AA to lose MIA-CWB, VCP, FRA

[WorldTraveler]

AA's longhaul network from MIA will shrink by next summer with cancellation of CWB (Curitiba, Brazil) and FRA as well as the apparent conversion of VCP (Campinas, Brazil) to seasonal service.

GIG seats are down 23% while CDG seats are up 18% on larger aircraft.

Overall AA MIA longhaul seats are down 8% for the summer of 2016

 

[MAH4546]

Given that AA hasn't loaded equipment schedules past January 4th and hasn't yet announced its S16 flying, there is absolutely nothing to be determined about AA's S16 schedule from Miami. Reductions in Brazil flying are obviously not surprising and MIAFRA should have been MIAZRH from the start. With pretty much every network European carrier at MIA flying to about 20 European cities non-stop, AA isn't going to win the markets without strong bidirectional traffic which is largely the UK, Spain, Switzerland, Italy and France.

CWB was a very odd add from the start and was really just to help fill a plane from POA. POA has been doing fine in its own and will get a dedicated service.

Also you forgot AA is going back to 4x daily on JFKLHR but that doesn't fit your agenda.

 

[WorldTraveler]

A route that has been pulled from schedules is not going to be flown. The equipment that might be used is of course always subject to change.

Given that AA's marketing exec for Brazil said that AA continues to have to discount in order to fill seats, the chances are high that there will be more cuts or downgrades than the other way around.

Latin America has always been a very cyclical market. The expectation was that Brazil had embraced free market economics better than other countries in Latin America and because of its size would be a stable long-term market. Brazil's dependence on commodities and esp. those used by China as well as Brazil's inability to enact deep budget cuts to get the economy back on track are two of the major reasons why the chances of a quick resolution are not likely.

It simply makes sense even with low fuel prices for carriers to deploy capacity elsewhere, esp. given that the strong dollar is increasing traffic from the US to Europe.

 

[MAH4546]

The fact remains that AA has not announced summer flying whatsoever. Ecuador, Chile and Peru are doing well, so those are three long-haul markets where AA might add capacity. Miami-Rome/Zurich are two strong markets where AA could add a presence. We don't know what AA is planning next summer.

 

[WorldTraveler]

yes, northern and western S. America are doing well.

No one has doubted that.

But Brazil is getting hit badly and Brazil is a very large part of AA's Latin network.

and for now, AA hasn't announced any MIA flights to replace the cxld ones.

If they do, we'll be sure and discuss it because it will be important at that point.

Let's remember though that AA doesn't even serve MIA-MXP on a daily year round basis... FCO is a different market but it is even more seasonal.

further, there were some of us that said that AA's push into Germany post-merger was an attempt to ride on US' former Star membership and that AA's position in continental Europe would not simply follow on what US had.

obviously, AA's 2016 new routes will be an important announcement.

 

[NewHampshire Black Bears]

I hear Q3 profits coming out(right around the corner)  !!!!!
Should be interesting, as it ALWAYS is between  AA and  Del - DUH  !   :angry2:  

 

[jcw]

Interesting when AA might be dropping a route there is a thread started - how is there never a thread on the DL site - very interesting

 

[WorldTraveler]

This board isn't tit for tat as much as you seem to think otherwise.

These are business issues.

AA cancelled 3 longhaul routes from one hub within the space of a couple weeks. That is worthy of discussion regardless of the airline or hub.

as for profits, AA and DL have both already announced their projected operating margins. DL will be in the 22% or so operating margin range; AA will be about 17-18%.

It is possible depending on charges or special items that AA might show a larger net profit because DL and WN are accounting for income taxes while AA and UA are not.

It is precisely because US airlines are for profit companies that they will have to continue to drop routes and then add others when they can as business conditions change.

 

[kirkpatrick]

Mark, just pointing out that the new JFK-LHR service will be a morning departure.  That's welcome news for those of us based here that always liked that flight, which disappeared some years ago.
 
MK

 

[eolesen]

Interesting when AA might be dropping a route there is a thread started - how is there never a thread on the DL site - very interesting

That's because the DL forum is all about lollipops and rainbow farting unicorns.

 

[traderjake]

That's because the DL forum is all about lollipops and rainbow farting unicorns.

 
"It's funny because it true."

 

[WorldTraveler]

Interesting when AA might be dropping a route there is a thread started - how is there never a thread on the DL site - very interesting

you are free to start any thread you want. This isn't a game of tit for tat.

AA is redeploying assets from Latin America and continental Europe to LHR which follows precisely where AA's weaknesses and strengths lie.

It is to be expected.

amazingly, other carriers do the very same thing. Or at least profit-motivated companies do.

 

[FrugalFlyerv2.0]

AA's longhaul network from MIA will shrink by next summer with cancellation of CWB (Curitiba, Brazil) and FRA as well as the apparent conversion of VCP (Campinas, Brazil) to seasonal service.

GIG seats are down 23% while CDG seats are up 18% on larger aircraft.

Overall AA MIA longhaul seats are down 8% for the summer of 2016

 
I'm a little surprised that given your blathering about AA's demise in South America you forgot to parrot AA's Venezuela currency problem(s).

 

[WorldTraveler]

this is a thread about service.

AA probably will address their Venezuela currency issue in their earnings report. They have had a fairly lengthy warning in their earnings statements for the last several quarters so they are well aware it is there.

If they take a charge or change the statement they have had for the past several quarters, we can talk about it. Ok?

probably not in a thread about MIA service which includes other regions of the world.

 

[FrugalFlyerv2.0]

Just making sure you haven't forgotten the other strategic business challenges plaguing AA.
 
(hook line sinker)