FlyerTalk Forums - View Single Post - LUS Management Shift to Building AA as a Premium Airline (?)
Old Apr 19, 2018, 10:21 am
  #10  
travellerK
 
Join Date: Jun 2010
Programs: AA EXP, Hilton Honors Gold, National Executive Elite
Posts: 406
Originally Posted by arlflyer
The difficulty here for me is that if their positioning is as 1) a premium airline and 2) a network airline, there is so much of their network that does not feel any of the effects of the supposed premiumization. Their focus on a select few hubs, international routes, and two domestic routes means that the vast bulk of their flights, on the vast bulk of their aircraft, even for their highest-value customers, will not feature any of these improvements.

Most transcons and long domestic routes are flown on LUS Airbus or LAA 737 aircraft, with very few widebodies in use and true business products rarely available. Transcon routes aside from the "sacred cows" of JFK-LAX/SFO do not receive lounge access or other perks in most instances. The economy is on fire, people are buying out premium products, and AA simply does not have any to offer for most of its flyers, even those who are willing to buy. As a simple personal example, I have DC-based colleagues on West-Coast travel projects who are loyal AA flyers but have gone elsewhere for their high-dollar J tickets because AA does not offer a true business product out of DC.

My opinion is that AA has not created a premium airline; it has created a two-tiered airline, one of haves (JFK-LAX/SFO, Europe/Asia) and have nots (most domestic, LATAM, other). I think that if AA wants to strengthen its position, it needs to think about the offerings that it is giving to the bulk of its network. I realize that to the extent that this is equipment-based it is not a quick fix, but it should be considered in the long term strategy.
I come to this forum from LUS. My impression is that Doug Parker has always tried to be different things to different people. Provide a high end experience to the high dollar (mostly business) customers and low cost to the budget conscious customers.
Another part of his approach is to avoid aggressively competing where he can win/dominate (thus the current draw down in JFK/NYC).
All that is new is that he is recognizing new areas that they can and must offer products in; mostly in the realm of high end luxury service
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