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[KCFlyer]

AMR CEO: Co Mulls Building Its Own Low-Cost Carrier

Well...sounds like we'll be seeing the company saving "low cost carrier within a carrier" from AMR as well. Too bad this concept won't work. But I guess they've got the money to waste on it.

 

[s80dude]

i think the article went more along the line that if the low cost carrier divisions succeed at Delta, and if the UAL one gets off the ground and is successful, then he'd consider it.

 

[FWAAA]

These lines say it all:

But Arpey said his first priority is to reach his cost-cutting goals for the main airline.

"Thus far, what we've been focusing on, rightly or wrongly, is fixing the 750-jet airline problem, rather than starting a new airline," he said.

This is in stark contrast to the goofballs at DL and UAL, who haven't fixed their mainline operations before embarking on the misguided and doomed-to-fail paths of trying to be B6 and WN when they clearly are neither.

Of course AA will consider it if it works - but fat chance of that happening. B)

 

[AAmech]

I'd like to think AA is on the right path just by removing MRTC on the two fleet types and going to the SW style "Flowing Hubs". And if need be AA could always go a step futher and rip out FC, Galleys and Closets on the 757's. This could lower the ASM costs even further by cramming more coach seats on the planes on nessessary routes without having to "Rebrand" your service.

 

[Hatu]

NEW YORK (Dow Jones)--AMR Corp. (NYSE:AMR - News) Chief Executive Gerard Arpey said the airline is going on the offensive against low-cost carriers by changing its route schedule, and is even considering building its own low-cost carrier.

http://biz.yahoo.com/djus/031106/1017001103_2.html

 

[FA Mikey]

NEW YORK (Dow Jones)--AMR Corp. (NYSE:AMR - News) Chief Executive Gerard Arpey said the airline is going on the offensive against low-cost carriers by changing its route schedule, and is even considering building its own low-cost carrier.

http://biz.yahoo.com/djus/031106/1017001103_2.html

This is the same article as posted above. Included in that is this paragraph, "He said American is watching the low-cost airlines that competitors Delta Air Lines Inc. and UAL Corp. are creating. If they work, American may consider building one of its own." I wouldn't count on a carrier in a carrier here. AA will use continue to use its strength and brand to combat the low fare and other low cost carriers.

 

[Andre1980]

I'd like to think AA is on the right path just by removing MRTC on the two fleet types and going to the SW style "Flowing Hubs". And if need be AA could always go a step futher and rip out FC, Galleys and Closets on the 757's.  This could lower the ASM costs even further by cramming more coach seats on the planes on nessessary routes without having to "Rebrand" your service.

I don't know about that since your suggestion would cause confussion and maybe anger with passengers since First class service along with the ability to provide upgrades for their most loyal customers is what seperates AA from the LCCs and this is what AA has been promoting with their Ads to business travellers but if necessary they could always reduce the number of First class seats on the 757s and I am not certain about reducing the number of FC seats on the A300 since they already have only 12 which I consider a small number for such a large aircraft.

I think Arpey is doing the right thing with AA by correcting the wrongs and not rushing into the 'airline within an airline' business. Just watch and see how if goes at UA and DL and then evaluate the situation.

 

[FA Mikey]

Just a FYI the airbus has a 16 seat F/C. I know because I do it so often.

 

[L1011Ret]

Sure, they could start one in STL and merely recall all the TWAers!!!

 

[Bob Owens]

AMR already has two low cost carriers, AA and Eagle.

SWA mechanics get paid more than either AA or Eagle- both TWU-Suprised?

 

[Andre1980]

AMR already has two low cost carriers, AA and Eagle.

SWA mechanics get paid more than either AA or Eagle- both TWU-Suprised?

I totally agree with you 😀 But if they want a low cost airline just get some 100 seaters EMB 190 for Eagle to fly routes that they may be in competition with the REAL LCCs especially in STL. Just a suggestion I know AA management will straigthen out the mother ship before they turn their attention to starting another airline if they see that their fellow network competitors are having success with theirs.

 

[Boomer]

The CompAAny is trolling for the APA as we speak: they have the pilot pensions on as the bait; the F-100s as the hook; and the LCCs and carrier-in-carrier as chum.

There may be a teaser for the TWU, to blunt the AMFA drive, and to the Flight Attendants as a wedge against supporting the pilots; but, the APA is the target.

 

[AAmech]

I don't know about that since your suggestion would cause confussion and maybe anger with passengers since First class service along with the ability to provide upgrades for their most loyal customers is what seperates AA from the LCCs and this is what AA has been promoting with their Ads to business travellers but if necessary they could always reduce the number of First class seats on the 757s and I am not certain about reducing the number of FC seats on the A300 since they already have only 12 which I consider a small number for such a large aircraft.

I think Arpey is doing the right thing with AA by correcting the wrongs and not rushing into the 'airline within an airline' business. Just watch and see how if goes at UA and DL and then evaluate the situation.

If AA did an all coach class configuration on a portion of its fleet it would have to use it carefully to avoid what you pointed out. It could do that by having regular two class flights intermixed with the all coach flights and channelling the business traffic onto them. If they're selling nothing but $200.00 RT tickets on these flights I doubt they'll anger too many. Of course there's nothing we can do about the one or two cronic complainers! 😉

 

[KCFlyer]

If they're selling nothing but $200.00 RT tickets on these flights I doubt they'll anger too many. Of course there's nothing we can do about the one or two cronic complainers! 😉

Therein lies the problem with most "major" carriers these days...their planes are pretty full with $200 round trips...even the platinum elite passengers, who can and will complain if any steps are taken to prevent them from exercising their God given right to an upgrade based on the frequency of their butt in a money losing seat.

 

[A/C FIXER]

The CompAAny is trolling for the APA as we speak: they have the pilot pensions on as the bait; the F-100s as the hook; and the LCCs and carrier-in-carrier as chum.

In case everyone has forgotten, the F100s ARE HISTORY, they are being put in the desert/mhv/ as we speak. I believe about 60 are to be sold to some consortium in europe, and the other 14 are already in the desert. The reason is because AA will not spend the 1-1.5 mil per engine to fix Rolls Royce's problem with thet TAY engine, so forget about the F100s being used as bait, hook, chum or any other fishing devise, except maybe as a sinker.