tphuang wrote:EA CO AS wrote:This is a true win-win for both carriers. AA gets bolstered by a strong West Coast network with great feed. AS gets to retain AA as a full earn/burn mileage partner, something that was due to end next month, while also gaining the ability to feed new international flights at SEA that DL doesn’t offer while connecting service to other international flights at LAX that matches or beats what DL offers. Where DL was previously marketing itself as the only true int’l/domestic option for corporate travelers from the PNW, AS can now match or even beat what they offer. And of course, AA gets to draw those same corporate travelers off DL planes while also firmly planting their thumb in DL’s eye for their actions at BOS and MIA. DL’s money-losing operation at SEA just got a whole lot harder to justify.
I think DL is really regretting insisting that AS dump all their partners and only feed/partner with them; it has cost them a ton, and AS hasn’t lost a single bit of market share at SEA in the process, despite DL’s attempts to hurt them.
Of course this is a win-win for both carrier from AS perspective. We will see about AA in a few years. DL made a huge tactical error in picking war with AA here. And AA in its anger decided to take a move that's clearly beneficial in short term, but is grooming a dangerous competitor in the long term.
Would you deny that AS at some point in near future will start expanding in California again on midcon and transcon market. That all this current north south + SEA flights is just a temporary situation while DL remains a threat in PNW? Long term, it's in AA's interest to cede west coast to AS? I'm sure AS would love that. But is that best for AA long term?
Sure, AA can try to merge with AS, but it's stock prices is rock bottom. It would be a huge risk to buy AS at their current market cap. and unless AA can really turn things around, it would be hard for it to buy AS.
Oh and don't underestimate DL's willingness to continue to lose money at SEA. DL management has shown no shortage of confidence or belief that they can somehow turn hopeless situation around and DL supporters on this forum will continue to defend all their actions.
big winner AS
small winner AA
small loser UA/B6/WN
big loser DL
The ow membership and AA partnership help AS fix a major issue with CA midcons (and some transcons): lack of brand awareness at the east coast station making the flights overly dependent on west coast originating traffic. Balanced flows make a huge number of flights viable (see AA on routes such as ICT-LAX). I would expect to see minimal e-w growth from LAX as AA has most destinations covered. However, this completely changes the dynamic in the Bay Area.