B6 announces BOS-DFW

[RevThruster]

Looks like B6 [JetBlue] is starting BOS-DFW 3x a day! DFW is getting some new action since AMR has been in BK, will be interesting to see how it all plays out.

 

[Maark767]

Looks like B6 [JetBlue] is starting BOS-DFW 3x a day! DFW is getting some new action since AMR has been in BK, will be interesting to see how it all plays out.

If things go as planned and AA achieves this low cost structure, I'd bet AA will chase them right out of the market. A major hub and a low cost structure is one tough competitor.

 

[RevThruster]

If things go as planned and AA achieves this low cost structure, I'd bet AA will chase them right out of the market. A major hub and a low cost structure is one tough competitor.

B6 has a very large and LOYAL following in BOS. Being it is 2 very large markets , I wouldn't be surprised to see B6 actually add more capacity to the route than take away. You seem to have some very dark tinted rose colored glasses on. AA will likely continue to shrink even AFTER their BK is over [which won't be for a couple of years at minimum]. That is more than enough time to get a foothold in the market.

 

[Maark767]

B6 has a very large and LOYAL following in BOS. Being it is 2 very large markets , I wouldn't be surprised to see B6 actually add more capacity to the route than take away. You seem to have some very dark tinted rose colored glasses on. AA will likely continue to shrink even AFTER their BK is over [which won't be for a couple of years at minimum]. That is more than enough time to get a foothold in the market.

I disagree .... I dont think AA is going to shrink. In less than a year AA will begin to take delivery of 460 airplanes. Yeah sure some will replace the jets AA will ground but most are slated for growth. I dont think this BK is going to be like the ones in the past.

 

[Barfbag]

I disagree .... I dont think AA is going to shrink. In less than a year AA will begin to take delivery of 460 airplanes. Yeah sure some will replace the jets AA will ground but most are slated for growth. I dont think this BK is going to be like the ones in the past.

At JFK I've been watching a steady daily increase of transfer bags from B6 to AA
( LHR) to BA.

There are still terminal displays on monitors with B6 and AA logo as partners.

So it seems that B6 is more joined-at-the-hip with AA than not.

 

[damajagua]

At JFK I've been watching a steady daily increase of transfer bags from B6 to AA
( LHR) to BA.

There are still terminal displays on monitors with B6 and AA logo as partners.

So it seems that B6 is more joined-at-the-hip with AA than not.

I have seen the B6 and AA logo display in monitors @ JFK T8
But nothing about AA logo @ T5.

Things that make you go hummmmmm!!!!!

 

[WorldTraveler]

It is quite simple that B6 is a competitor to AA and is doing everything it can to build its own network. B6 really doesn't care if it steps on its "partner's" toes and the notion that AA benefits can only be found to be true if AA you consider that AA no longer flies many of the markets in which B6 has grown... in the Caribbean, you need only look at AA's former presence and B6's current presence and realize how much AA has given up.
.
Domestic airlines cannot share revenue... AA sells some frequent flyer miles and B6 produces the seat for a lower cost that AA COULD turn around and sell - but make no mistake, AA has left these markets and B6 is moving in.
.
DFW-BOS is the most aggresive market but it goes with ORD-BOS where B6 now has about a 20% share and they have driven average fares down... partners don't drive partner's fares down.
.
These are exactly the type of competitive incursions that AA will have to face for the next 18 months - or as long as they are in BK... and AA has been in BK for one week.
.
IN other competitive news, DL made a $100M investment in Brazilian carrier Gol in return for an exclusive partnership w/ a DL seat on G3's board... AA might win the Lan/TAM alliance contest but one of the big 3 US network carriers is going to be left out of the Brazilian market where G3 and JJ basically split 90% of the domestic market. As I noted in the DL forum, DL is undoubtedly prepping G3 to reenter the int'l/US market.
This is yet another type of strategic disadvantage AA will face in BK...

 

[FrequentFlierCA]

If things go as planned and AA achieves this low cost structure, I'd bet AA will chase them right out of the market. A major hub and a low cost structure is one tough competitor.

I agree with you. I was living in LA when AA and B6 duked it out on the LGB-JFK route. I don't remember how many $250 transcons I flew, but it was more than a dozen.

 

[WorldTraveler]

I agree with you. I was living in LA when AA and B6 duked it out on the LGB-JFK route. I don't remember how many $250 transcons I flew, but it was more than a dozen.

The transcons have long been a major portion of AA's revenue... the difference was that AA had the strength to withstand the amount of competition that has long been part of the industry.
The difference is that AA has been competing in the largest transcon markets with 762s which are the most expensive CASM aircraft in the US carrier mainline fleet compared ot the revenue they bring in.
AA will be ditching those aircraft which will improve its ability to compete.
But AA also faces enormous growth of competitors in its transcon markets, both of network and low fare carriers. UA/CO has largely succeeded at reducing AA's transcon presence to symbolic out of UA/CO's hubs, DL has grown in the JFK transcons to be about as large as AA in the local markets, and there are a host of low fare carriers that have invaded dozens of transcon markets, with BOS the largest "success story" from the LFC perspective.
AA will be able to hold onto a position in the transcon markets but its product will necessarily change as it must reduce costs to levels from which it can compete using aircraft with a lot less space onboard - and other carriers will continue to chip away at AA's revenue premium, with UA/CO and DL very focused on attracting the high yield business traffic that AA has long carried.
.
When you combine the changes on the transcons with what is happening in hubs like DFW that have long been revenue monopolies for AA, the sledding is going to get a lot tougher in the months ahead.