Go Back  FlyerTalk Forums > Miles&Points > Airlines and Mileage Programs > American Airlines | AAdvantage
Reload this Page >

which hub(s) do you think AA really values?

Community
Wiki Posts
Search

which hub(s) do you think AA really values?

Thread Tools
 
Search this Thread
 
Old Apr 12, 2019, 5:32 pm
  #1  
Original Poster
 
Join Date: Apr 2007
Location: USA
Programs: AAdvantage, MileagePlus, SkyMiles
Posts: 4,159
which hub(s) do you think AA really values?

Wondering which hub(s) AA today favors?

From my observation, it looks like AA highly favors DFW, CLT, and PHX, and maybe LAX as their “top” hubs, with PHL, MIA/ORD (tied), and JFK trailing behind (in that order).

”Top” and “favoring” in terms of number of aircraft, quality aircraft, schedule, and overall hub treatment. Also wonder if AA prefers pmUS or pmAA hubs overall?

Curious for your perspectives.
MrAndy1369 is offline  
Old Apr 12, 2019, 5:44 pm
  #2  
 
Join Date: May 2015
Location: Empire State
Programs: AAdvantage Executive Platinum; Marriott Platinum
Posts: 461
Originally Posted by MrAndy1369
Wondering which hub(s) AA today favors?

From my observation, it looks like AA highly favors DFW, CLT, and PHX, and maybe LAX as their “top” hubs, with PHL, MIA/ORD (tied), and JFK trailing behind (in that order).

”Top” and “favoring” in terms of number of aircraft, quality aircraft, schedule, and overall hub treatment. Also wonder if AA prefers pmUS or pmAA hubs overall?

Curious for your perspectives.
AA has been pretty transparent in terms of which it values in terms of profitability. Take a look at pages 12-15 of this deck:

https://americanairlines.gcs-web.com...1-9ff439f710d1
AAEmpireState is offline  
Old Apr 12, 2019, 5:50 pm
  #3  
VFR
 
Join Date: Aug 2016
Location: BOS
Programs: AA PP, DL PM
Posts: 2,086
I think it's CLT > DFW > DCA/PHL >> LAX >>>> MIA/ORD >> PHX >> LGA/JFK.

I think PMUS management prefers DFW, CLT, PHL, and DCA because they are rather profitable, and AA is mostly the only game in town.

The equipment goes where they need it based on number of seats and where they can maintain it. ORD is a 787 base because of the lesser international demand. More new and "nice" equipment goes to London than South America because those routes are more competitive.

JFK and LAX are important for corporate and Hollywood contracts. AA has said that traffic on the A321T routes has grown more on the LAX than the JFK side.

Due to the relative size of metropolitan areas, the PMAA hubs have more O&D traffic than the PMUS hubs; I believe CLT is their most profitable hub because of a significant north-south one-stop connecting market. The business model of US was more based on connecting traffic; supposedly when US management took over they didn't like DFW much because the airport was set up to minimize the distance from a customer's car in the garage to the plane, which made it poor for connections.
GTITAN likes this.
VFR is offline  
Old Apr 12, 2019, 11:49 pm
  #4  
 
Join Date: Mar 2007
Location: PIT
Posts: 759
Originally Posted by AAEmpireState


AA has been pretty transparent in terms of which it values in terms of profitability. Take a look at pages 12-15 of this deck:

https://americanairlines.gcs-web.com...1-9ff439f710d1
Does "Most Profitable Hub" mean it generates more total profits to the overall AA bottom line than any other Hub, or does it mean that it generates more profit/passenger revenue than any other Hub? DFW is likely both, but CLT and DCA - I suggest it's the latter.
perseus11 is offline  
Old Apr 13, 2019, 12:23 am
  #5  
 
Join Date: Dec 2011
Location: CLT
Programs: AA Executive Platinum, Hilton Diamond, Lifetime Admirals Club member
Posts: 419
Originally Posted by VFR
I think it's CLT > DFW > DCA/PHL >> LAX >>>> MIA/ORD >> PHX >> LGA/JFK
.
I like everything you said but wouldn’t lump DCA with PHL. Their markets seems to be quite different...PHL being a large connecting hub with a ton of TATL traffic, DCA probably having a little more of an O&D base in a higher profile city.
joeyE is offline  
Old Apr 13, 2019, 7:35 am
  #6  
 
Join Date: Apr 2009
Location: YYF/YLW
Programs: AA, DL, AS, VA, WS Silver
Posts: 5,950
Originally Posted by joeyE
I like everything you said but wouldn’t lump DCA with PHL. Their markets seems to be quite different...PHL being a large connecting hub with a ton of TATL traffic, DCA probably having a little more of an O&D base in a higher profile city.
They’re obviously completely different markets in terms of their strategic place in AA’s network as you state, but I think they are fairly similar in importance to AA.
ashill is offline  
Old Apr 13, 2019, 8:24 am
  #7  
 
Join Date: Mar 2018
Location: PHL
Programs: AA EXP, HH Diamond, Owner of 2,000 TWA shares
Posts: 812
Originally Posted by MrAndy1369
Wondering which hub(s) AA today favors?

From my observation, it looks like AA highly favors DFW, CLT, and PHX, and maybe LAX as their “top” hubs, with PHL, MIA/ORD (tied), and JFK trailing behind (in that order).

”Top” and “favoring” in terms of number of aircraft, quality aircraft, schedule, and overall hub treatment. Also wonder if AA prefers pmUS or pmAA hubs overall?

Curious for your perspectives.
You didn't ask the 700 FAs that were told they need to leave PHX for their opinion?
Uncle Nonny is offline  
Old Apr 13, 2019, 8:24 am
  #8  
Suspended
 
Join Date: May 2013
Location: NYC
Programs: DL Diamond, AAdvantage EXP, Hyatt Explorist, HHonors Diamond, Avis First
Posts: 7,344
Originally Posted by Uncle Nonny
You didn't ask the 700 FAs that were told they need to leave PHX for their opinion?
LOL
AANYC1981 is offline  
Old Apr 13, 2019, 8:29 am
  #9  
 
Join Date: Apr 2009
Programs: American EXP; British Airways Gold
Posts: 1,896
Originally Posted by Uncle Nonny
You didn't ask the 700 FAs that were told they need to leave PHX for their opinion?
You are the king of the one-liners. ^
AANYC1981 likes this.
jcatman is offline  
Old Apr 13, 2019, 11:18 am
  #10  
 
Join Date: Mar 2015
Location: Austin, TX - AUS
Programs: AA Platinum, Hilton, Hyatt, IHG, Marriott
Posts: 1,625
Based on AA's actions, in terms of growth, I'd group the hubs into 3 tiers:
Tier 1: DFW, CLT, DCA - have seen the most growth recently and are listed as most profitable hubs in their presentation slide show
Tier 2: PHL, MIA, PHX, LAX - have seen slower growth, some cuts, but still play an important role in AA's network
Tier 3: JFK, ORD - have mostly seen cuts. When AA decides to close a hub, one (likely JFK) or maybe both are likely candidates
Austin787 is offline  
Old Apr 13, 2019, 3:37 pm
  #11  
 
Join Date: Aug 2009
Location: SLC
Programs: AA EXP, Marriott Plat
Posts: 616
Originally Posted by Austin787
Based on AA's actions, in terms of growth, I'd group the hubs into 3 tiers:
Tier 1: DFW, CLT, DCA - have seen the most growth recently and are listed as most profitable hubs in their presentation slide show
Tier 2: PHL, MIA, PHX, LAX - have seen slower growth, some cuts, but still play an important role in AA's network
Tier 3: JFK, ORD - have mostly seen cuts. When AA decides to close a hub, one (likely JFK) or maybe both are likely candidates
CLT is likely the most valued hub for AA. It has the lowest landing costs, lowest labor costs, no competition, flights can land and takeoff way into the night. DFW as the operations center of gravity for AA, but DFW does have rising costs, fees, and labor challenges that CLT is immune from.


I think ORD goes away as a hub. They seem to be copying what Delta did at DFW. Delta transitioned from Mainline then Regional aircraft at DFW, closed the "Delta Crown Room", and eventually shattered the hub. I see the same for ORD. AA will not compete head to head on a large scale with a peer airline.

Despite what is generally accepted as positive growth, I speculate LAX's growth plans may reverse for AA, as Chairman Parker is fearful to compete, which makes sense with a much larger and monstrous debt burden to service every month, than AA's peer competitors. LAX has three strong peer competitors. If I was a PHX flight attendant, I might not sell my house just yet.

The big question is- where can AA move aircraft, be profitable, and not have competition...... Chairman Parker has a huge challenge with huge debt payments every month, exposure to fuel prices because of not hedging, and labor costs at the same level as its peers. I sense Chairman Parker's fighting position will be the continuation of adding more seats to every aircraft.

Last edited by GunsOfNavarone; Apr 13, 2019 at 3:48 pm
GunsOfNavarone is offline  
Old Apr 13, 2019, 5:14 pm
  #12  
Original Poster
 
Join Date: Apr 2007
Location: USA
Programs: AAdvantage, MileagePlus, SkyMiles
Posts: 4,159
Based on responses here, it seems like today's AA favors more of the pmUS hubs, with the exception of DFW (which was pmAA's main home hub).

I wonder what's wrong with ORD, though? It's nice because it's a competitive hub with UA, it's centrally located, and it also commands more premium fares, IMHO, due to it being an attractive midwestern major city and metropolitan area. So, why do you think AA has been cutting ORD?

IMHO, I think CLT is probably the worst hub in the system. Tight, smelly, crowded, surly employees with fake Southern friendliness that goes out of the window fast... I'd choose even PHL over CLT, IMHO. Why would AA want to choose CLT as one of its top hubs? If CLT was in a sparkling new building with huge facilities and plenty of room (like JFK), then I'd understand, perhaps.
LINDEGR likes this.
MrAndy1369 is offline  
Old Apr 13, 2019, 5:27 pm
  #13  
 
Join Date: Mar 2005
Location: CLT
Programs: AA EP, AA AC
Posts: 4,268
Originally Posted by MrAndy1369
Based on responses here, it seems like today's AA favors more of the pmUS hubs, with the exception of DFW (which was pmAA's main home hub).

I wonder what's wrong with ORD, though? It's nice because it's a competitive hub with UA, it's centrally located, and it also commands more premium fares, IMHO, due to it being an attractive midwestern major city and metropolitan area. So, why do you think AA has been cutting ORD?

IMHO, I think CLT is probably the worst hub in the system. Tight, smelly, crowded, surly employees with fake Southern friendliness that goes out of the window fast... I'd choose even PHL over CLT, IMHO. Why would AA want to choose CLT as one of its top hubs? If CLT was in a sparkling new building with huge facilities and plenty of room (like JFK), then I'd understand, perhaps.
I dunno I like CLT. YMMV. FWIW, I do not find any of the CLT folks surly.

Safe Traveks
GTITAN is offline  
Old Apr 13, 2019, 6:11 pm
  #14  
 
Join Date: Dec 1999
Location: NYC/PHX
Programs: IATA, Sabre, AvgeekAgent
Posts: 1,958
Originally Posted by GunsOfNavarone
Delta transitioned from Mainline then Regional aircraft at DFW, closed the "Delta Crown Room", and eventually shattered the hub. I see the same for ORD. AA will not compete head to head on a large scale with a peer airline.
Even if ORD is de-hubbed, I would expect AA to maintain an AC there (IIRC, DL has always had at least one lounge at DFW...could be wrong though). These will always be major stations, hub or no hub.
NYC Flyer is offline  
Old Apr 13, 2019, 7:17 pm
  #15  
 
Join Date: May 2011
Location: Hoboken, NJ
Programs: AA Gold
Posts: 194
Isn’t the ORD hub still larger than LAX, DCA, MIA, PHX, and JFK/LGA...?

BOSishome is offline  


Contact Us - Manage Preferences - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

This site is owned, operated, and maintained by MH Sub I, LLC dba Internet Brands. Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Designated trademarks are the property of their respective owners.