Aa Management Vs Swa

[goingboeing]

SWA announced today that it is dicontinuing service at Houston George Bush because the flights are losing money.They cited concerns over fuel costs and the current fare wars. I wonder how long it would take AA to dump flights that losing money?[try never] source:yahoo airline news

 

[jimstras]

How long it would take AA to cancel flights????????? Crawl out from under your rock. Obviously you don't know about recent pilot furloughs or don't ever look at a bid sheet. FLL alone lost upwards of 9 flights on last schedule change.

 

[Oneflyer]

I wonder how long it would take AA to dump flights that losing money?[try never]

The damn schedule changes every month based on profitability.

 

[goingboeing]

The damn schedule changes every month based on profitability.

[post="243000"][/post]​

AA is not earning a profit and has not for the last several years.

 

[Decision 2004]

If AA is removing UNPROFITABLE flights from the schedule, then why does AA continue to lose its ass?

 

[Hopeful]

If AA is removing UNPROFITABLE flights from the schedule, then why does AA continue to lose its ass?

[post="243063"][/post]​

Can you say fuel and pension?

Fuel is an uncontollable expense where as the pension can be tamed.

 

[mweiss]

Hopeful's only touching the tip of the iceberg in answering that question. In fact, removal of unprofitable flights is only useful if one of two conditions are met:

• The equipment and staff can be moved to some other more profitable route (which may, in fact, simply mean a less losing route), or
• The cost of parking the equipment and furloughing the staff is less than the amount being lost on the route

In other words, they may well be doing either one of those, and still be losing money...but losing less than they otherwise would have by simply leaving it alone.

 

[operaations]

If AA is removing UNPROFITABLE flights from the schedule, then why does AA continue to lose its ass?

[post="243063"][/post]​

Dont you love it when people talk about stuff they have no idea about

 

[mweiss]

Dont you love it when people talk about stuff they have no idea about

[post="243124"][/post]​

I was thinking that, but refrained from pointing it out. 😛

 

[coolflyingfool]

Since SWA's profits have been declining since 2000, they have more than just 1 route that is losing them money. It's all about cheeks in the seats. After losing money for years in the IAH-DAL market, SW pulls the service. SWA said they lost money for years. Their words, not mine. SWA is just as smart, but not smarter, than the next.