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Dr. HFH Jan 18, 2013 6:35 pm

Back to HKG for a minute, there's already lots of competition, both in alliance and out, at the traditional gateways. Why wouldn't AA consider DFW, for example, where there may well be a large market but no nonstops? According to Boeing, the 773-ER is capable.

JDiver Jan 18, 2013 6:39 pm

Moderator action
 
Just a reminder: Extensive pro- or anti-union rants, screed or discussions will be summarily deleted; these are dilatory to the topic at hand, and usually are quick to get out of hand and overly personalized. They are not appropriate to this forum.

Thanks.

/Modereator

nall Jan 18, 2013 6:45 pm


Originally Posted by Dr. HFH (Post 20078737)
Back to HKG for a minute, there's already lots of competition, both in alliance and out, at the traditional gateways. Why wouldn't AA consider DFW, for example, where there may well be a large market but no nonstops? According to Boeing, the 773-ER is capable.

I've wondered this, too. Perhaps they feel the 2x daily NRT adequately covers most Asian travel out of DFW?

But then again, rather than flying DFW-SYD themselves, they got Qantas to do it.

FWAAA Jan 18, 2013 6:54 pm


Originally Posted by Dr. HFH (Post 20078737)
Back to HKG for a minute, there's already lots of competition, both in alliance and out, at the traditional gateways. Why wouldn't AA consider DFW, for example, where there may well be a large market but no nonstops? According to Boeing, the 773-ER is capable.


Originally Posted by nall (Post 20078774)
I've wondered this, too. Perhaps they feel the 2x daily NRT adequately covers most Asian travel out of DFW?

But then again, rather than flying DFW-SYD themselves, they got Qantas to do it.

If there are 200 to 300 daily passengers to HKG from DFW and/or for which DFW is the logical connection, and AA can get route authority, then perhaps they'll give it a go.

morrisunc Jan 18, 2013 7:12 pm

Educate me

Stripy Jan 18, 2013 7:34 pm


Originally Posted by FWAAA (Post 20078812)
....and AA can get route authority, then perhaps they'll give it a go.

Can anyone who knows about this stuff let us have an idea how hard this part may be and, if it's even possible, how long the process would be? Thanks.

dogcanyon Jan 18, 2013 8:28 pm


Originally Posted by FWAAA (Post 20078812)
If there are 200 to 300 daily passengers to HKG from DFW and/or for which DFW is the logical connection, and AA can get route authority, then perhaps they'll give it a go.

It was reported a couple of years ago or so that AA was considering filing for a DFW-PEK route but that the pilot's union had nixed it in advance because it was around 15 minutes longer than their maximum flight time. DFW-HKG is roughly 1150 miles further than DFW-PEK. Has something changed in the new pilot's contract that would allow AA to fly DFW-HKG?

FWAAA Jan 18, 2013 8:36 pm


Originally Posted by MauiTigerShark (Post 20078989)
Can anyone who knows about this stuff let us have an idea how hard this part may be and, if it's even possible, how long the process would be? Thanks.

Good question - I have no idea.


Originally Posted by dogcanyon (Post 20079214)
It was reported a couple of years ago or so that AA was considering filing for a DFW-PEK route but that the pilot's union had nixed it in advance because it was around 15 minutes longer than their maximum flight time. DFW-HKG is roughly 1150 miles further than DFW-PEK. Has something changed in the new pilot's contract that would allow AA to fly DFW-HKG?

AA went to war with the pilots, in part, to eliminate contractual limits on duty day, and today, AA is free to schedule any flight it wants, within FAA duty day limits. If the plane can fly there nonstop, then AA can unilaterally (w/o pilot consent) begin the route.

grahampros Jan 18, 2013 9:00 pm


Originally Posted by dogcanyon (Post 20079214)
It was reported a couple of years ago or so that AA was considering filing for a DFW-PEK route but that the pilot's union had nixed it in advance because it was around 15 minutes longer than their maximum flight time. DFW-HKG is roughly 1150 miles further than DFW-PEK. Has something changed in the new pilot's contract that would allow AA to fly DFW-HKG?

Folks are just gonna have to get over the DFW-HKG thing. not much O&D there and there are better options so it's just not high on the list.

dogcanyon Jan 18, 2013 9:01 pm


Originally Posted by FWAAA (Post 20079247)
AA went to war with the pilots, in part, to eliminate contractual limits on duty day, and today, AA is free to schedule any flight it wants, within FAA duty day limits. If the plane can fly there nonstop, then AA can unilaterally (w/o pilot consent) begin the route.

Thanks. I did not know that.

dogcanyon Jan 18, 2013 9:07 pm


Originally Posted by grahampros (Post 20079337)
Folks are just gonna have to get over the DFW-HKG thing. not much O&D there and there are better options so it's just not high on the list.

And folks said the exact same thing about the QF DFW-SYD flight when it started at 5 times a week. Then it went to daily. ExpertFlyer frequently shows it at or near sold out (like tonight).

joejones Jan 19, 2013 4:50 am

I believe that you don't need "authority" to fly US-HKG, you just need the planes, the slots and the demand.

bbkenney Jan 19, 2013 5:08 am


Originally Posted by grahampros (Post 20079337)
Folks are just gonna have to get over the DFW-HKG thing. not much O&D there and there are better options so it's just not high on the list.

Neither you nor I know O&D for HKG but we do have to add in SE feeder flights into DFW and onward travel to KUL; SIN; BKK; Shenzin; etc.

FWAAA Jan 19, 2013 12:19 pm


Originally Posted by morrisunc (Post 20077480)
Dca swap was good for us and delta. Us at lga was pathetic and flights sans hubs I flew on were regularly empty.

It was certainly good for Delta; I'm not convinced it was such a good deal for US (or a combined US-AA). Once the merger occurs, AA-US will have only about 30% of the LGA slots, compared to DL's 50% share. And after the merger, AA-US will have about 50% of the DCA slots, about the same as US has right now. The combined AA-US will have to relinquish DCA slots roughly equal to AA's current holdings (as the government signalled in the DL-US transaction that 50% was about as high as they'd allow at LGA and DCA).

DL has figured out how to fill more of its new flights from LGA - shame Parker's US couldn't figure out how to do the same.


Originally Posted by morrisunc (Post 20077480)
Your taking my thoughts to literally. Us gave up on NYC but didn't pull out completely. I just don't think they should focus many resources on adding capacity to Asia. Do they even have a partner in china to feed service? Delta may be bigger than ual to Tokyo, but star alliance really shines in Asia. Only reason I keep my us membership.

So everyone agrees that AA is the smallest carrier to Asia and yet because Oneworld doesn't have a mainland Chinese feeder airline, AA shouldn't bother trying to grow in Asia? The western world should just be glad we still have the UA-DL duopoly? Sorry, I'm not buying. Yes, if you're in China and you want to city-hop, Oneworld doesn't have a partner on which you can earn miles. Since those trips are likely an infintesimal part of most business travel profiles, I'd be willing to bet that AA's lack of a China partner is inconsequential.


Originally Posted by morrisunc (Post 20077480)
Obviously I'm not suggesting aa duplicate hubs at. Clt, phx and Phl. I'm assuming they merge. You can't argue that aa only has 2fortress hubs vs 6 and 4 for ual and delta. Easier to compete when theres not much competition.

I apologize; earlier we were discussing AA's weaknesses and what AA was lacking - so I didn't put it together that you were talking about what US-AA should do after the merger. Sure, the combined airline should do what it takes to cement the fortress positions it currently has.


Originally Posted by morrisunc (Post 20077480)
Not NYC but Chicago, yes. I saw a jp Morgan presentation on this somewhere and thought it was a good idea. They will never catch up to united in Chicago. I think aa should concentrate in new yorj on where they are strong and not get into a price war with ual and delta which they will loose - trying to duplicate what their competitors have. NYC may be the largest aviation market but I can fly from rdu to lga for 200 walkup or 80 a week out vs 480 and 225 to dca. There's just so much competition in NYC.

Ahh, Jamie Baker at JP Morgan. Baker is the analyst who apologized to his clients days after the AA Ch 11 filing by telling them "We were wrong," as Baker had told them just days earlier that he didn't see a Ch 11 filing in the near future.


Jamie Baker, J.P. Morgan: J.P. Morgan’s analysts begin their note with three words: ”We were wrong.” Previously, J.P. Morgan had deemed a voluntary bankruptcy filing as highly unlikely. “‘The company has approximately $4.1 billion in unrestricted cash and short-term investments… [and] is anticipated to be more than sufficient to assure that its vendors, suppliers and other business partners will be paid timely and in full….’ So, this WASN’T about liquidity (liquidity is about 18% of LTM revenue).”
http://blogs.wsj.com/deals/2011/11/2...out-liquidity/

Whoops. Having missed the signs that AA was preparing to file Ch 11 (and told his clients a filing was highly unlikely, Baker went on to incorrectly predict that AA would shrink by about 10% while in Ch 11:


Analysts on Thursday predicted the Fort Worth, Texas-based carrier would slash its systemwide seat capacity as it dumps leasing contracts for old, fuel-guzzling MD-80s, 757s and 767s. In turn, that could leave some $1.4 billion in revenue for competitors to pick up, according to investment firm J.P. Morgan.

“We are modeling for a 10% AMR capacity cut,” J.P. Morgan analyst Jamie Baker wrote in a note. “This equates to a 1% to 3% revenue improvement per competitor in 2012.”
http://articles.marketwatch.com/2011...st-jamie-baker

Jamie Baker is a stock analyst - and I'm not sure how that makes him qualified to opine that AA should abandon CHI to UA and WN. I doubt it influenced his statements, but I have to point out that Chase and UA have a long-standing and mutually beneficial relationship, and AA's departure from CHI would no doubt benefit UA (and thus, Chase). I'm certain that if a Citi analyst said that UA and DL should scale back in NYC and leave the flying to AA, someone would point out the obvious as well . . .


Originally Posted by morrisunc (Post 20077694)
I might agree that lcc needs aa more than aa needs llc, but oneworld def needs us more than us needs oneworld. I don't even think admittance into the Atlantic jv would make it worth it.

Maybe you're right - I have no way of knowing how important US is to Oneworld or Star.


Originally Posted by morrisunc (Post 20077480)
Us feeds a ton of business to star partners in Europe. They loose those and gain, what? Ba? They can't expand at lhr if they wAnted 2. Iberia and Spain are a joke compared to all the great European star members.

Also, dca is really the gem of us airways and they get a TON of big $$$$ ual and star spenders out of dca. I was on dca to phx with daughters and I was only us elite in first. All paid ual flyers. Moving to one world hurts us at dca. Even with the merger dca becomes less valuable than it currently is because of loss of ual ff. Us has a nice niche in star.

That makes US sound like a lateral partner who bills $4 million a year yet tells you during the interview that most of his clients won't follow him if he joins your firm. If he can't bring that book of business with him, why would you want him?

As to US' position in Star, US isn't part of the immunized joint venture across the Atlantic and thus must compete with UA and LH for transatlantic business. If US was so valuable to Star, then why hasn't Star invited US to join the joint venture?


Originally Posted by morrisunc (Post 20077832)
So could lh. If things get so bad with the air markets that us files cap 11 I bet aa will be lying right next to them. Aa is still a sick puppy. I wouldn't invest a dime in the "cornerstone strategy". The only imminent labor action I see us aa unions revolting of they don't get their pay raises and Horton gets is post bankruptcy payout. I'm a betting man and l will put money on that one.

Oneworld adds nothing to us. Us could care less about Asia, the Middle East or loney non "cornerstone" elites. Star rules Europe and ual is a good partner in dca. That trumps anything one world can offer.

Difficult to counter that subjective opinion about alliance benefits. Again, it sounds like you're saying that US has a lot of business from UA customers and those who love Star Alliance. If/when US and AA merge, the combined airline will remain in Oneworld and the Star affiliation will be history. If a lot of passengers bolt because of that, then it wasn't US that was the attraction, it was Star.

MAH4546 Jan 19, 2013 6:54 pm


Originally Posted by bbkenney (Post 20080753)
Neither you nor I know O&D for HKG but we do have to add in SE feeder flights into DFW and onward travel to KUL; SIN; BKK; Shenzin; etc.

DFWHKG is around 20 people per day in each direction.

I think we will see HKG connected to both DFW and MIA (MIAHKG is actually the largest Southeast U.S.-Hong Kong market) within five years.


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