Spirit vs. AA for Colombia frequencies

MAH4546

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Aug 22, 2002
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Spirit applied last week for the 14 unusued USA-Colombia frequencies to start daily FLL-BOG and FLL-BAQ. What they didn't realize is that they belong to AA, it is just that AA has not been using them. AA's response:

http://dmses.dot.gov/docimages/pdf101/467791_web.pdf

Even though AA is allowed to keep these frequencies dormant, there has been precedence (UA's unusued Brazil and Argentina frequencies) in which frequencies that are allowed to be kept dormant have been taken away from the airline. AA says they will use them by the end of the year, but if they don't show that they will be using them on a consistent basis (which they have not), they face losing them.
 
Bets on for AA to put them back in to service and keep them there. Otherwise risk having low fare competition between US and Columbia.
 
Bets on for AA to put them back in to service and keep them there. Otherwise risk having low fare competition between US and Columbia.

I can't figure out how Spirit makes money.... they are offer 8 buck fares to Lima too. Yikes.
 
Any idea where AA would fly in Colombia with these two authorities? I know that AA could not fly to MDE and BAQ at the same time but was there a date in the bilateral agreement where this restriction became void? Maybe Jan/2006 or Jan/2007?
 
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Any idea where AA would fly in Colombia with these two authorities? I know that AA could not fly to MDE and BAQ at the same time but was there a date in the bilateral agreement where this restriction became void? Maybe Jan/2006 or Jan/2007?

AA is now allowed to fly to BAQ again, however they would have to rehire all their old BAQ employees (many who date back to the Eastern days) and pay them salary in full five years of salary for the time between when AA left and now. Not happening.
 
I say let Spirit fly the routes, the Colombian Drug Cartels need newbie routes to export their drugs. Let Spirit have the DEA impound a couple of their A/C and have to put up a couple millon dollar bond each time 1 of their A/C gets caught carring drugs. When EA was flying, their GM at TUL told us that on average they had a plane impounded twice a week, don't know how often that happens at AA, but we still find several Keys every so often in TUL during O/H and mostly on the SCAREBUSSES, but on ocassion the 75s and we did find stuff on the F100s also.
 
I say let Spirit fly the routes, the Colombian Drug Cartels need newbie routes to export their drugs. Let Spirit have the DEA impound a couple of their A/C and have to put up a couple millon dollar bond each time 1 of their A/C gets caught carring drugs. When EA was flying, their GM at TUL told us that on average they had a plane impounded twice a week, don't know how often that happens at AA, but we still find several Keys every so often in TUL during O/H and mostly on the SCAREBUSSES, but on ocassion the 75s and we did find stuff on the F100s also.

What do you mean by several Keys? Like kilos?
 
Spirit applied last week for the 14 unusued USA-Colombia frequencies to start daily FLL-BOG and FLL-BAQ. What they didn't realize is that they belong to AA, it is just that AA has not been using them. AA's response:

http://dmses.dot.gov/docimages/pdf101/467791_web.pdf

Even though AA is allowed to keep these frequencies dormant, there has been precedence (UA's unusued Brazil and Argentina frequencies) in which frequencies that are allowed to be kept dormant have been taken away from the airline. AA says they will use them by the end of the year, but if they don't show that they will be using them on a consistent basis (which they have not), they face losing them.

If spirit does get this route you will see the fares drop from $900.00 rountrip to at least 4-5hundred roundtrip. Maybe southwest should apply for it
 
AA is now allowed to fly to BAQ again, however they would have to rehire all their old BAQ employees (many who date back to the Eastern days) and pay them salary in full five years of salary for the time between when AA left and now. Not happening.

http://biz.yahoo.com/prnews/070515/aqtu162.html?.v=2

AA is adding service to MDE and BOG and reinstating BAQ. Looks like a windfall for the BAQ employees if they get 5 years of back pay.
 
There has to be a loop hole some where. I just dont see AA going back into BAQ having to pay many thousands of dollars to former employees. If there was not we would see a larger increase in Cali or Bogota.
 
It's Columbia - their wages are probably a tiny fraction of USA wages.

Even if it's a significant amount, throwing away money is nothing new. Look at the piles of money burned at DAL to battle WN recently. If it keeps Spirit from having any chance, it may be worth it.
 
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There has to be a loop hole some where. I just dont see AA going back into BAQ having to pay many thousands of dollars to former employees. If there was not we would see a larger increase in Cali or Bogota.

What FWAA said is true. They probably found an easy way to settle.
 

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