American Airlines Officials Discuss Boeing, Airbus Deal

Discussion in 'American Airlines | AAdvantage' started by JSpira, Jul 21, 2011.  |  Print Topic

  1. JSpira
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    JSpira Silver Member

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    After the press conference yesterday, I interviewed American Airlines spokesman Tim Smith. That combined with my earlier Q&A with Gerard Arpey at the press conf. led to this four-page article.

    I cover the business travel market, fleet reallocation, fuel economy, premium cabin, inflight entertainment/Internet, routes, and American Eagle/OneWorld questions.

    American Airlines Officials Discuss Boeing, Airbus Deal

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    Article continues here.
     
  2. RestlessLocationSyndrome
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    RestlessLocationSyndrome Silver Member

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    Great Q&A session. Definitely enjoyed reading it. I think the divestiture of Eagle is the most strategic move of all the moves that they are making. Fleet refreshing was required because of the general age of their fleet. Considering changes in their network configuration would be standard with any fleet change and I'm sure it'll have the optimizers / statisticians going day and night to figure that one out.

    I wish they had more to say about trying to differentiate their product but it seems like they either haven't decided on that quite just yet or don't have plans to do more than get new planes... which is not differentiating unless you continue to cycle out old planes for new ones consistently while UA/CO & Delta don't.
     
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  3. Lewis

    Lewis Active Member

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    Great article, really informative. Thanks for the post.

     
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  4. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    Considering the amount of $$$ they are spending, there are a lot unknowns (or things they don't WANT to talk about). "we just ordered 460 aircraft, but we haven't really figured out what exactly we're going to do with them" (paraphrasing)
     
  5. RestlessLocationSyndrome
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    RestlessLocationSyndrome Silver Member

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    In their mind, they aren't spending.... they are saving. There has been little done by the large domestic carriers that shows me that they are doing anything other than managing costs and furthering the view that their product / service is a commodity.

    As much as I hate to say it... Southwest knows how to develop a corporate strategy and execute on it. Not only is their product / service different, even their rewards program is too.
     
  6. JSpira
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    JSpira Silver Member

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    It may be a while until AA figures out what exactly it will do with the planes. The important thing is they have the aircraft ordered and they have time until they need to figure out configurations, changes to seating, etc.
     
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  7. RestlessLocationSyndrome
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    RestlessLocationSyndrome Silver Member

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    Which is why I believe that this is not so much a strategic move but an operational cost efficiency move and for that matter, something that isn't differentiating as it is likely to be done by the other major carriers when their fleet becomes as old as AA's. I believe Delta is just a year or two behind and UA/CO is probably around 3-4.
     
  8. Pizzaman
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    Pizzaman Co-founder

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    And, since AA didn't shed labor cost in bankruptcy, they need this move probably more urgently than the other legacy carriers. I'm happy to see AA doing this, although I'm a bit disappointed to see them move away from the all Boeing relationship.

    I don't see a big enough difference between the 737 and Airbus crafts that would outweigh the benefit of having one plane from a maintenance standpoint, but I consider myself far from an expert on it.

    I'm also glad to hear that Gogo(or similar wifi product) will continue to be a significant part of the roll-out. This is a huge value proposition for me.
     
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  9. jbcarioca
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    jbcarioca Gold Member

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    Thanks for posting this. Your insights and contributions here have been a highlight of my Milepoint experience, and I hope they continue for as long time to come.
     
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  10. JSpira
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    JSpira Silver Member

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    While undeserved on my part, that was a very kind thing for you to say.
     

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