Particularly for T3, and to a lesser extent T1, the new T2 design looks difficult for connecting passengers. Imagine going from T-1 B, or T-3 L or the far ends of K or L to the main building in T2 (or the underground to get to one of the satellites). It’s going to be a long journey on foot. And ther...
Jump to postSo Delta can make money in NYC, but not AA? The strategy of cutting the premium heavy hubs to bolster other hubs has put AA at a disadvantage both in terms of profits and network. Yes, it may be cheaper to operate from PHL and capture more connecting traffic than from JFK, but JFK is a premium rich ...
Jump to postPublicity wise, AA has stemmed the tide for now, but the media will soon turn. There is no indications that AA will start seeing financial results similar to its rivals anytime soon, and so I don’t really see them bouncing back in 2020. Taking management at its word that the financial results at DFW...
Jump to postFrom what I read, there’s only DOT approval. The DOJ could have a different perspective. Hopefully that will not be an issue.
Jump to postIt seems to me that the global terminal should be designed first, even though not built first, so that the areas for the satellite concourses and how they connect to the terminal are as exact as possible. The designs for the satellites will also need to harmonize with the new terminal. All of which ...
Jump to postThese service comparisons between AA and other carriers are symptomatic of the bigger issues. Delta and United can more easily get away with making the same loyalty cutbacks because they have better networks. When AA does it, there seems to be more of an alienation factor driving away its best custo...
Jump to postStudio ORD is the best choice in many respects. It is architecturally unique and stunning, and one can see how UA and AA would prefer the design since it harmonizes with T1 and T3. One of the other designs does that too, but was not going to win for other reasons. One critic has noted reservations t...
Jump to postChecked-in at T-3 this morning, and walked over to T-2 to view the exhibit of the proposals. The exhibit itself was disappointing. The walk back and forth renewed my concerns that the new global terminal will be poorly integrated with the rest of the airport with the exception of portions of T-1. I ...
Jump to postAll of these designs have merit. Although the SOM one seems the least interesting, other factors need to be considered, such as which design would be the most efficient in terms of moving passengers through the terminal. Particularly if all T1 and T3 (and some T5) passengers will now be checking in ...
Jump to postMr. Parker might have calmed the market yesterday after a few weeks of the the stock suffering a big drop, admittedly in a down market overall. This can only last so long. AA’s earnings performance was simply abysmal in what should have been its most profitable quarter compared to its competitors. I...
Jump to postYes, the vast consensus is that the new seats are awful, But will the passengers go elsewhere? A lot of anecdotal evidence that loyal customers are leaving, but the planes are full even though management admits it has a problem attracting premium revenue. Making the product worse for customers is no...
Jump to postReading the transcript of Robert Isom’s presentation at the recent Cowen Global Transportation Conference, I got the distinct impression that many of AA’s Pacific routes out of LAX are unprofitable too. Some may be doing better than others, but China is probably struggling due to yields, and others ...
Jump to postA lot of what is driving the negativity associated with AA is just its massive amount of debt compared to UA and DL. It borrowed heavily not only to finance aircraft purchases, but also to fund stock buybacks. With oil prices and interest rates rising, the balance sheet will continue to be under pre...
Jump to postThere were predictions that nonstop flights may start from California to LGA once it is rebuilt, although LGA will still be somewhat constricted by its runways. If this happens, one would expect AA to shrink further at JFK.
Jump to postBack to the matter at hand, apparently the new leases at ORD give more flexibility to take back gates that are not fully utilized. The City is confident that, if AA is not using ORD assets to their full ability, they will reassign them to another airline be that United or whoever. Remember that ORD ...
Jump to postI find it unconvincing to equate JFK’s status in AA’s network to PHL’s existence as a hub. JFK’s lack of growth for AA predates the merger. So despite T8 being a good terminal, AA management is unable to come up with a strategy to increase JFK service profitably and it does not want to invest here f...
Jump to postThe market actually took AA’s earnings report positively and is still giving Parker the benefit of the doubt. After all it was still a profitable quarter and the 3rd quarter is the big one. Yet given its size, AA is less profitable than its competitors, particularly since it increased wages after th...
Jump to postPassenger numbers on ORD-PEK are down for all three carriers, but still healthy overall for 2 carriers to divide up. But with 3 carriers on a route, AA’s preference to connect passengers through DFW, and a mediocre product in business class (rear facing seats on the 787-8 that shake), AA had to drop...
Jump to postThere have been “discussions” of HA at ORD, but I’m hearing AA is more likely, but not anytime soon. Now that ET and NZ have announced service, getting QF as well as service to ATH, BOG (will happen), EZE, GYE/UIO, LIM, LIS, MXP, OSL, and TLV are top priorities. Some routes mentioned such as ATH, B...
Jump to postFrom what I can see, the design really falls short in moving passengers around the airport and will make connections even harder. DIA and DFW will still be better. Imagine connecting on AA from a new T2 gate to a gate in T3L or even one of the far gates in T3 H or K, or even T1 B on United. And if s...
Jump to postNone of us really know what happened in the negotiations, but I found United’s statements to be anything but self serving. It is telling that Rahm demonstrated some movement on the issue after litigation was threatened when discovery of emails and other documents would have exposed what really happe...
Jump to postI didn’t find the Bloomberg article misleading at all. It did not indicate that AA had placed an A 330 order or commitment, but confirmed rumors that it was considering this. Perhaps this was in the context as a replacement for its A350 order, which I would like to see move forward from a passenger ...
Jump to postMany of the market changes since the last application have been self-imposed by AA, which historically has had competition issues with the government. Despite the change in administrations, the antitrust division at the Justice Department has a pretty good institutional memory. So I’m not convinced ...
Jump to postIt’s hard to imagine AA’s new ORD-YVR route succeeding. It departs ORD about 8 pm and then leaves YVR at about 10:30 pm arriving at ORD about 5:30 a.m. Maybe that’s when there was a spare 737, but the scheduling seems disappointing.
Jump to postThe analysts were fixated on revenue growth for sometime, because they were concerned that it was necessary to sustain and grow profits. And so management responded by trying to increase revenue. But when UA makes more profit on less revenue, or when AA’s costs exceed its revenue growth, it becomes ...
Jump to postFourth quarter profits were $258M, well below Delta, United and Southwest, and revenue increases did not cover increased costs. Rationalize it how you wish, but AA is simply underperforming to its competitors.
Jump to postAA usually updates future fleet guidance concurrently with its earning announcements or around the same time. I’d like to see it acquire the A350 because it looks like a passenger friendlier plane than the 777 in coach, but I don’t see the business case for it at this point given the current makeup ...
Jump to postSo I take it the new AA routes to Vancouver, Calgary, Charleston, Bangor and Myrtle Beach are being made possible by the new gates opening next year? I'd say that's a fair assumption, yes. At least I would think the same thing. As a frequent flier to YVR and YYC, I've been surprised that AA hadn't ...
Jump to postWhat is lost in the discussion is that United’s net profit last quarter was higher than American’s even though United had about $1B less in revenues (and about $1B less in expenses). The market is upset with United because it cannot sustain revenue growth, but in the long term I do not dismiss Unite...
Jump to postBased on the last couple of quarters, AA's financial returns continue to fall behind Delta and United. We will see if this continues, but there's anecdotal evidence that certain parts of AA's network are underperforming and AA does not have a compelling business strategy to address this other than M...
Jump to postPHL-ZRH did not work previously when PHL had more traffic and a better product with the A330. A smaller 767 may have a chance of working, but that's offset by a very basic, unreliable aircraft. I'm not sure that ZRH has really worked from any of the AA hubs (ORD and DFW used to have service), but su...
Jump to postWith its long history & experience of a split NYC operation AA long ago decided JFK is important, but can't & doesn't have to be its main hub for international flying. The merger finally added an ideal Northeast gateway to complement LGA (NYC domestic) / JFK (NYC international / West Coast)...
Jump to postAtl100million: One would think that AA has a policy in place on not disclosing confidential information, but then let's not forget that AA let Kirby leave, paid him millions of dollars and he is able to go to work at United because he does not have a noncompete. So now he is the #2 person at United ...
Jump to postNot sure that the T5 expansion is so major as to require a groundbreaking ceremony. However, the expansion plans have been quiet since Rahm had his big news conference last year. I suspect that the interim logistics of rebuilding T2 need to be resolved. I believe that there are also needs for T1 and...
Jump to postSo far, there's no indication I can see that 763's will be used on PHL routes, and so it's hard to imagine seeing a DFW-PHL-AMS route using a 763. Even originating from DFW, there would have to be some degree of maintenance back-up in PHL. With the 757 performance issues, this route may be reexamine...
Jump to postLast I checked, UA was more profitable than AA based on return on revenues for a fiscal year. AA earns more in gross profits, but not as a % of revenue. DL beats both competitors based on either measurement, but the markets seem to anticipate continued healthy profits for AA given good revenue and l...
Jump to postUA is miles ahead of AA & DL when it come to international reach and thinking out side the box for new routes! That seems like a bit of a stretch. United is, indeed, "miles ahead" of AA and Delta in Asia - but that's because of it's structural and insurmountable advantage in terms of ...
Jump to postFrom this, I think that DL is ahead of AA in providing connections to SIN over AA. It's not unrealistic for one of them to consider a nonstop from LAX-SIN. For AA, it could be too daring, but it could be a better use of its resources than some of its other LAX Pacific routes. How is DL ahead of AA/...
Jump to postIt will take less than 10 minutes to walk from the L extension to the H/K concourse. I don't see what the big deal is. The big deal is not the walk to the start of the H/K concourse, but to other gates such as K20, H18 or G20. Still the L concourse extension is a relatively modest investment for AA...
Jump to postThat's generally thought to be the most likely scenario and some of it already being implemented for T3 and T5. The L concourse extension at T-3, however, looks like a questionable decision. These new AA gates (for Eagle) look like they're going to be too isolated and difficult for connections.
Jump to postFor now, DL connects to SIN at NRT on a 763 and can connect on a few code share flights via ICN. There is one JL flight from NRT to SIN. You are correct in pointing out that HKG provides good connections, but the AA partnership with JL is pushed over CX at HKG. The DFW-HKG route has good loads, but ...
Jump to postAbout a year ago, there was a major news conference announcing ORD redevelopment. Expectations are that T2 will be rebuilt, separate customs for UA and AA added, a new T4 or 6 added for other domestic operations ( T4 numbering may remain dormant), and remodeling of T1 and T3. There may be some expan...
Jump to postUnited has such a structural, and insurmountable, advantage in this market for a variety of reasons that I still can't realistically see AA even trying it. Maybe - and it would be awesome to see - but I doubt it. Agree completely. Granted, AA's come a long way-- just a few short years ago, I would'...
Jump to postSingapore is often touted as the most important business center in Asia, particular given the uncertainty inherent with China (and Hong Kong) and the continual economic doldrums from Japan. Not suggesting that airlines should give up on China and Japan, but having two nonstop flights to Singapore fr...
Jump to postI do not dismiss that the B789 may be pushed to handle SYD-ORD, but QF may have something in mind since it has mentioned the route as a possibility. (The same applies to SYD-JFK). Assuming that it has capable aircraft, I think that the bigger issue is how a joint venture with AA might impact its dec...
Jump to postIn a post Alitalia Italy, would AA have the opportunity to fly LAX-FCO? Are the yields on this route too low for AA? I agree with others that the answer is almost certainly no - there isn't an opportunity for AA to fly LAX-FCO. The market is too long, too low-yielding, and too seasonal. I think the...
Jump to postI agree about the AA 763 interiors. They were very uncompetitive particularly outside of the US where many airlines preferred the A332. But this was the past, and it makes little sense for AA to update them again with so many newer planes being delivered in recent years. AMS is a market that AA has ...
Jump to postI believe that AA has a pretty good chance of making DFW-AMS work. DFW is a massive connecting hub. The last figure I saw was that approximately two-thirds of all DFW passengers are connecting, and it is a large O&D market. Therefore, comparing this route to the IAH market is not really necessar...
Jump to postLets call the American executives what they are.... scumbags. 29"??? Why use a toilet when you can just piss directly on your customers. This is inexcusable and why we need to bring back serious airline regulation. I know this idea will never fly on a website fill with airline apologists but f...
Jump to postExcuse me for trying to bring this back on topic. Are we talking about the -8MAX? If so, it's longer, so it will naturally have a greater capacity. If we're blathering about increasing the current NG capacity, it's warranted. First post in the thread indicates that it is indeed the 8MAX as well as ...
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