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How will AA respond to southwest entering Hawaii

How will AA respond to southwest entering Hawaii

Old Feb 21, 2019, 1:34 pm
  #61  
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Originally Posted by diver858
Yup - more hype, still no ticket sales.
Test flights are not hype. They are one of the last tasks required before tickets can be sold.
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Old Feb 22, 2019, 11:34 am
  #62  
 
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Originally Posted by dayone
Test flights are not hype. They are one of the last tasks required before tickets can be sold.
I am referring to the endless stream of "news" reports, likely orchestrated by LUV biz dev / marketing, in an effort to discourage loyalists from booking their spring/summer Hawaii flights elsewhere. Based on such reports, many in the WN FT forum were convinced tickets would go on sale February 14.
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Old Feb 22, 2019, 11:59 am
  #63  
 
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This is an interesting exercise in that it is a mature domestic leisure market that already sees relatively steady competition unlike the untested mad scramble for routes to Cuba (a least they pivot quickly given that the economics of flying Cuba routes aren't really going to change anytime soon). WN's international pullback from its foray to MEX (apparently the margins and the online-only sales channel couldn't support WN on those saturated routes even with the two free bag allowances) was a bit of a surprise but as WN management admits, they do well in leisure destinations so I'd say at least very strong initial pressure on ticket prices for the near future is almost certain.
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Old Feb 22, 2019, 5:53 pm
  #64  
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Originally Posted by NA-Flyer
I think the only way AA can compete with Souhwest on Hawaii routes is to send wide body aircrafts like 787-8, 787-9 and 772 instead of the narrow body ones, they are using now, with the latest hard products especially from LAX and PHX markets to HNL and OGG @:-)

The adapted new model should be: to reduce frequency and increase capacity on existing frequencies.
I have a hard time seeing how you command revenue premiums to Hawaii that beat flying a 787 or 772 with "latest hard products" to Europe or Asia. Of course, AA flies 788s to CUN these days, so...

Anyways, UA sort of does this, but their 777 is basically rammed full of Y and NOT "latest hard product"- it's their old 2-4-2 in J, and only 28 seats at that for a 364 passenger plane.

https://www.seatguru.com/airlines/Un..._777-200_9.php

If AA was willing to do a 772 with that kind of configuration it might make sense. Similar to what CX and EK do: have some subtypes that just load up on passengers for routes where you aren't going to make a lot of money on premium passengers, but you can jam a lot of coach traffic into that plane.
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Old Feb 22, 2019, 6:57 pm
  #65  
 
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Indeed, no flagship feeds here...

(see professional depiction of Hawaii as an important route for AA below):


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Old Feb 23, 2019, 3:19 am
  #66  
 
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Originally Posted by eponymous_coward
If AA was willing to do a 772 with that kind of configuration it might make sense. Similar to what CX and EK do: have some subtypes that just load up on passengers for routes where you aren't going to make a lot of money on premium passengers, but you can jam a lot of coach traffic into that plane.
This is exactly what I am trying to get to ^
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Old Feb 23, 2019, 2:25 pm
  #67  
 
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Hawaii has been considered a marginal route from North America for decades, but one status passengers with miles to spend demand as a vacation destination. A necessary evil for a national carrier.

It would be interesting to know if Southwest feels they have arrived at the "necessary" stage and just have to, or they really think they can find margin on coach tickets when others can't.
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Old Feb 23, 2019, 4:22 pm
  #68  
 
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Originally Posted by jayer
Hawaii has been considered a marginal route from North America for decades, but one status passengers with miles to spend demand as a vacation destination. A necessary evil for a national carrier.

It would be interesting to know if Southwest feels they have arrived at the "necessary" stage and just have to, or they really think they can find margin on coach tickets when others can't.
What's your source for this? If AA thought it needed flights to Hawaii to make it's mileage program more attractive, but didn't think flying there was profitable, they would just fully partner with Hawaiian and Alaska to allow redemption's for the over-water segments to Hawaii and have that as a redemption option without flying there themselves. If Hawaii wasn't profitable, they wouldn't be flying there. I bet they get a lot of revenue from the military to flights to/from HNL.
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Old Feb 24, 2019, 12:37 am
  #69  
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I cant imagine any airline aa or otherwise flying to a destination just so elites can redeem miles. If a route doesnt make money aa has and will in the future cut said route
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Old Feb 24, 2019, 11:57 am
  #70  
 
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Originally Posted by donotblink
... partner with ... Alaska to allow redemption's for the over-water segments to Hawaii and have that as a redemption option. ...
This is already the case for much of the saaver award inventory.
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Old Feb 27, 2019, 4:00 pm
  #71  
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WN received government approval for its Hawaii service. Routes, schedules and on-sale date will be announced in the "coming days."
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Old Mar 4, 2019, 9:08 am
  #72  
 
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WN are selling tickets now to Hawaii. I picked some random dates can could get $189 each way to HNL or OGG from SJC.
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Old Mar 4, 2019, 9:55 am
  #73  
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You can find WN fares California-Hawaii a lot cheaper than that.

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Old Mar 4, 2019, 10:26 am
  #74  
 
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I am happy for CA residents, but I don't see WN making much of a difference for us on the east coast. I can't even get to California easily on WN unless I go to BWI. Even from BWI, the options to HNL on WN are slim (1) and they can't seem to find a return flight. Enjoy the $49-$149 crazy fares while they last, I am a bit jealous I will admit!

All of the lay flat routes tend to have higher fares: AA puts a higher price on the DFW/ORD flights, as does HA with their JFK/BOS, and lastly so does UA on the IAD/EWR flights. I'll still choose one of those options over East Coast-California-Hawaii unless the prices were signigicantly different. I am curious about HA's response to WN's limited interisland flights.
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Old Mar 4, 2019, 12:09 pm
  #75  
 
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AA will respond by decreasing flights to Hawaii, and move the capacity to DFW and especially CLT. AA has quit competing at JFK, ORD, and in some views LAX (319 RDU to LAX- really?). Under Parker, anywhere AA has to compete head to head; its strategy is to move capacity to a low cost, non competitive hub.
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