Ord-ngo Pull Out?

[WallStreet]

Anyone heard of AA's decision to pull out of the O'hare-Nagoya market. I think it is effective 1 Nov. When did we start this service? This past spring? This leaves this market to UA. What's with this? Did our guys miscalculate the route potential so badly that we now pull out after only a handful of months? So much for our growth into Asia. Will we end up doing the same with Shanghai?

My sources are telling me that UA has also secured a very lucrative contract with Toyota that makes this a big winner for them. I guess we'll continue to play second fiddle to UA/NWA when it comes to Asia. Unless of course we can buy those Asian assets from NWA in a fire sale!!!!

Just a thought.

 

[Oneflyer]

Looking at UAL's website, it doesn't appear that they fly ORD-NGO, only SFO-NGO. The load factors were terrible, unless this flight was losing a ton of money they would not have cancelled it.

 

[TWU informer]

Looking at UAL's website, it doesn't appear that they fly ORD-NGO, only SFO-NGO. The load factors were terrible, unless this flight was losing a ton of money they would not have cancelled it.

[post="307874"][/post]​

Oh yeah, let's base everything we do at AA on UAL, that will fix everything. :huh:

 

[Oneflyer]

Oh yeah, let's base everything we do at AA on UAL, that will fix everything.

What in my statement made you think I was suggesting that? Why don't you trying reading all the posts and then responding.

 

[JFK777]

Given the Janaesse car maker American Headquarters are in California west coast nagoya service seems to make more sense. NW flies from DTW to Nagoya, they bridge the American motor industry to the heart of Japan Auto industry. Chicago to Nagoya bridges neither. I wonder who AA thought the market was? Delta served Portland - Nagoya when it had its ASia hub there, then it moved the service to Los Angeles, but that lasted little time, 9/11 killed Delta service from the west coast to Japan. Nagoya is the third Japanesse market in size, Air France & Lufthansa fly there from Europe. I just wonder if what killed Nagoya, in name is "fuel cost", but in reality is AA's shortage of 777 and the need to go to India in November. IF AA wants to bulk up internationally then they need more 777 because if not its a zero sum game moving airplanes from one market to another.

 

[Oneflyer]

IF AA wants to bulk up internationally then they need more 777 because if not its a zero sum game moving airplanes from one market to another.

Cancelation of NGO is more proof that AA doesn't need any more 777s. Go look at the load factors, the plan was going out with 50-80 people on certain days.

 

[TWU informer]

What in my statement made you think I was suggesting that? Why don't you trying reading all the posts and then responding.

[post="307894"][/post]​

Why don't you take care of your postings and I will take care of mine?

Nobody died and left you in charge, just because you are management doesn't give you the right to dictate posting content, or subject matter. :blink:

 

[B.O.B.]

It was cxld due to low load factors and fuel costs. AA is receiving 2 new 777's by the end of the year. These 777's are scheduled to be used for China.

 

[eolesen]

Unofficially, the national contract for Toyota was out for bid, with NWA, AA and UAL in the running; UAL reportedly won this last week. Now, AA is pulling out altogether (no idea if this is temporary or permanent), and NWA is pulling back three days a week on DTW-NGO.

With the various manufacturing facilities in Illinois, Kentucky, and Tennesee, there's still demand for flying directly into the midwest from NGO; NWA will probably get the bulk of that business now.

 

[MAH4546]

Unofficially, the national contract for Toyota was out for bid, with NWA, AA and UAL in the running; UAL reportedly won this last week. Now, AA is pulling out altogether (no idea if this is temporary or permanent), and NWA is pulling back three days a week on DTW-NGO.

With the various manufacturing facilities in Illinois, Kentucky, and Tennesee, there's still demand for flying directly into the midwest from NGO; NWA will probably get the bulk of that business now.

[post="308098"][/post]​

Very true about the UA/Toyota thing. In addition, this is one reason UA recently launched SAT-SFO...to get the contract. Toyota is building a massive billion dollar plant in the San Antonio area, and will be sending a lot of NGO-SAT traffic.

 

[Corinth2103]

Very true about the UA/Toyota thing. In addition, this is one reason UA recently launched SAT-SFO...to get the contract. Toyota is building a massive billion dollar plant in the San Antonio area, and will be sending a lot of NGO-SAT traffic.

[post="308717"][/post]​

Jeez, San Antonio is practically in DFW and American's back yard, so to speak...American should have been all over this. Instead, UA added the new service and secured the contract, so it seems.


Tim

 

[eolesen]

American should have been all over this. Instead, UA added the new service and secured the contract, so it seems.
Tim

[post="308746"][/post]​

AA -was- all over this. It's simply a matter of AA and NWA being outbid.

It's also proof that corporate customers look for the lowest bidder first and foremost, and won't pay $1 more for a higher level of quality.

 

[Corinth2103]

They may have been all over this as you say, but in your opinion moderaator, would it have made much of a difference if AA had added more service to SA and the new plant to make it more attractive to the folks at Toyota or does it only come down to the lowest bid? I honestly don't know but maybe you have a better take on this..something tells me what the answer is though...


Tim

 

[peasant]

Toyota are also pretty tight with money... a company without many staff perks (like flying first class) so they would have gone for the lowest bidder with decent schedule.

And they fly with whom they are told. Some of the more "prima donna" industries (banking...) even if contrcat is with airline A, senior staff will find excuses to fly airline B (because of mileage or better service)

 

[ZMAN777]

They may have been all over this as you say, but in your opinion moderaator, would it have made much of a difference if AA had added more service to SA and the new plant to make it more attractive to the folks at Toyota or does it only come down to the lowest bid?  I honestly don't know but maybe you have a better take on this..something tells me what the answer is though...
Tim

[post="308789"][/post]​

I also think that overall UA will continue to have a leg up on AA as their schedule/routes cover not only Nagoya but also Osaka, and don't even mention Narita. Add to this their connections throughout Asia and I think one can begin to sense the real competitive disadvantage AA is at.

Another reason AA will be looking to see if NWA is weakened enough to make a play for them in the next 1-2 years.