aa777jr
Posts: 2269
Joined: Tue Feb 17, 2004 12:03 pm

Chp 11 Filings, Leads To Expansion?

Sat Oct 23, 2004 2:08 pm

I do not understand the current trend of legacies UA DL etc expanding destinations while they are sinking into Chp 11. Also US announced more destinations and they are sinking just as fast. Please explain?

AA777jr
A liberal is a man who is right most of the time, but he's right too soon.
 
gigneil
Posts: 14133
Joined: Fri Nov 08, 2002 10:25 am

RE: Chp 11 Filings, Leads To Expansion?

Sat Oct 23, 2004 2:11 pm

They need to offer service to higher-yielding destinations. US has announced lucrative Caribbean destinations, UA has announced new Asian services since announcing bankruptcy.

N
 
aa777jr
Posts: 2269
Joined: Tue Feb 17, 2004 12:03 pm

RE: Chp 11 Filings, Leads To Expansion?

Sat Oct 23, 2004 2:14 pm

AA has a lock on Caribbean destinations, and there are so many carriers flying in Asia, how can UA make a huge profit?

AA777jr
A liberal is a man who is right most of the time, but he's right too soon.
 
gigneil
Posts: 14133
Joined: Fri Nov 08, 2002 10:25 am

RE: Chp 11 Filings, Leads To Expansion?

Sat Oct 23, 2004 2:16 pm

US-Asian routes are extremely lucrative, only NW offers a competitive number of routes from the US, and the Caribbean is underserved even with AA's service. Both are very high yield.

N
 
aa777jr
Posts: 2269
Joined: Tue Feb 17, 2004 12:03 pm

RE: Chp 11 Filings, Leads To Expansion?

Sat Oct 23, 2004 2:18 pm

NW is huge at NRT. Is there really a huge demand for all those destinations in Caribbean? Can you name any high yield routes that AA isn't serving in Carbbean now? Thanks
A liberal is a man who is right most of the time, but he's right too soon.
 
Azul320
Posts: 257
Joined: Tue Jun 22, 2004 10:49 am

RE: Chp 11 Filings, Leads To Expansion?

Sat Oct 23, 2004 2:18 pm

It's not really expansion. DL just de-hubbed DFW and US also de-hubbed PIT. This means cancelling hundreds of daily flights systemwide, the airplanes can't be grounded. All that they are doing is shifting their operations to other cities where there is a larger possibility of profit with their existing fleets to make up for the de-hubbed areas.
Excuse me, while I kiss the sky
 
gigneil
Posts: 14133
Joined: Fri Nov 08, 2002 10:25 am

RE: Chp 11 Filings, Leads To Expansion?

Sat Oct 23, 2004 2:22 pm

NRT is not the only airport in Asia, and still there is room for two carriers.

I doubt there are any unserved high yield caribbean routes, but there is more than enough traffic for the two carriers to compete.

Some 17 airlines fly between London and Sydney, but it is still a very high yield routes.

N
 
ual777contrail
Posts: 2914
Joined: Sun Feb 17, 2002 11:33 am

RE: Chp 11 Filings, Leads To Expansion?

Sun Oct 24, 2004 12:53 am

In my opinion Asia is the better route vs the caribbean. AA is trying like hell to get a finger hold on Asia, anybody can get into the caribbean.

My guess is that while uinder chap. 11 you have more money to start new routes. you restructure aircraft leases, and off you go, a new destination.

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