From DFW.SCE" target="_blank">PSU.DFW.SCE
text of article posting above, second paragraph:
"...Transforming American into Southwest would, in effect, dismantle all of American’s strengths. Today, we offer a very good, dependable, distinct product that customers value and will continue to demand. We have a huge network, great service, and a reputation that inspires loyalty and trust. Customers overwhelmingly prefer us when the fares are competitive – we’ve already seen that in several markets...."
Key here "when the fares are competitive."
Also mentioned in AMR
CFO, Jeff Campbell, that the product, hub and spoke, more room is worth about a 30% premium.
Is the American/or Global public (business or leisure) willing to pay a 30% premium for this improved product that AA
Will the low cost carrier offer less than steller service at a price customers are willing to afford?
Maybe, the LCC's are here to stay, if looks like a bus, smells like a bus... guess air transportation in the minds of the public is just a flying over crowded bus?
is able to get the 30% premium, then why change the product mix?
What about the dilution (increase in mile points needed) for Loyalty program participants to use AAdvantage reward miles, could miles only be redeemed on the LCC?
Obviously I am missing something here?