phuebner
Posts: 240
Joined: Thu Feb 02, 2006 2:37 pm

What Holds For AA Economic Future?

Sun Mar 05, 2006 6:47 am

I am taking a masters class called "Air Transportation" at an Embry-Riddle Aerno Univ Extended campus site and I am writing a research paper on AA. My question is what do you think holds for AA in its economic future?
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superhub
Posts: 398
Joined: Sat Jan 21, 2006 4:17 pm

RE: What Holds For AA Economic Future?

Sun Mar 05, 2006 8:51 am

In the short to medium term, there will still be a lot of cost-cutting measures. Oil prices will be a major factor too.
 
MalpensaSFO
Posts: 1110
Joined: Mon Feb 20, 2006 10:17 am

RE: What Holds For AA Economic Future?

Sun Mar 05, 2006 9:37 am

Domestic is on the chopping block..
Certain gateways downsized, others beefed up..
Certain stations closed..
TO FLY IS TO SERVE
 
phuebner
Posts: 240
Joined: Thu Feb 02, 2006 2:37 pm

RE: What Holds For AA Economic Future?

Sun Mar 05, 2006 10:48 am

I'm looking to see St. Louis dropped from the "hub" lineup...even though they have been dwindled down to almost a "focus city". They are working with the Maintenance facilities in KC and Tulsa to make them into "Profit Centers". In another string AC spun off their maintenance facility into its own entity. I kinda think that it's a pretty good idea.
Remember this, Your Body is a temple Not a pull toy!
 
mrstl
Posts: 353
Joined: Fri Sep 09, 2005 9:58 am

RE: What Holds For AA Economic Future?

Sun Mar 05, 2006 12:38 pm

Don't know about hub status at STL, but this article would seem to indicate they are adding capacity. STL hit 14.9 million on enplaned/deplaned passengers up 10% from 2004 and still growing this year at a 10% rate.


http://www.stltoday.com/stltoday/bus...C%22American%22+AND+%22Airlines%22
 
isitsafenow
Posts: 3413
Joined: Sun Feb 01, 2004 9:22 am

RE: What Holds For AA Economic Future?

Sun Mar 05, 2006 12:46 pm

I don't use or need AA but I firmly believe they will be a survivor. They did learn their lessons on acqusitions. They won't be purchasing another carrier for a while.
safe
If two people agree on EVERYTHING, then one isn't necessary.
 
phuebner
Posts: 240
Joined: Thu Feb 02, 2006 2:37 pm

RE: What Holds For AA Economic Future?

Sun Mar 05, 2006 4:19 pm

Quoting Isitsafenow (Reply 5):
AA but I firmly believe they will be a survivor

I definitely agree with this, and yeah you're right they won't acquisition any new airlines any time soon. The TWA one was a nail bighter for them since it happened right before 9/11. Any acquisitions that will happen will be made by other airlines.
Remember this, Your Body is a temple Not a pull toy!
 
aa1818
Posts: 1518
Joined: Sat Feb 04, 2006 2:03 am

RE: What Holds For AA Economic Future?

Mon Mar 06, 2006 6:01 am

I agree wth what has been said thus far. Only to add more specifically that AA will continue to focus on cutting it's debt. I do not see any new orders (even the 787) for some time perhaps around 2009. The MD80's will stick around, some might perhaps be replaced by Boeing's Y1 rather than 737NG's. Also look to AA making a push into it's OneWorld hubs/ cities, as the alliance strengthens its ties with each other. AA will definitely be a survivor along with CO. I think AA is on track for a profitable (black) year in 2007. 2006 is in doubt, although if the pressure on oil remains weak and prices are still relatively low, then 2006 could be a (barely) profitable year for AA. Also LatAm, although dominated by AA still has room for more service. Expect increases in the not too distant future and pehaps a few new cities.

I doubt myself on the 787 order however, given te lease situation with the A300's, but I don't see AA buying new jets (type) anytime soon.

AA1818
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