people to go to travel agencies. Most people simply don't care about aviation. It's a mean of transportation to them. Some of them aren't very versed with the internet either, or simply wouldn't know where to look to find the best deal. Or could identify one. Or they simply don't trust the internet enough.

And as far as commissions go.. even expedia.com, opodo, and all other search engines charge the airlines for listing them in their search results. AA wasn't willing to pay even that commission anymore, and does therefore not show up on such websites anymore. The only way that's left for you to book tickets on AA is by going to their or one of their affiliates' websites.

I'm not quite sure this is the right place to safe money for AA. They clearly don't have the quality argument going on for them (their reputation in South America, esp. in Brazil is terrible and rightly so) and I wouldn't know of anybody who finds AA so amazing, that whenever they want to book a flight, flocking to AA.com to check for their availability is their go-to move.

AA has crazy potential for growth. They could easily own South America, if only they tried a little harder. I know of people who've flown South America to Europe via DFW even, simply 'cause it was so cheap. But just because things are working now, doesn't mean they couldn't work better. And these dumping prices indicate that there's plenty room for improvement. I hope TAM and Air Canada will crush AA into pieces. Compared to their offerings, AA simply doesn't deserve anybody's business.

I don't work in the travel agency business so I really wouldn't know if a 6% comission is a lot, average or little. I think they're shooting themselves in the foot though if local travel agencies start boycotting to sell their tickets. I think it's happened before somewhere to whatever airline it was and almost ruined them. Was it in India? I don't know.

The new service will be good for Paraguay's travellers. It still baffles me though how a 6% surcharge can paralyze aviation growth altogether. In any way I hope another, better carrier will take up ASU into their network and give AA a run for their money. It's hard, since MIA combines both, strong O&D plus AA's comprehensive network, but maybe CO or DL could at least take the transit pax and cargo away from AA. They really need to do something about the way they conduct business.

[Edited 2011-06-01 18:05:36]


..sick of it. -K. Pilkington.
User currently offlinecommavia From United States of America, joined Apr 2005, 11116 posts, RR: 62
Reply 23, posted (2 years 10 months 2 weeks 6 days 15 hours ago) and read 5080 times:

Quoting something (Reply 22):
even expedia.com, opodo, and all other search engines charge the airlines for listing them in their search results. AA wasn't willing to pay even that commission anymore, and does therefore not show up on such websites anymore. The only way that's left for you to book tickets on AA is by going to their or one of their affiliates' websites.

Not exactly. First off, it's not as simple as "AA wasn't willing to pay even that commission anymore." AA doesn't want to pay for the luxury of a middleman to take AA's product and repackage it to turn around and give to third party distribution channels when AA's own technology is more than capable of cutting out the middleman altogether. Secondly, AA's content absolutely does appear on numerous websites, including Priceline and Expedia (both of which have agreed to use AA's direct connect technology), as well as on Kayak and various other OTAs and travel meta engines. There are plenty of ways to book AA flights besides AA.com - and I'm not sure where you're getting any notions to the contrary.

Quoting something (Reply 22):
I'm not quite sure this is the right place to safe money for AA. They clearly don't have the quality argument going on for them (their reputation in South America, esp. in Brazil is terrible and rightly so) and I wouldn't know of anybody who finds AA so amazing

Here we go again. You might have something against AA (since you bash the company again and again), but regardless of your own personal opinion of AA's allegedly horrific service, AA's franchise in South America is extremely strong - including in South America point-of-sale (POS), and particularly relative to other U.S. carriers.

AA's massive and longstanding local presence in these markets - including CTOs, large teams of local employees, in some cases local flight attendant bases, civic sponsorships and partnerships, brand recognition, corporate travel contracts, and AAdvantage penetration, among others - are certainly without equal among U.S. carriers, and in some cases are as stronger or stronger than local carriers, particularly in some of the smaller South American markets.

Quoting something (Reply 22):
AA has crazy potential for growth. They could easily own South America, if only they tried a little harder.

Uh, I'm not sure how much more AA could possibly "own" South America than they already do.

AA is already the dominant U.S. carrier in basically every South American market they serve. Just ask Delta and United/Continental.

Quoting something (Reply 22):
It's hard, since MIA combines both, strong O&D plus AA's comprehensive network, but maybe CO or DL could at least take the transit pax and cargo away from AA.

It is difficult to imagine any other U.S. carrier being able to support a flight to Asuncion other than AA, as I don't imagine that either Atlanta or Houston (the two most likely hypothetical gateways) could ever profitably fill a plane to Paraguay. If any U.S. gateway can do it, it would be Miami, and that basically means - by default - AA.


User currently offlineMCOGVADCA From China, joined Oct 2006, 446 posts, RR: 0
Reply 24, posted (2 years 10 months 2 weeks 6 days 15 hours ago) and read 4888 times:

Quoting commavia (Reply 23):
It is difficult to imagine any other U.S. carrier being able to support a flight to Asuncion other than AA, as I don't imagine that either Atlanta or Houston (the two most likely hypothetical gateways) could ever profitably fill a plane to Paraguay. If any U.S. gateway can do it, it would be Miami, and that basically means - by default - AA.

   Only AA thru MIA could pull this off.

Interestingly enough, COPA just announced PTY-ASU. This might make AA's task a little more difficult, given the connecting opportunities provided through Copa's hub in Panama City. However, this small potential impediment is nothing compared to that absurd 6% fee imposed by the Paraguayan government.



12 months:pvg hkg bkk doh mxp nce zrh iah lhr gva iad clt lax nrt sin mnl ceb del jai gay vns szx zuh mfm icn can
25 smoot4208 : Mark, Haven't you stated in the past that both of these routes "were about to start" only for something to fall through last minute? I think both of t
26 something : well, well, well.. if it isn't commavia, the green goblin to my spiderman, the pope paul V to my galileo, the internet explorer to my google chrome..
27 commavia : I've been called a lot, but calling me "internet explorer" as compared to Google Chrome is among the worst. Miami is a huge part of it, but again, it
28 AJMIA : OUCH - You are painting a lot of MIA employees (including myself) with a broad nasty brush. Sure, there are some bad apples in MIA (as there are just
29 mah4546 : Why would it make it more difficult? MIAASU is bigger than Paraguay to all of Mexico and Central America combined. Indeed they have seemingly been on
30 something : LOL you know it's all just in good humour, don't you? Sometimes it seems like you deliberately misinterprete the things I say. By saying ''make it ea
31 mah4546 : You are speaking with emotion and ignoring fact. People might "prefer CO" or others, but AA outperforms them and is clearly the favorite airline wher
32 something : Outperforms them how? Cheaper fares? Yes. That'll make people fly with them. Better schedules and award programs, helpful as well. But if JJ and AA o
33 mah4546 : No. Higher fares. That is simply wrong. Like I said, in the MIACNF market, AA and JJ carry the same amount of non-stop traffic, but AA does so at a 4
34 commavia : Right, I didn't misrepresent anything. You yourself said that "you've gotta make your product available," the implication being that AA doesn't, whic
35 eastern023 : [quote=commavia,reply=34]Well, your anecdotal evidence aside, AA still carries dramatically more passengers than Continental to South America, which i
36 commavia : As I said, I don't disagree that AA needs to invest more in certain aspects of its product - the #1 priority in my view being the Coach cabins on its
37 incitatus : I am sorry but this is clueless. Have you seen the business class JJ offers at CNF/BSB for MIA? In particular for premium travel, only the irrational
38 something : Which is all I am trying to say. And I don't see how hiring friendlier staff is a huge financial investment. I have no doubt in my mind that if AA ha
39 IrishAyes : Agreed! I was very impressed when I visited. This will be a non-issue for AA/MIA. I do not see how a Central American hub/carrier, run entirely by a
40 something : Yeah, I apologize for that. But in my defense my argument was only weakened, not entirely invalidated. Because they have it coming. We talk about AA
41 IrishAyes : At this point, it's like beating a dead horse. I care more about reading dialogue that is somewhat relevant to the topic thread and not so much about
42 smoot4208 : So in other words, this is an unofficial announcement and could end up not materializing
43 guyanam : Sorry those "friendly" AA employees must have been hiding the two times I was forced to fly through MIA. The rudeness, in fact down right cruelty, wo
44 mah4546 : If its a go, should be announced shortly, possibly as soon as Wednesday or Thursday. It will be three weekly 763s, non-stop MIACOR. Of course, nothin
45 miguel0881 : If ASU is also a go, would you expect it to be announced in a similar timeframe? I'm planning to book a trip to ASU and am wondering if I should hold
46 mah4546 : I wouldn't hold off booking a flight based on speculation. According to Paraguay media reports, the issue with Asunción remains the 6% commission. I
47 miguel0881 : Agreed, thanks. Let's hope Paraguay finally resolves this issue once and for all.
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