TWA85 From United States of America, joined Feb 2012, 221 posts, RR: 0 Posted (1 year 11 months 2 weeks 4 days ago) and read 9019 times:
Would or even could AA re-open any of their former Focus Cities (aka BOS and SJC) after emerging from bankruptcy and has their operating cost under control? Yes, AA his established their cornerstone strategy, however there will come a point when AA will only be able to grow so much and will need to look to other markets for future revenue growth. Re-opening the BOS Focus City would provide opportunities for revenue growth as AA has historically been strong in the BOS market and it would help AA regain market share in New England that AA has lost over the past decade. Also re-opening the BOS Focus City provides additional growth opportunities now that the economy in the Silicon Valley has stabilized. Also if AA was to re-open any of their former Focus Cities what would be some ideal routes for them to fly from those Focus Cities?
Well their track record hasn't been that great. Whether or not it's been the strategy's fault or not idk, but I wouldn't dismiss the possibility of AA deviating from the cornerstone strategy.
What cities would they re-vamp? If they got a bunch of corporate contracts for BOS, maybe, but I think B6 has invaded already (better for AA just to partner with them like at JFK.) SJC? I think that boat has sailed. SJU? I hope for their sake they don't... can't imagine yields being that great.
Structural weakness in the network? IMHO if AA'd cost would be lower I bet they're network would be if not the, one of the most profitable around. They'd have 2 fortress hubs, and 3 hubs all in the largest metro areas. Not to mention the fact that all the hubs are placed strategically to handle connections to anywhere (assuming AA has service there). As for as international weakness, in South America they are the largest American carrie, but they are really behind in Africa, a distant third in Asia (but this seems to be improving) and have a nice presence in Europe considering the economy. Just like every other airline, AA has its issues in the network in certain areas.
aaway From United States of America, joined Oct 2003, 1522 posts, RR: 14
Reply 11, posted (1 year 11 months 2 weeks 3 days 8 hours ago) and read 6610 times:
If you stretch that post-bk planning horizon, it wouldn't surprise me to see AA do something with AUS again. That city, with its growth and, particularly, demographic, have to remain attractive to AA. Despite the shrinkage of its AUS schedule, AA remains a solid #2 in that market.
Obviously should a merger with B6 occur, AUS will be thrust back into 'focus city' status sooner.
With a choice between changing one's mind & proving there's no need to do so, most everyone gets busy on the proof.
STT757 From United States of America, joined Mar 2000, 16859 posts, RR: 51
Reply 12, posted (1 year 11 months 2 weeks 3 days 7 hours ago) and read 6385 times:
First I think it's very likely AA will be merged into US Airways during their bankruptcy, they will emerge as a new carrier either already combined or in the process of being combined with US Airways.
Second most of their efforts post merger will likely involve "right sizing" hubs, and getting the right aircraft in place for the right routes. As is currently being done at UA this process is going to take a couple years. So probably no major activity or development outside the hubs for a period of a few years.
Developing focus cities is something airlines do when their hubs have matured and they need to find new places to grow.
flymia From United States of America, joined Jun 2001, 7143 posts, RR: 9
Reply 16, posted (1 year 11 months 2 weeks 3 days 4 hours ago) and read 5405 times:
Quoting jmc1975 (Reply 9): Structural weaknesses in the network, a distant 3rd place among piers, no service to TLV, etc. The list goes on & on.
So AA being in 3rd place means the airline in 4th place will save it? And no service to TLV, yes that makes up an airline.
Quoting kkephart13 (Reply 15):
Do you think they will keep PHL and DCA being AA has JFK?. Not all hubs will survive.
As stated already DCA is GOLD, its a money maker airport. People pay a premium to fly into DCA. JFK is slot controlled they can't expand all they want and JFK is heavy O/D. PHL has its own strong O/D market and will be a great reliever for JFK. I know we said in 2000 that STL would be a good reliever for ORD but JFK is not an ORD type hub. With PHL AA/US could focus JFK on O/D and high value markets while PHL will be the connecting hub.
MCO will be a nice spoke:
ORD, JFK, LAX, MIA, DFW, CLT, PHL, DCA, PHX.
"It was just four of us on the flight deck, trying to do our job" (Captain Al Haynes)
HPRamper From United States of America, joined May 2005, 4056 posts, RR: 8
Reply 23, posted (1 year 11 months 2 weeks 3 days ago) and read 3391 times:
If ANY focus city is reopened it would be BOS. AA and US are the #2 and #3 carriers there respectively and both have longtime FF bases from their many years of dominance there. It would not take much to get it up and running again. However, this in my opinion would only happen if AA and US merge. If AA goes on alone, BOS stays a spoke.
MCO is a junk yields mecca and I doubt AA wants to butt heads (and waste money) with B6 and WN, et al. so sure, it will be a nice spoke along with about 30 other airports in the country. Not a focus.
SJU will be interesting to see. AA seems to have ceded a lot of ground to B6 at SJU but with both AA and US having decent Caribbean operations and history serving SJU they might make a go of it again.
I state again, if AA stands alone after bk they will not be looking to start a focus city anywhere. They will be streamlined (read: smaller and more efficient) and more concerned with fortifying at the cornerstones.
flyby519 From United States of America, joined Jul 2007, 1137 posts, RR: 0
Reply 24, posted (1 year 11 months 2 weeks 2 days 23 hours ago) and read 3031 times:
Quoting Cubsrule (Reply 21): In your opinion, which of those hubs should still be open today and why?
Im not saying any of them should still be open, but I was trying to make a point that even though there are logical arguements to keep places like PHL, DCA, PHX, etc it doesnt mean they will survive. AA has made it clear they want to focus on cornerstone cities, and as long as the AMR mgmt team is in charge (as opposed to Parker's people) then it will be that way.
I see PHL following the same fate as BOS in regards to the future at AA/US. Big business markets, good O&D, but neither will be in AA's network long term (10+yrs). PHX and RDU/BNA are similar as well.
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: I agree that BOS is the only potential focus city, but I was wondering where they would actually fly to that they don't already? They would want to s
: The answer to this thread is most likely no. AA is about as likely to beef up BOS, SJU, RDU, STL whatever as DL is to DFW, CVG, MEM, etc moving forwar
: Actually I'd argue they have a very strong network just horrible costs, among some other things. If worst came to worst they could retreat to MIA and
: US's PHL hub is several times larger than AA and US ever were in their hey days at BOS, PHL is much better positioned geographically between NYC and
: AA practically handed over their reign in markets like JFK, BOS, SJU, etc to B6 on a golder platter over the last decade. In fact, jetBlue's amazing g
: I suppose it's a major factor if TLV is one's home or primary destination airport.
: Correct - But TLV is't the center of the universe. Well, maybe for others it is...
: Never going to happen, the investment has been made in MIA Exactly. N737AA
: AA's hub/focus city days at BOS are done. Period. It is a market they will likely never be able to recover unless something extremely drastic happens
: It is for the poster, who is in Israel. It is just that TLV's revenue potential has been frequently overstated on this board so we tend to look askan