New American Discount Carrier?
- Thread starter Jester
- Start date
Crash Pad DCA
Senior
Air Canada Rouge?700UW said:
WorldTraveler
Corn Field
- Dec 5, 2003
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actually, since DL does get higher average fares than any other US airline on a system basis, you could be on to something.
Or perhaps all of the reasons that people have given about why AA's hubs are superior because they are in larger cities may not turn out to be as true as was advertised.... a larger market means you have to work a whole lot harder to maintain a share advantage... AA lost some of that share advantage in BK (such as in NYC) and can't get it back because there aren't enough slots to do so and then there are markets like DAL/DFW that have fundamentally changed. Some of us said that AA would face enormous competitive pressures coming out of BK and that is exactly what has happened.
AA's news that they will be more aggressive in competing with low fares might help prevent further share loss but AA has already fallen to less than 50% market share in DAL/DFW on a combined basis and the same is true in most of AA's other hubs... and ironically, PMUS' hubs look a little more "fortress" than AA's.
thus, it is no surprise that AA is having to think about strategies to protect its share.
The next few years will be critically important for AA. AA simply has some major strategic challenges that they must resolve. I am confident they will.
Kev3188
Veteran
Nah, let's leave that to the people sitting on the sidelines with nothing better to do. Those of us actually working at DL and AA know both are formidable competitors...jcw said:
jimntx
Veteran
Which tells me that a lot of people are choosing by price, period. I have a couple of friends who flew Spirit one time and swore they would stay home in the future if Spirit was their only choice. The flight attendant was yelling at customers to obey the seat belt sign. (Though, lord knows I wouldn't mind doing that myself at times. On my last trip, the captain told the f/as to remain seated on a DFW-AUS leg due to turbulence. Despite his announcement that everyone was to remain seated, they were up in no time wandering the aisles like the Israelites in the desert.FWAAA said:
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WorldTraveler
Corn Field
- Dec 5, 2003
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let's leave it to Wall Street who has no bias.. they value companies based on what they see.
Problem is here that you like a whole lot of other people think this is a personal pi78ong contest.
it's not.
It's business and Wall Street can figure who is doing what.
AA is far from at a point of stability.
They have significant strategic issues to resolve and one of them is the increased competition that I said years ago would come and now everyone seems to think is the basis of a personal punching contest.
it is not.
It is a strategic issue which AA has to resolve.
Being much more competitive with low fare carriers in order to stem the loss of share which AA has suffered is part of the issue.
WorldTraveler
Corn Field
- Dec 5, 2003
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Feel free to demonize me... but AA execs themselves have said AA has to come up with a strategy to combat growing low fare competition.
If you were half as willing to hear the truth and quit trying to blame someone else for telling you something that everyone who actually runs AA has already accepted, you could be a great advocate for the company.
but in fact I told you years ago what AA executives are now saying....
and by the way, the entire industry is reporting record profits.
The reason why AA execs recognize this is a critical issue that must be resolved is because low fare carriers take share and when that happens for a long enough period of time, you wake up and realize your network is a whole lot smaller than you want.
AA found out in NYC what unchecked low fare carriers can do to an airline's market share. and now not only market share is less but so is revenue.
If you were half as willing to hear the truth and quit trying to blame someone else for telling you something that everyone who actually runs AA has already accepted, you could be a great advocate for the company.
but in fact I told you years ago what AA executives are now saying....
and by the way, the entire industry is reporting record profits.
The reason why AA execs recognize this is a critical issue that must be resolved is because low fare carriers take share and when that happens for a long enough period of time, you wake up and realize your network is a whole lot smaller than you want.
AA found out in NYC what unchecked low fare carriers can do to an airline's market share. and now not only market share is less but so is revenue.
FrugalFlyerv2.0
Veteran
- Oct 29, 2003
- 2,931
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Yeah, you're like the voice crying out "DL uber alles" in the wilderness.WorldTraveler said:
GMAFB
WorldTraveler said:
psst .. ... How did Song do vs B6 at JFK? ...... oops.
How is DL doing vs B6 at JFK?
What? JFK is just now breaking even / slightly profitable after years of losses for DL.
Shocker!!!
American Airlines: Like It or Not, They Know What They’re Doing
http://blogs.barrons.com/stockstowatchtoday/2015/10/26/american-airlines-like-it-or-not-they-know-what-theyre-doing
http://blogs.barrons.com/stockstowatchtoday/2015/10/26/american-airlines-like-it-or-not-they-know-what-theyre-doing
Glenn Quagmire
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- Apr 30, 2012
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I told you all over 24 hours ago that the sun would rise again.
Will you ever learn that I am always right?
Will you ever learn that I am always right?
Kev3188
Veteran
These are serious business discussions. There is no room for talk of astronomy here. 
