Concierge Key event in Dallas 11 Apr 2019...did anyone go?
#61
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No it's an opinion. I have no idea but if AA (or any airline) found themselves lagging in revenue finding a way to put more seats in an a/c is a solution. You state it as a foregone conclusion that it would never happen. You know how many times since I've been on FT (since 2005) someone said "AA would never consider....." and in fact down the road did. Is this something Mr. Parker imparted to you, like WN claiming they will never charge for bags.
#62
Join Date: Dec 2013
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I suppose I could believe "north of 100,000". Passenger Revenue for 2018 was $40.676B and with this year's required spend of $15K that would amount to almost 3.7% of passenger revenue. Seems reasonable but not other real info to use for correlation that I know of. My math has been wrong before so please feel free to correct if need be.
#63
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Too bad you didn't tell them how obnoxious the credit card pitches are.
#64
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#65
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Because buying larger planes and maintaining them is far, far, far more expensive than shoving more seats into existing a/c. Not to mention filling all those bigger planes. This is simply a case of asset optimization. That is what "densification' is about. I don't care what Jon NYC says there is no way in h##ll that Parker is going to reverse this decision based upon a) complaining from FTers b) Some modest complaining from GLDs and PLTs (and even EXPs and CKs) c) bad public relations. It's not going to happen.
BTW last year I flew Y- on a brand new DL 737-900. I'm short and had my knew up to my chest. Thank god is was only MIA/ATL, I could not have imagined a 4 hour plus flight. The AVOD helped (particularly since getting my tablet out of my bag would have been a feat in gymnastics.) It's not like all the other two ME3 are going with 32-33 inch seat pinch.
BTW last year I flew Y- on a brand new DL 737-900. I'm short and had my knew up to my chest. Thank god is was only MIA/ATL, I could not have imagined a 4 hour plus flight. The AVOD helped (particularly since getting my tablet out of my bag would have been a feat in gymnastics.) It's not like all the other two ME3 are going with 32-33 inch seat pinch.
Simple. If enough EXPs and CKs bolt and it’s due to new seat configurations AA might reverse Oasis. Other than a few complainers on FT there’s zero evidence this is occurring. When you consider that the densification brings an extra $400K a year in revenue per seat it’s going to take much more than FT complaining and speculation.
#66
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Regards
#68
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#69
Join Date: Aug 2009
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Chairman Parker can't reverse denisification. With the debt and labor costs, the future of AA is to follow a Spirit model, not a Delta or Jet Blue model.
EXPs are nice to have, but Chairman Parker will fill seats regardless of EXPs and their spend. As AA lags its peers because of debt levels and no advantage in labor costs, Chairman Parker must find ways to increase revenue. Adding 12 more economy seats on a single isle aircraft, and charging for seat selection, checked bags, food, etc- while hawking credit cards, is the way to go for Chairman Parker, instead of catering to EXPs who are not getting additional AA credit cards, not paying for seats, not paying for checked bags, and not paying for their gin and tonic. Look at Chairman Parker's past history- you will know how he really thinks.
I am a EXP, that averages six flights per week, about 40 weeks per year. I am not blind that Chairman Parker built AA thinking it was a near oligopoly, but with the Spirits, Frontiers, even Alegiant- he is in a corner with the debt deals and labor deals he did to make the merger work. Chairman Parker can't compete with any peer head to head, he has way to much debt to pay monthly. I know being an EXP is going to be less value, as the number one thing I care about is seat pitch, and that is never going to return to prior levels at AA. I don't care about lounges, , PDBs, Flagship first dining- I can pay for a drink and dinner at the airport. But when I have to fly TRANSCON like a sardine packed without even the oil- that is what I care about.
Chairman Parker's back is against the wall. He made this debt sucking and high labor cost monster- he has no choice but to find every little thing to generate more revenue per flight, and with more flights in CONUS than any other airline- that is his only hope. It will never be about customer comfort or satisfaction. And Chairman Parker is no dummy, he has sold many millions of shares well above today's AAL price. He has never sold a share under today's price. He knows its not if, but when the debt cost, non hedge on fuel, and non labor advantage will cause a restructuring.
JDIVER, as usual, nailed it on CKs. CKs are not much about extreme high revenue PAX, but about Corporate Travel decision makers, and the leaders of those Corporations. Hook up the corporate travel decisions makers who sign the contracts, that is key. It is not about seat pitch, not about how many seat across a row on a twin aisle aircraft in Y. Hook up the corporate decision maker and their senior executive leadership.... that is what CK is really all about.
EXPs are nice to have, but Chairman Parker will fill seats regardless of EXPs and their spend. As AA lags its peers because of debt levels and no advantage in labor costs, Chairman Parker must find ways to increase revenue. Adding 12 more economy seats on a single isle aircraft, and charging for seat selection, checked bags, food, etc- while hawking credit cards, is the way to go for Chairman Parker, instead of catering to EXPs who are not getting additional AA credit cards, not paying for seats, not paying for checked bags, and not paying for their gin and tonic. Look at Chairman Parker's past history- you will know how he really thinks.
I am a EXP, that averages six flights per week, about 40 weeks per year. I am not blind that Chairman Parker built AA thinking it was a near oligopoly, but with the Spirits, Frontiers, even Alegiant- he is in a corner with the debt deals and labor deals he did to make the merger work. Chairman Parker can't compete with any peer head to head, he has way to much debt to pay monthly. I know being an EXP is going to be less value, as the number one thing I care about is seat pitch, and that is never going to return to prior levels at AA. I don't care about lounges, , PDBs, Flagship first dining- I can pay for a drink and dinner at the airport. But when I have to fly TRANSCON like a sardine packed without even the oil- that is what I care about.
Chairman Parker's back is against the wall. He made this debt sucking and high labor cost monster- he has no choice but to find every little thing to generate more revenue per flight, and with more flights in CONUS than any other airline- that is his only hope. It will never be about customer comfort or satisfaction. And Chairman Parker is no dummy, he has sold many millions of shares well above today's AAL price. He has never sold a share under today's price. He knows its not if, but when the debt cost, non hedge on fuel, and non labor advantage will cause a restructuring.
JDIVER, as usual, nailed it on CKs. CKs are not much about extreme high revenue PAX, but about Corporate Travel decision makers, and the leaders of those Corporations. Hook up the corporate travel decisions makers who sign the contracts, that is key. It is not about seat pitch, not about how many seat across a row on a twin aisle aircraft in Y. Hook up the corporate decision maker and their senior executive leadership.... that is what CK is really all about.
Last edited by GunsOfNavarone; Apr 18, 2019 at 3:14 pm
#70
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Really well put GunsofNavarone about the revenue problem American needs to solve, they lag their competition in RASM.
Last edited by bthotugigem05; Apr 18, 2019 at 2:56 pm
#71
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#72
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facts-- M.I.A.
...JDIVER, as usual, nailed it on CKs. CKs are not much about extreme high revenue PAX, but about Corporate Travel decision makers, and the leaders of those Corporations.
...Hook up the corporate decision maker and their senior executive leadership.... that is what CK is really all about.
...Hook up the corporate decision maker and their senior executive leadership.... that is what CK is really all about.
Last edited by JonNYC; Apr 18, 2019 at 2:57 pm Reason: facts-- M.I.A.
#73
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Not to mention most FF (business) are flying what they've been told. If you think anyone is concerned their people are trapped in a sardine can for hours.... My company has a 10 hour policy-that's flight time not total travel time. Moreover, if a client refuses to pay for J it's back of the bus you go albeit my company provides a $300 stipend if you can't fly J. That I assume is to either put towards up faring to J (along with what you pay personal out of pocket) or to "soften the blow." You'd be surprised at the number of large global companies that expect consultants to sit in Y for 12 hours on end.
I think AA treats CKs very well. Sure from time to time they might end up in a non MCE seat due to a misconnect or last minute booking. Or maybe a middle MCE seat. However, I would tend to think that's rare. And as JDiver points out CKs often are not heavy flyers. As far as leisure travelers, the success of Spirit, Frontier and Allegiant (and now BE at the legacies) speaks volumes to what Americans are willing to endure to save $100. Oasis will likely go forward.
I think AA treats CKs very well. Sure from time to time they might end up in a non MCE seat due to a misconnect or last minute booking. Or maybe a middle MCE seat. However, I would tend to think that's rare. And as JDiver points out CKs often are not heavy flyers. As far as leisure travelers, the success of Spirit, Frontier and Allegiant (and now BE at the legacies) speaks volumes to what Americans are willing to endure to save $100. Oasis will likely go forward.
#74
Join Date: Dec 2014
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In fairness, I've seen the BE/Y spread be hundreds of dollars on some occasions.