AMR to cut capacity in 4th qtr

[chucky]

story








Anyone have details on this?

 

[777 fixer]

No, but since the forth quarter is a slow time of the year it's to be expected.

 

[Hunter]

No, but since the forth quarter is a slow time of the year it's to be expected.

I'd rather think AA is signaling the rest of the industry to hold the line on capacity. To drive that point home, AA even announced a capacity CUT, insignificant as it may be.

Hunter

 

[kirkpatrick]

More important than minor schedule changes every once in a while was the line in the APA message to pilots about the recalls. It was stated that the overall level of flight activity would be roughly the same in 2007 as in 2006. While growth would be nice, it's nice for those of us awaiting recall to finally see something in writing on the company's plans for next year.

As far as capacity is concerned, CO announced expected growth of 7 to 8 percent per year for the next few years.

MK

 

[eolesen]

CO's announced growth and actual growth rarely match up after the fact...

 

[markkus757]

especially since CO is seeing 69 ERJs leaving the fleet and they've only announce replacements for 44!!!

 

[Hunter]

I'd rather think AA is signaling the rest of the industry to hold the line on capacity. To drive that point home, AA even announced a capacity CUT, insignificant as it may be.

Hunter

American Airlines Pushes Capacity Constraints

By Ted Reed
TheStreet.com Staff Reporter
10/24/2006 12:51 PM EDT

The CEO of the world's largest airline is trying to exert leadership in his notoriously undisciplined industry.
In fact, Gerard Arpey, CEO of American Airlines parent AMR (AMR - commentary - Cramer's Take), is trying to lead by example.

Arpey said last week that in 2007 American will cut overall capacity by 1%, with a somewhat larger decrease in domestic capacity.

 

[nbmcg01]

American Airlines Pushes Capacity Constraints

By Ted Reed
TheStreet.com Staff Reporter
10/24/2006 12:51 PM EDT

The CEO of the world's largest airline is trying to exert leadership in his notoriously undisciplined industry.
In fact, Gerard Arpey, CEO of American Airlines parent AMR (AMR - commentary - Cramer's Take), is trying to lead by example.

Arpey said last week that in 2007 American will cut overall capacity by 1%, with a somewhat larger decrease in domestic capacity.

With AAs ability to send domestic to AE (without consequences) it shouldn't surprise anyone to see a decline. This will only change when the flying public says, "no more" to the LBJs. (little bitty jets)

 

[FWAAA]

With AAs ability to send domestic to AE (without consequences) it shouldn't surprise anyone to see a decline. This will only change when the flying public says, "no more" to the LBJs. (little bitty jets)

I'd completely agree if there were more RJs to be delivered - but there aren't any on order. So any "Eaglization" of former mainline routes just means other Eagle routes are canceled or cut back. Lots and lots of mainline routes were "Eaglized" over the last 8 years, but now that there aren't any more RJs on the way, that's come to a halt.

 

[nyc6035]

With AAs ability to send domestic to AE (without consequences) it shouldn't surprise anyone to see a decline. This will only change when the flying public says, "no more" to the LBJs. (little bitty jets)

FWIW from a former TWA Lifetime Platinum member....if I have to travel in coach...(and with American that's certainly fairly likely)...I much prefer the LBJ to a Real Jet.

As long as I can book an 'A' seat I get a window and an aisle seat together...there's only one seat on that side of the craft...1-2 seating...(no worries about a 400 lb guy sitting next to me)... and my 'carry on' bag is 'valet checked' planeside so I don't have to worry about storage...I just pick it up again planeside on the other end. All in all it's a reasonably pleasant way to travel for up to 2 - 2.5 hours...in coach.

 

[eolesen]

Eagle doesn't have any excess capacity right now, but don't overlook the fact that there's another Texas based RJ operator who is about to have a whole bunch of excess capacity when their contract with CO is up.