Somewhat surprised about SDQ as that has gone 777 at times in recent years but both are easily accessible via MIA so hopefully these slots can be used some place better.
Somewhat surprised about SDQ as that has gone 777 at times in recent years but both are easily accessible via MIA so hopefully these slots can be used some place better.
Yes, accessible via MIA but no one in their right mind would fly to either from NYC *via* MIA. NYC is the largest market to both cities for obvious reasons. These were nearly all local traffic markets from NYC.
So, looks like it will be DL and B6 in these markets. DL's romp over NYC continues...
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Quote:
Originally Posted by mizzou miles
Yes, accessible via MIA but no one in their right mind would fly to either from NYC *via* MIA. NYC is the largest market to both cities for obvious reasons. These were nearly all local traffic markets from NYC.
So, looks like it will be DL and B6 in these markets. DL's romp over NYC continues...
Unfortunately AAs slots in NYC are limited. Scarce resources means you have to allocate those resources to where it's profitable. With the competition on these routes the yields probably aren't once they once were. It is after all a route that is nearly entirely VFR traffic and lower end leisure travel. aA has a systemic problem in New York - slots. It's not easy to resolve but hopefully these two slots can at least go to good use for new higher yielding routes.
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Didn't want to start a "rumor" thread ala a.net but the word has been out since last week.
AA used to have 3 daily A300's (4 on high season) on the JFK-SDQ. Cargo, specially during holidays, maintained the route, but with the decrease in frequencies to 1 daily 763, the profit went to red numbers. Now B6 has flights pretty much at any time of the day and DL added a second flight. The only SDQ route that will remain will be MIA-SDQ, since AE will be pulling out on April 1st too.
From april on, Oneworld's presence at SDQ will be minimal, as IB's last day of operations will be 3/31.
I'm just surprised AA would cut back on a Latin American capital when it seems to have bet the house on dominating that region. Why can DL run this route profitably while AA cannot?
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Quote:
Originally Posted by cooberp
I'm just surprised AA would cut back on a Latin American capital when it seems to have bet the house on dominating that region. Why can DL run this route profitably while AA cannot?
Its not necessarily about profitability. DL has more slots than AA at JFK. If AA can run another route more profitably, then it should. given the dynamics of the passengers and the competition on the route, it doesn't surprise me even if AA was making money on it that the slots and equipment can be deployed more profitably elsewhere.
I'm just surprised AA would cut back on a Latin American capital when it seems to have bet the house on dominating that region. Why can DL run this route profitably while AA cannot?
The bolded part certainly assumes facts not in evidence. I doubt anyone here knows the profitability (or lack thereof) for the JFK-SDQ flights of AA and DL. And if anyone does actually know, I doubt they're permitted to post it.
As sts603 posted, AA's decision could be based on relative profitability - perhaps that 763 and/or JFK slots could be used by AA more profitably on another route.
As it departs JFK at 11:15 am, I doubt there's a slot shortage at that hour, but the 9:05 pm arrival back at JFK might be a slot issue.
Still, AA has a finite number of airplanes and must allocate them on routes that make the most sense, and with the ever-declining number of JFK-SDQ flights, it apparently no longer makes sense to fly that route from JFK. AA still flies four daily MIA-SDQ flights, so loyal AA travelers can still get there on AA if they want. Sure, it's a connection and not a nonstop, but something makes me think that it is not a route dominated by suit-wearing road-warriors or even polo-shirted, Dockers-wearing consultant-types. SDQ traffic may be willing to connect at the right price and may not be willing to pay large non-stop premiums from NYC.
It is amazing how many flights AA used to have to SDQ in the old days. The 2001 schedule (pre-Sept 11) shows four widebodies from JFK (one 762 and three AB6s) plus five daily MIA flights (one 757 and four AB6s) plus 11 daily SJU ATRs plus one SJU AB6. AA's very high costs and B6's very low costs (wages) have turned the tables in NYC and BOS.
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Quote:
Originally Posted by FWAAA
AA's very high costs and B6's very low costs (wages) have turned the tables in NYC and BOS.
And what I'm wondering is WHEN will it be B6's turn to have to deal with higher costs (retiree benefit plans, etc), and decide to sell out? I am hoping it happens sooner rather than later. AA is bleeding a lot of ex-JFK routes, including routes it used to dominate, and would really benefit from being able to snatch up a lot of B6's slots.
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Quote:
Originally Posted by sts603
Unfortunately AAs slots in NYC are limited. Scarce resources means you have to allocate those resources to where it's profitable. With the competition on these routes the yields probably aren't once they once were. It is after all a route that is nearly entirely VFR traffic and lower end leisure travel. aA has a systemic problem in New York - slots. It's not easy to resolve but hopefully these two slots can at least go to good use for new higher yielding routes.
And what I'm wondering is WHEN will it be B6's turn to have to deal with higher costs (retiree benefit plans, etc), and decide to sell out? I am hoping it happens sooner rather than later. AA is bleeding a lot of ex-JFK routes, including routes it used to dominate, and would really benefit from being able to snatch up a lot of B6's slots.
Retiree benefit plans? Good one!
B6 knows exactly how much its retirement plans will cost it as it offers only defined contribution plans. AA, on the other hand, now offers defined contribution plans to all employees but must continue to fund its legacy defined benefit plans for several more decades. I'm convinced that AA did not cut its expenses adequately during its Ch 11 case, but I hope I'm wrong.
As an aside, B6 flight attendants (nonunion, of course, like all other B6 employees) top out a maximum rate that is almost exactly the same as US West FAs, and earn about 25% to 35% less than comparable AA flight attendants. B6 pilots earn more money flying their A320s and E190s than do the US East pilots on the same airplanes. If/when the merger occurs, there will be huge raises for the US employees (as there would be if AA bought B6).
AA's very high costs and B6's very low costs (wages) have turned the tables in NYC and BOS.
Wasn't the entire idea of 11 to get costs to the level where AA can compete instead of retreat?
I guess the question becomes where do these planes get allocated to - however JFK is supposed to be one of their five key hubs so one would anticipate beefing up flying.
