Originally Posted by
FreequentFlier
It's no secret that MIA and DFW subsidize the rest of the network. AA really needs to make its other hubs more viable or it leaves itself vulnerable to further competition in DFW and MIA should other legacy carriers (like DL) or LCCs (like VX) start adding additional service or even hubbing in one or both.
DFW is an extremely difficult for other airlines to operate in due to an unequal cost structure:
1) All airlines are forced to contribute to the cost of the wickedly expensive Skylink monorail, even though the way it is designed it only benefits AA passengers (who are the only ones that need airside intra-terminal transfers when making connecting flights); and
2) AA appears to still have an extremely lucrative arrangement with the DFW Airport Board under which it master leases all of the concession space in Terminals A & C at a low cost and simultaneously subleases it to restaurant and retail tenants at a huge mark-up. According to an article I read several years ago, the profits on this arrangement are nearly equal to AA's landing fees! No other airlines are allowed such an arrangement.
Together, these two items enable AA's per passenger costs at DFW to run significantly below those of other airlines.