FlyerTalk Forums - View Single Post - Has United Already Started Shrinking LAX?
Old May 31, 2011 | 11:24 pm
  #11  
sinoflyer
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Originally Posted by BlissWorld
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AA, on the other hand, is increasing frequencies and adding a lot of new nonstop routes out of LAX (On Sat, LAX-JFK AA has 7AM, 8AM, 9:25AM vs UA's 8:45AM; LAX-BOS AA has 8AM, 11AM, and the redeye. UA now just has the redeye) . Could LAX be the next MIA?
AA is taking a huge gamble by upping the ante at LAX. Their rationale is that by becoming the market leader on the most important routes from each hub, they would attract more business travelers. It obviously worked in MIA, but success at LAX is highly doubtful. Bob McAdoo of Avondale Partners recently skewered AA on this exact strategy, calling their ORD-LHR service the biggest money loser, to the tune of $75 million/year, followed closely by LAX-JFK ($70M/yr) and SFO-JFK ($54M/yr).

As a frequent flier and a commercial aviation enthusiast, I would consider AA as the last place to hedge my loyalty bets right now. They are in a heap of trouble. If anything, AA's LAX could well become UA's MIA when the chickens finally come home to roost.

Last edited by sinoflyer; May 31, 2011 at 11:55 pm
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