This is the key.
If DL or AA had a transpacific hub at SFO they would not be as willing to spend on marginal routes to build a presence at LAX.
California is a bigger hole for them than it is UA.
Yes UA did this kind of route building in the late 90s, but what they were doing in the late 90s was not viable as the marketplace demonstrated with the shrinking of LAX and JFK by 2006.
AA was laughing all the way while UA spent like a drunken sailor at LAX in the 90s.
I'd like to see someone find ASMs out of LAX for UA in the fall schedule this year vs last year. My bet is it will see an increase in seats.
Originally Posted by
DWFI
UA @ LAX will see cuts when there is a recession and demand gets trashed. It's easy to operate everything now when oil is cheap.
The bottom line is that UA is its own worst enemy. All of its LA services can simply generate higher yields at SFO. The importance of LA is so much higher to AA especially (DL somewhat less so) than UA that it is naturally going to fall back.
When AA launches LAXMEL, UA will probably retreat to SFOMEL - simply because it will make them more money. AA doesn't have a choice. Doug and Co seem to be hellbent on making LAX a big hub - and rightfully so. They need it.