Author Topic: AA money losing routes  (Read 3570 times)

Offline ExGingi

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AA money losing routes
« on: August 22, 2018, 09:07:02 AM »
https://www.cnbc.com/amp/2018/08/21/american-airlines-drops-international-routes-after-fuel-price-surge.html

Maybe AA is starting to live in the real world and is cutting real money losing routes rather than profitable routes to TLV.

I wonder if someone at AA would be smart enough to initiate ORD-TLV ahead of UA or LY, which might make good use of the ORD slots that were used for the Asian routes.
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Offline Dan

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Re: AA money losing routes
« Reply #1 on: August 22, 2018, 09:14:15 AM »
https://www.cnbc.com/amp/2018/08/21/american-airlines-drops-international-routes-after-fuel-price-surge.html

Maybe AA is starting to live in the real world and is cutting real money losing routes rather than profitable routes to TLV.

I wonder if someone at AA would be smart enough to initiate ORD-TLV ahead of UA or LY, which might make good use of the ORD slots that were used for the Asian routes.
ORD doesn't have slots.
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Offline ExGingi

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Re: AA money losing routes
« Reply #2 on: August 22, 2018, 09:18:10 AM »

ORD doesn't have slots.
OK.

Might still be a smart move by AA to start ORD-TLV service. Makes more sense than PHL-TLV IMHO.
I've been waiting over 5 years with bated breath for someone to say that!
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Offline Dan

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Re: AA money losing routes
« Reply #3 on: August 22, 2018, 09:21:02 AM »
OK.

Might still be a smart move by AA to start ORD-TLV service. Makes more sense than PHL-TLV IMHO.
Why?
PHL is the bigger hub and has plenty of local traffic.
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Offline ExGingi

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AA money losing routes
« Reply #4 on: August 22, 2018, 09:23:26 AM »
Why?
PHL is the bigger hub and has plenty of local traffic.

But there are several east coast gateways to TLV to compete with on connecting flights vs. no Midwest gateways to TLV. And Chicago itself is a formidable market.

If you were the decision maker and you had a choice between initiating ORD-TLV or PHL-TLV, which one would you start?
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Offline Proisrael

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Re: AA money losing routes
« Reply #5 on: August 22, 2018, 09:26:04 AM »
But there are several east coast gateways to TLV to compete with on connecting flights vs. no Midwest gateways to TLV. And Chicago itself is a formidable market.

If you were the decision maker and you had a choice between initiating ORD-TLV or PHL-TLV, which one would you start?

Wouldn't Toronto be considered a "Midwest" hub?

Offline ExGingi

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Re: AA money losing routes
« Reply #6 on: August 22, 2018, 10:27:28 AM »
Wouldn't Toronto be considered a "Midwest" hub?

I guess it is a gateway. But that's one compared to JFK, EWR, YUL, YYZ (still close enough to east coast), MIA and IAD.

From where I live, it doesn't make much a difference to me whether they open up PHL-TLV or ORD-TLV, as long as it's successful and offers more capacity and competition into TLV.

For the large community of 08701 PHL could be another decent option, but it would be an uphill struggle to take traffic away from EWR. Does PHL have enough local demand?

@Dan was surprised (as were many of us) that UA decided to start IAD-TLV rather than ORD-TLV. So if ORD-TLV made more sense in many people's minds than IAD-TLV, why wouldn't it make more sense over PHL-TLV?
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Offline Dan

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Re: AA money losing routes
« Reply #7 on: August 22, 2018, 10:28:58 AM »
I guess it is a gateway. But that's one compared to JFK, EWR, YUL, YYZ (still close enough to east coast), MIA and IAD.

From where I live, it doesn't make much a difference to me whether they open up PHL-TLV or ORD-TLV, as long as it's successful and offers more capacity and competition into TLV.

For the large community of 08701 PHL could be another decent option, but it would be an uphill struggle to take traffic away from EWR. Does PHL have enough local demand?

@Dan was surprised (as were many of us) that UA decided to start IAD-TLV rather than ORD-TLV. So if ORD-TLV made more sense in many people's minds than IAD-TLV, why wouldn't it make more sense over PHL-TLV?
Because PHL is bigger than ORD for AA and PHL has more local traffic to TLV than ORD.

ORD is bigger than IAD for UA and local traffic to TLV is probably a toss-up.
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Offline ExGingi

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Re: AA money losing routes
« Reply #8 on: August 22, 2018, 10:32:37 AM »
Because PHL is bigger than ORD for AA and PHL has more local traffic to TLV than ORD.

ORD is bigger than IAD for UA and local traffic to TLV is probably a toss-up.

You definitely know AA, UA, ORD and PHL better than I do, though I'm surprised to hear that PHL has more local traffic to TLV than ORD.
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Offline Yaalili

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Re: AA money losing routes
« Reply #9 on: August 22, 2018, 10:38:01 AM »
Both PHL and ORD have Jewish populations of roughly 300K in their metropolitan area.

Per statistics taken 3 months ago, ORD is also a slightly busier hub for AA, over PHL.

Offline ExGingi

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Re: AA money losing routes
« Reply #10 on: August 22, 2018, 10:43:36 AM »
Both PHL and ORD have Jewish populations of roughly 300K in their metropolitan area.

I've heard of DDFers flying to ORD for a DO, never heard of people flying to PHL for a DO.

I'm not a foodie, but from what I see around here, PHL isn't really the scene for that, while ORD seems to have some formidable eateries. I would guess that says something about the community.

I don't know, but I would guess that ORD has more Israeli expats than PHL does.
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Offline Dan

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Re: AA money losing routes
« Reply #11 on: August 22, 2018, 10:44:04 AM »
Both PHL and ORD have Jewish populations of roughly 300K in their metropolitan area.

Per statistics taken 3 months ago, ORD is also a slightly busier hub for AA, over PHL.
Check again after the Asia cancellations. PHL is trending up and ORD and tending down.
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Offline ExGingi

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Re: AA money losing routes
« Reply #12 on: August 22, 2018, 10:48:55 AM »
Check again after the Asia cancellations. PHL is trending up and ORD and tending down.

I can believe that. Also isn't ORD more prone to weather issues than PHL?

However, after all said and done, if you were calling the shots at AA, would you start PHL-TLV over ORD-TLV? How about revamping the relationship with LY, expanding codesharing etc., along with a new route? Would an ORD-TLV route take some market share from RJ, or are they not competitive into ORD as they are sometimes into JFK?
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Offline Yaalili

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Re: AA money losing routes
« Reply #13 on: August 22, 2018, 10:49:03 AM »
UA has a larger hub at ORD too, it’s their house. Route would most likely be UA over AA when it starts.

Offline Dan

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Re: AA money losing routes
« Reply #14 on: August 22, 2018, 11:31:21 AM »
UA has a larger hub at ORD too, it’s their house. Route would most likely be UA over AA when it starts.
+1
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Offline Something Fishy

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Re: AA money losing routes
« Reply #15 on: August 22, 2018, 12:38:13 PM »
For the large community of 08701 PHL could be another decent option

This is huge as well. Makes PHL's catchment area way larger than ORD.
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Re: AA money losing routes
« Reply #16 on: August 22, 2018, 12:48:12 PM »
This is huge as well. Makes PHL's catchment area way larger than ORD.
+1 It's closer than JFK.

Offline Yaalili

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Re: AA money losing routes
« Reply #17 on: August 22, 2018, 01:04:33 PM »
+1 It's closer than JFK.

Most would still stick with EWR, under an hour.

Offline ExGingi

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Re: AA money losing routes
« Reply #18 on: August 22, 2018, 01:05:17 PM »
Most would still stick with EWR, under an hour.
+1

With more nonstop options.
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Re: AA money losing routes
« Reply #19 on: August 22, 2018, 01:34:00 PM »
Most would still stick with EWR, under an hour.
I would pay extra to avoid Newark.
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