jcw said:
the issue is no one can figure out that it works in CLT so it can't possibly work in MIA
US, with Charlotte and Philly, has the lowest average fares (yields) across the Atlantic of any airline since at least 1995, substantially lower than AA's yields. Same story with Latin America, where AA's 2013 Latin America yield was just shy of 18 cents per mile, while US managed to attract about 15 cents per mile.
Domestic mainline yields at US were a tiny fraction higher in 2013 than AA's domestic mainline yields.
So along comes "AA filed for bankruptcy because everything former management did was wrong" Doug Parker and Scott Kirby and they announce that AA will re-bank the hubs, since that's how you attract higher average fares.
Funny how banked hubs at US have not attracted higher average fares across the Atlantic or to Latin America and yet re-banking ORD, MIA and DFW will magically create higher yields for new AA. It's a near-certainty that the higher costs to re-bank ORD, MIA and DFW will more than eat up any extra revenue (assuming that it produces any extra revenue).
Your CEO is a drunken dumbass who simply makes things up and amazingly, some employees bow down and worship the ground he walks on without questioning his nonsense blather.
boston said:
jcw, no one said what works in CLT cant work at other HUBs. I do know for a fact that things got a lot better in MIA when they went to a rolling HUB. You may be based at MIA , I don't know if not most will tell you MIA is a different animal. If your not based at CLT you may want to come down here for a bit and check it out, see how it works. Most flights are international and turned very quickly. This isn't just about shifts for fleet, shoving more international flights than CLT/PHL/PHX at once into customs at once. However PHX says it will work, more power to them. For the Federal gov is in charge in that dept. AA before us offered to pay the overtime to Customs/Immigration agents and the answer was now. The mis-conx and pax put in hotels was staggering. Anyway lots of new flight attendants and Fleet service showing up daily in Miami, come join the fun.
AA's performance increased dramatically when the rolling hubs (relaxed banking) were introduced at MIA, ORD and DFW. On top of that, it had to reduce the labor costs since there were fewer high-volume busy peaks followed by no-work valleys where large number of agents and fleet service clerks sat around waiting for the next bank. Heavily banked hubs are necessarily over-staffed, and rolling hubs allow for some greater efficiency. Of course, management at old AA sometimes reached for too much efficiency, like the single gate agent mainline departures (instead of a more reasonable two or three).
jcw said:
AA has one of the COO's in the industry and I'm sure they have planned this out and simulated the operation - people are starting with from the position of change won't work - you don't know until you try it
AA has "one of the COO's in the industry"? That's saying quite a lot. Every airline has one of the COOs in the industry.