Article on revenue gains

WorldTraveler said:
NW's 330s and DL and CO's 764s all were ordered, financed, and deliveries of the 764s began before 9/11.


Jacobin,
I agree with your post... only to note that AA is still catching up. Other carriers are continuing to develop and improve. I can't conceive how AA is going to catch up to and bypass airlines that have had a significant head start.
That's right,WT. Never in the history of the world has anyone in any industry had to play catchup
to someone with a "significant head start" and draw even, let alone pass their competitor.
AA is in "Dire Straits" for sure! B)
 
I should really be ignoring you, world traveler, but you really have to keep in mind that the 777 has a huge advantage with freight capacity and cargo container capacity, over the 767-400 and A333.

One of the main reasons that AA operated the A300 was because of the number of freight containers that could be carried in addition to the larger number passengers, in comparison to the Boeing 767 300.


Believe it or not it's not all about the passenger revenue.
except DOT data shows that AA doesn't carry more cargo on routes where they use a 777 compared to what DL and UA operate on the 764.

AA has configured its 772s up to this point with virtually the same number of seats that DL and UA have on their 764s and really doesn't have an advantage with cargo or freight revenue.

It's also worth noting that the bulk of AA's 7777 S. America-US flights are to MIA which are the shortest routes so the range of the 777 isn't even needed because other US carriers operating S. America to the US operating on longer sectors.

aanotok,
There is absolutely nothing wrong with AA catching up... but the whole notion that many here have repeatedly failed to consider is that other carriers are improving their competitive ability as well.

AA lost 10 years because of a failure to act on important strategic initiatives, of which having a properly configured 777 is just one of them. Other carriers kept moving and are still moving.

AA now has to digest a merger, fix the problems like its fleet that other carriers have been working on for 10 years, and no other carrier has as many competitive challenges in key markets as AA is facing. Add in that AA and US have heavy debt levels that will only grow as they merge and fix their fleet problems and it is even harder to see how AA can surpass other carriers at the speed you seem to want them to.

IF AA succeeds at all of that and moves ahead of the pack in the process, they should be given all kinds of accolades... but it is a task than no other airline including either AA or US has ever succeeded at.
 
  • Thread Starter
  • Thread starter
  • #63
WorldTraveler said:
except DOT data shows that AA doesn't carry more cargo on routes where they use a 777 compared to what DL and UA operate on the 764.

AA has configured its 772s up to this point with virtually the same number of seats that DL and UA have on their 764s and really doesn't have an advantage with cargo or freight revenue.

It's also worth noting that the bulk of AA's 7777 S. America-US flights are to MIA which are the shortest routes so the range of the 777 isn't even needed because other US carriers operating S. America to the US operating on longer sectors.

aanotok,
There is absolutely nothing wrong with AA catching up... but the whole notion that many here have repeatedly failed to consider is that other carriers are improving their competitive ability as well.

AA lost 10 years because of a failure to act on important strategic initiatives, of which having a properly configured 777 is just one of them. Other carriers kept moving and are still moving.

AA now has to digest a merger, fix the problems like its fleet that other carriers have been working on for 10 years, and no other carrier has as many competitive challenges in key markets as AA is facing. Add in that AA and US have heavy debt levels that will only grow as they merge and fix their fleet problems and it is even harder to see how AA can surpass other carriers at the speed you seem to want them to.

IF AA succeeds at all of that and moves ahead of the pack in the process, they should be given all kinds of accolades... but it is a task than no other airline including either AA or US has ever succeeded at.
Hey WT, why don't you stop playing Nostradamus and let the future decide what may or may not happen.
 
WorldTraveler said:
AA now has to digest a merger, fix the problems like its fleet that other carriers have been working on for 10 years, and no other carrier has as many competitive challenges in key markets as AA is facing. Add in that AA and US have heavy debt levels that will only grow as they merge and fix their fleet problems and it is even harder to see how AA can surpass other carriers at the speed you seem to want them to.

 
 Oh please, give it up already!  While AA does have problems, they are not any different or more challenging than what other carriers faced during chapter 11 bankruptcy/reorganization and subsequent mergers. 
 
FrugalFlyerv2.0 said:
 Oh please, give it up already!  While AA does have problems, they are not any different or more challenging than what other carriers faced during chapter 11 bankruptcy/reorganization and subsequent mergers. 
 
It's the standard M.O. - repeat the same baseless B.S. again and again in the hopes that people just stop refuting it and it becomes accepted as fact.  Some self-appointed "experts" still can't tell the difference between their "analysis" and a hole in the ground.  
 
In reality, as opposed to Delta fantasyland, AA faces no more "competitive challenges" than its two main rivals - it just faces different ones.  Delta and United both face plenty of strategic challenges of their own, and all three carriers also have unique strengths and advantages they can draw upon.  AA has the challenge of figuring out how to optimize their huge NYC slot portfolio for O&D instead of connections in an extremely competitive market, while Delta has to figure out how to reorient an East Asia network hubbed at SEA instead of NRT despite the fact that it doesn't control SEA.  Delta has the strength of having a huge and comprehensive U.S.-Europe schedule, AA has the strength of having a lead in Latin America so dominant it's almost as large as Delta and United combined.  See?  Strengths and weaknesses all around.
 
Contrary to what "some" might continually recite over and over, AA's challenges are entirely surmountable if managed correctly, and no, Delta didn't crack the secret code for airline success and then burn the napkin with the cipher on it.  There is no permanently sustainable competitive advantage Delta has that cannot be overcome and/or at least offset by AA and/or United if those carriers are smart.  It's just that some people can't conceive of a world in which AA (or any other airline) can overcome its "competitive challenges" because that would mean AA (or that other airline) could conceivably become a stronger competitor against Delta.  Classic pathological denial.
 
Some things never change ...
 

Latest posts

Back
Top