America West FlightFund (Discontinued Program) - AA retaliates for HP Coast to Coast

Large ad in todays Arizona Republic has AA re-instating it's PHX-JFK service that it discontinued about 20 years ago.

79 bucks each way. About the same as HP charges for JFK-LAX.

DL also serves the route and has slashed their fare.

AA saying don't touch our cash cow routes in a big way!

This shows that HP has clearly hurt AA and the other majors pricing model. AA is attempting to cause HP to exit the transcon market which HP will not. In addition to pricing AA has also launched the fly free promo which HP has not matched because they have not seen customers booking away from them in any significant numbers. AA and the other majors cannot play this new reduced pricing model long term, they are loosing their shorts. They will also continue to lose a lot more more then HP the longer they keep it up. These prices will not last and HP will not exit these markets. In a few months AA will realize this and reprice these routes and then HP will follow and raise them to a more profitable level. My advise is if you want to fly these routes book now!

[This message has been edited by SanDiegoShaun (edited Jan 22, 2004).]

[This message has been edited by SanDiegoShaun (edited Jan 23, 2004).]

Also AA has a new double miles promo on this
route on all published fares. As well they
have buy 2, get 1 award on all BOS,JFK-SFO,LAX transcons. Where's the match by HP.
I won't hesitate to platinum status match.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by gar777:
Where's the match by HP.</font>


I don't believe HP will match, they would prefer to watch AA basically pay people to fly there airline and see how long AA can last with this strategy.

Well, HP caved in and does have the same insane fares that AA is advertising. I called HP and these are the rules:
Book in K class
Tu We Sat travel only
7 day advance purchase
Travel must be completed by April 14th. I
think you must book and pay by Feb 10th, but you better check on this. Of course, fares and specials can be yanked at any time.

I guess the airlines all want to lose money

Correct HP and the others are matching the fares as airlines often do. However HP is not matching all the other things that AA and others are doing. Although HP would prefer to have the price stabilize, AA's response is only to cause HP to re-think the entry into these markets. AA is defiantly loosing money by doing this can not keep this up long term.

[This message has been edited by SanDiegoShaun (edited Jan 23, 2004).]

[This message has been edited by SanDiegoShaun (edited Jan 23, 2004).]