Moderators: richierich, ua900, PanAm_DC10, hOMSaR
Runway28L wrote:I bet AA wants the A350 to be improved with more MTOW boosts before a decision is made. Couple with the 772s still a few years away from being replaced, they don't need the A350 yet.
millionsofmiles wrote:I sure wish Isom reverses the decision to "sunset" seatback IFE. I was traveling LAX-CLT at tithe end of February, and the first thing the guy next to me said when he sat down was, "This plane sucks. No TV." Streaming to your own device is no substitute,
millionsofmiles wrote:I sure wish Isom reverses the decision to "sunset" seatback IFE.
davescj wrote:I suspect this was a decision based out of the US model.
commavia wrote:I suspect it was more a decision based on economic rationality.
It seems as though AA has concluded that investment in the upfront and recurring costs of AVOD PTVs is not worth it, and given market conditions and competitive dynamics in the industry, it isn't at all difficult to see how AA arrived at such a conclusion. Personally, I've yet to see any clear, demonstrable evidence that AVOD PTVs on domestic narrowbodies is accretive to profit - I remain skeptical that it generates meaningful, durable revenue premiums, let alone revenue premiums sufficient to overcome the higher associated costs. It is for precisely this reason, I'd guess, that every single major U.S. airline except Delta and jetBlue is actively choosing to not invest in AVOD PTVs on domestic narrowbodies, and in most cases are instead investing in cheaper and more agile high-speed streaming solutions. In time, I suspect that the management teams of AA, plus Alaska, Allegiant, Frontier, Southwest, Spirit and United will be proven correct.
Austin787 wrote:commavia wrote:I suspect it was more a decision based on economic rationality.
It seems as though AA has concluded that investment in the upfront and recurring costs of AVOD PTVs is not worth it, and given market conditions and competitive dynamics in the industry, it isn't at all difficult to see how AA arrived at such a conclusion. Personally, I've yet to see any clear, demonstrable evidence that AVOD PTVs on domestic narrowbodies is accretive to profit - I remain skeptical that it generates meaningful, durable revenue premiums, let alone revenue premiums sufficient to overcome the higher associated costs. It is for precisely this reason, I'd guess, that every single major U.S. airline except Delta and jetBlue is actively choosing to not invest in AVOD PTVs on domestic narrowbodies, and in most cases are instead investing in cheaper and more agile high-speed streaming solutions. In time, I suspect that the management teams of AA, plus Alaska, Allegiant, Frontier, Southwest, Spirit and United will be proven correct.
The decision to not put IFE in future aircraft is cost savings - nothing to do with "market conditions" or "passenger feedback". USdbaAA may save on costs in the short term, but there is evidence not having IFE is costing them revenue in the long term. Delta and JetBlue have proven a market for PTV equipped planes exists, and both are taking market share from USdbaAA. I know several people who fly on a USdbaAA plane with no IFE, developed a negative impression, and fly a competitor in the future.
deltaffindfw wrote:- still no decision on A350
Austin787 wrote:there is evidence not having IFE is costing them revenue in the long term.
Austin787 wrote:both are taking market share from USdbaAA.
Austin787 wrote:I know several people who fly on a USdbaAA plane with no IFE, developed a negative impression, and fly a competitor in the future.
davescj wrote:millionsofmiles wrote:But I know DL has upgraded many of the plans, not only with Wi FI, but A319s often have personal TV. They haven't updated the A320s, but I would suspect they will.
tphuang wrote:I don’t think it will be a problem for aa in markets where aa has the best schedule and network advantage. But in a market like New York and la, we will get a true measurement if it matters or not.
commavia wrote:Austin787 wrote:there is evidence not having IFE is costing them revenue in the long term.
And that evidence is ... ?Austin787 wrote:both are taking market share from USdbaAA.
Source? And again, on what basis can we persuasively conclude that this alleged share shift is attributable to differing IFE offerings?Austin787 wrote:I know several people who fly on a USdbaAA plane with no IFE, developed a negative impression, and fly a competitor in the future.
And I know more than several people who comment on how nice AVOD PTVs are when they see them on planes, and then continue to book the schedule and fare that best suits their needs regardless. And I have a strong suspicion about which group, in the aggregate, is larger.
As said - until I see conclusive and persuasive evidence otherwise, I simply do not believe the investment in AVOD PTVs on domestic narrowbodies is worth it. There has to be a causal relationship between the presence of that form of IFE (as opposed to high-speed streaming solutions rapidly being deployed) and a durable, sustainable and systemic unit revenue premium that justifies the higher unit costs. And I still don't see such a causal relationship. I continue to believe that - long-term - the decision being made by AA, Alaska, Southwest and United to focus on power+streaming vs heavy, maintenance-intensive AVOD PTVs will be proven the more optimal, profit-maximizing approach. But we'll have to wait and see.
Austin787 wrote:The decision to not put IFE in future aircraft is cost savings - nothing to do with "market conditions" or "passenger feedback". USdbaAA may save on costs in the short term, but there is evidence not having IFE is costing them revenue in the long term. Delta and JetBlue have proven a market for PTV equipped planes exists, and both are taking market share from USdbaAA. I know several people who fly on a USdbaAA plane with no IFE, developed a negative impression, and fly a competitor in the future.
commavia wrote:Austin787 wrote:there is evidence not having IFE is costing them revenue in the long term.
And that evidence is ... ?
commavia wrote:Austin787 wrote:both are taking market share from USdbaAA.
Source? And again, on what basis can we persuasively conclude that this alleged share shift is attributable to differing IFE offerings?
Austin787 wrote:Compare AA's and Delta's financial reports over the years
Austin787 wrote:Look at JFK and BOS. Delta and JetBlue are expanding while AA only cuts. Is it a coincidence that the airline downsizing JFK and BOS also offers the worst IFE?
HPRamper wrote:You spelled "AA" wrong. Multiple times. I'm sure it was an honest mistake and you aren't intentionally being obnoxious.