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Old Jan 22, 04, 10:38 pm
  #10  
frqtflyr
 
Join Date: Nov 2002
Location: SFO
Programs: AA
Posts: 38
Interesting topic and here is my take on all this:

The main theory that AA is taking on JetBlue in this highly travelled route is 100% correct. AA Frequent Flyer Program is the best in the business now that Southwest went to lee Rapid Reward Credits per segement.

The cost to AA per passanger is under $100.00 per seat, remember this is a daily scheduled flight, full or empty this plane leaves, nonstop and then onward from JFK.
AA in Y is one or two cans of soda or water and a Bistro Bag, not very much in cost there. So AA knows the fixed operating costs of each type of aircraft given a fixed number of seats. So the only trigger to price tickets high or low is consumer Supply and Demand. High Season July-September high demand thus above average airfares = more revenue to AA. Fixed operational costs are pretty stable and adjusted according to world events.

So I really don't think AA is losing much if anything at all, on the other hand AA can increase Business Passanger Traffic and revenue by showing passangers that AA can do much more with there vast network and the benefits of free travel would shift many over to AA.

Just my opinion
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