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Speculation: Will AA continue to pull back in NYC?

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Speculation: Will AA continue to pull back in NYC?

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Old Feb 12, 2018, 8:38 am
  #256  
 
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Originally Posted by Wayne Kao
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.
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Old Feb 12, 2018, 9:16 am
  #257  
 
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Originally Posted by FlyerWx
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
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.
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Old Feb 12, 2018, 11:46 am
  #258  
 
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Originally Posted by FlyerWx
"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
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Old Feb 12, 2018, 11:46 am
  #259  
 
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Originally Posted by Austin787
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
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Old Feb 12, 2018, 11:53 am
  #260  
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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.
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Old Feb 12, 2018, 12:44 pm
  #261  
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Cool

Originally Posted by jacca83
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!
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Old Feb 12, 2018, 1:46 pm
  #262  
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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.
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Old Feb 12, 2018, 1:54 pm
  #263  
 
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Originally Posted by CLT
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.
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Old Feb 12, 2018, 3:18 pm
  #264  
 
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Originally Posted by tphuang
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?
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Old Feb 12, 2018, 3:35 pm
  #265  
 
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Originally Posted by LINDEGR
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.
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Old Feb 12, 2018, 3:39 pm
  #266  
 
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Originally Posted by tphuang
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.
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Old Feb 12, 2018, 3:42 pm
  #267  
 
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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.
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Old Feb 12, 2018, 4:02 pm
  #268  
 
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Originally Posted by tphuang
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
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.
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Old Feb 12, 2018, 6:30 pm
  #269  
 
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Originally Posted by DMPHL
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.
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Old Feb 12, 2018, 10:18 pm
  #270  
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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.
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