Americans Response To U At Fll

[FA Mikey]

Santo Domingo was set to go to Friday-Sunday. I assume that will be off.

I wonder what will AA do with another airline coming in to its strongest market? It is U so then plan may be to do little and watch them bleed themselves to death. AA controls the high yields to Central and South America.

American has a stronger and established sales team. They have the name recognition. A strong brand loyalty with in the Hispanic community. They have a stronger balance sheet, by far. How many high yield business people and vacationers are willing to purchase on a carrier threatening a second bankruptcy in as many years. AA offers Multiple flights daily. A real first or business class. Widebodys on many routes. AA has tons of cargo flying in both directions to help offset any losses in price for the short term. The advantage program, a major reason many people choose us.

There is a United a carrier with a stronger name recognition that U was unable or unwilling to compete in Central America to South Florida. Think about it, U is no where in a class of international service, comfort or name recognition to United.

We shall soon see how Peter Dolora and his team recommend AA respond.

 

[USAir757]

I believe AA can be reasonaly secure that they will remain the number one carrier in this market. Although it doesn't necessarily mean that they shouldn't somehow make preparations for competition on these routes that they're normally used to carrying on their own. US may be on the proverbial "death rattle", or it may not. Either way, they don't want to be caught sleeping at the wheel on this deal. Not when it is their bread and butter market.

 

[US1YFARE]

That's funny, last time I looked AA had cut back its SJU service from PHL now that US serves it 3 to 4 times a day (one with an A330). AA did nothing to stop US from entering the Carib market. Don't underestimate US's loyal Northeast DM members. And now, with the *Alliance, it will help even more for them with this new service.

 

[FA Mikey]

That's funny, last time I looked AA had cut back its SJU service from PHL now that US serves it 3 to 4 times a day (one with an A330). AA did nothing to stop US from entering the Carib market. Don't underestimate US's loyal Northeast DM members. And now, with the *Alliance, it will help even more for them with this new service.

[post="171551"][/post]​

Is U doing it Profitably? In an out lying market AA doesn't fly it if its not making money. I am sure there is a loyalty in the NE to their DM program. But will it translate in to sales for Central America? Do you think you can walk in and have a profitable operation? If they are losing bucket loads of money like they say they are, and teetering on BK yet again. Is this the best way to spend what little you have? I guess I don't understand the desire to open up service to new markets where you have no brand recognition or loyalty, when time and money are not on your side.

Would it not be better to shore up the holes and the money losing problems in the system you have? Rather than spending millions open new stations on a hunch, in an airport lacking in space to accommodate, additional service. Going up against AA in its backyard, as well, as LCC's like Sprit and JB. As I see it U has not done so well going up against any LCC to date.

 

[tadjr]

U is losing money at PIT and this is where most of the aircraft will be coming from. I guess they see (hypothetically) losing less in the Caribbean than losing more flying to PIT still.
I also wouldnt expect U to come in and tank the yields like the LCCS would be doing. U isnt going to be offering the NK or B6 fares on most of the markets so AA wouldnt have to worry about them heading south. Sure they will have some competition, but can still manage to get decent yields on the customers they still fly.
Also with supposedly 1 flight a day to many of these markets, its not like they are coming into the MIA area with 300 flights a day at rock bottom prices. I'm sure a great deal of the traffic will try to be controlled by inventory to use for connecting traffic. Some will be local, but I dont think that is the main purpose of these flights, otherwise they wouldnt start up some of the other connecting cities supposedly planned.

 

[US1YFARE]

Is U doing it Profitably? In an out lying market AA doesn't fly it if its not making money. I am sure there is a loyalty in the NE to their DM program. But will it translate in to sales for Central America? Do you think you can walk in and have a profitable operation? If they are losing bucket loads of money like they say they are, and teetering on BK yet again. Is this the best way to spend what little you have? I guess I don't understand the desire to open up service to new markets where you have no brand recognition or loyalty, when time and money are not on your side.

Would it not be better to shore up the holes and the money losing problems in the system you have? Rather than spending millions open new stations on a hunch, in an airport lacking in space to accommodate, additional service. Going up against AA in its backyard, as well, as LCC's like Sprit and JB. As I see it U has not done so well going up against any LCC to date.

[post="171554"][/post]​

I disagree. US admits that its most profitable routes are the Carib and Europe. They make lots of money on those flights. They are doing well against WN in PHL. Their load percentages are in the mid 80's and higher and they offer a lot more service than WN to the GoFare cities. Now, with FLL as a focus city, they can fill those seats with Carib/Central American fares rather than $98 GoFares. People said the same thing about US to Europe and Carib and they are filling the planes. Service to Europe out of PHL increases every year. It would increase more if they had more A330's. European DM loyalty is increasing. The *Alliance will help even more.

 

[US1YFARE]

Also, the Hispanic population in the Northeast (where most of US's pax are located) is over 5M (over 2.5M of them are not Mexican, Cuban, or Puerto Rican). Those feeder flights from US airports in the Northeast (BOS, LGA, PHL, BWI, DCA, EWR, etc.) should help feed what pax US cannot get from the O&D market in FLL. Plus, like Tadjr said, they aren't coming in with 300 flights a day, they are adding selective flights that they think will be profitable. It won't kill AA--US just wants to survive.

 

[FA Mikey]

Also, the Hispanic population in the Northeast (where most of US's pax are located) is over 5M (over 2.5M of them are not Mexican, Cuban, or Puerto Rican). Those feeder flights from US airports in the Northeast (BOS, LGA, PHL, BWI, DCA, EWR, etc.) should help feed what pax US cannot get from the O&D market in FLL. Plus, like Tadjr said, they aren't coming in with 300 flights a day, they are adding selective flights that they think will be profitable. It won't kill AA--US just wants to survive.

[post="171580"][/post]​

I understand that, i am not worried about AA ability to survive. I just think its a foolish undertaking. I would be pissed if AA decided one day to open SJC a our Pacific base and launched Service to a bunch of new cities in Aisa. While at the same time telling me they need paycuts from me just to survive.

 

[MAH4546]

Santo Domingo was set to go to Friday-Sunday. I assume that will be off.

[post="171541"][/post]​

I doubt it will be off. It was only set to go FrSaSu for the very slow fall travel period, then go back to daily. Though, after that, it will probably stay daily permanently, slow season or not, as long as another carrier is on the route.

I would not be surprised to see AA launch some new FLL routes: SJO, GUA, and/or DCA. It is not a major threat, and probably won't hurt their profits at all (it's not like US if offering cheap fares. The introductory fares on the Central America flights are $298 return, and that's just for the first two-three months), but AA still wants to make sure they control the market. Also, Spirit is announcing a new international route this Wednesday, probably FLL-SJO.

 

[US1YFARE]

http://news.moneycentral.msn.com/ticker/ar...0823&ID=3930014

FLL Announcement along with International GoFares

 

[FA Mikey]

http://news.moneycentral.msn.com/ticker/ar...0823&ID=3930014

FLL Announcement along with International GoFares

[post="171906"][/post]​

Guess we will be seeing AA's new gofares on flights from PHL to any number of U's higher yield destinations, soon.

 

[US1YFARE]

It should get a little interesting. I guess US figures, this either works, or it doesn't--they don't have a lot of choices at this point.

WN has already attacked US in high yield markets--AA, however, has more planes to service the high yield markets if they choose to select new markets. WN only has just 1 or 2 flights in a lot of the markets and US can just keep adding service. WN already has flights from PHL to ORD, LAX, PHX, RDU, and PVD. THey are adding OAK and SAN. Frontier has flights to DEN.

Where are you thinking? Is AA going to add low fares to DFW? San Jose? Maybe they'll put the entire Carib on sale? Or, Europe?

 

[FA Mikey]

It should get a little interesting. I guess US figures, this either works, or it doesn't--they don't have a lot of choices at this point.

WN has already attacked US in high yield markets--AA, however, has more planes to service the high yield markets if they choose to select new markets. WN only has just 1 or 2 flights in a lot of the markets and US can just keep adding service. WN already has flights from PHL to ORD, LAX, PHX, RDU, and PVD. THey are adding OAK and SAN. Frontier has flights to DEN.

Where are you thinking? Is AA going to add low fares to DFW? San Jose? Maybe they'll put the entire Carib on sale? Or, Europe?

[post="171916"][/post]​

I know how they respond to competition like this. I don't know where or exactly how. If there is a way they will find it and exploit it.

 

[ClueByFour]

Guess we will be seeing AA's new gofares on flights from PHL to any number of U's higher yield destinations, soon.

[post="171912"][/post]​

No. AA should throw sales at PIT and CLT (to grab disgruntled hub-loss flyers from the former, and attack the last US fortress hub at the latter).

That's what I would do.

 

[ringmaruf]

http://news.moneycentral.msn.com/ticker/ar...0823&ID=3930014

FLL Announcement along with International GoFares

[post="171906"][/post]​

Guess we will be seeing AA's new gofares on flights from PHL to any number of U's higher yield destinations, soon.

[post="171912"][/post]​

Just because they're called GoFares doesn't make them cheap. There are some fares in the $208-298 r/t range, but they'll be *very* heavily capacity controlled. The rest of the fare buckets are priced about the same as AA.