This could be good news for AA in Miami. Let's hope it increases overall revenue.
http://biz.yahoo.com/prnews/041118/dath022_1.html
http://biz.yahoo.com/prnews/041118/dath022_1.html
New Lower Fares At M I A On American
- Thread starter FWAAA
- Start date
Of course it means increased revenue, but it also means increased voucher activity as yield will continue to oversell the snot out of their tin in MIA - so it will most likely be a wash. 
AA might as well just start giving tickets away and stop charging for them.
This way we can get to chapter 11 much quicker and get all the same crap as USAir and UAL.
This way we can get to chapter 11 much quicker and get all the same crap as USAir and UAL.
What do you want AA to do? Maintain the archaic price structure and sell no tickets? They have to compete domestically! If you are this negative on the job and are this unhappy, and honestly no insult is meant here, is it really too late for a career change? I can't imagine working anywhere, where my dislike for the company and ALL it's actions are as intense as I see above.
With any luck, this will prove to be a big success for AA, and will expand systemwide, forcing all the others to change as well. I applaud the initiative of changing an outdated revenue model.
I have always said that by RATIONALIZING the fare structure, you could actually increase revenue, as ticket prices would become more balanced, and more of them would actually be higher than the actual cost of transportation.
Only time will tell, but this is a BIG first step.
My best to you all.....
I have always said that by RATIONALIZING the fare structure, you could actually increase revenue, as ticket prices would become more balanced, and more of them would actually be higher than the actual cost of transportation.
Only time will tell, but this is a BIG first step.
My best to you all.....
AAStew said:
Never a truer word said....
There seem to be way too many unhappy people working at AA.I just do not understand being that negative about my life's work. If the moment came when I positively hated the company and everything it sttod for, I would leave. American needs to compete with Airtran , Jetblue and the other carriers flying into S Florida. I think they should revise thier fares systemwide. Crandall tried years ago to no avail. Yes there will be additional loss of jobs but that is the nature of the beast. Look at US and UA.In order to keep a dying monster going they are trying to wipe out benefits and wages, AA has not totally gone there yet, but with attitudes as above and elsewhere on this board we will surely help the company sink also.
AAStew said:
This attitude brought to you courtesy of 19 years at AA.
I guess that every employee that speaks their opinion about some of management's decisions has a bad attitude and is not a good,productive employee for AA.
One does not have to worship at the altar of AA management to be a trained, skilled, and productive employee.
You can fly airplanes 65% full and charge more for tickets or you can fly with 80% + load factors by charging less and LOSE money.Our record PROFIT years had load factors around 67%.
Big deal if you fly with 80% load factors but are LOSING money.I'd rather fly less people by charging more and still make a profit.[like the 1990's]
I LOVE my job its just the management that I dislike!
I Welcome this move but I don't think AA will give away the shop I think they will try to strike a balance with this one. Goingboeing made a good point about the amount of yield this may result in but we must realise that everyday more and more people are chosing to go to FLL for cheaper fares and the number of high yielding pax will continue to leave unless AA did something to stop the outflow. I don't think it is too late for AA to implement this strategy in MIA but I am wondering about the cost of doing business in MIA in comparison to doing it at FLL and if the competition between MIA and FLL is on a level playing field when it comes to cost of operation.
Garfield1966
Veteran
I'm sorry, maybe I missed it but where did you say those passengers are that will pay the higher fares are?
Garfield1966 said:
SWA and JetBlue do not have enough airplanes to fly everyone who wants to purchase a cheap airline ticket.AA will get a large portion of the spillover due to marketshare and sheer size.
If you have ever studied business economics the "people in the know" thought Dave Thomas was crazy for building Wendy's as close as possible to MacDonald's.He proved them wrong by understanding the basic principle of spillover business.
There is more than one way to make money in business and AA's problem is that they are trying to become like everyone else.[A bunch of LOSERS!]
I realize this is not the school of popular thought but Mr.Smith proved his college professor wrong when he started FedEx.
There are numerous examples of success of individuals willing to go against the grain and go the opposite direction of everyone else.
We are following everyone else off the cliff by selling a product cheaper than it cost to produce it.
This is an opinion and only an opinion.
Garfield1966
Veteran
From what I can tell, Fed Ex is a unique bird in it's services. USPS does not offer anything comparabe, and what they do offer is quite a bit more expensive.
I do not eat fast food but Wendy's, Mc D's, BK .... seem to all have the same crap at pretty much the same price. Besides, people don'd seem to mind paying a buck more for a burger that they "perceive" is better or different. They do mind paying more for a big ticket item like transportation.
Studies have shown that a carrier will loose market share over just a few dollars (or less) difference in fares.
To me, this sounds like a good idea. At least it is better than anything else that people on this board have come up thus far (which is nothing except got boeing).
I do not eat fast food but Wendy's, Mc D's, BK .... seem to all have the same crap at pretty much the same price. Besides, people don'd seem to mind paying a buck more for a burger that they "perceive" is better or different. They do mind paying more for a big ticket item like transportation.
Studies have shown that a carrier will loose market share over just a few dollars (or less) difference in fares.
To me, this sounds like a good idea. At least it is better than anything else that people on this board have come up thus far (which is nothing except got boeing).
These types of Fare rationalizations almost always result in lower revenues. Thats why AA and others have been reluctant to implement them. But its the competition that dictates what you charge weather we like it or not and the customers love it!
