We don't need these clowns anyway. You can bet the accountant types over at HQ ran the numbers before AA pulled the plug. People are just going to go to aa.com and book anyway, so why pay commissions to these online travel agents? Who needs them? The more money AA can save the more we can go after in negotiations.
American pulls tickets from Orbitz
- Thread starter damajagua
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<_< ------- That's big talk frontline! And you know what they sasy! "Talk is cheap!" ------- I hope your right! Or should I say, I hope AA's right on this one!
eolesen
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Supposedly AA has already released a statement saying that bookings on AA.com were up since the battle with Orbitz and Expedia went public. I'm not too surprised -- anyone who is looking for AAdvantage miles is going to either book direct or find another OTA who still sells AA.
BTW, to set the record straight a bit, Expedia's contract with AA expired on 12/31/10, so I'm sure AA had run the numbers on both scenarios already.
Frank Szabo
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.
E:
Whether the numbers were up or down, did anyone expect the twits at Centrepork to post anything different than how much better they were doing without the anchor around their necks?
We are all exposed to lying every day by politicians and corporate heads - the company response was predictable, true or not.
eolesen
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Frank, the company could put out a press release today saying "it's 03 January 2011", and you'd be skeptical over whether or not it was true...
Making false statements about sales activity is a pretty clear way of getting sideways with the SEC and shareholders, and knowing how AA Legal works, I would bet real money that they're more concerned about staying in compliance with the Feds than they are about trying to spin this particular situation to their advantage.
Frank Szabo
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I disagree, Mr. E - while it's most definitely not a good idea to be stretching the truth in a legal document such as an SEC filing (the Feds do tend to become a tad testy about those things), a company can release anything (non-sworn) to the public it wants - advertisements are a good example - how else could 20 different companies get away with being the best, the cheapest, and have the best service and most destinations, all at the same time?
eolesen
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Here's the news release:
http://aa.mediaroom.com/index.php?s=43&item=3109
Here's the investment community & market's reaction to the situation:
http://www.marketwatch.com/story/expedia-drops-american-airlines-shares-fall-2011-01-03
http://aa.mediaroom.com/index.php?s=43&item=3109
Here's the investment community & market's reaction to the situation:
http://www.marketwatch.com/story/expedia-drops-american-airlines-shares-fall-2011-01-03
WorldTraveler
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There has not been anywhere enough information provided to know whether AA is actually being impacted or not. AA may or may not be being being impacted but since the industry today is healthier than it was a year ago, it is very much expected that AA's sales should be at least as good as they were.
AA's update also cannot reflect the most recent condition and changes with Expedia.
AA investor relations can certainly be accurate in what they have said but the mere fact that they moved so quickly to try to downplay any possible bad news is all the reason to keep an eye on the situation. Until more definite information over a longer period of time - not just a holiday week - can be used as the basis for comparison, not enough is known including the quality of bookings and other factors that may have existed this year/last year that otherwise would surpress/enhanced booking levels.
What has been said so far has little significance.
And it also is very much likely that other carriers ARE going to stay out of the spat until their plans for reducing their own distribution costs are full developed and airtight.
AA's update also cannot reflect the most recent condition and changes with Expedia.
AA investor relations can certainly be accurate in what they have said but the mere fact that they moved so quickly to try to downplay any possible bad news is all the reason to keep an eye on the situation. Until more definite information over a longer period of time - not just a holiday week - can be used as the basis for comparison, not enough is known including the quality of bookings and other factors that may have existed this year/last year that otherwise would surpress/enhanced booking levels.
What has been said so far has little significance.
And it also is very much likely that other carriers ARE going to stay out of the spat until their plans for reducing their own distribution costs are full developed and airtight.
Frank Szabo
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One other observation, E - we who do something for a living besides populating a cubicle or office space have been lied to on a non-stop basis by either the company or its wholly owned subsidiary, the TWU, ever since I've been in a position to watch - 1990. Due to that, I no longer have any trust of said company or its pet "union" nor do many others, not just limited to the group posting here.
I think a Republican hero said it best - "Trust, but verify". That was one of Ronnie Rayguns quotes, I believe.
You are correct, though - anything either says, posts, mails, etc. and et al will be verified, at least by me as I and many others no longer believe a thing from either entity at face value. If any statement can't be independently verified, it's considered another lie - Standard Operating Procedure.
Yes, you are correct - if either of those parties said it was daylight outside at 1000, I'd go look.
eolesen
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http://www.bloomberg.com/news/2011-01-05/sabre-to-drop-amr-airfare-data-as-dispute-over-online-ticket-sales-widens.html
In a related note, yesterday, credit default swaps on Sabre debt were trading at their highest level since May 2010....
In a related note, yesterday, credit default swaps on Sabre debt were trading at their highest level since May 2010....
WorldTraveler
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The implications for the CRS/GDS industry are enormous and it should come as no doubt that they are willing to pull out all the stops to keep the status quo is no surprise.
The article also notes that DL's CEO said that the distribution system used by airlines needs to change to reflect how other industries sell their products and services.
AA will not be alone in changing the distribution model and AA will ultimately win.
The real questions are whether AA will fight this battle by themselves for now, how prepared other airlines are to change their distribution strategies, and when their contracts are open for renewal - which is what is driving AA's moves at this time.
WorldTraveler
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good for AA. Sabre and AA still have a contract and even if AA succeeds at changing the distribution model, it will be a long time before AA no longer has an interest in displaying its flights in every Sabre powered channel - and AA should fight aggressively to keep its distribution systems intact.
While the CRS/GDS world will likely change dramatically in the coming years, it is the airlines that will determine when they are ready to make the changes and their suppliers better be scrambling to figure out how to adapt.
While the CRS/GDS world will likely change dramatically in the coming years, it is the airlines that will determine when they are ready to make the changes and their suppliers better be scrambling to figure out how to adapt.
