MAH4546
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AA Might Reverse Belo Horizonte Suspension

Thu Aug 19, 2004 10:36 pm

Brazilian newspaper Gazeta Mercantil is reporting AA may reverse their decission to suspend service to Belo Horizonte. The local state government is offering up to US$1M in subsidies and lowered airport fees for American to remain. They currently offer daily 777-200ER service to Sao Paulo, connecting to their Dallas, Miami, and New York City flights. The flight has traditionally relied on cargo to remain profitable (hence, it uses a 777), but cargo has dropped off significantly as of late, which is why the destination is being suspended. Another reason is that AA is unable to serve the city non-stop from Miami becuase of the strict and ancient US-Brazil treaty. We'll have to see what happens...the proposal will be presented within three weeks.
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ssides
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RE: AA Might Reverse Belo Horizonte Suspension

Thu Aug 19, 2004 11:08 pm

If Brazil wants the flight so bad, any chance they will renegotiate the treaty (of course, that could take years).

I often wondered why AA's flights to Belo Horizonte connected through GRU; I didn't know if it was regulatory or if there simply wasn't enough traffic to justify a separate nonstop.
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miaskies
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RE: AA Might Reverse Belo Horizonte Suspension

Thu Aug 19, 2004 11:31 pm

Very interesting in deed! MAH...you think maybe they can pull a non stop flight out of MIA with a 762ER rather than 777 via GRU?
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MAH4546
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RE: AA Might Reverse Belo Horizonte Suspension

Fri Aug 20, 2004 12:11 am

I often wondered why AA's flights to Belo Horizonte connected through GRU; I didn't know if it was regulatory or if there simply wasn't enough traffic to justify a separate nonstop.

There is not enough traffic to justify a daily non-stop; they can justify a non-stop three times a week. Though it is still a low-yielding market, and profits will depend on cargo.

The 777 can carry more of that, and a tag-on can do it daily, so it made more sense to have a daily 777 tag-on to increase cargo yield than three weekly 763s. Though as cargo yield dropped off, making the flight three times a week non-stop from Miami become more justified, as it would help increase passenger yield.

you think maybe they can pull a non stop flight out of MIA with a 762ER rather than 777 via GRU?

If Brazil loosened up with their air treaty, yes, I think they could pull it off (with a 763, since the low-density 762s are reserved for trans-cons and Bermuda).

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AA787
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RE: AA Might Reverse Belo Horizonte Suspension

Fri Aug 20, 2004 12:22 am

What about an A300 with its beastly cargo capacity?

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miaskies
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RE: AA Might Reverse Belo Horizonte Suspension

Fri Aug 20, 2004 2:19 am

I think the A300 might be too big for this route, don't you think?
cargo wise great...but passenger wise?

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luisde8cd
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RE: AA Might Reverse Belo Horizonte Suspension

Fri Aug 20, 2004 2:51 am

I was browsing AA's fleet webpage and it says the A300 carries more pax than their 777s. Is that possible?
 
miaskies
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RE: AA Might Reverse Belo Horizonte Suspension

Fri Aug 20, 2004 3:35 am

Yes the AA AB6's carry more PAX. Than AA's 777. Remember the configuration of these aircraft are quite different. The A300's have a basic first/business class configuration thus allowing for more economy. While the 777 has the "flagship suites" in first class and nicer business class which require more space; thus reducing the total number of economy seats available.

That is my take on it and seems logical to me! Anyone else have any insight?

saludos.
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MAH4546
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RE: AA Might Reverse Belo Horizonte Suspension

Fri Aug 20, 2004 4:05 am

I was browsing AA's fleet webpage and it says the A300 carries more pax than their 777s. Is that possible?


As MIASkies pointed out, yes, it is possible.

AA's A300s have only two classes, First and Coach. First class has only three rows, and coach has 31" pitch.

AA's 777s have three classes, First, Business, and Coach. And Coach has a pitch between 33" and 35", depending on the row.
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ConcordeBoy
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RE: AA Might Reverse Belo Horizonte Suspension

Fri Aug 20, 2004 5:56 am

an A300 with its beastly cargo capacity?

...you forgot dense pax configuration and weak range.
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MAH4546
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RE: AA Might Reverse Belo Horizonte Suspension

Fri Aug 20, 2004 6:08 am

One more reason that AA had to suspend the flight and it became unprofitable as of late was fuel costs. With fuel prices the way they are right now, it was extremely expensive to fill up a 777 on a short hop between GRU and CNF, which takes less than one hour takeoff to touchdown. And the 777s take off heavy...usually with a full cargo load and the average passenger load factor was a high 86%.
a.