AA Applies For LAX-GDL, MIA-MTY

[WorldTraveler]

with all the valid questions that frugal posted, that is all you could come up with?

 

[diamondcutter]

DL is also starting a 2nd daily MIA-LAX.DL didn't start winter seasonal ORD-LHR. They started a year round LAX-LHR and are starting PHL-LHR both of which are net increases to the DL system (not counting what VS is doing).these are great questions.... let me respondAnd speaking of competitive challenges, pray tell how mighty DL will address each of these issues:1) the devaluation of the Euro?it is affecting all carriers... the pound is down also. DL hedges against European currencies, AA does not.2) the devaluation of the Yen?it's actually stabilized... so far the worst fall is in the past. DL has active yen hedges. AA does not.Also, don't forget that JAL uses the same currency that DL does in Japan.3) the deteriorating relationship with skyteam alliance partners (such as KE) and codeshare partner (AS)?If the relationship deteriorates and costs DL, then it is a problem... but there is no evidence that DL is losing anything because of KE and AS. DL is growing in both markets.4) being the #4 carrier in the U.S. southwest, including being #3 in N. Texas, how will DL survive?probably similarly to the way that UA survives as #3 in the SE or AA does to Europe... .grow where there are opportunities and focus on maximizing revenue that you do have.5) how long will other parts of DL's network continue to subsidize the low fares it is offering (~35% below AA) in the JFK-transcon market?DL's transcon costs are far lower than AA's since DL has much closer to industry standard seating on its JFK routes.6) How will DL address the competitive pressure it faces from LCCs such as B6 at JFK and WN in ATL? Which hub will it shut down next now that CVG and MEM have been destroyed?WN continues to pull down service at ATL. whatever it gains in increased presence in a few markets is more than offset by losses in others and higher fares for DL.B6 hasn't done anything in several years that has slowed down DL's growth at JFK. DL has however pulled a lot of B6 local traffic from JFK to LGA which B6 can't serve.7) With the economy of MI and DTW still n the dumpster, the pressure must surely on for DL to make the hub more profitable as the local traffic must suck judging by the # of RJs seen operating there (specifically on the A concourse, not just B and C).The city of Detroit has been a basketcase for years. It has had no effect on the airport or DL's profits at DTW.8) How will DL address the monumental failure of its fuel hedging program as well as the Trainer debacle?write it off... just like what AA is doing with its merger costs.9) With the possibility of unions coming on the property, how will DL be able to cope with the inevitable increase in labor costs as well as the labor unrest?DL has paid a premium to keep labor unions out in the past, so says an expert here. He has yet to explain why DL would need to continue to do the same if some groups unionize.there is plenty on the DL forum on this one.10) With no viable Latin America gateway and a token presence compared to AA and even UA, what strategy does DL have so that it does not remain the #3 out of 3 U.S. legacy carriers in the region and even worse, not be surpassed by LCCs?ATL is the 2nd largest US carrier gateway to Latin America. It is absolutely viable. DL is at 55% of AA's total size in Latin America. It is only in your delusions that DL and UA - which are close in size in Latin America - are not viable competitors to AA.LCC growth in Latin America is happening in AA's key Latin markets, not DL's.Have you had enough or do you want me to continue?keep going.. this was really fun and easybtw, I am outstanding at multitasking.what Scriptural lessons have you learned for yourself today?

Remember when you wished a jet blast from a DL jet on a ramper in CLT ? What scriptural lesson was that from ??? Can't wait to hear the spin on this !!

 

[WorldTraveler]

and of course I have no power to make it happen even if I did wish it.

but you are right that such a wish is not reflective of "higher thinking"

 

[dfw gen]

 
all he can do is spin and well beat a dead delta horse to death....

 

[usabusdriver]

yes, I disproved that AA actually has come out ahead in the JFK-LAX market.

AA got higher average fares but lower total revenue even while other carriers saw higher average fares AND higher revenue.

for you or anyone to argue that is anything but a complete strategic failure shows how little you collectively know about the subject

all of the personal attacks won't change the fact that AA made a horridly wrong strategic decision which I predicted and others tried to disprove. the facts are once again proving that I was right all along.

 
Sure looks like a classic case of narcissism to me.

 

[commavia]

Further news today that AA and Alaska have jointly filed with the DOT to transfer Alaska's LAX-MEX authority to AA so AA can operate it double-daily with 737s.  Yet another reminder that on LAX-Mexico specifically, as with LAX in general, AA is clearly playing to win.

 

[jimntx]

But, but...AS is under the control of Dullta!  We shall have to punish them severely for not giving Dullta the MEX authority.  Oh, I know.  We'll sue.  Just like we did with the Love Field mess.  (We did sue didn't we?)

 

[WorldTraveler]

good move for AA and AS. It is apparent that AS is being marginalized in LAX and can see that they will not be able to compete in Jan when Open Skies allows more carriers to fly the route.

the only surprise is that AS is backing out now.... it just means that the route will be flown by AA, DL, and UA - with DL obtaining its rights on the first day of Open Skies.

no, AS isn't controlled by DL at all. It is precisely because they are facing stiffer and stiffer competition from DL that they have to seek someone else to help them.

LAX is becoming more and more competitive and the players that are being hurt are not AA and DL but the smaller players.

DL will be up to 8 (IIRC) mainline flights LAX-SEA and 6 on SEA-ANC this summer.

I can't imagine that AS people are thrilled to watch AS giving away a key route to AA. but it is good news for AA.

 

[topDawg]

Further news today that AA and Alaska have jointly filed with the DOT to transfer Alaska's LAX-MEX authority to AA so AA can operate it double-daily with 737s.  Yet another reminder that on LAX-Mexico specifically, as with LAX in general, AA is clearly playing to win.

Play to win all they want. With the DL/AM JV coming its going to be very hard to beat that. 

 

[topDawg]

good move for AA and AS. It is apparent that AS is being marginalized in LAX and can see that they will not be able to compete in Jan when Open Skies allows more carriers to fly the route.

the only surprise is that AS is backing out now.... it just means that the route will be flown by AA, DL, and UA - with DL obtaining its rights on the first day of Open Skies.

no, AS isn't controlled by DL at all. It is precisely because they are facing stiffer and stiffer competition from DL that they have to seek someone else to help them.

LAX is becoming more and more competitive and the players that are being hurt are not AA and DL but the smaller players.

DL will be up to 8 (IIRC) mainline flights LAX-SEA and 6 on SEA-ANC this summer.

I can't imagine that AS people are thrilled to watch AS giving away a key route to AA. but it is good news for AA.

Its all for show. AS is giving it up for 6 months? then they can jump right into the market all they want. 
 
IMO AS sees that LAX-Mexico is about to be flooded with capacity from stronger carriers. No need for them to stay in this win they can codeshare in the market. 

 

[WorldTraveler]

precisely.

With the largest LAX-Asia operation among US carriers (although IIRC AM serves TYO and PVG anyway) and the massive connectivity that exists at MEX under a JV, DL will handily push its way to the top of the LAX-MEX market just like it did on JFK-NRT.

and AS won't be back precisely because they know they cannot continue to fight one battle after another.

with DL on full frontal assault in SEA, AS has to focus on their home turf.

IF AA picks up a few crumbs at LAX while AS has to focus on SEA, it only means the LAX market is concentrating just like the rest of the country.

dawg,
scuttlebutt is that DL has bought around a dozen more 717s... which might explain why DL is moving forward with loading more LAX 717 flying.

any confirmation?

 

[FWAAA]

AS flies from SAN to PVR and SJD, IIRC. Wonder if there's any potential for AS to fly to more cities in Mexico from San Diego?

Here is the AA/AS filing: http://www.regulations.gov/contentStreamer?objectId=09000064819ff7d4&disposition=attachment&contentType=pdf

 

[WorldTraveler]

perhaps but WN seems quite interested in giving AS a run for their money in SAN.

according to DOT data, AS lost almost 30% of its local market revenue on SAN-SEA with the introduction of DL and WN nonstop service. the loss in revenue was about equally divided between reduced average fares and lost passengers.

AS is and will be fighting for its life in California.

 

[commavia]

With the DL/AM JV coming its going to be very hard to beat that. 

 
Meh - not so sure.  With the growth at LAX that AA says it has coming, it may not be that hard.  JV or not, Delta/Aeromexico is hardly dominant in the U.S.-Mexico market.

 

[WorldTraveler]

uh, I think we have had this discussion regarding dominant but AM/DL together are larger than any other airline between the US and Mexico.

further, AM is the largest int'l airline in Mexico/Central America and a JV would absolutely incentivize the formation of beyond US-Mexico cooperation in both directions.

further, G3 is the largest single airline in Latin America and DL has equity partnerships with both of them.

You are severely underestimating DL's ability to expand the AM partnership under a JV... and even a quick look at what DL has done with VS in such a short period of time says what DL can do when it gets the green light from regulators to cooperate. Remember, DL has been sitting on AM's board for several years and is intimately aware of where AM makes money and can grow.

and specific to the LAX-Mexico market, DL offers more connectivity up and down the west coast than AA does. And specific to LAX-Mexico, AM/DL combined are still larger than any other two airlines that can cooperate or share revenues.