Old Jun 20, 13, 12:31 pm
  #809  
austin_res
 
Join Date: Jan 2006
Location: Austin,TX (AUS)
Programs: AA, UA
Posts: 767
Originally Posted by FWAAA View Post
The bolded part is completely inaccurate.

AA acquired about a dozen slot pairs from B6 in exchange for some DCA slots and has been squatting on those slots ever since (waiting for its costs to get in line and for the arrival of the new 787s). This summer, AA has about 20 or more domestic departures from JFK to small-medium cities during the primetime 3pm-9pm timeframe that are destined for more international nonstops.

AA built the biggest terminal at JFK and it has gates that are gathering dust. AA faces no real capacity constraints at JFK with respect to new long-haul flights.
If AA is serious about JFK, they need to put those slots to good use. I'm surprised no one has raised issue with AA squatting on slots. AA has sat on the sidelines while Delta and JetBlue expanded at JFK, basically squeezing AA out of the market.

Originally Posted by FWAAA View Post
Yes, AA has lowered its costs in Ch 11, but not as low as US' costs. America West had rock-bottom costs yet ceded about half of the local market to WN. Even after the merger with US, US continued to have the lowest costs (thanks to very low labor costs with pilots and FAs) and yet US has made no inroads against WN at PHX.

Now, US costs are going to rise dramatically (to match AA's higher costs) and now, magically, all of a sudden, the new AA will be able to "compete effectively head to head with Southwest in PHX?" That's a good one.

PHX is a huge O&D market - 8th largest domestic O&D airport - and will be an important part of the new AA, but it's over-served by 50-seaters flying long stage lengths. Look for some trimming.
Why would Parker merge with AA and then raise US costs? I would imagine he would want to lower AA's costs to match US lower costs.
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