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Topic: American to grow?
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Franklin
Post Captain
Member # 372
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posted
Associated Press
Six major airlines anticipate growth in 2004
Sunday November 30, 5:03 pm ET
FORT WORTH, Texas (AP) -- After two dismal years, the nation's six largest carriers are expected to increase seating capacity by as much as 4 percent next year, analysts said.
Fort Worth-based American Airlines will experience some of the most aggressive growth. The airline expects to increase its capacity by 7 percent in 2004, despite removing 57 aircraft from its fleet.
The growth will extend to the carrier's mainline routes and its American Eagle regional subsidiary, airline officials said.
Economic improvements, competition against low-fare rivals, and increased international traffic are creating the new growth, the Fort Worth Star-Telegram reported in its Sunday editions.
The expansion could spark more competition, which analysts say could put fares at the lowest in decades.
The potential fare reduction, while good for passengers, is a concern to airlines.
"This kind of growth is going to assure that airfares are maintained at their present, unsatisfactory levels," said Morton Beyer, an airline industry analyst and consultant at the Morton Beyer & Agnew consulting firm in Arlington, Virginia. "I don't see much relief coming in that area."
While major airlines will grow anywhere from 2 percent to 4 percent next year, analysts say low-fare airlines, such as Dallas-based Southwest Airlines, could expand more than 10 percent next year.
Small regional airlines will probably grow more than 30 percent, they said.
It's a major change from the days after Sept. 11, 2001, when major airlines slashed their networks by as much as 20 percent and ordered unprecedented staff layoffs.
American -- the world's largest airline -- plans to create growth by scaling back the "More Room Throughout Coach" program and by adding seats on a fourth of its fleet. More international flights also will be added.
In addition, it will shift flights from its St. Louis hub to Dallas/Fort Worth Airport and Chicago and streamline hub schedules, which means planes will spend more hours in the air. The moves add capacity without adding aircraft, said Henry Joyner, American's vice president for planning.
Posts: 326 | From: St. Louis, MO usa
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Draginitin
Post Captain
Member # 2324
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posted
Grow? I guess if you consider outsource code-sharing your 100 aircraft market, well, then yes.
Posts: 31
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mioguido
Post Captain
Member # 123
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your headline, "American to grow"......that was supposed to happen when AA clinched TWA. ![[Big Grin]](biggrin.gif)
Posts: 364 | From: CLE & The Space Coast
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Jeff I.
Post Captain
Member # 2334
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posted
In reality, part of AA (its nose) has been growing since around January, 2000. This unusual phenomena seemed to coincide exactly with the repeated statements from corporate headquarters that its acquisition (correction: asset purchase) of TWA was the best outcome for TWA's employees, customers and the good people of STL.
Jeff I.
Posts: 482 | From: New York
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Gary S
Junior Poster
Member # 1017
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posted
I think AA will grow. Casual observation leads me to believe that the lions share of the growth has and will be on the AE side. At one point, I think that mainline ops had run up against some scope limitations. Hence the creation of the "reverse code-share". Perhaps one of the more informed posters could update us on the present state and/or modifications to the scope clause that is in effect to date.
[ 12-01-2003, 09:37: Message edited by: Gary S ]
Posts: 20 | From: Cleveland, OH
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donuway
Post Captain
Member # 803
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posted
First of all, when you look at how they are growing, it's old news.
Second, it's easy to grow when you have just completed a few years of "right-sizing", and you may have over slashed.
But,,,,will the demand be there? If anyone here subscribes to Travel and Liesure Magazine, read this months article on the future of air travel.
Mainstream full service airlines, according to the article, will experience the smallest growth levels, if they can survive. Larger growth will be experienced by the low cost carriers. Guess why? CUSTOMERS are seeing a lower level of differentiation of service. The most growth will be by small regional airlines.
Where do these "experts" that write these articles get their info from? Some of us have been predictiing these changes for a few years now, or at least we have been suggesting from various BBs that these "futuristic" changes need to be made.
The largest portion of the article was probably about how the internet has screwed up yields, (heard that here a LONG time ago!), and how common sense fares will be the norm in the future. Remember the old Yahoo Board days?
Don
Posts: 414 | From: St. Louis, Mo
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TWA Fan 1
Post Captain
Member # 1926
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posted
From the article it appears that most of the growth on the mainline side comes from eliminating the "More Room in Coach."
It's obviously another example of the fact that the flying public values price over comfort, at least the minimal extra comfort provided by "More Room in Coach."
As travel demand increases, I predict all of AA's capacity will increase by the elimination of "More Room in Coach."
As far as AE/AC, AMR is attempting to compete directly with the low cost carriers by increasing the amount of regional jet service.
In this case I think AMR will discover that the flying public will prefer a more comfortable seat on Southwest or JetBlue to flying on an RJ, especially if, as is the case with the recent price increases at STL, the seat on an AA RJ is more expensive than a 737 seat on HP.
Of course, that only applies to cases where there is still a choice.
The one apparent contradiction in the article is the statement that although AA is expanding, it has reduced its volume at STL.
Although I don't think one can say that AMR purchased TWA to shut it down, that became their option of choice after 9/11.
By virtually eliminating TWA AMR was able to reduce industry capacity and a thorny low-cost competitor.
Posts: 400 | From: Brooklyn, NY
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Kenneth
Post Captain
Member # 259
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posted
A glimmer of light at the end of the tunnel maybe? ...
AA just announced today, additional service out of STL. There are additional flights being added to LAX and OKC and flights to DC are being upgraded to mainline MD80s (well, at least two of them are).
More optimistically ... the press release I read today, includes statements about the 'surprising results' thus far from the STL hub and AA's 'long term commitment' to maintaining a hub there.
Reportedly by February everything will be consolidated into Concourse C. The way it reads, if I'm picturing this right, there will be mainline jets at the north gates (mostly even #s .. 8-10-12-etc) while Eagle and Connection will move to the south gates (mostly odd #s .. 1-3-5-etc)
Hoping this is a harbinger of better things in 2004!
Ken
Posts: 160 | From: Philadelphia, PA
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donuway
Post Captain
Member # 803
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posted
My Cat,
The total move to C concourse was the plan from early on.
If one of our posters can get his act together, AA may eventually get it done. ![[Razz]](tongue.gif)
Don
Posts: 414 | From: St. Louis, Mo
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gambit3131
Post Captain
Member # 261
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posted
quote:
Originally posted by my_cat:
Reportedly by February everything will be consolidated into Concourse C. The way it reads, if I'm picturing this right, there will be mainline jets at the north gates (mostly even #s .. 8-10-12-etc) while Eagle and Connection will move to the south gates (mostly odd #s .. 1-3-5-etc)
You are correct. AA will have C2 through C24 (8 gates down from 35) and the RJ's will have C1 through C23 (10 gates). AA should have already moved completely to the north gates.
quote:
Originally posted by donuway:
If one of our posters can get his act together, AA may eventually get it done.
![[Confused]](confused.gif) What are you talking about Don? Hmm?? ![[Roll Eyes]](rolleyes.gif)
Work is supposed to start Jan 5 and be completed mid Feb.
gambit
[ 12-18-2003, 18:02: Message edited by: gambit3131 ]
Posts: 176 | From: Fort Worth, TX
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Irish
Post Captain
Member # 722
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posted
Today AA announced a new LAX-SJU flight, as though no one had ever thought of that before!
Sigh......
Posts: 1360 | From: Hampton, NH and Naples, FL
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