FlyerTalk Forums - View Single Post - No Wonder AA is so profitable [fully flex first class fare price]
Old Feb 14, 2016, 9:49 pm
  #11  
fly747first
Suspended
 
Join Date: Dec 2004
Location: East Coast
Programs: AA CONCIERGE KEY & 1MM, HILTON DIAMOND
Posts: 11,970
Originally Posted by rjw242
Isn't AA generally considered to have an excellent RM department?
I wouldn't say excellent, but definitely better than UA's for sure... I don't know if you remember Smisek's statement last year in which he admitted that UA had not been as profitable as its competitors due to inaccurate forecasts (done by a huge team of RM underachievers, haha)--that alone should have gotten him fired even before the corruption scandal.

Typically, excellence in RM is reflected not only through consistent high yields without killing load factors, but also, in terms of final inventory allocation needed to fill the analyst's assigned flights--an analyst with exceptional forecasting skills would be able to close one bucket without ever having to reopen it and thereby fill the flight with higher buckets. However, too often, I see AA's analysts being too aggressive then panicking at the last minute and giving the flight away at the lowest buckets.
fly747first is offline