KarlB737
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American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 2:59 am

Courtesy: The New York Times

American Air To Cut Planes, Intensifying Seat Crunch

By JEFF BAILEY

Published: April 20, 2006

CHICAGO, April 19 — American Airlines said Wednesday that it planned to mothball 27 planes by July 1, intensifying a capacity squeeze that is expected to make this summer's flying the most crowded ever.

Fuller planes, of course, while aggravating for passengers, are good news for airlines. And the AMR Corporation, the parent of American, reported a narrower first-quarter loss on Wednesday on a 12.5 percent increase in revenue. Some analysts expect the airline to show a full-year profit for the first time since 2000.

For rest of article:

http://www.nytimes.com/2006/04/20/bu...974ac6b6&ei=5099&partner=TOPIXNEWS

[Edited 2006-04-20 20:01:06]
 
jetdeltamsy
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 3:41 am

AA is doing the intelligent thing.

Fewer seats in the marketplace will result in higher fares for the seats that remain and maybe, just maybe AA will earn a profit.

Delta should follow their lead and do the same.

Because much sooner than later, the till is going to run dry. We have to become cash positive and we have to achieve that very quickly.
Tired of airline bankruptcies....EA/PA/TW and finally DL.
 
AA737-823
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 4:14 am

I love empty planes as much as the next guy, and I am certainly NOT an AA fan, but PLEASE let this work. If this is what it takes to keep the company and jobs, then by all means, do it.

Although I think it's interesting... AA and CO both lost money this quarter (although less than YOY 2005), but they have two different strategies: Continental has announced plans to hire thousands and bring more planes into the fleet, while AA is parking 27 mad dogs...
I guess time will tell which (or both) will work.
 
MAH4546
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 4:16 am

What this and other over-exageratting articles mention is that 25 of the planes are already parked. Only two more are going into storage between now and July.
a.
 
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N328KF
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 4:18 am

Quoting AA737-823 (Reply 2):
Although I think it's interesting... AA and CO both lost money this quarter (although less than YOY 2005), but they have two different strategies: Continental has announced plans to hire thousands and bring more planes into the fleet, while AA is parking 27 mad dogs...

The key is the types of aircraft involved. AA is getting rid of short-haulers, while CO is bringing long haulers online.
When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' -Theodore Roosevelt
 
commavia
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 4:23 am

It's about time somebody showed some domestic capacity restraint.
 
ikramerica
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 4:28 am

So we've gone from a over saturated market condition to a seat crunch in one year, according the press?

Hmmm. Just like the over capacity was a myth, so is the seating crunch. Both have nothing to do with being able to find a seat, but with being able to find a seat at a cheap price. Before, it was too easy to find a cheap seat. Now, it will be "too hard."

But if any person in the USA wants to fly anywhere this summer on any day, I doubt that up until that day (save a couple holidays) there won't be a seat available for you to buy on the flight you want. It will just be more expensive than you may be willing to pay...
Of all the things to worry about... the Wookie has no pants.
 
ord
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 4:39 am

Quoting Commavia (Reply 5):
It's about time somebody showed some domestic capacity restraint.

United has been doing this for the past several years.
 
Boeing757/767
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 4:42 am

So has NW -- they've been very judicious to reduce capacity where it makes sense.
Free-thinking, left-leaning secularist
 
FCYTravis
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 4:48 am

Yeah, and guess who just confirmed orders for 87 more 737-700s? That's right, Southwest. So much for the capacity reductions.

This "capacity-shrink" is yet another quick-fix that ignores structural problems. Every time the legacy carriers shrink capacity, Southwest comes right in and fills up the gap. It is a fallacy to believe that any of these carrier reductions will materially reduce capacity nationwide over the long-term, as long as carriers like WN and FL are ready to throw hundreds of 737s into the skies.
USAir A321 service now departing for SFO with fuel stops in CAK, COS and RNO. Enjoy your flight.
 
andessmf
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 4:51 am

As a reference point, reading from my old books from the early 90's, it is surprising to see the staggering growth in airliner fleets since then. After all, WN still doesnt come close to AA fleet size, even with the addition of 79 737s.
 
goingboeing
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 4:52 am

Travis....if Southwest and Airtran can throw hundreds of 737's in the sky AND make a profit....more power to them.
 
kulatict
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 5:17 am

that's probably explained why i was rebooked on an Eagle Y seat instead of the MD 80 F seat that i booked on from ICT to DFW on June 13.... i thought they try to punk me by 'downgrading' me by selling my award ticket seat to paying customer on the original flight....
 
ckfred
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 5:27 am

I was doing some cleaning and found something interesting. In 1994, I bought a ticket for ORD-ATL-ORD on AA for about $240. IIRC, that was a sale price, almost $100 off, becasue TWA was trying to get a focus city going at ATL.

The next year, 1995, I had a ticket on AA for the same trip, for $118. because ValuJet had started ATL-MDW.

The price for ORD-ATL-ORD stayed between $120 and $150 for several years. Now, it's hard to find a ticket on AA for ORD-ATL for less than $250, just slightly more than what a ticket cost in 1994.

Considering that most things cost a lot more now than what they did in 1994, air travel is still a bargain.

This also shows that a) LCCs had pricing power in the mid 1990s, and b) LCCs can't hold prices at mid-1990s levels, either.
 
irelayer
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 5:39 am

Quoting AA737-823 (Reply 2):
Although I think it's interesting... AA and CO both lost money this quarter (although less than YOY 2005), but they have two different strategies: Continental has announced plans to hire thousands and bring more planes into the fleet, while AA is parking 27 mad dogs...
I guess time will tell which (or both) will work.

AA's fleet (~700) is also roughly twice the size of CO's (~350). And CO will be getting newer, more efficient aircraft for their money while AA is stuck with a boatload of short-haul MD-80's. Totally different.

-IR
 
DAYflyer
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 5:44 am

Lets see; AA shrinks capacity and WN sucks it up. DL reduces capacity and FL sucks it up......any patterns here people?
One Nation Under God
 
vegasplanes
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 5:45 am

Quoting MAH4546 (Reply 3):
What this and other over-exageratting articles mention is that 25 of the planes are already parked. Only two more are going into storage between now and July.

That's what I was wondering, I recall AA had parked a bunch on Mad Dogs previously, are those becoming permanently retired ?
 
goingboeing
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 6:36 am

Quoting DAYflyer (Reply 15):
Lets see; AA shrinks capacity and WN sucks it up. DL reduces capacity and FL sucks it up......any patterns here people?

Yes....Southwest and Airtran are profitable.
 
FlagshipAZ
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 6:40 am

Vegasplanes, the MD-80s of American are just temporary parked, none are retired. AA has 362 on the roster, with some 325 in service. This will probably be reduced to around 300, more or less. American is investigating whether to re-engine the majority of the MD-80s if the PW6000 is suitable for the airframe. Also there are stage 4 hushkits out there for the aircraft as well.
AA will keep the MD-80 around as long as possible until Boeing launches the 737RG. No sense in retiring the MD-80 if there's nothing to replace with, and I don't mean that more 737NGs is the answer. The MDs & 737s complement each other within AA's fleet. Regards.
"Beer is living proof that God loves us and wants us to be happy." --Ben Franklin
 
AA737-823
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 7:10 am

You folks that are replying to me have neglected to acknowledge that Continental is, in fact, not doing what you're saying. Yeah, they ordered two 777s, but the aircraft they are currently taking delivery of are all 737-800s.

There goes your theory.
 Smile
Anyhoo, I do agree, though, that they're different in that AA is parking fuel-guzzlers (did we ever think we'd call MD-80s guzzlers???) and CO is adding sippers, relatively.

Ikramer, I don't think that either situation was a myth. They're not as big a deal as the media makes, yeah, but there's still some truth to them.
 
socalfive
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 7:27 am

Quoting ORD (Reply 7):
United has been doing this for the past several years

Several years in bankruptcy helped 'em do that.
 
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AA777223
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 7:29 am

Are these old TWA birds, or are they just some of the older AA planes? I for one am happy to see some super 80s parked. They are the bulk of the domestic AA flights from here at DFW, and I am just not a fan of them. Gimme a 738 or 757 anyday of the old mad dog. I think this is a very smart move on the part of American and is hopefully the next step on the path to profitability.
A318/19/20/21, A300, A332/3, A343/6, A388, L1011, DC-9, DC-10, MD-11, MD-80, B722, B732/3/4/5/7/8/9, B743/4/4M, B752/3, B762/3/4, B772/E/W, B788/9, F-100, CRJ-200/700/900, ERJ-135/145/175, DH-8, ATR-72, DO-328, BAE-146
 
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fxramper
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 7:38 am

Less flights for me to non-rev on.  Smile

Good news for AA. All the a/c being parked are MD80?
 
B4REAL
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 7:59 am

Quoting IRelayer (Reply 14):
while AA is stuck with a boatload of short-haul MD-80's

AA's use of the MD-80 is not necessarily short haul. Routes like: ORD-LAX/SFO/SEA/SAN/SJD/ACA are not 'long haul' by trans-oceanic standards, but for the the domestic backbone, they do a great job. I believe they operate this series on longer routes than anyone else except FL and YX.
B4REAL, spelled like it sounds
 
md90fan
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 8:12 am

Quoting AA777223 (Reply 21):
I for one am happy to see some super 80s parked. They are the bulk of the domestic AA flights from here at DFW, and I am just not a fan of them. .

Yeah, go visit DFW and you see them everywhere!! it's crawling with them. MIA and SJU are like the opposite  Smile

Quoting B4real (Reply 23):
I believe they operate this series on longer routes than anyone else except FL and YX.

FL(AirTran) doesnt have any MD-80's, instead opting for 717's and 73G's, a smarter move IMO.

Regards,
MD90fan  airplane 
http://www.devanwells.blogspot.com/
 
B4REAL
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 9:09 am

Quoting MD90fan (Reply 24):
FL(AirTran) doesnt have any MD-80's, instead opting for 717's and 73G's, a smarter move IMO.

The 717s that FL operates are what I meant by the 'series' of the DC-9/MD-8/717.
B4REAL, spelled like it sounds
 
Longhornmaniac
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 10:02 am

Quoting MD90fan (Reply 24):
MIA and SJU are like the opposite

LOL. Like exactly the opposite, since neither of them see any MD-80s.  Smile

DFW sees all aircraft in the mainline AA fleet except the A300.
MIA sees all aircraft in the mainline AA flet except the MD-80.

Cheers,
Cameron
Cheers,
Cameron
 
LY4XELD
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 10:16 am

Isn't this old news? Or is this in addition to the MD80's they were planning to park?

Quoting AA737-823 (Reply 2):
I love empty planes as much as the next guy, and I am certainly NOT an AA fan, but PLEASE let this work.

Am I missing your sarcasm or does your name indicate the exact opposite?
That's why we're here.
 
NWDC10
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RE: American To Cut Planes, Intensifying Seat Crun

Fri Apr 21, 2006 10:43 am

Quoting DAYflyer (Reply 15):
Lets see; AA shrinks capacity and WN sucks it up. DL reduces capacity and FL sucks it up......any patterns here people?

Low cost carriers are way under cutting legacies and trying to "push" the legacies out of the sky.That's how i see it. Robert NWDC10
 
aaden
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 11:19 am

finally an airline is out to make a profit.

they will not be pushed out of the sky by lccs either. AAs has to strong of an international network to ever be over taken by lcc's
southwest will soon be paying $72 dollars a barrle for the their oil and then we
see them struggle as the rest of the airlines are.
 
vegasplanes
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 11:34 am

Quoting FlagshipAZ (Reply 18):
FlagshipAZ

Thanks for the info. Seems like from a financial perspective that would be the way to go. The Mad Dogs might not have too good of a re-sale value if 300+ of them hit the market at the same time. Might as well run them as much as possible before replacement.
 
TPASXM787
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 11:39 am

Quoting FlagshipAZ (Reply 18):
Vegasplanes, the MD-80s of American are just temporary parked, none are retired. AA has 362 on the roster, with some 325 in service

How about parking 362 of them  Wink

Quoting AA777223 (Reply 21):
I for one am happy to see some super 80s parked. They are the bulk of the domestic AA flights from here at DFW, and I am just not a fan of them

I hate those shitboxes too, so it's ok  Smile
This is the Last Stop.
 
DLKAPA
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 11:43 am

I don't buy a systemwide overcapacity argument. According to Boyd, the systemwide average load factor is steady around 70%... Where do you get market saturation from that number?
And all at once the crowd begins to sing: Sometimes the hardest thing and the right thing are the same
 
goingboeing
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 11:45 am

Quoting AAden (Reply 29):
southwest will soon be paying $72 dollars a barrle for the their oil and then we
see them struggle as the rest of the airlines are.

Of course, Southwest has 3 years before they are paying $72 a barrel for oil. In the meantime, how many tickets (and money) will AA give away to fight them at DAL?
 
PSA727
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 11:59 am

I think this is great planning on AA's behalf.

The cost of oil will continue to rise, and if airlines do not raise
fares to cover this cost, they will continue to bleed red ink.

The increase in the price of airfares will naturally have a decrease in
the demand side of the equation.

Add that to the overcapacity still in the system, and you've just
decreased your load factors.

However, if you decrease capacity to at least parallel the decrease
in demand, your load factors will remain high, PLUS your average fare
paid by the passenger will also be higher due to the fare increases.

It's smart of AA to get started on this now, than wait too late and
rack-up losses because of the delayed response.
fly high, pay low...Germanwings!
 
douwd20
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 12:24 pm

Quoting Goingboeing (Reply 11):
Travis....if Southwest and Airtran can throw hundreds of 737's in the sky AND make a profit....more power to them.

 bigthumbsup 

It really means something when your competitor is making money AND adding capacity while you are losing money and trying to shrink to profitability. GM and Toyota for example.
 
aaden
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 12:49 pm

Quoting Douwd20 (Reply 35):
It really means something when your competitor is making money AND adding capacity while you are losing money and trying to shrink to profitability. GM and Toyota for example.

what ever it takes to make that shiney dime
 
dallas74
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 1:17 pm

Quoting AAden (Reply 29):
southwest will soon be paying $72 dollars a barrle for the their oil and then we
see them struggle as the rest of the airlines are.

Southwest won't be paying the full price for oil until 2010. Can you hang on that long?
 
dallas74
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 1:22 pm

American just gave away 20,000 vouchers for people who attended a Dallas Mavericks game the other night. The voucher was good for a trip to any place they fly from Love Field. If AA can give away 20,000 seats from Love you can bet they are not making a dime on that operation.

In the mean time Southwest stole their thunder in this promotion by offering free drinks on their flights from Love to celebrate the Mavericks entry into the playoffs. If you were a shareholder which would you rather give away - drinks or free tickets?

Sometimes you have to wonder what the people who run American Airlines think about during the day. It certainly isn't how to run an airline profitably.
 
douwd20
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 1:56 pm

Quoting Dallas74 (Reply 37):
Southwest won't be paying the full price for oil until 2010. Can you hang on that long?

:D
 
halls120
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 2:15 pm

I wish AA would either properly maintain their A300's or park those dogs and buy some decent widebody aircraft.

Just the other day I had a typical A300 flight on AA. Our departure for Guayaquil was delayed almost an hour while a battery was replaced. Then, right before they finally closed the door, one row of the oxygen masks decided to deploy, so the crew had to move everyone out of that row and find new seats. Then, to top matters off, the video entertainment system didn't work. Not that big of a deal, given that my seat was so far away from the screen it would have been difficult to see - but it was indicative of a poorly maintained aircraft that needs to replaced.....
"Suppose you were an idiot. And suppose you were a member of Congress. But I repeat myself." Mark Twain, a Biography
 
Oykie
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 4:00 pm

Quoting FlagshipAZ (Reply 18):
American is investigating whether to re-engine the majority of the MD-80s if the PW6000 is suitable for the airframe.

FlagshipAZ, are they still looking into this? I thought we would have heard more about that by now. I would like it to happen though.

Quoting AA777223 (Reply 21):
Gimme a 738 or 757 anyday of the old mad dog.

Be careful about what you wish for  Smile At FBU (old main airport to Oslo,Norway) the majority of planes was DC-9 and MD-80. Of course some 737 from Braathens now and then. But sometimes all you got to see was either a DC-9 or an MD-80. Well as time went on, we got a new airport (OSL) and SAS decided to move all MD-80/90 to CPH. Now that left us with just 737 airplanes. SAS bought Braathens and turned the Norwegian SAS into SAS Braathens. Now more and more planes start to look the same, and the main attraction at OSL is to se what kind of 737 is on final. Is it the -500/600 or is it the -800/900? Exiting times.  Smile

Quoting MD90fan (Reply 24):
Yeah, go visit DFW and you see them everywhere!! it's crawling with them. MIA and SJU are like the opposite

Maybe this is obvious. But is this a part of the fleet rationalization that AA did a couple of years back?

Quoting DLKAPA (Reply 32):
I don't buy a systemwide overcapacity argument. According to Boyd, the systemwide average load factor is steady around 70%... Where do you get market saturation from that number?

I think that the overcapacity is reflected trough the prices in U.S aviation. I don't have the same insight in the U.S market as many on this board, but I believe that the reason for relatively high load-factor has been an tremendously aggressive pricing. With those load factors less airlines should be in financial trouble than they currently are in the U.S.

Quoting Douwd20 (Reply 35):
It really means something when your competitor is making money AND adding capacity while you are losing money and trying to shrink to profitability. GM and Toyota for example.

That is because GM did not invest that much in their product, than Toyota did. GM was a shareholders company rather than a buyers company. In the end GM's problem was that the buyers went on buying the competitor, which had a better product. It shows that in a more free market, the market regulates it self. People want the best for the most reasonable price.
Dream no small dream; it lacks magic. Dream large, then go make that dream real - Donald Douglas
 
DLKAPA
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 4:03 pm

Quoting OyKIE (Reply 41):
I think that the overcapacity is reflected trough the prices in U.S aviation. I don't have the same insight in the U.S market as many on this board, but I believe that the reason for relatively high load-factor has been an tremendously aggressive pricing. With those load factors less airlines should be in financial trouble than they currently are in the U.S.

CO, AA, and soon if not already UA are turning profits. It's not capacity, the problem is cost structure.
And all at once the crowd begins to sing: Sometimes the hardest thing and the right thing are the same
 
UAL777UK
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 4:10 pm

Quoting Halls120 (Reply 40):
I wish AA would either properly maintain their A300's or park those dogs and buy some decent widebody aircraft

Agreed, they are a disgrace, on a flight to SJU from JFK, flight was cancelled as the A300, went Tech, no worries, we were quickly transferred to another 300..........we then sat on the ground for over an hour while they fixed the frgging windscreen wipers........or at least thats what we were told...they are well past there sell by date!
 
AA777
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 4:11 pm

Quoting Halls120 (Reply 40):
wish AA would either properly maintain their A300's or park those dogs and buy some decent widebody aircraft.

The routes that AA uses their A300s on are their cash cows. Great load factors and ever greater cargo opportunities-- usually they use them on flights to the Caribbean and S. America.... so as much as they need new airplanes- they also need to keep on making cash... and the A300s do just that.

-AA777
 
PSU.DTW.SCE
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 9:21 pm

Again, there is logic behind this move. This only accounts for an additional 2 aircraft in storage. These MD-80's were to have come out of storage this for the summer, but instead will remain parked.

AA developed the business case and determined that the additionall revenue these aircraft could earn this summer would not be enough to offset the costs of flying these aircraft year-round. Therefore, AA acknowledges that there is additional revenue and capacity available this summer, but it doesn't make sense to spend $2 to earn $1.
 
UAL777UK
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 10:02 pm

Quoting AA777 (Reply 44):
The routes that AA uses their A300s on are their cash cows. Great load factors and ever greater cargo opportunities-- usually they use them on flights to the Caribbean and S. America.... so as much as they need new airplanes- they also need to keep on making cash... and the A300s do just that.

I guess that makes sense, with good loads, they dont care about the crap experience some passengers have on these particular aircraft due to tech problems and the fact they they will never fly them again...AA that is!
 
Simpilicity
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 10:16 pm

from a simple Australian's point of view, it simple looks like LCC's taking over from legacy's in hopeless shape.

How much longer can these US legacy's survive at all?

Domestic US ops will surely be only Southwest, Air Tran, jetblue & Virgin America in a few years.

UA, AA, NW, DL all seem doomed domestically. Will they be left with a small niche international market or will the long haul LCC (2 class like Jetstar Int) kill them completely in the next few years? Probably.
 
SPREE34
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RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 10:45 pm

Quoting AAden (Reply 29):
southwest will soon be paying $72 dollars a barrle for the their oil and then we
see them struggle as the rest of the airlines are.

SWA won't struggle a bit. They will manage the changes like they always have and stay profitable. One way will be to increase fares. Unlike many of the other carriers, SWA knows you can't make money giving your product away.
I don't understand everything I don't know about this.
 
Simpilicity
Posts: 881
Joined: Mon Oct 31, 2005 4:21 pm

RE: American To Cut Planes, Intensifying Seat Crunch

Fri Apr 21, 2006 10:53 pm

Quoting SPREE34 (Reply 48):
SWA won't struggle a bit. They will manage the changes like they always have and stay profitable. One way will be to increase fares. Unlike many of the other carriers, SWA knows you can't make money giving your product away.

As Legacy's start failing (not chapter 11 this time) the likes of Southwest will pick up there best aircraft for giveaway prices, so lowering their overheads even more !!!

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