WorldTraveler said:
no. with 250 of the seats on the aircraft in coach, it is completely illogical to say that coach doesn't matter because business is where the money is made.
If business was the real source of revenue you think it was, AA would have left seats in business. But they didn't; they are shrinking their business cabin.
The simple reality is that average fares in the entire aircraft have to be high enough to justify operating the flight.
And, again, KE and OZ's 777s have 9 abreast in the coach cabin, just like DL and UA have on their 777s.
AA has an uncompetitive product.
They are discounting in order to fill the aircraft; their marketing person in SEL said they are undercutting the S. Korean airlines.
The money is made in the front cabins, WT. Sure, airlines need people buying the cattle-car seats in the back to help make flights profitable overall, but the reality is that economy-seat passengers will sit in just about any squalor-style conditions they're given.
Here's some back-of-the-envelope calculations to illustrate my point. The AA 77W seats about 300. Let's say a typical load factor is 80%, or 240 occupied seats. If the plane burns 40,000 gal of jet fuel each way, that's $120,000 just for the gas. If we divide that by the 240 passengers, that's $500 for fuel each way per passenger, on average.
Right now, AA is selling seats DFW-ICN in early November for $1,390 all-in round-trip, of which AA gets to keep $1,300 (subtracting out all the government taxes for international travel). So from that fare, $500 of the $650 each way pays for the gas, leaving just $150 of revenue per seat to cover everything else. AA isn't going sell any more (or fewer) of those economy fares whether it's eight across, nine across, ten across or, god forbid, 11 across in econ.
AA's current business class special on those flights is $3,481 round-trip for an I fare (of which AA gets to keep $3,390) and AA's current First Class special is $5,981 for a P fare (of which AA gets to keep $5,890). Not only do those premium cabin fares pay for their share of the fuel, they also leave a lot of money to pay for the crew, the plane, the maintenance, the management, the agents at both ends, etc. And yes, those premium cabin special fares (purchased more than 2 months in advance) are probably a lot lower than the premium cabin fares sold by DL, UA, KE and OZ. But those premium cabin fares are where any airline makes it money (except for economy-only airlines). All airlines need economy fares and passengers, but that's not where they make the profits. Economy passengers help cover the fuel bill.
I'm the interweb's biggest cheerleader for humane economy seating out there. My defenses of MRTC place me on an island - all alone.
eolesen, whom I respect, has politely posted that I'm wrong and that higher seating density does result in more revenue than generous legroom and generous width seats would yield. I believe him. Nevertheless, I agree that 10-across would suck, if I ever have to sit in it.
But I don't have to sit in Y-. I'm special and I'm a bigshot because I fly AA so much. I get to sit in the wider 9 across MCE section with more legroom for free because of my top-tier status. And I get upgrade certificates that I can use to escape the horrors of economy. Those who pay full fare econ fares for business travel usually get free upgrade certs from their corporate travel rep.
But here's the thing: AA has placed its 10-across 77Ws on its big flagship routes, like LHR and GRU, places where AA makes money. Seriously big money. Enough money to cover its losses in the Pacific with lots of money left over. $1.9 billion wo in the first half of 2014. Any evidence that 10-across 77Ws have hurt AA to LHR or GRU? Nope.
Like you said - Asians tend to be smaller than big, tall and fat Americans and big-shot Asian businessmen/women will be sitting in MCE or business class or first class anyway, so cramped economy is something they won't experience any more than I will.
10-across 777 seats are the exact same economy seats used on DL's 747s and UA's 747s (17.2 inches). Are those economy sections uncompetitive? Same seats as UA's 787s (nine across instead of JAL and ANA 8-across 787s). I hate to say it, but offer the econ passengers a deal, and they'll sit in cramped econ seating. Meanwhile, the bread and butter passengers are sitting in luxury up front, and they're covering a lot more than their share of the fuel bill both ways.