I love the quote from Tim Smith about how AA prefers to route international flyers through ORD and DFW. Funny how he didn't mention that the PVG and proposed PEK flights don't even allow connections from the West Coast....


http://www.mercurynews.com/mld/mercurynews/15842849.htm

Loss of Japan flight hits San Jose airport finances
AMERICAN'S DECISION MEANS S.J. EARNS $1 MILLION LESS PER YEAR
By Michael Martinez
Mercury News

When American Airlines announced in May that it was discontinuing its daily non-stop flights from Mineta San Jose International Airport to Tokyo, the move was viewed as a loss in stature to the city and the airport.

Turns out it's also going to cost the airport economically.

Director of Aviation Bill Sherry estimates the loss in revenues will total more than $800,000 this fiscal year -- or about $1.1 million annually -- when the flights end later this week.

Sherry made those estimates last week in a memorandum to San Jose City Council.

[...]

American officials cited the high cost of jet fuel and the fact that the San Jose-Narita flight is unprofitable in announcing its decision. The last flight will depart Friday at 12:25 p.m. and return the next day.

American spokesman Tim Smith said Tuesday that average fare prices, passenger load factors (the percentage of available seats filled) and connecting traffic from other cities all affected the carrier's decision to drop San Jose.

``It's not just a function of load factors, although that's a part of it,'' he said. ``It's easier to gather passengers in another city and put them out of our larger hubs, such as Dallas-Fort Worth and Chicago.''

San Jose Airport's annual losses are expected to come from landing and concession fees and passenger facility charges -- fees that are added to each ticket and that go directly to the airport.

An airport spokesman said it's unknown whether the Terminal A duty-free shop will remain open.

[...]