" Right Gauging the Fleet "

[BoeingBoy]

All saying what I said initially - there's no such thing as "the lowest CASM airplane." Lots of other variables affect CASM besides weight and # of seats...

I thing we've come full circle and now you agree with me. So tell us all - how many A330's has DL ordered since the merger?

Jim

 

[WorldTraveler]

I thing we've come full circle and now you agree with me. So tell us all - how many A330's has DL ordered since the merger?

Jim

the same number as every other new model aircraft type except 739ERs.... ZERO.

And we can agree so long as we say that CASM is a reflection of the aircraft that your competitors will use. AA AND DL etc don't have to worry that one of its competitors will put a 744 or 380 on anything significant on the domestic system, but it does have to worry about the aircraft types that might be used on their domestic system where a difference of several percent can be a huge factor - and that must include regional aircraft as well as mainline.
.
The problem is that CASM changes of each aircraft move at different rates relative to other aircraft choices... it would be a very easy job picking an aircraft if you could lock in all costs 20 years out... but you can't. AA might believe that $20B for new domestic narrowbodies will give it a cost advantage but that all depends on the cost of the underlying financing for those aircraft, fuel, maintenance expenses at other carriers, pilot costs.... and it also includes how easily jobs can be moved between suppliers (regional carriers).

Let's also not deny that AA has had buyers remorse for a number of fleet types it has acquired and had later to spend significant amounts of money both to replace the "defective" type and as a price for not having the right asset at the right time.
That I believe is the biggest concern about a 190 order... looks good today given a known set of circumstances but might not have the flexibility or cost advantage relative to other aircraft that might be used down the road, including other 150 seat aircraft which are the backbone of the US airline industry.

 

[john john]

Don't know if you've seen today's reports, but AA got permission to hire the consultants it wanted despite objections from the unions and the U.S. Trustee.

Jim

Anyone body else object to Rothschild Inc. financial consultant in court? Any new news on the retainer fee?

 

[BoeingBoy]

the same number as every other new model aircraft type except 739ERs.... ZERO.

Like I thought, DL hasn't ordered the "lowest CASM plane" - what's wrong with those DL execs increasing CASM unnecessarily...

And we can agree so long as we say that CASM is a reflection of the aircraft that your competitors will use.

There you go making another unsupportable statement. What competitors fly or don't fly makes absolutely no difference to an airline's CASM. Of all the factors that go into an airline's CASM, competitor's plane choices aren't part of the formula.

Let's also not deny that AA has had buyers remorse for a number of fleet types it has acquired and had later to spend significant amounts of money both to replace the "defective" type and as a price for not having the right asset at the right time.

Show me an airline that hasn't made bad decisions and it'll be an airline that either hasn't been around long enough to make one yet or has a niche that it operates in. And the mighty DL isn't immune. How did DL's "airline in an airline" work out competing with WN? I seem to remember them dropping that. How about the MD-11's - how long were they in the fleet? They bought DC 9's with the NW purchase - a little remorse about having those? US also had F100's for a short period, the airline in an airline with Metrojet, a shrinking/growing FC with the convertible seats and moveable dividers, etc.

 

[Super FLUF]

I don't have to.

Thank you for sharing that erudite, in-depth analysis. I am now convinced that the E190 is not viable at mainline.

I am also convinced that your pay rate caused AA to go into bankruptcy. I have no cost breakdown to validate my claims, because apparently, "I don't have to".

 

[700UW]

Well look here WT,

UA ranked #1 most admired Airline by Fortune, DL ranked 4, how can that be? lol And WN was ranked #3, the world is coming to an end, lol!

Story

 

[737823]

Well look here WT,

UA ranked #1 most admired Airline by Fortune, DL ranked 4, how can that be? lol And WN was ranked #3, the world is coming to an end, lol!

Story

Although I give zero credit to anything that ranks UA above CX I must point out that US Airways ranked near the bottom!

Josh

 

[700UW]

Do you think I care?

Everyone knows US is a pig with lipstick on, its no secret.

Its basically HP with a US Paint job.

And I forgot AA was ranked LOWER than US, so what does that say? LOL!

 

[Buck]

Do you think I care?

Everyone knows US is a pig with lipstick on, its no secret.

Its basically HP with a US Paint job.

And I forgot AA was ranked LOWER than US, so what does that say? LOL!

And where did the TWU rank?

 

[737823]

Do you think I care?

Everyone knows US is a pig with lipstick on, its no secret.

Its basically HP with a US Paint job.

And I forgot AA was ranked LOWER than US, so what does that say? LOL!

As an employee and union official you should care how your airline is perceived. Truthfully, all of my recent experiences on Shuttle flights have been good, but not excellent. On-time departure, professional FAs, fairly new clean aircraft. I just wish US would spend some money to fix up their dilapidated club at BOS and LGA. It's really pretty awful although the former Envoy Lounge at PHL is spectacular.

At any rate its still outrageous that UA scored better than CX and SQ. They must not have employed sufficient sampling and data collection techniques or somehow influenced peoples votes (like AFA unsuccessfully claimed DL did when they lost )

Josh

 

[eolesen]

Although I give zero credit to anything that ranks UA above CX I must point out that US Airways ranked near the bottom!

Josh

As a banker, y ou should learn to read the fine print:

http://money.cnn.com/magazines/fortune/most-admired/2012/faq/

The survey is on everything from investment quality to corporate social responsibility. The onboard service level of the company is just one aspect.

Notice that airlines like Alaska, Virgin and Jetblue are entirely absent...

 

[WorldTraveler]

The ranking considers the largest companies which is why some companies didn't make the cut.
.
DL was the #1 airline last year in the same survey.... and I doubt very seriously that they are growing to start ripping the labels off their planes tomorrow which tout their win in the ranking.
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UA is doing very good things... they have their own unique way of approaching the business but are making good choices.
.
What is more significant is that after decades of being the laughingstock in the global airline industy, there are US airlines that are effectively competing in the global airline industry and are perceived as on par if not better than some of their peers that have had to endure far less competitive pressure than what US airlines have been through since 9/11.
.
Yes, Jim, airlines absolutely MUST consider what aircraft and CASM competitors have in making a decision about what aircraft to buy or contract with. I didn't say other carriers' fleet affects another airline's CASM but if there was no consideration to how competitive CASM, then AA wouldn't be bothering to order $25B in new airplanes - and they wouldn't care if an E190 flying for Eagle could be competitive or not.
But they must consider whether an AE 190 with 88 seats can be competitive w/ a DL or UA operated E175 or a B6 321.
And that is why if AA acquires a 100 seater, it is doubtful it will be flown by AA mainline crews and that if a bunch of 190s are indeed acquired, the growth AA promises for mainline coming from the 737/320 part of the order will ever materialize.

 

[TWU informer]

The TWINS strike again!

 

[eolesen]

The TWINS strike again!

Is there anything you either don't see having a big black cloud hanging over or being the cause of some conspiracy, Dave?...

 

[TWU informer]

Is there anything you either don't see having a big black cloud hanging over or being the cause of some conspiracy, Dave?...

Sure God and the Bible.

Nothing from this industry of greed, lies, and manipultation though... which you appear to be professional at involvement, and have for years now?