LGA-BOS Shuttle?

[will fix for food]

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On 9/20/2002 5:59:35 PM Jeff G wrote:

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On 9/20/2002 4:42:57 PM TWAFA007 wrote:

With triple miles thrown in and a much lower cost structure we will shall see what happens.
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A much lower cost structure?!? How do you figure that? RJ unit costs are way above mainline equipment. They cost less on an absolute basis, but they carry even fewer seats. Considering that those routes are running at relatively low loads, maybe this is a case of "rightsizing," but low cost, it ain't. I think this is a case of future market share poaching, rather than meeting the needs of the market. For sure, there are too many seats on this market already.


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Apparently Eagle RJ costs are 7.9 cents per ASM. I have not seen figures for the Delta 737/s and US A320/s...how do they compare?

 

[radar person]

Slots? Not after AIR-21.....

 

[G4G5]

LGA will always have some form of slot's. Call it whatever you want, but their is only so much airspace over NY and only so much ramp space at LGA.

Didn't the the CLOWN from AZ, try to remove the restrictions just two years ago. The FAA has the job to protect the traveling public and they inturn will be required to keep the limits in place at LGA. Take it from someone who lives at LGA, you just can't get more then one take off and one landing completed in a 60 second period.

 

[RJsnotlowcost]

American Eagle RJ costs are between 18-19 cents/ASM not 7-8 as you claim.

 

[will fix for food]

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On 9/24/2002 4:51:44 PM Busdrvr wrote:

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On 9/24/2002 4:27:35 PM RJsnotlowcost wrote:

American Eagle RJ costs are between 18-19 cents/ASM not 7-8 as you claim.
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I agree, the devil is in the details, you can "transfer" some costs and have the mainline "subsidize" the RJs.
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You mean artificially inflate the costs of operating mainline equipment to make RJ costs appear lower? What would you gain by doing that?

 

[Busdrvr]

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On 9/24/2002 4:27:35 PM RJsnotlowcost wrote:

American Eagle RJ costs are between 18-19 cents/ASM not 7-8 as you claim.
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[/blockquote]

I agree, the devil is in the details, you can transfer some costs and have the mainline subsidize the RJs.

 

[will fix for food]

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On 9/24/2002 4:27:35 PM RJsnotlowcost wrote:

American Eagle RJ costs are between 18-19 cents/ASM not 7-8 as you claim.
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I was just referencing the numbers in the thread speaking of CASM... over on the USAirways board....check it out. Apparently they are from Aviation Daily.

 

[RJsnotlowcost]

No they are not making the costs look less for the mainline. AMR will tell you that the RJ cost per ASM are 18-19 cents per ASM. The fun starts when you figure out who is paying American Eagle. How does AE get paid when a customer calls AA and books a trip on AE and AA. You know that connecting traffic?! How much goes to AE and how much goes to AA? I heard a rumor that AE is paid 32 cents per ASM, by AA. No wonder AA is losing money if thats true.

 

[will fix for food]

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On 9/26/2002 3:17:11 PM RJsnotlowcost wrote:

How does AE get paid when a customer calls AA and books a trip on AE and AA. You know that connecting traffic?! How much goes to AE and how much goes to AA? ----------------
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I believe that the value of the Eagle leg goes to AE and the value of the American leg goes to AA. On top of that there is something called a 14% connect incentive that goes to AE. What that is I don/t exactly know.

What I do know is that AE and AA have seperate profit and loss records. In 1999 Eagle showed a loss of 20 million from their operation in LAX. The passengers connecting off Eagle planes there generated 80 million in revenues for AA. The bottom line is AMR net gain = 60 million.

 

[Bob Owens]

You mean artificially inflate the costs of operating mainline equipment to make RJ costs appear lower? What would you gain by doing that?

Avoid prosecution for Predatory Pricing maybe?

 

[planemech669]

[P][A href=http://www.usaviation.com/nm/anmviewer.asp?a=627&z=8]http://www.usaviation.com/nm/anmviewer.asp?a=627&z=8[/A][/P]
[P]Chip put together a decent article here.[/P]

 

[radar person]

>>Didn't the the CLOWN from AZ, try to remove the restrictions just two years ago.

I'm not sure who the CLOWN from AZ is (does it start with Mc?)...but yes, with the passage of AIR21 the statutory limitation (FAR93) on takeoffs and landing at LGA was lifted for regional jets, which was quickly followed by an influx of RJ traffic, and big delays. The FAA met with the airlines to work out a gentlemen's agreement on how to limit traffic (since it couldn't re-regulate FAR93).

There have been several gentlemen's agreements - the DCA perimeter rule, which AA decided to bust in the early '80s, turned into a law.

So the airlines are allowed to stretch the envelope at LGA until someone complains...

 

[Bob Owens]

God help the residents of Woodside.