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-   -   Speculation: Will AA continue to pull back in NYC? (https://www.flyertalk.com/forum/american-airlines-aadvantage/1861355-speculation-will-aa-continue-pull-back-nyc.html)

jmr50 Sep 13, 2017 5:17 pm

The power of the AA/BA NYLON route is substantial. And it's been said in a number of places that it's the most valuable premium int'l route in the world by a significant margin. Cutting back doesn't necessarily directly impact that golden goose... but if AA shrinks too much out of NY, it will have a secondary effect. Those premium cabin ticket buyers flying on finance company dimes are accumulating a ton of AAdvantage miles -- easily 50k a trip.

If they can't spend them for leisure redemptions, it'll annoy them. I know it has come up at my company quite a bit lately. And if it inspires people who'd been using those miles for their family winter holiday trip every year to, say, try flying another airline, it could really have an impact. British Airlines' fleet of wifi-free 747s with 2006 biz class seats might not look so good after trying a Polaris equipped United flight... or the seriously great Virgin Atlantic lounges....

It's a risk, but I suppose it's one American has decided to take.

swingaling Sep 13, 2017 5:52 pm


Originally Posted by JoeWoodstock (Post 28812592)
JOOC, what is that percentage for PHL?

--woodstock

About 14%.

AA also carries about 70% of all passenger traffic at PHL, which is pretty crazy.

ashill Sep 14, 2017 9:58 am


Originally Posted by swingaling (Post 28812795)
About 14%.

AA also carries about 70% of all passenger traffic at PHL, which is pretty crazy.

Carrying 70% of the passenger traffic at a major connecting hub is actually not that crazy or unusual. Remember that only 14%36% of that is O&D. I don't think that's unusual for a connecting hub; what's unusual is JFK, where the O&D fraction is much higher. So of the total PHL traffic:
  • 0.7*0.64 = 45% of the traffic is AA connecting
  • 0.7*0.36 = 25% is AA O&D
  • 30% is other airline (presumably mostly O&D)
So that suggests that AA only has about 45% of the O&D traffic at PHL. That makes them clearly the largest single O&D carrier, but hardly dominant. I'm actually surprised that their O&D is that weak. (Again, assuming your numbers are correct.)

Getting back on topic, it looks to me like AA actually isn't hugely more dominant in the O&D numbers at PHL than they are in NYC, and the PHL traffic is much more optimized for connections. PHL can presumably relatively easily handle a few more connections that currently go over JFK.

ETA: Oops; misread what that 14% means. Looks like, as of 2010, 64% of US's PHL traffic was connecting. Updated numbers to reflect that, for posterity.

DMPHL Sep 14, 2017 10:47 am


Originally Posted by ashill (Post 28815170)
Carrying 70% of the passenger traffic at a major connecting hub is actually not that crazy or unusual. Remember that only 14% of that is O&D, as you say. I don't think that's unusual for a connecting hub; what's unusual is JFK, where the O&D fraction is much higher. So of the total PHL traffic (assuming your numbers are right):
  • 0.7*0.86 = 60% of the traffic is AA connecting
  • 0.7*0.14 = 10% is AA O&D
  • 30% is other airline (presumably mostly O&D)
So that suggests that AA only has about 25% of the O&D traffic at PHL. That would probably make them the largest single O&D carrier, but hardly dominant. I'm actually surprised that their O&D is that weak. (Again, assuming your numbers are correct.)

Getting back on topic, it looks to me like AA actually isn't hugely more dominant in the O&D numbers at PHL than they are in NYC, and the PHL traffic is much more optimized for connections. PHL can presumably relatively easily handle a few more connections that currently go over JFK.

I think the 14% number was percentage of total passengers who are traveling internationally, not O&D.

ashill Sep 14, 2017 11:50 am


Originally Posted by DMPHL (Post 28815382)
I think the 14% number was percentage of total passengers who are traveling internationally, not O&D.

Oops; thanks!

DMPHL Sep 14, 2017 12:00 pm


Originally Posted by ashill (Post 28815641)
Oops; thanks!

Well your instincts re: being surprised at weak O&D were at least correct! :)

nova08 Sep 15, 2017 5:05 am


Originally Posted by ashill (Post 28815170)

ETA: Oops; misread what that 14% means. Looks like, as of 2010, 64% of US's PHL traffic was connecting. Updated numbers to reflect that, for posterity.

It looks like as of 2016,
~62% of PHL's total traffic is O&D
59% of PHL's international traffic is connecting

Not the raw data, but a city source
http://www.phila.gov/rfp/PDF/PHL_REI...ions_final.pdf

Adelphos Jan 27, 2018 6:00 pm

Anyone noticing an increase in upgrade percentages out of NYC?

ijgordon Jan 27, 2018 10:48 pm


Originally Posted by Adelphos (Post 29347494)
Anyone noticing an increase in upgrade percentages out of NYC?

No, but I notice a decrease in my purchase of AA tickets out of NYC. :eek:

A321T Feb 12, 2018 7:03 am

Interview with AA's VP of planning. Definitely a confirmation that only business markets are getting served from NYC and smaller European markets from PHL.

See "American Has Not Given Up in New York":
https://skift.com/2018/02/12/america...-long-flights/

Pasqualle7 Feb 12, 2018 7:38 am

As an NYC AA Plat I feel AA has given up on me. Seriously thinking about going to DL.


Originally Posted by Wayne Kao (Post 29407872)
Interview with AA's VP of planning. Definitely a confirmation that only business markets are getting served from NYC and smaller European markets from PHL.

See "American Has Not Given Up in New York":
https://skift.com/2018/02/12/america...-long-flights/


thunderlounge Feb 12, 2018 7:41 am


Originally Posted by Wayne Kao (Post 29407872)
Interview with AA's VP of planning. Definitely a confirmation that only business markets are getting served from NYC and smaller European markets from PHL.

See "American Has Not Given Up in New York":
https://skift.com/2018/02/12/america...-long-flights/


Interesting read. Thanks for sharing.

ysolde Feb 12, 2018 8:04 am


Originally Posted by Wayne Kao (Post 29407872)
Interview with AA's VP of planning. Definitely a confirmation that only business markets are getting served from NYC and smaller European markets from PHL.

See "American Has Not Given Up in New York":
https://skift.com/2018/02/12/america...-long-flights/

Interesting. So AA is focusing on business markets from NYC, but to AA, this means London and Spain. They are giving up Zurich, and have no interest in FRA (you can take AA to LHR, go through the hell of security there, and then take BA to FRA). I'm just not seeing it.

In any event, at this point, count my husband and me among those who have shifted business over to DL, and will continue to do so. AA out of NYC no longer makes sense.

FlyerWx Feb 12, 2018 8:20 am


Originally Posted by Wayne Kao (Post 29407872)
Interview with AA's VP of planning. Definitely a confirmation that only business markets are getting served from NYC and smaller European markets from PHL.

See "American Has Not Given Up in New York":
https://skift.com/2018/02/12/america...-long-flights/

"Not given up"... sure

I mean, I guess I understand the desire to go after business markets, but I think we're getting to the point where the everyday traveler doesn't think of "American Airlines" when they think of JFK. Delta's had relative success out of JFK, and unfortunately, AA never really capitalized on leisure/"smaller" markets out of JFK.

I wouldn't be surprised if they transfer the remaining JFK-MAD flight to IB -- provided that a 777 isn't viable.

My biggest issue is I've seen a significant scale-down of RDU-JFK flights. There were some E-175s mixed in with E-145s through last year, but now they've moved to E-140s and the occasional E-145. Now, it's fewer seats per day than in the early 2000s IIRC. To me, this means they've "given up" on JFK as a connecting point and are trying to route traffic through PHL.

jacca83 Feb 12, 2018 8:34 am

Slightly off topic, I am surprised they haven't gone into detail about the 757L being deployed on those other mentioned routes, SAN, PHX, etc.

Austin787 Feb 12, 2018 8:38 am


Originally Posted by Wayne Kao (Post 29407872)
See "American Has Not Given Up in New York":
https://skift.com/2018/02/12/america...-long-flights/

Delta and United management said similar things about MEM and CLE, respectively. And we all saw how it ended up.

DMPHL Feb 12, 2018 9:16 am


Originally Posted by FlyerWx (Post 29408129)
To me, this means they've "given up" on JFK as a connecting point and are trying to route traffic through PHL.

They've admitted quite freely that they've given up on NYC as a connection point. That doesn't mean that they have given up on NYC. It means exactly that the scale and operatings costs of the PHL hub mean it is better and more profitable as a connecting hub to secondary European markets.


Originally Posted by Austin787 (Post 29408200)
Delta and United management said similar things about MEM and CLE, respectively. And we all saw how it ended up.

MEM and CLE are completely different hubs and completely different markets. Without a massive connecting hub, those are not markets that support any kind of robust service. He mentioned that the profit margins from NYC business markets are in line with the margins of other hubs. That tells you a lot.

tphuang Feb 12, 2018 11:46 am


Originally Posted by FlyerWx (Post 29408129)
"Not given up"... sure

I mean, I guess I understand the desire to go after business markets, but I think we're getting to the point where the everyday traveler doesn't think of "American Airlines" when they think of JFK. Delta's had relative success out of JFK, and unfortunately, AA never really capitalized on leisure/"smaller" markets out of JFK.

I wouldn't be surprised if they transfer the remaining JFK-MAD flight to IB -- provided that a 777 isn't viable.

My biggest issue is I've seen a significant scale-down of RDU-JFK flights. There were some E-175s mixed in with E-145s through last year, but now they've moved to E-140s and the occasional E-145. Now, it's fewer seats per day than in the early 2000s IIRC. To me, this means they've "given up" on JFK as a connecting point and are trying to route traffic through PHL.

DL has success in tolerating a lot more loss making routes out of JFK, which AA has cut off over time. With the competitive nature of NYC market, it's just hard for DL and AA to turn good profit. So at the end of the day, it really depends on how much money loosing routes they are willing to sustain to keep the corporate clients. From that perspective, AA falls way below DL.

I think all of these within-perimeter non-hub routes are going to get cut or go to mostly E-145 in the next few years. They are running out of place to add flights out of JFK, so they've added 6 flights to JFK-PHL and more E145 on JFK-BOS. The first doesn't make connection sense, when LGA-PHL exists. The latter is just a horribly high cost plane for that route.

It's funny that he added JFK-PDX as one of the main business markets, since AA doesn't fly that!


MEM and CLE are completely different hubs and completely different markets. Without a massive connecting hub, those are not markets that support any kind of robust service. He mentioned that the profit margins from NYC business markets are in line with the margins of other hubs. That tells you a lot.


which could also mean they will continue to cut leisure markets like JFK-MCO/RDU/BDA/CUN

LovePrunes Feb 12, 2018 11:46 am


Originally Posted by Austin787 (Post 29408200)
Delta and United management said similar things about MEM and CLE, respectively. And we all saw how it ended up.

NYC ≠ MEM
NYC ≠ CLE
Sorry, not even CLOSE

Adelphos Feb 12, 2018 11:53 am

In all honesty, my upgrade percentages out of JFK/LGA are pretty good as a high EQD Platinum. I imagine I would be further down the list as a DL or UA flier for the routes I fly. Plus, the transcons with Flagship Lounges are great. AA works for me for now.

JonNYC Feb 12, 2018 12:44 pm


Originally Posted by jacca83 (Post 29408179)
Slightly off topic, I am surprised they haven't gone into detail about the 757L being deployed on those other mentioned routes, SAN, PHS, etc.

I'm quite curious about that too! ;)

CLT Feb 12, 2018 1:46 pm

I was in T8 last week around 7pm-the terminal was essentially a ghost town with a large number of gates vacant-sad to see such a beautiful terminal (arguably the nicest in the NYC area) go to waste.

george 3 Feb 12, 2018 1:54 pm


Originally Posted by CLT (Post 29409433)
I was in T8 last week around 7pm-the terminal was essentially a ghost town with a large number of gates vacant-sad to see such a beautiful terminal (arguably the nicest in the NYC area) go to waste.

The terminal was just taking a deep breath. Many of the Euro bound flights departed, and just ginning up for the final transcons, South/Central America and remaining run(s) to LHR.

LINDEGR Feb 12, 2018 3:18 pm


Originally Posted by tphuang (Post 29408938)
DL has success in tolerating a lot more loss making routes out of JFK, which AA has cut off over time. With the competitive nature of NYC market, it's just hard for DL and AA to turn good profit. So at the end of the day, it really depends on how much money loosing routes they are willing to sustain to keep the corporate clients. From that perspective, AA falls way below DL.

I think all of these within-perimeter non-hub routes are going to get cut or go to mostly E-145 in the next few years. They are running out of place to add flights out of JFK, so they've added 6 flights to JFK-PHL and more E145 on JFK-BOS. The first doesn't make connection sense, when LGA-PHL exists. The latter is just a horribly high cost plane for that route.

It's funny that he added JFK-PDX as one of the main business markets, since AA doesn't fly that!


which could also mean they will continue to cut leisure markets like JFK-MCO/RDU/BDA/CUN

Is RDU really a leisure market?

tphuang Feb 12, 2018 3:35 pm


Originally Posted by LINDEGR (Post 29409707)
Is RDU really a leisure market?

I see EWR/LGA-RDU as business market, but JFK-RDU as more of a leisure market. I could be entirely wrong here.

C17PSGR Feb 12, 2018 3:39 pm


Originally Posted by tphuang (Post 29409736)
I see EWR/LGA-RDU as business market, but JFK-RDU as more of a leisure market. I could be entirely wrong here.

Wouldn't seem to be much business reason for JFK-RDU other than to connect internationally and RDU already has a London flight.

bridge29 Feb 12, 2018 3:42 pm

AA runs LGA-RDU 7x daily, which is the relevant business market. They can run TA connections through LHR or PHL. JFK-RDU seems superfluous at this point.

FlyerWx Feb 12, 2018 4:02 pm


Originally Posted by tphuang (Post 29409736)
I see EWR/LGA-RDU as business market, but JFK-RDU as more of a leisure market. I could be entirely wrong here.


Originally Posted by C17PSGR (Post 29409755)
Wouldn't seem to be much business reason for JFK-RDU other than to connect internationally and RDU already has a London flight.

In my experience, I'd tend to agree. Many people in RDU use NYC as a connecting point to international flights. I know people who fly RDU-JFK because their ultimate destination is on Long Island, so I can see how RDU is more of a leisure market to AA. LGA is much closer to Manhattan, which makes it more opportune for business. And many Europe-bound business travellers would rather go RDU-LHR-CCC.

dkc192 Feb 12, 2018 6:30 pm


Originally Posted by DMPHL (Post 29408362)
They've admitted quite freely that they've given up on NYC as a connection point. That doesn't mean that they have given up on NYC. It means exactly that the scale and operatings costs of the PHL hub mean it is better and more profitable as a connecting hub to secondary European markets.

For the most part I'd agree with you and them. That said, I did notice that BOS-JFK is going back to 5x daily starting sometime in April, up from the current pitiful 2x daily. The new AM flights out of JFK (current schedule is 5pm Eagle and 9pm mainline) will allow for easy connections from inbound South American flights--GRU, GIG, EZE, LIM (LA), SCL (LA)--and are most welcome! The schedule ex-BOS also has a new mid-afternoon flight around 2-3pm, allowing for much better connections to the 5-7pm European flights--the current schedule is noon mainline, which leaves one with 3-5 hours in JFK, and 7pm Eagle, which is too late for all but the last LHR flight.

golfingboy Feb 12, 2018 10:18 pm

Such a shame after pouring in billions to build T8, which is probably the nicest terminal at JFK (never been in T5), and now AA is badly underutilizing the terminal. I do expect some regional flying to be dropped (i.e. PIT) in the near future since big chunk of the O/D traffic goes to LGA or connects via UA @ EWR or DL @ JFK.

I won't be surprised at some point PANYNJ will force AA to make room to let more airlines operate out of T8. Particularly when the time comes for renovations or total rebuild of terminal 1 down the road.

Regardless, AA is setting itself up for operational difficulties with PHL by making PHL their primary TATL hub. Some of the pains are already starting to be felt with some flights being forced to move up earlier or later in the evening given the limited number of wide body gates available at PHL and taxiway congestion problems with larger banks.

perseus11 Feb 12, 2018 10:45 pm

[QUOTE=.........
Regardless, AA is setting itself up for operational difficulties with PHL by making PHL their primary TATL hub. Some of the pains are already starting to be felt with some flights being forced to move up earlier or later in the evening given the limited number of wide body gates available at PHL and taxiway congestion problems with larger banks.[/QUOTE]
What you're describing is just not accurate. :rolleyes:

golfingboy Feb 12, 2018 11:38 pm


Originally Posted by perseus11 (Post 29410652)
What you're describing is just not accurate. :rolleyes:

:rolleyes:

At least provide a counter argument.

nova08 Feb 13, 2018 5:33 am


Originally Posted by golfingboy (Post 29410720)


:rolleyes:

At least provide a counter argument.

Yes, the preliminary S18 schedule moves 2 TA departures much earlier than the normal bank. But can you provide evidence of increased congestion/delays between noon-9pm when the TA banks arrive/depart? Movements at PHL are down something like 25+ % from the peak. Of course there are delays around some banks, but PHL is not what it was.

george 3 Feb 13, 2018 12:59 pm


Originally Posted by tphuang (Post 29409736)
I see EWR/LGA-RDU as business market, but JFK-RDU as more of a leisure market. I could be entirely wrong here.

I use JFK for two reasons - proximity to my home, and the parking/drop off issues at LGA from reconstruction. Part of the parking garage recently opened for Terminal B, but it's a long way. T8 parking is great, and AA pretty much goes everywhere I need it to go from JFK.

george 3 Feb 13, 2018 1:00 pm


Originally Posted by golfingboy (Post 29410626)
Such a shame after pouring in billions to build T8, which is probably the nicest terminal at JFK (never been in T5), and now AA is badly underutilizing the terminal. I do expect some regional flying to be dropped (i.e. PIT) in the near future since big chunk of the O/D traffic goes to LGA or connects via UA @ EWR or DL @ JFK.

I won't be surprised at some point PANYNJ will force AA to make room to let more airlines operate out of T8. Particularly when the time comes for renovations or total rebuild of terminal 1 down the road.

Or T-7. Would be good to have the OW airlines together under one roof.

Fanjet Feb 13, 2018 1:09 pm


Originally Posted by golfingboy (Post 29410626)
Regardless, AA is setting itself up for operational difficulties with PHL by making PHL their primary TATL hub. Some of the pains are already starting to be felt with some flights being forced to move up earlier or later in the evening given the limited number of wide body gates available at PHL and taxiway congestion problems with larger banks.

What is the current peak TATL schedule for AA at PHL this summer, 20 flights? And with them spread over 3 departure banks. And the 75Ls can use the B/C gates if needed. In fact, US used to park 762s for domestic flights out of one of those terminals; so perhaps a 763 can fit at those gates as well. I don't see PHL being gate-contrained in terms of adding more TATL service. I think the greater issue would be the utilization of a larger amount of ground staff needed for a TATL flight.

DMPHL Feb 13, 2018 1:37 pm


Originally Posted by Fanjet (Post 29412360)
What is the current peak TATL schedule for AA at PHL this summer, 20 flights? And with them spread over 3 departure banks. And the 75Ls can use the B/C gates if needed. In fact, US used to park 762s for domestic flights out of one of those terminals; so perhaps a 763 can fit at those gates as well. I don't see PHL being gate-contrained in terms of adding more TATL service. I think the greater issue would be the utilization of a larger amount of ground staff needed for a TATL flight.

They make it work, for sure, but it is definitely tight. By my count there are 24 TATL flights arriving to/departing from A-East and A-West in the afternoon hours during S18. Not all of the gates at those two can take wide-bodies, although all except one in A-West can. And not all A-East gates are FIS-compliant. There are also a good number of other international arrivals (Caribbean, etc.) from AA and other airlines that need to use the FIS facilities throughout the day, so that takes up gate space, even in the afternoons. It's definitely a little bit of Tetris for route and facility planning on the part of AA and PHL.

Fanjet Feb 13, 2018 2:02 pm


Originally Posted by DMPHL (Post 29412508)
They make it work, for sure, but it is definitely tight. By my count there are 24 TATL flights arriving to/departing from A-East and A-West in the afternoon hours during S18. Not all of the gates at those two can take wide-bodies, although all except one in A-West can. And not all A-East gates are FIS-compliant. There are also a good number of other international arrivals (Caribbean, etc.) from AA and other airlines that need to use the FIS facilities throughout the day, so that takes up gate space, even in the afternoons. It's definitely a little bit of Tetris for route and facility planning on the part of AA and PHL.

I agree that the real issue is the arrival of intl flights (and their timings) rather than their departure. They used to have those people-mover vehicles so that a widebody arrival could park at a remote stand, and then passengers shuttled over to the FIS facility.

lowfareair Feb 13, 2018 2:23 pm


Originally Posted by Fanjet (Post 29412603)
I agree that the real issue is the arrival of intl flights (and their timings) rather than their departure. They used to have those people-mover vehicles so that a widebody arrival could park at a remote stand, and then passengers shuttled over to the FIS facility.

The issue now is that the grounds of terminal A-west is where many of the remote stands for the planes were located (if I remember correctly). There is literally nowhere to easily park additional planes and shuttle pax back and forth without some hefty modifications or land purchases. The city just bought land West of Cargo City for airport use, so I could see the current location of Southwest and BA cargo being converted into 4-5 hard stands at some point and eventually a possible A-FarWest

nova08 Feb 13, 2018 2:29 pm

Worst case, with any warm weather international flights (greater frequencies on weekends) excluding pre-clearance arrivals:
~31 afternoon international flights
+ 332 to LAX
+ 763 from SJU and presumably at least one from MIA

It will be interesting if they try to use B/C gates for the few 75L flights or even some 763 flights.


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