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Speculation: Will AA continue to pull back in NYC?

Speculation: Will AA continue to pull back in NYC?

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Old Apr 9, 19, 10:18 am
  #721  
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Originally Posted by BillBurn View Post
For what it is worth this blogger used to work at American and it sounds like he talked to people at American when writing this post so seems like, at least for now, American's intention it to actually expand the JFK schedule in the fall.
I would only take that post with a grain of salt IMHO. Doesn’t sound like he spoke with people at AA for this particular blog post and his stint with AA was many moons ago.

I sincerely doubt AA intends to bolster flights to regional markets in the NE. O/D traffic is minimal to JFK from these markets except for maybe BOS since its easier to go to Long Island by flying to JFK than taking Amtrak then LIRR.

I’d love to be wrong though.

Last edited by golfingboy; Apr 9, 19 at 10:32 am
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Old Apr 9, 19, 10:35 am
  #722  
 
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One of the surprising things to me about this thread is lack of conversations about corporate contracts. Presumably, existing corporate contracts or sales' desire to win specific future corporate contracts should influence specific flights to specific markets, a la the United twice daily service from the Bay Area to Shanghai for Apple.
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Old Apr 9, 19, 10:46 am
  #723  
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Originally Posted by donotblink View Post
One of the surprising things to me about this thread is lack of conversations about corporate contracts. Presumably, existing corporate contracts or sales' desire to win specific future corporate contracts should influence specific flights to specific markets, a la the United twice daily service from the Bay Area to Shanghai for Apple.
I would think corporate contracts out of NYC very intensely priced given the amount of competition. At PHL there's far less price competition with AA commanding the airport. True, it might be lower volume but more profitable volume.
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Old Apr 9, 19, 11:37 am
  #724  
 
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Originally Posted by golfingboy View Post
For hub rebanking - sometimes how things look on a spreadsheet does not always translate in reality. Rebanking absolutely helps drive down costs by a considerable margin....
I thought rebanking (ie moving from more banks to fewer larger ones or moving from a rolling hub to a banked hub) generally drives up costs because you have to staff for the peak and then pay employees to be idle between banks. It's going for revenue because customers (including me) as well as, eg, Google Flights's "best flights" algorithm often sort by (or at least consider) total travel time when searching for flights, so efficient connections win. Those shorter connections and congestion certainly introduce operational challenges, and reducing those can be a cost savings, but I don't think the operational cost savings outweigh the staffing cost increases.
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Old Apr 9, 19, 11:53 am
  #725  
 
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Originally Posted by donotblink View Post
One of the surprising things to me about this thread is lack of conversations about corporate contracts. Presumably, existing corporate contracts or sales' desire to win specific future corporate contracts should influence specific flights to specific markets, a la the United twice daily service from the Bay Area to Shanghai for Apple.
AA hasn't been doing very well with NYC corporate contracts.....in fact I think it was Credit Suisse (or some other bank) that dumped AA in favor for Delta which is why AA dropped JFK-ZRH and moved it to PHL as one example. AA shot themselves in the foot with that route using an unreliable 763 with a terrible in-flight product compared with Delta's 763 with in-seat IFE good dispatch reliability etc and now I think DL is even running A332's on the route.
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Old Apr 9, 19, 12:19 pm
  #726  
 
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Originally Posted by AANYC1981 View Post
AA hasn't been doing very well with NYC corporate contracts.....in fact I think it was Credit Suisse (or some other bank) that dumped AA in favor for Delta which is why AA dropped JFK-ZRH and moved it to PHL as one example. AA shot themselves in the foot with that route using an unreliable 763 with a terrible in-flight product compared with Delta's 763 with in-seat IFE good dispatch reliability etc and now I think DL is even running A332's on the route.
Seems to be a chicken and egg type deal though, AA needs to have good reliable service to get the contracts, but doesn't want to start the service without the contracts. :-(
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Old Apr 9, 19, 2:27 pm
  #727  
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Originally Posted by ashill View Post
I thought rebanking (ie moving from more banks to fewer larger ones or moving from a rolling hub to a banked hub) generally drives up costs because you have to staff for the peak and then pay employees to be idle between banks. It's going for revenue because customers (including me) as well as, eg, Google Flights's "best flights" algorithm often sort by (or at least consider) total travel time when searching for flights, so efficient connections win. Those shorter connections and congestion certainly introduce operational challenges, and reducing those can be a cost savings, but I don't think the operational cost savings outweigh the staffing cost increases.
Like a lot of things today it probably looks good on an Excel Spreadsheet which can't take into account variables. The unseasoned flyer (not to mention even some seasoned flyers) probably thinks an hour is more than sufficient for a one hour connection to SA. The only such connection of the night. Then they miss the flight and either paying for a hotel room or sleep in the airport. MIA at night looks like a hotel because of all the flyers stranded for which AA can claim "not our responsibility you missed your connection." I assume being able to get another flight out of each a/c outweighs the additional labor costs. As far as the paxs, let's say they're not the consideration they once were.
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Old Apr 9, 19, 2:29 pm
  #728  
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Originally Posted by AANYC1981 View Post
AA hasn't been doing very well with NYC corporate contracts.....in fact I think it was Credit Suisse (or some other bank) that dumped AA in favor for Delta which is why AA dropped JFK-ZRH and moved it to PHL as one example. AA shot themselves in the foot with that route using an unreliable 763 with a terrible in-flight product compared with Delta's 763 with in-seat IFE good dispatch reliability etc and now I think DL is even running A332's on the route.
Parker never showed much interest in NYC when it was USAirways and he's continued that practice now with AA. To be fair the NYC exodus began pre Parker when B6 came to town. AA just doesn't seem to want to slug it out with DL.
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Old Apr 9, 19, 2:38 pm
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Might this have something to do with it https://www.flyertalk.com/articles/j...he-summer.html

If yes, it would suggest AA will restore at least some of the service at the end of 2019.
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Old Apr 9, 19, 8:48 pm
  #730  
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Originally Posted by ashill View Post
I thought rebanking (ie moving from more banks to fewer larger ones or moving from a rolling hub to a banked hub) generally drives up costs because you have to staff for the peak and then pay employees to be idle between banks. It's going for revenue because customers (including me) as well as, eg, Google Flights's "best flights" algorithm often sort by (or at least consider) total travel time when searching for flights, so efficient connections win. Those shorter connections and congestion certainly introduce operational challenges, and reducing those can be a cost savings, but I don't think the operational cost savings outweigh the staffing cost increases.
You are right - I had it backwards
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Old Apr 10, 19, 11:35 am
  #731  
 
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Apologies if this question is slightly off topic: are there ever business saver awards from NYC available on AA's own metal? I have been checking for a few weeks and nothing has come up. Is it even worth buying expertflyer to get - possibly hypothetical - alerts? Thanks
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Old Apr 10, 19, 2:12 pm
  #732  
 
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Originally Posted by zmicer88 View Post
Apologies if this question is slightly off topic: are there ever business saver awards from NYC available on AA's own metal? I have been checking for a few weeks and nothing has come up. Is it even worth buying expertflyer to get - possibly hypothetical - alerts? Thanks
I just got sAAver availability last week in J on JFK-LHR-MXP on AA/BA metal for a flight in June. 57.5k + $29 in taxes.
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Old Apr 10, 19, 3:57 pm
  #733  
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Originally Posted by zmicer88 View Post
Apologies if this question is slightly off topic: are there ever business saver awards from NYC available on AA's own metal? I have been checking for a few weeks and nothing has come up. Is it even worth buying expertflyer to get - possibly hypothetical - alerts? Thanks
FWIW, there is lots of upgrade availability -- roughly 35-45% of flights have C>0 on JFK-LHR and back over the next two weeks. Including a good amount of C4-C7. (But no U or Z availability in that timeframe; that said my experience is the saver awards do pop up periodically. They're less likely to show close-in even on lightly-booked flights, as AA wants you to redeem AAnytime.)
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Old Apr 10, 19, 4:28 pm
  #734  
 
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Originally Posted by diver858 View Post
Might this have something to do with it https://www.flyertalk.com/articles/j...he-summer.html

If yes, it would suggest AA will restore at least some of the service at the end of 2019.
The runway reconstruction has conveniently allowed AA to drop JFK flights during the summer without fear of losing those slots; interesting to note that both B6 and DL have not reduced any JFK flights for the summer despite the runway issue. And the capacity AA is restoring in November post-runway-reconstruction period are either hub flights (PHX, MIA, ORD, etc.) or short cheaper-to-operate flights (PHL, PIT, BOS) - the latter basically being slot-squatter flights until AA can figure out what to do with those JFK slots...
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Old Apr 23, 19, 11:59 am
  #735  
 
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Long TPG interview with Vasu Raja that touches a lot on NYC strategy.

Our strategy is that we connect people to the world by connecting them through our hubs, right? In New York City that’s a very different thing. Again, we don’t have the slot portfolio, the size to go and have a 500 departure hub here, and so here we are focused on getting customers to and from New York City, but more specifically getting premium customers to and from New York City. And when I say premium customers, I mean people who tend to travel a lot, but not exclusively for business who value a deep schedule, a great product, not just on the airplane, but on the ground. And that may sound like a niche, but in New York City that’s a huge, huge market and so a lot of what we have done in New York City is actually cut away the things that are not consistent with that and focus heavily on the things that are. So we have gotten out of routes from New York to say Santo Domingo, but we have all 777s flying in New York to International, right?
https://thepointsguy.com/news/talkin...ing-vasu-raja/
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