AA or Delta at this moment
#231
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Joined APC: Nov 2020
Posts: 1,891
AAL made a PROFIT and PAID profit sharing, something that would have been INCONCEIVABLE a decade ago!
Everyone needs to enjoy these times, take a vacay and go skiing while there is still snow on the slopes!
#232
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Joined APC: Mar 2021
Posts: 1,739
[size=0pt]It's good enough for AA because we are just a lower tiered legacy airline, so why the complaints? amirite? [/size]
#233
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Joined APC: Feb 2022
Posts: 658
#234
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Joined APC: Dec 2011
Position: A320 FO
Posts: 976
Maybe the naysayers are right and will get to gloat. But just maybe we'll beat United again on performance metrics this year. Eventually having a reputation for reliability will help profits.
#236
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Joined APC: Mar 2021
Posts: 1,739
The complaints are of the form, "don't worry, this is just a fluke and we'll go back to losing money and sucking very soon." The alternative is a little optimism, "let's focus on continuing to improve the quality of the operation and see if something good happens."
Maybe the naysayers are right and will get to gloat. But just maybe we'll beat United again on performance metrics this year. Eventually having a reputation for reliability will help profits.
Maybe the naysayers are right and will get to gloat. But just maybe we'll beat United again on performance metrics this year. Eventually having a reputation for reliability will help profits.
#238
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Joined APC: Mar 2021
Posts: 1,739
#239
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Joined APC: Jul 2021
Posts: 378
They have a more efficient network. Anytime you can fly from point A to point B via CLT or DFW you have an efficiency loss. It’s great for nonreving, but worse for profits.
Delta serves more stations with the efficiency of only one hub, and it clearly yields them more profit.
It has nothing to do with TVs, better snacks, lounges, or free texting. All that stuff is Delta’s way of avoiding a price war to flex the efficiency of their network.
Letting your competition set the price knowing you have the network advantage and adding cherry’s to your product to command a premium is way more lucrative than to try to sell seats cheaper than them and using the network efficiency as an advantage on lowering cost.
AA can advertise their cost per seat mile are equal to Delta’s but AA has to launch more seat miles to get the seat mile cost cost down. AA is required to operate more overlap than Delta in network coverage to have enough seat miles to get the cost down.
That’s also the reason why they are gun shy on heavys, they can’t have a lower or equal heavy cost per seat mile running way less heavy’s.
Scot Kirby is trying to add seat miles to United’s network to lower cost, and up gauging is a way to avoid overlap on his networks.
AA merging last caused substantially more overlap that can not be consolidated.
Delta serves more stations with the efficiency of only one hub, and it clearly yields them more profit.
It has nothing to do with TVs, better snacks, lounges, or free texting. All that stuff is Delta’s way of avoiding a price war to flex the efficiency of their network.
Letting your competition set the price knowing you have the network advantage and adding cherry’s to your product to command a premium is way more lucrative than to try to sell seats cheaper than them and using the network efficiency as an advantage on lowering cost.
AA can advertise their cost per seat mile are equal to Delta’s but AA has to launch more seat miles to get the seat mile cost cost down. AA is required to operate more overlap than Delta in network coverage to have enough seat miles to get the cost down.
That’s also the reason why they are gun shy on heavys, they can’t have a lower or equal heavy cost per seat mile running way less heavy’s.
Scot Kirby is trying to add seat miles to United’s network to lower cost, and up gauging is a way to avoid overlap on his networks.
AA merging last caused substantially more overlap that can not be consolidated.
Last edited by OpieTaylor; 01-30-2024 at 06:55 AM.
#240
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Joined APC: Feb 2022
Posts: 658
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