Speculation: Future of AA at PHX / Phoenix Sky Harbor?
#31
Join Date: Apr 2011
Location: New York
Programs: AA EXP 1.0mm, not sure where I am with hotels these days
Posts: 2,795
I take a balanced approach to this issue. It is likely that PHX will not become much larger, nor will it become drastically smaller. It will likely be "right-sized" with some changes in destinations served. AA recently invested in upgrading one of the Admiral's Clubs, which does mean there is some interest in PHX.
PHX is is a relatively low-cost, low delay airport to operate out of. Unless something drastic happens to change airline economics, I believe that PHX is here to stay (at more or less its current size). Some people think that the expansion at LAX is at the expense of PHX. I disagree because ultimately LAX is higher cost and space-constrained in the short to medium term.
EDITED TO ADD: In addition, PHX has great capabilities to "flex" during peak times. The flights are scheduled perfectly to be able to add 2 more banks late at night during peak times, using existing aircraft which would overnight at the spoke stations. AA seems to be using this capability just like US did.
PHX is is a relatively low-cost, low delay airport to operate out of. Unless something drastic happens to change airline economics, I believe that PHX is here to stay (at more or less its current size). Some people think that the expansion at LAX is at the expense of PHX. I disagree because ultimately LAX is higher cost and space-constrained in the short to medium term.
EDITED TO ADD: In addition, PHX has great capabilities to "flex" during peak times. The flights are scheduled perfectly to be able to add 2 more banks late at night during peak times, using existing aircraft which would overnight at the spoke stations. AA seems to be using this capability just like US did.
#32
Moderator: American AAdvantage
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Please: let's avoid overpersonalizing and questioning other members' motives. Posting about one airport or another, or even comparing them and their communities, do not imply hate or negative commentary. Let's keep to the topic.
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#33
Join Date: Mar 2008
Location: USA
Programs: AA EXP, Hyatt Globalist, Marriott Titanium
Posts: 525
I expect PHX to continue to be an important AA domestic hub. LAX remains too space constrained to shift flying to and AA needs a domestic connecting hub in the West, which DFW is too far for.
AA management has communicated that they want to keep increasing capacity as it is incrementally profitable and low cost carriers continue to keep fares low. DFW has seen increased competition from spirit and Southwest recently. Shifting capacity to DFW probably makes less sense now than before.
The fleet changes make sense. Am seeing AA 738s more frequently through PHX. But that's more a factor of US having a more optimized domestic fleet (largest A320 series operator) compared to LAA which had a lot of MD-80s which need to be retired. Post merger the standalone fleet adds of A319s and A321s on the AA side were shifted to as many A321s as possible. US 319s are doing some LAX long and thin flying that the MD80 didn't have the range for and the 738 was too big for, and those 738s are doing PHX flying replacing those 319s.
AA management has communicated that they want to keep increasing capacity as it is incrementally profitable and low cost carriers continue to keep fares low. DFW has seen increased competition from spirit and Southwest recently. Shifting capacity to DFW probably makes less sense now than before.
The fleet changes make sense. Am seeing AA 738s more frequently through PHX. But that's more a factor of US having a more optimized domestic fleet (largest A320 series operator) compared to LAA which had a lot of MD-80s which need to be retired. Post merger the standalone fleet adds of A319s and A321s on the AA side were shifted to as many A321s as possible. US 319s are doing some LAX long and thin flying that the MD80 didn't have the range for and the 738 was too big for, and those 738s are doing PHX flying replacing those 319s.
#34
Join Date: Sep 2015
Posts: 366
All hubs will be right sized, PHX is no exception, there is some possible flights better served by DFW and LAX (think to East Coast, Canada, Alaska, Hawaii and LatAm). PHX will likely remain a large domestic hub, with a focus on connections to the West Coast whilst LAX focus on O&D.
AA's challenge in PHX is Southwest. In over several of PHX's top markets where AA directly competes against WN, WN dominates in market share and fare premium.
AA also has a perimeter exemption advantage over Southwest with AA having rights for PHX-DCA while Southwest lacks them. However in a couple of quarters, Southwest dominated over PHX-WAS marketshare likely through BWI.
#35
FlyerTalk Evangelist
Join Date: Aug 2011
Location: Austin, Texas
Programs: Airline nobody. Sad!
Posts: 26,062
Partly as WN attracts fewer business flyers than AA on WAS-PHX. AA likely charges a somewhat premium fare for DCA-PHX (and DCA-PHX-anywhere else). WN can undercut that, and AA is likely happy to let people paying lower fares go to WN. And, WN uses its DCA exemption to here at AUS, as it has a much stronger frequent flyer base (and business traveler base) in Austin and in Texas than it does at PHX.
#36
Join Date: Sep 2015
Posts: 366
Fortunately for both of them, neither F9 or NK has ventured on PHX-BWI/IAD. That would cause fare drops by WN and AA on PHX-WAS fares.
As WN has become a high fare carrier, it might not be such a concern and AA might co-exist there with WN, but WN dominates too many PHX routes. It's one thing as DL dominates PHX-ATL and DL dominates it's flights to it's 2-3 hubs, but WN has too many hubs/large stations on the other side, where it dominates both fare and marketshare (California, Chicago, DEN, Texas, STL, etc.) from PHX. I think lack of change fees and easy schedule changing, might be why people are selecting Southwest in PHX on those routes.
Last edited by beyondhere; May 14, 2016 at 11:22 am
#37
Join Date: Apr 2005
Location: PHX
Programs: AA Peon Gold
Posts: 2,915
Charlotte has the benefit off having high-value O&D- due mainly to Charlotte being the second largest financial center in the USA (think Bank of America and Wells Fargo). Charlotte has 7 F500 Companies compared to Phoenix's 5; the highest rated company in Charlotte was Bank of America at 23 whilst the highest Phoenix company is 108. Charlotte is among the fastest growing cities in the USA.
Outside of the metro area, in a 150km radius, Charlotte has an estimated catchment of 11,955,920 whilst Phoenix's is 5,135,661.
Outside of the metro area, in a 150km radius, Charlotte has an estimated catchment of 11,955,920 whilst Phoenix's is 5,135,661.
To quote Fortune 500 companies here is to take things out of context. St. Louis, MO has 9 F500s, more than PHX and CLT, but I don't think you'll find anyone here arguing that STL is an economic powerhouse.
#38
Join Date: Sep 2012
Location: Sun Prairie, WI
Programs: AA Executive Platinum, HH Diamond, National Executive
Posts: 1,786
This may be a stupid question but do you think AA would ever throw a couple of flights out of Mesa Gateway in PHX? I've never been to the airport (and I live about 5 minutes from it) but drive by it often and have always thought about it.
It seems like it would be a price effective way to push some originating PHX passengers to that airport who plan to connect anyways. Maybe a once a day flight to DFW and ORD or something like that. Just a thought. It may be far more difficult than I am thinking but curious if it could work.
It seems like it would be a price effective way to push some originating PHX passengers to that airport who plan to connect anyways. Maybe a once a day flight to DFW and ORD or something like that. Just a thought. It may be far more difficult than I am thinking but curious if it could work.
#39
FlyerTalk Evangelist
Join Date: Aug 2008
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Besides, didn't Allegiant already move into that airport?
#41
Join Date: Dec 2003
Location: PHL
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At this point, PHX is not exactly maxed out, and redeploying assets to another Phoenix-area airport would either cannibalize PHX or, more likely, just be a waste of resources versus the potential revenue doing so might bring.
F9 (Frontier) has been a bit more successful at TTN, but it's at least in an area that is annoying drive to either EWR or PHL depending on the time of day due to traffic and distance, and lately F9 has been building up a PHL presence more anyway.
#43
Join Date: Nov 2007
Location: Los Angeles
Programs: AA LT Gold
Posts: 3,646
Some F500 are very large but they are geographically spread-out (so where the HQs is not indicative of much).
I worked at a F500 firm and I was one of the few ones (out of ~100 in my local office) doing heavy travel. And the travel policy sucked (corporate travel website that forced us to pick cheapest travel or nonstop, no business class even for long haul, even if reimbursable!)
Now I work at a boutique consulting firm and 80% of my colleagues at my tiny office travel heavily (and travel policies are much more flexible, been flying paid J this year a lot).
Anyway, YAY to PHX. Unless I am connecting to an international flight or to JFK, I don't see a reason why I would prefer LAX over PHX.
#44
Join Date: Sep 2012
Location: Sun Prairie, WI
Programs: AA Executive Platinum, HH Diamond, National Executive
Posts: 1,786
#45
Join Date: Sep 2004
Location: country Western Australia
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Posts: 2,771
As for PHX, the passenger rail connection to Tuscon can't come fast enough, though prices exArizona on AA are mostly non-competitive.
PS: Yes I hope I still have friends in both areas.
Happy wandering
Fred