Originally Posted by
Blumie
By your logic, AA could "compete" for economy passengers by dramatically increasing capacity on this route. Sure, the fundamentals of economics assure that they'd have to drop prices as capacity increases, and thus they likely would be assured of losing money on every ticket sold, but they'd make it up in volume, right?!?!
Tough crowd today. I'm just pointing out an observation that AA is no longer competing for coach as evidence my capacity reduction and fares being offered. I'm sure they have the numbers to support making such a bet by deploying a new type of aircraft with that particular F/J/Y ratio and a 3-class cabin on the 321 doesn't seem suitable for any other AA route should their bet go sour.
Please point out any evidence to support they are in fact losing money on that segment of the market. Competitors are still serving that segment whether it is legacy UA/DL or B6/VX seems to indicate it is not not necessarily losing money. No doubt less margin than the front of the plane.