Philippine333 wrote:ContinentalEWR wrote:voxkel wrote:
An under-the-radar route for UA could be SFO-EZE. There is a large/growing tech industry in Argentina (MELI, Despegar) and Google's South America HQ is in EZE. CA has the second largest Argentine population in the States after Florida (though would imagine more concentrated in LA).
All of those factors represent small demand overall, combined with a tech sector that is in the early innings of a substantial pull back, combined with a long, thin route. AA's experience on LAX-EZE has shown the market isn't there. Argentina's economy, at 100% inflation, also a factor in why such a route is off the table.
The thing I'm wondering is, why are West Coast-South America flights on US carriers always failing compared to let's say, Texas or East Coast-South America? Is it just because more like the better services of LatAm carriers over US carriers to and from the West Coast?
An easy way to think of it is that pretty much all the demand to South America is East of the Mississippi with really only Los Angeles, San Francisco, and Houston being exceptions.
But in the case of SFO, the market skews to only two destinations: GRU and LIM. For LAX, the mass market is there but the fares suck. IAH is bigger than SFO but smaller than LAX to South America, but the fares are much higher and the geography is good for connections.
In the case of DFW, its just such a huge hub that it can make South America work but even it struggles. Its only daily year round flights to South America are GRU and BOG. SCL and EZE are less than daily in the summer and LIM and UIO were canned.
East of the Mississippi, ATL-South America isn't huge (it is bigger than DFW-South America), but it is very well located to capture markets from the Northeast and Central Florida to South America and it has a massive number of flights to feed them. But even it cant support GIG year round.
The true prizes to South America are South Florida and NYC.