Another opinion piece: Parker on the way out?
#46
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Adding on I believe Parker thinks in terms that only those paxs that are PLT and above or pay for a premium seat are worth worrying about. Everyone can be shoved into a seat made for an 8 year old and just lump it. The problem is that when a flight arrives late the front of the plane also arrives late, not just the back of the plane. And then the problems ensue. Missed connections, missed appointments, forced overnights (often at one's own expense), angry paxs, burned out front line staff, etc.
Just about all of the airlines are adopting the dual strategy of partial ULCC. Even B6 which fought the trend for so long is going that way. They all are jamming in more seats, finding new or increased fees and introducing bare bone nonfundable, non changable fares. This just isn't AA trying to be a premium airline to some and an ULCC to others.
When the next recession finally does come I think the ULCC model will be in for a huge surprise. People (particularly CEOs) have forgotten what airlines were doing to coax people onto planes. Remember the nonstop DEQM promotions in 2009 and 2010. All of those extra seats might find themselves devoid of a butt. Some people will continue to fly as part of their job, some people will still have the means to fly (like I did in 2009 and 2010) but lot's of price conscious flyers won't be going to Disney for vacation, even with $49 bait and switch fares.
Just about all of the airlines are adopting the dual strategy of partial ULCC. Even B6 which fought the trend for so long is going that way. They all are jamming in more seats, finding new or increased fees and introducing bare bone nonfundable, non changable fares. This just isn't AA trying to be a premium airline to some and an ULCC to others.
When the next recession finally does come I think the ULCC model will be in for a huge surprise. People (particularly CEOs) have forgotten what airlines were doing to coax people onto planes. Remember the nonstop DEQM promotions in 2009 and 2010. All of those extra seats might find themselves devoid of a butt. Some people will continue to fly as part of their job, some people will still have the means to fly (like I did in 2009 and 2010) but lot's of price conscious flyers won't be going to Disney for vacation, even with $49 bait and switch fares.
#47
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Regards
#48
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That’s quite a reach to blame AA for the MAX. Where’s the proof that AA pressured Boeing?
#49
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I'm in CMH, so captive to nobody. My flight patterns still work best with AA, however.
I'd like to add that the frustration with the OASIS product is huge for me. The bulk of my flying is domestic USA, always hub connecting, and always I or D fares. To give passengers paying for domestic first such a lousy seat is ridiculous.
In addition, the on-time performance is an issue because of the following:
1) Hubs are banked...and therefore very short connecting times with an unreliable airline. Also, this is probably because of the banking and short turns at outstations required.
2) Upgrades are given out way too early -- they should be given at the gate 10 min before boarding <I know that's unpopular here, but when you miss a flight, you should get on the next one in your class of service>
3) You end up paying extra $$$ to take the early flight that you wanted when your 1st flight miraculously arrives on time and you SDFC onto your desired <short> connection that you didn't trust in the first place <so you bought the more expensive ticket with longer layover>. And then you find out that you could've taken the $300 less expensive flight with the short 50min connection. But, of course, no refund for that.....
Lots of issues going on here, but it appears that everybody has something different that's important to therm.
Operational reliability seems to be the big issue in this thread, though.....
Last edited by Spanish; Oct 9, 2019 at 6:43 am Reason: grammar
#50
Join Date: Jul 2016
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They instead downgraded a product they were trying to monetize. Just one of many failures.
Cheers,
TG
#51
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Today every airline is chasing the ULCC customer. When that ULCC demand gets depressed because peoples' financial picture changes or they feel threatened by the current economic environment there is going to be an excess supply of seats chasing fewer potential flyers. The airlines are setting themselves up for another nightmarish period. And today AA has a much younger fleet that will be more expensive to park.
#52
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AA is due to announce Q3 earnings on Oct 24. What are the odds that we have a replacement soon thereafter (based on Q3 results and after UA and DL have both reported (DL reports tomorrow)).
#54
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I look at Project Oasis as the airline equivalent of New Coke. In the case of AA, management is stubbornly and obstinately refusing to acknowledge their error or reverse course. It is no wonder when the needs of customers are ignored, that corporate heads have to roll.
#55
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This wouldn't the first speculative thread on FT. And there are certainly a lot of rumors, e.g.,
#56
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Have you experienced the new DL One product? It is better than AA's Flagship First. The suites are the best of any US carrier and they are getting rolled out on every widebody. AA still has rear-facing seats in J and the torture that is the LUS 76s.
#57
Join Date: Jan 2009
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Today every airline is chasing the ULCC customer. When that ULCC demand gets depressed because peoples' financial picture changes or they feel threatened by the current economic environment there is going to be an excess supply of seats chasing fewer potential flyers. The airlines are setting themselves up for another nightmarish period. And today AA has a much younger fleet that will be more expensive to park.
Example: DFW/CUN 02/02/2020 to 02/08/2020
AA Basic Econ: $371
Spirit: $268
So tell me again how they want to compete with the ULCC market?
#58
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Sort of off-topic above, but Delta thinks customer-first whereas AA thinks money-first and that's the real difference between the airlines and the big fault of American.
#59
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I agree.
I've been considering switching to DL even though I'm hub-hindered between DFW and TPA (majority of my travel). A less expensive 1-stop on DL is starting to sound better than AA's direct.
#60
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This is the point I was making a few posts back though. They are acting like they want to chase the ULCC customers (which likely aren't very profitable, but good for filling seats to break even) - but in reality they aren't.
Example: DFW/CUN 02/02/2020 to 02/08/2020
AA Basic Econ: $371
Spirit: $268
So tell me again how they want to compete with the ULCC market?
Example: DFW/CUN 02/02/2020 to 02/08/2020
AA Basic Econ: $371
Spirit: $268
So tell me again how they want to compete with the ULCC market?
There was a time the legacy carriers could just undercut the lower cost competitors until they choked them out, but in today’s environment they HAVE to compete until customers decide this isn’t the model they want again.