What Now?

[Bagbelt]

With what NW wants there is only one solution: we will make working at the airport a vocation with a vow of poverty. They said a Thai f/a will work for 1,000,000 bhat a month. I'll work for 900,000 bhat a month! I can sleep in a cart in the bagroom and eat of the planes, no wait, no more food. Well, I can bum a bagel off the dunkin doughnuts guy. An LD-3 will sleep 2 nicely. I've had my eye on an LD-8, but I can't afford it.

 

[MOUNT KISCO]

Hey, Bags

Remember it's not what the airlines want but how much the passenger wants to pay. It's a race to the bottom, and the airlines are taking us for a ride. If you're young enough to get out of this business and find something else like McDonalds then do it. Well at least you'll have one meal a day. 😀

 

[DFWCC]

Hey, Bags

Remember it's not what the airlines want but how much the passenger wants to pay. It's a race to the bottom, and the airlines are taking us for a ride. If you're young enough to get out of this business and find something else like McDonalds then do it. Well at least you'll have one meal a day. 😀

[post="303719"][/post]​

Why doesn't everyone drive a $6500 KIA?
I think the LLCs are keeping the price low to kill the Legacy carriers. They could make 2x the money by raising fares, but no... they want low prices so the legacys can not expand. The majors lose money and contract. Wallah! leaving more room for LLC expansion and further undercutting the legacys. As long as the LLCs make enough to get by they'll keep the price down. In the slow long run (which they have been using since 2000) they gain more mkt share and more pricing power. It just keeps on rolling.
Solution: AA needs to compete equally. Get rid of freight leave that to the Cargo Air Companies. Drop all these Admiral clubs. Hey the bus pgr isn't willing to pay for extras why give it to them. Go with the TVs get rid of the Data-ports. Most of those who use a PC have their own power.
Sell a seat, take a bag, seat them, fly them, turn on tv, give 'em a drink and land safely on time, give them their bag and say thank you... AMEN

 

[Hopeful]

I agree with DFWCC that the LCC's want to kill the legacy carriers.
But thanks to the bankruptcy courts, there will be nothing left BUT low cost carriers.

 

[limit]

Hey, Bags

Remember it's not what the airlines want but how much the passenger wants to pay.

[post="303719"][/post]​

Do you think that the consumer wants to pay $4.00 at the pump?
The demand and supply theory is just that; a theory( used to manipulate prices).

 

[Bagbelt]

That Boyd group note was a good read. It's time to turn screws on capitol hill and exchange opposition to the Wright amd. for a full AA/BA merger.How about a codeshare with WN?. They would probablly make a ton off of connecting FLL to the carribbean and south america.We need new ideas.

 

[NewHampshire Black Bears]

I know things are as bad as ever.

But where I see AA making money(pretty much) the ol' fashioned way, is by ASIA. It's ALL about ASIA(primarily China), South America, ans to a lesser degree, Europe.

AA is the $$$Strongest legacy not in BK. If enough of the BK legacy's are "ham strung" over time, I see AA picking up more market share, in these VITAL regions.

Now if say WN decides to fly into SA, or ASIA, well thats enother story

??????????

NH/BB's

 

[eolesen]

AA is the $$$Strongest legacy not in BK.

[post="303876"][/post]​

If Rita hits Houston, home to CO's largest hub, then AA and AS will be the -only- legacies not in bankruptcy....

 

[MOUNT KISCO]

Do you think that the consumer wants to pay $4.00 at the pump?
The demand and supply theory is just that; a theory( used to manipulate prices).

[post="303800"][/post]​

You still have too many seats, chasing too little domestic a$$es, AA needs to move faster on the foreign route front. The LLCs aren't going away anytime soon, and our colleagues in BK, are hunkered down in the trenches. They'll stay there and watch AA bleed till dry.

 

[FA Mikey]

Why doesn't everyone drive a $6500 KIA?
I think the LLCs are keeping the price low to kill the Legacy carriers. They could make 2x the money by raising fares, but no... they want low prices so the legacys can not expand. The majors lose money and contract. Wallah! leaving more room for LLC expansion and further undercutting the legacys. As long as the LLCs make enough to get by they'll keep the price down. In the slow long run (which they have been using since 2000) they gain more mkt share and more pricing power. It just keeps on rolling.
Solution: AA needs to compete equally. Get rid of freight leave that to the Cargo Air Companies. Drop all these Admiral clubs. Hey the bus pgr isn't willing to pay for extras why give it to them. Go with the TVs get rid of the Data-ports. Most of those who use a PC have their own power.
Sell a seat, take a bag, seat them, fly them, turn on tv, give 'em a drink and land safely on time, give them their bag and say thank you... AMEN

[post="303776"][/post]​

Cannot get rid of freight, its bread and butter in S. America and the Caribbean. Even London the amount of freight I see from the cargo pouch is amazing. Freight also requires only people to load and off load. No amenities or extra service required.


Admirals clubs pay for them selves with memberships. Not a subsidy from AA. Very popular with the platinum and Executive platinum.

Power ports seem like a waste to someone on the ground. But in the air they are used quite often. Especially on longer flights where someone runs low on battery. Best seller on my flight from DF is the power adapter. Even the infrequent flyers are learning about the plugs and using them for the personal DVD players.

 

[FWAAA]

Why doesn't everyone drive a $6500 KIA?

Solution: AA needs to compete equally. Get rid of freight leave that to the Cargo Air Companies. Drop all these Admiral clubs. Hey the bus pgr isn't willing to pay for extras why give it to them. Go with the TVs get rid of the Data-ports. Most of those who use a PC have their own power.
Sell a seat, take a bag, seat them, fly them, turn on tv, give 'em a drink and land safely on time, give them their bag and say thank you... AMEN

[post="303776"][/post]​

You're kidding, right?

It sounds like you are being facetious, but you left out the smiley.

As FA Mikey said - freight is a huge money maker. Expect freight to/from China to be a big deal as well.

The Admirals Clubs pay for themselves thru membership fees.

You seem to understand it when you ask why everyone doesn't drive a $6,500 KIA - because some people (like me) still pay for D and I fares on AA and expect more than B6 or WN gives me, that's why.

I don't pay full F or J very often, because I'm not stupid. But when D or I fares are reasonable, I buy them.

 

[ZMAN777]

But where I see AA making money(pretty much) the ol' fashioned way, is by ASIA.  It's ALL about ASIA(primarily China), South America, ans to a lesser degree, Europe.

AA is the $$$Strongest legacy not in BK.  If enough of the BK legacy's are "ham strung" over time, I see AA picking up more market share, in these VITAL regions.

[post="303876"][/post]​

In the big scheme of things you're right. However the trick will be how AA acquires access to Asia. Over time (read YEARS!) they could gain access to China assumming a fairly even distribution of new route authority. However this will pale in comparison to the access other carriers (UAL/NWA) currently have and will continue to gain.

As I've noted on another board, I believe AA will be patiently waiting to see how NWA does with its restructuring. If/when they lower their cost structure and rid themselves of much debt, I'd expect AA to make some move to acquire them, rid themselves of much domestic overlap, and make full use of their access to Asia. How AA deals with the current NWA hubs at MSP and DTW will be a bit problematic given their #2 position at ORD. While they may cringe at the thought of leaving ORD to their arch-rival, another option would be to further attack UAL by surrounding ORD with other connecting options. But I digress.

Farfetched? Hardly. Certainly not what a lot at NWA would like to hear and probably a lot at AA given the track record with AA's acquisition of TWA. But look at the broader picture. If AA does not gain this access to Asia it'll be a long time before they could ever fill out their route plan, maybe never. In the meantime it's certainly possible that UAL could make a move to merge/acquire with the likes of DAL/CAL with the former option being a serious force to be reckoned with globally.

If you add up the current market share of a combined UAL/DAL it's strikingly similar to what the same combined market share a AA/NWA would be. A bigger threat would be for AA to do nothing and allow DAL/NWA to combine and then see UAL/CAL combine....effectively being left on the sideline without any significant access to Asia while the other two combined carriers leap-frog them in size and route structure. This is serious. You don't want to the one left without a chair when the music stops!!

I also don't think it's any cooincidence that AA is hording cash. Botom line is AA is well positioned to make moves in the industry that will make for far-reaching and long-lasting changes in the global airline industry.

Just my thoughts.

Cheers,
Z B)

 

[Skymess]

As I've noted on another board, I believe AA will be patiently waiting to see how NWA does with its restructuring. If/when they lower their cost structure and rid themselves of much debt, I'd expect AA to make some move to acquire them, rid themselves of much domestic overlap, and make full use of their access to Asia. How AA deals with the current NWA hubs at MSP and DTW will be a bit problematic given their #2 position at ORD. While they may cringe at the thought of leaving ORD to their arch-rival, another option would be to further attack UAL by surrounding ORD with other connecting options. But I digress.


I also don't think it's any cooincidence that AA is hording cash. Botom line is AA is well positioned to make moves in the industry that will make for far-reaching and long-lasting changes in the global airline industry.

Just my thoughts.

Here's my thoughts. Open sky agreements in Asia or NWA selling off their routes when the going gets tougher.

AA is hording cash to pick up that NWA 787 order when NWA can't fund the purchase and then using those planes for our new asia routes.

AA will never consider buying another airline again if it involves their employees coming with it. They will wait until the time is right to purchase assets and nothing else.

 

[FWAAA]

AA will never consider buying another airline again if it involves their employees coming with it. They will wait until the time is right to purchase assets and nothing else.

[post="304191"][/post]​

Why do you say that? As with TWA, it's not like AA has to keep the employees of the acquired airline. They can be furloughed without much difficulty.

 

[Skymess]

Why do you say that? As with TWA, it's not like AA has to keep the employees of the acquired airline. They can be furloughed without much difficulty.

[post="304195"][/post]​

The only employees furloughed were the flight attendants. Every other work group has a blend of AA TWA and it hasn't been a smooth blend either.