Cancellations

[Hopeful]

Press Release Source: American Airlines, Inc.


American Airlines Forced to Temporarily Cancel 15 Roundtrips Due to Spiking Jet Fuel Prices
Friday September 30, 12:04 pm ET


FORT WORTH, Texas, Sept. 30 /PRNewswire-FirstCall/ -- The skyrocketing price of jet fuel has forced American Airlines to take the regretful step of temporarily canceling 15 roundtrips in markets the airline serves from its two largest hub airports, Chicago O'Hare and DFW International. All of the cancellations will take place beginning Oct. 5 and lasting through Oct. 29. American will monitor jet fuel prices and evaluate the potential to reimplement service after that time.
The reductions will take place in markets where American will retain a number of roundtrips.

"Jet fuel prices have been rising even faster than crude oil prices for the last year, but it was the 39 percent rise in jet fuel costs in the last month alone that pushed us to make this decision," said Dan Garton, Executive Vice President. "We have made incredible progress in lowering our operational costs for over two years now. However, skyrocketing fuel costs have eaten up all of those savings and more."

Jet fuel was 91 percent more expensive yesterday than in September 2004, while crude oil had risen 45 percent in the same period. The cost of a barrel of jet fuel has risen from over $78 at the end of August -- before hurricanes Katrina and Rita disrupted production and refining of crude oil -- to over $109 per barrel.

Garton said, "This is a tough decision that we never wanted to have to make. We know our customers have seen their own gasoline costs rise, and we hope they will understand that it is no longer economically viable for American to maintain the current level of convenient service in those markets given our current fuel cost."


Following are the markets where flight reductions will occur:

DFW Chicago O'Hare
Cancellations Trips Remain Cancellations Trips Remain
Atlanta 1 10
Austin 2 15
Denver 1 10
El Paso 1 7
Newark 1 6
Washington Dulles 1 5
Houston Inter. 1 9 1 3
Kansas City 1 11
Chicago O'Hare 1 18
Toronto 1 3 1 5
Minneapolis/St. Paul 1 8
Tulsa 1 3

In another move driven in large part by the economic impact of soaring fuel costs, American also announced that it will discontinue service between Chicago O'Hare and Nagoya, Japan, at

 

[TWU informer]

Is there a "Force Majeure" lay-off coming due to fuel supply?

Or is this a shot across the bow, to prepare workers for more concessions?

Can you say "Without Further Ratification"?

 

[Bagbelt]

Fuel suppy is a FM issue. I expect the co. could impose what it wants w/o the formality of negotiations or a "vote".

 

[kirkpatrick]

Not good news. Does anyone know how many flights AA operates per day? Mainline, not Eagle. A ballpark figure will do.

MK

 

[FWAAA]

Not good news. Does anyone know how many flights AA operates per day? Mainline, not Eagle. A ballpark figure will do.

MK

[post="307405"][/post]​

At last count it was about 2,200 or so mainline flights daily.

 

[Hopeful]

Oh, I think AA will be knocking at our doors for more concessions!
There is no way they can offset the price of jet fuel without them!

 

[Bob Owens]

Not good news? Well what is good news? Operating money losing flights just so you can claim that you offer more service?

 

[TWU informer]

Why these flights, at these cities?

My guess, this really has more meaning that cancellation of service.

Those that have been around awhile know how the company communication/spin machine works.

Sometime within the next 3 weeks it will become more clear what this really means.

 

[air_guy]

Why these flights, at these cities?

My guess, this really has more meaning that cancellation of service.

Those that have been around awhile know how the company communication/spin machine works.

Sometime within the next 3 weeks it will become more clear what this really means.

[post="307425"][/post]​

It is a temporary supension of frequencies. The majority of service will remain.

These are low load factor flights either early in the morning or late at night. With fuel too expensive or unavailable it does not make sense to operate.

 

[TWU informer]

It is a temporary supension of frequencies.  The majority of service will remain.

These are low load factor flights either early in the morning or late at night.  With fuel too expensive or unavailable it does not make sense to operate.

[post="307434"][/post]​

Then why not just report that they are cancelled due to low load factors? Instead the connection to HIGH fuel is the leading edge of more to come.

 

[Bob Owens]

With all the talk about overcapacity then this should be a good thing.

Maybe they are claiming its temporary this way should an LCC move in AA would make moves to drive them out such as restarting the discontinued service at lower prices. By claiming that its the high price of fuel it leaves one thinking that the cuts are temporary when they may not be. Or it could just be that they are capitalizing on the rise in Jet fuel prices and blaming common seasonal reductions in service on fuel. By blaming it on fuel they can use it as an example of how high fuel prices are forcing the airline to offer less service to the travelling public and claim they need relief.

 

[Connected1]

Then why not just report that they are cancelled due to low load factors? Instead the connection to HIGH fuel is the leading edge of more to come.

[post="307436"][/post]​

It isn't the load factors that have changed. The fuel price has changed thus driving the need for the decision. Had fuel prices not changed we would still be operating the flights.

Also, I think Bob O. has a valid point. There's a political lobbying aspect to this as well given the hearings that have been taking place in D.C. recently. We have been active in supporting the Air Transport Association's effort to push for a one-year fuel tax holiday.

 

[TWU informer]

It isn't the load factors that have changed.  The fuel price has changed thus driving the need for the decision.  Had fuel prices not changed we would still be operating the flights.

Also, I think Bob O. has a valid point.  There's a political lobbying aspect to this as well given the hearings that have been taking place in D.C. recently.  We have been active in supporting the Air Transport Association's effort to push for a one-year fuel tax holiday.

[post="307545"][/post]​

When does one think that suppply vs demand, and price to provide service should dictate the industry instead of continuous Government Welfare checks to float over capacity?

I mean come on, Government subsidies of over $5 Billion, Government BK Rules that prevent anyone from going out of business, Government pension relief, and now a fuel tax holiday?

Geezzz, seems we are no longer a capitalist society, we are more like an airline socialist society.

How many future generations should we place in debt so that air travel competes with a bus?

 

[Bob Owens]

It isn't the load factors that have changed. The fuel price has changed thus driving the need for the decision. Had fuel prices not changed we would still be operating the flights.

Also, I think Bob O. has a valid point. There's a political lobbying aspect to this as well given the hearings that have been taking place in D.C. recently. We have been active in supporting the Air Transport Association's effort to push for a one-year fuel tax holiday.

[post="307545"][/post]​

I do not support a fuel tax holiday for the airlines.

It will simply result in a shift of the tax burden away from the airlines and passengers. I havent flown my family anywhere in years. I already took a 25% paycut now they want to shift more of the burden of providing cheap air transportation to those of us who cant afford to travel? No way. Keep the tax in place. Cancell more flights and reduce the "overcapacity".

By the way it seems that the PR stunt is working, its all over the news that AA is cancelling flights because of fuel. What a crock! Over 2000 flights a day and the decision to cancel less than 1% of them makes headlines. All the media outlets should be forced to display "PR Newsline" on the bottom of the screen.

 

[TWU informer]

By the way it seems that the PR stunt is working, its all over the news that AA is cancelling flights because of fuel. What a crock! Over 2000 flights a day and the decision to cancel less than 1% of them makes headlines. All the media outlets should be forced to display "PR Newsline" on the bottom of the screen.

[post="307557"][/post]​

When NWA Airlines cancelled 17% due to "Fall Schedule", it stopped reports that the mechanics strike was having any effect.

When AA begins a 1.5% reduction due to "Fall Schedule", they claim it is because of high fuel cost and the media feeds on the negative like sharks in blood water.

Interesting how Corporations use the media to gain a certain response.

Interesting how Corporations use this response to seek a competition advantage through legislation.

Interesting how unions sit back and never respond to the lies, and instead fund the next campaign the old fashion way, with blindness and no return.

Maybe the Unions should just stop the campaign finance, and hire PR Firms, hey, what a brilliant idea.