Is American Strong-Arming Low-Cost Carriers?
Joe Cortez November 17, 2017
Seasonal service to Iceland viewed as bullying tactic against WOW Air and others.
Is American Airlines trying to bully low-cost carriers out of their headquarters hub of Dallas-Fort Worth International Airport (DFW)? In an opinion piece for Avgeekery.com, one writer accuses the airline of taking a page from their competition plan straight from the 90’s.
On November 14, 2017, American announced they would begin offering seasonal flights between DFW and the Icelandic capital of Reykjavik – a route flown by competitors Icelandair and WOW Air. While American’s announcement made no mention of their competitors, they did note the growing interest in flying to the island nation.
“Reykjavik has become a very popular leisure destination and we look forward to giving our customers the opportunity to experience Iceland’s unique landscape,” Vasu Raja, vice president of network and schedule planning, said in the press release. “The new destination complements our continued growth from Dallas-Fort Worth, including Rome and Amsterdam.”
But is the new route a little too convenient to their overall plans? Avgeekery.com compared the new routes to similar additions to combat a start-up airline, Legend Airlines. They note that American joined the City of Fort Worth in challenging the new carrier’s launch in court, delaying their first flights from Dallas Love Field (DAL). During the same time, they also added routes from Dallas that Legend was flying, which allegedly lowered prices artificially and forced Legend to shut down.
Neither Icelandair or WOW Air have responded publicly to the new announcement from American. The new seasonal service will begin on June 7, 2018 and end on October 27, 2018.
[Photo: Shutterstock]
Yes, consumers win when there are choices, however AA is attempting to remove those choices by entering these markets and dumping their prices just long enough to drive the competition out.
They'll do it just long enough to run off WOW and Icelandic, exactly like they did with their Love Field service to put Legend out of business.
It's called COMPETITION; consumers win when there are choices, vote with their $$ - not unlike your beloved Southwest.