Well even if they aren't as profitable as the company would like, they are surely more profitable than fighting a money losing battle with SWA to go to KC and STL. There use to be a code in Sabre to determine the revenue of the flight, I don't know it anymore but it would be interesting comparing revenue on DFW/PVD to DFW/BDL or BOS. It would also be interesting to know how much of the traffic is connecting traffic.
Winter Timetable...new Services
- Thread starter MAH4546
- Start date
eolesen
Veteran
- Joined
- Jul 23, 2003
- Messages
- 15,959
- Reaction score
- 9,374
If it were really all that profitable, don't you think AA would have added more than just the single nonstop by now?
markkus757
Veteran
- Joined
- Jul 26, 2004
- Messages
- 598
- Reaction score
- 1
I know loads don't equal profits, but the flight was always full - so why not adjust the fares up slightly to generate more revenue. Supply was limited and demand was high, so up the price just enough to effect demand but really effect revenue. Ah, whatever - the flight is gone now and so is any hope that AA will ever offer anything more than the absolute minimum service in PVD..
I didn't say it was profitable, I said it has to be more profitable than flying head to head with SWA to STL and MCI for whatever crazy fare that SWA chooses to fly that route as DfW People has reported. Being the only non-stop to PVD from DfW, AA could charge a premium for this service to ensure profitability.
To answer your question, no it wouldn't make sense to add more than a single non-stop when the majority of your passengers are business travelers flying. Being the flight times are perfect for conducting business in both PVD and DFW, an added flight during the day would most likely only attract money losing passengers and not business travelers. I don't subscribe to the theory of throwing more seats at a market just because one flight goes out full daily unless of course we are tracking potential bookings or denied bookings because of lack of seats.
MCI transplant
Veteran
- Joined
- Jun 4, 2003
- Messages
- 5,311
- Reaction score
- 584
<_< FYI---- SW is charging $79.00 one way from MCI to Love!!! 😉
And the cheapest ticket booked at least 30 days out to PVD is $328 plus tax non-refundable according to AA.com.
The profits are marginal at best. The flight does well enough to justify keeping it, thanks to cruise lines that guarantee revenue, but not well enough to go year-round. It has been uploaded for next year already, though. In 2006, it will re-start on 14Dec06.
Are you looking at DFW-PVD?? Local traffic out of DFW would be minimal -- maybe 20 or 30 passengers at most. Most of the traffic is lower fare connecting traffic out of cities where Southwest sets the fares at $198 roundtrip or less.
If this is the case, then it would make sense. Thanks for a fact filled answer, there tough to come by around here. 😉
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.
markkus757
Veteran
- Joined
- Jul 26, 2004
- Messages
- 598
- Reaction score
- 1
..and with only 57% of the PVD-DFW market at 87% loads, a second flight would have secured the market for AA hands down!
Thanks for the info...Does the company honestly think they will do better than that going head to head with SWA on the DAL-MCI or STL route as the paper reported? That is afterall over $26k a day in revenue just between two markets, with the majority probally on the non-stopper.
MCI transplant
Veteran
- Joined
- Jun 4, 2003
- Messages
- 5,311
- Reaction score
- 584
<_< 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 think management has painted itself into a major corner with the posturing on the Wright Ammendment. Hopefully they will drop the love flights before AA spends a lot of money redeveloping the infrastructure at DAL. Unfortunately, this smells highly of the old Legend/Vanguard busting days. Unfortunately for AA, WN has very deep pockets. And WN will be able to withstand anything that AA throws at them.
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.
