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no more 737-800 in Boston and more reductions

 
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Old Jun 7, 2005, 10:55 am
  #16  
 
Join Date: Mar 2004
Location: Seattle, WA
Programs: AA EXP 1MM, UA Silver, HH Gold, IHG Platinum, Marriott Titanium
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Originally Posted by Blumie
How is upgrading the 757 going to keep them competitive? The issue isn't the quality of the seats, the issue is B6, DL and HP selling seats on this route for lower fares.
I understand your point about lower fares.

Personally, I feel upgrading their 757s will keep their premium passengers, and it'll attract the customers who are willing to pay a bit more for comfort. Then again, MRTC didn't seem too successful economically.
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Old Jun 7, 2005, 12:08 pm
  #17  
 
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Location: los angeles, calif.
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Originally Posted by mAAine_flyer
Ooooh, I'm lovin' that . Is this going to be seasonal 757 service like BOS-MAN? Or can I hope for year round service?
Seasonal.

It was going to start this summer until O'Hare-Dublin came, to which point AA needed to start a flight to Shannon (because the US-Ireland air treaty requires every airline to fly a trans-Atlantic flight to Shannon for every flight to Dublin), so AA went with Boston-Shannon.
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Old Jun 7, 2005, 12:23 pm
  #18  
 
Join Date: Mar 2001
Location: Dallas
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Originally Posted by Blumie
So AA's only choice has been to reduce costs, which we all know it has been feverishly trying to do, often at the expense of service. How do you decrease costs of the magnitude that AA, probably correctly, believes that it needs to without impacting service?

Look, I certainly am not pleased with the reduction of service. I now route through JFK for most transcons, and if they pull the 777s from BOS-LHR service, I'll do the same for LHR flights. The airline has done all sorts of things we don't like, many of which we think are penny-wise-and-pound-foolish. But I'm not sure how all this was preventable.
Two words: labor and overhead. Both are still out of control at AA. The Wall Street Journal ran an article on this very issue several months ago in which they pointed out that the legacy carriers chose to simply "roll over" when times were flush. As a result, they have wildly uncompetitive labor contracts. The difference in cost between AA's labor costs and market rate labor (which is what new entrants are paying) dwarfs by a huge, huge magnitude the nickels and pennies that are being saved by degrading product quality. Similar excesses continue to play out at AA's corporate headquarters, where there are all kinds of high paid staffers running around doing God knows what... a holdover from the days when the airline industry was a government protected oligopoly, where all the participants operated on a "cost plus" model, more or less.
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