Winter Timetable...new Services

[jimntx]

AA really should look more to WN for some revenue sharing and through ticketing and baggage for AA's international flights. A great deal of WN customers in LA are continuing onto international destinations.

Actually, it is not AA or any other airline that has refused to ticket/transfer baggage with SWA. It is SWA that has gone down that path. They have always stated that it saves them time and money not to transfer passenger bags to/from other airlines.

Until the ATA charade, SWA has also not been interested in codesharing either.

 

[MAH4546]

Until the ATA charade, SWA has also not been interested in codesharing either.

They actually codeshared with Icelandair out of BWI in the 1990s.

 

[eolesen]

<_< Mr.Former Moderator,----- You crack me up! Why is it you feel aa's management is right all the time??? Something to do with all management types sticking together no matter what I take it?

I don't think management is right all the time, including all the hubris about the Wright Amendment. But I've watched a lot of nonstop markets come and go over the past 17 years, and aside from the ski cities, if a market doesn't get above one frequency out of DFW, it isn't going to last very long. And the only two ways it will get above one frequency is if there's money to be made or if there's a LCC competitor...

 

[formeraa]

While the number does include traffic connecting through O'Hare, American Airlines averages 119 daily O&D passengers between Dallas and Providence with an average one way fare of $223.57.

Interesting figures. I wonder if anyone double checked the validity of the analysis done before pulling the DFW-PVD flight. Often, these analyses were done by less experienced, newer analysts.

 

[AMFAMAN]

And the only two ways it will get above one frequency is if there's money to be made or if there's a LCC competitor...

What exactly is wrong with one profitable flight, who needs two if the one is a sure money maker? Also, why would a second flight be added if an LCC enters the market when the result is losing money, kinda like the DAL/MCI-STL flights will be.

 

[jimntx]

What exactly is wrong with one profitable flight, who needs two if the one is a sure money maker? Also, why would a second flight be added if an LCC enters the market when the result is losing money, kinda like the DAL/MCI-STL flights will be.

In Business School parlance, it's called economies of scale. Certain business activities require the same amount of fixed cost infrastructure--facilities, personnel, or equipment for instance--whether you are performing the activity once a day or 50 times a day. It make no sense to do an activity once a day if you have spend the same amount in basic cost that you would have to spend to do it 50 times a day.

For instance, you have an aircraft maintenance facility--say MCI or TUL. You have fixed costs, such as rent/mortgage, lights, gas, 24-hour security. Now, if you repair only 1 plane a day, all of that cost must be absorbed into the "cost" of repairing that airplane. Say, those fixed costs are $1000. Then the true cost of repairing the a/c is the parts and the labor to do the repair (which has to be spent in any case), plus $1000.
If you repair 10 planes/day, then the true cost of each repair is the parts and labor to do the repair, plus only $100 (1000/10).

It's a fixed cost nightmare to run only 1 flight per day to a destination. You still have to have ground personnel, gate/ticket agents, rent to the airport authority, security assessments, etc.

I know there are cases where we do it, but it's something to be avoided where possible.

 

[AMFAMAN]

In Business School parlance, it's called economies of scale.
It's a fixed cost nightmare to run only 1 flight per day to a destination. You still have to have ground personnel, gate/ticket agents, rent to the airport authority, security assessments, etc.

Took the classes already and also understand the intent, but the situation is different when your fixed costs are already there no matter what. The agents must be there for the ORD flight anyway, the ground crews including maintenance are all outsourced, gates remain rented, and security stills remains at this busy airport. So the econmics of scale raises the cost for the remaining flights as your fixed costs remain but distributed amongst less passengers.

 

[MAH4546]

I know there are cases where we do it, but it's something to be avoided where possible.

And in many of the cases were AA only operates 1 flight a day (or less), the station is contracted out to other airlines, like in SRQ.