AA enters LAX -ATL

[LD3]

 
DL is cutting frequency LAX-BOS.  We will hear that its capacity discipline, and how there are five carriers on the route, fares are too low, etc, etc.  But if AA was cutting (and DL adding) it would be a strategic move and another example of how DL is eating AA's lunch at LAX & BOS.
 
Josh

Very well put Josh, I am somewhat becoming a fan of yours on certain topics.....

 

[WorldTraveler]

too bad Josh didn't find out the whole truth before he wrote his response.

no, you will hear that DL is reallocating capacity from LAX to other routes.

DL is adding more capacity from BOS than any other carrier.

And no I doubt that whatever AA does in LAX-BOS will affect DL and vice versa.

the reason why AA is adding capacity is because UA has downgraded their 2 flights/day to 319s.

as of now, market capacity is relatively flat.

It is exactly the same strategy that happened in JFK-LAX - just that AA did the cutting and DL did the adding.

oh, DL does have 2 flights/day still in the schedule for June and beyond.

and AA's addition of seats on BOS- LAX still keeps them flat in capacity. ORD is one of 4 BOS markets which have 9% or greater capacity reductions with ORD being one of the largest in terms of seats removed.

 

[robbedagain]

josh i agree with your post there   its true and thats sad   but its how wt interpets his pro dl bs crap

 

[WorldTraveler]

what? you don't like hearing that AA has just taken ORD capacity and reallocated it to LAX so really hasn't added anything?

and AA is really just adding capacity that UA has cut?

 

[737823]

too bad Josh didn't find out the whole truth before he wrote his response.no, you will hear that DL is reallocating capacity from LAX to other routes.DL is adding more capacity from BOS than any other carrier.And no I doubt that whatever AA does in LAX-BOS will affect DL and vice versa.the reason why AA is adding capacity is because UA has downgraded their 2 flights/day to 319s.as of now, market capacity is relatively flat.It is exactly the same strategy that happened in JFK-LAX - just that AA did the cutting and DL did the adding.oh, DL does have 2 flights/day still in the schedule for June and beyond.and AA's addition of seats on BOS- LAX still keeps them flat in capacity. ORD is one of 4 BOS markets which have 9% or greater capacity reductions with ORD being one of the largest in terms of seats removed.

So why exactly is DL serving LAX-BOS? To feed their NRT and SYD flights?

Josh

 

[WorldTraveler]

because it is a strategically important market in which they believe they can make money at certain times of the year.

but yields are not high so DL has realized they will not serve the market with the frequencies that are needed when loads cannot be kept high.

given that UA has reduced capacity in the market for several years, they see the same thing.

AA has decided it is worth fighting for this market despite the low yields.

and if B6 decides to put Mint into BOS-LAX, it will make the market even harder to sustain for the network carriers.... and we'll see what happens at that point - which I do believe will come.

 

[737823]

because it is a strategically important market in which they believe they can make money at certain times of the year.but yields are not high so DL has realized they will not serve the market with the frequencies that are needed when loads cannot be kept high.given that UA has reduced capacity in the market for several years, they see the same thing.AA has decided it is worth fighting for this market despite the low yields.and if B6 decides to put Mint into BOS-LAX, it will make the market even harder to sustain for the network carriers.... and we'll see what happens at that point - which I do believe will come.

DL has served it off and on over the years. I remember in the early 2000s it was 763s then transitioned to Song, the back to mainline and went away circa 2008 (along with SFO). Came back in summer 2012 and is just now become year round again.

Mint coming would have implications for AA much moreso than DL considering BOS was an AFS route before.

Josh

 

[WorldTraveler]

DL operated a 763 on 9/11/01 alongside AA and UA who used 762s.

and yes the market has been Song as well.

 

[LDVAviation]

 

No it didn't. United still have the lease for T6 gates (they just signed it as part of the agreement for Terminal 7/8. As part of the lease United got the ability to sub-lease......you guess it 4 Terminal 6 gates and back-off space.) If AA had gotten direct control of those gates then they would have a (public) lease with LAWA. 
 
AA's first right didn't kick in in this case. They were just willing to pay more (and made that deal for ORD gates magically at the same time)   
 
 
Oh and Delta has 18 gates. 15 at Terminal 5 and 3 at Terminal 6. (68A 68B 69A) AS does use two of the Terminal 6 gates sometimes though (68A and 69A) 68B is the gate Delta normally uses for the NRT flight. 
Delta had about 220 flights at its peak with about 3 less gates than they have now. Delta runs a higher flight per day per gate usage in Atlanta than they do in LA. They know how to get every last bit out of a gate as well as anyone.  

 
There is a condition in United's lease that gives LAWA the right to reclaim the T6 gates if United seeks to sublease them.  Of the 4 gates that United leases in T6, one of them was ceded to LAWA in a previous lease amendment.  Given these facts alone, United could not have proceeded to sublease the gates without consulting LAWA first.  Effectively, LAWA executed the terms of its contract with AA without having to reclaim all the T6 gates.  (In short, LAWA brokered the deal.  AA did not have to outbid anyone.)
 
According to LAWA, there are only 13 gates at T5.  (The relevant source is "LAX Current Passenger Gate Positions.").

 

[jcw]

because it is a strategically important market in which they believe they can make money at certain times of the year.but yields are not high so DL has realized they will not serve the market with the frequencies that are needed when loads cannot be kept high.given that UA has reduced capacity in the market for several years, they see the same thing.AA has decided it is worth fighting for this market despite the low yields.and if B6 decides to put Mint into BOS-LAX, it will make the market even harder to sustain for the network carriers.... and we'll see what happens at that point - which I do believe will come.

Bless your heart - it's so precious that when DL serves a route to lose money on its strategic

How is that list coming

 

[WorldTraveler]

uh, who said anything about DL losing money?

it is precisely because they cut their capacity so they will not lose money.

BOS is much more of a north-south market in the winter which is exactly what DL is doing while adding capacity in the summer.

AA again is adding capacity that UA is cutting - the same thing that is happening in other LAX markets.

this really isn't an AA-DL struggle as much as you would like to frame it that way. it is between AA and UA

 

[jcw]

uh, who said anything about DL losing money?it is precisely because they cut their capacity so they will not lose money.BOS is much more of a north-south market in the winter which is exactly what DL is doing while adding capacity in the summer.AA again is adding capacity that UA is cutting - the same thing that is happening in other LAX markets.this really isn't an AA-DL struggle as much as you would like to frame it that way. it is between AA and UA

So remember if another airline cuts capacity on a route you will praise them for managing profitability

Also remember if DL enters another carriers space it's un wise move

How do you rationalize everything DL does?

Does a therapist help you

 

[WorldTraveler]

profitability.

a concept you clearly don't understand.

this isn't about testosterone as much as you seem to think it is.

companies exist solely to maximize returns for their owners.

once you get that concept, a whole lot of other things will make sense.

 

[jcw]

I understand profitability very well

It's you who don't understand basic profitability you make things fit your warped world

I guess the meds help you come up with this stuff

I'm surprised DL can function with out you

 

[FrugalFlyerv2.0]

I'm surprised DL can function with out you

 
DL can function without WT (and without spectator too). 
It's WT (and spectator) that can't function without DL.