Possibility of DEQM and MR dilemma

Discussion in 'American Airlines | AAdvantage' started by Aktchi, Apr 11, 2011.  |  Print Topic

  1. Aktchi
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    Aktchi Silver Member

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    I could a MR to Asia now.
    If there is DEQM promo later (AA has started targeted ones already), I'd be sorry.
    If there is not, this would be helpful and avoid Fall crunch.
    I know you don't have a crystal ball, but comment from any angle you wish!
     
  2. DestinationDavid
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    DestinationDavid Milepoint Guide

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    I'd mile run now, but that's just me!

    AA's DEQM promos have been pretty hard to utilize this year. Most of them have had residency and/or fare class limitations. I'm holding out hope for a ORD-SFO/LAX based DEQM when Virgin starts flying soon, but that time frame is about 2 months out and no news yet.
     
  3. Travel2Food
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    Travel2Food Silver Member

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    I'd second David's comments: fuel prices are continuing to rise, and with that will be additional upward pressure on pricing. I would not expect to see DEQM promos, other than very tightly selected promos, unless rising prices cause a drop off in load factors. Of note, though, are the very favorable premium fares we've seen recently from a couple of east-coast cities.
     
  4. Eloy Fonseca Neto
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    Eloy Fonseca Neto Silver Member

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    They should allow some DEQM on some international routes to boost their profits as we know these routes are the most profitable!!!
     
  5. DestinationDavid
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    We don't know that at all.... ;)
     
  6. Eloy Fonseca Neto
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    Eloy Fonseca Neto Silver Member

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  7. Travel2Food
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    Travel2Food Silver Member

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    Why? if the routes are profitable, they don't need to incentivize people to fly them. Incentives work best when a new competitor (VX, for example) tries to eat your market share.
     
  8. Eloy Fonseca Neto
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    Eloy Fonseca Neto Silver Member

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    Tavel2Food you're completly right... Damm us, international customers!!!
     
  9. DestinationDavid
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    I searched online and as far as I can see airlines don't post the profitability of individual routes. Many international routes started by airlines have failed miserably time and time again, so I'd wager that profitability isn't really determined by being international in and of itself.

    Have you seen something that would indicate the profitability of specific airline routes, for AA even? It's something I've always been curious about and would like to see if you can link us to it if possible.....
     
  10. gemac
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    gemac Silver Member

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    None of us can predict the future, especially in this case where not even AA knows if there will be a DEQM promo. Waiting becomes a gamble. You are asking us whether you should gamble or not. If you can't afford to lose (in this case, no DEQM), then don't gamble. If you can afford to lose then it becomes a personal decision - how risk tolerant you are, how much you enjoy the suspense of gambling. But nobody here can tell you the odds.
     
    Aktchi likes this.
  11. Eloy Fonseca Neto
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    Eloy Fonseca Neto Silver Member

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    Yes David... I have a contact in the AA departments financial operations for Brazil and as far as I can tell he told me that all routes going in and out are profitable, specially if they can get business/first full!!! But surprisingly he also told me that most profit come from those fees for cancellation and modificating times and flights which I think my people here don't like to plan so they change their schedule all the time paying sometimes 1k dollars in fees!! Hope it helps, as to an official statement or document, I don't have any, just a word from someone who works there!!!

    Cheers!!!
     
  12. Eloy Fonseca Neto
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    Eloy Fonseca Neto Silver Member

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    By the way your website is awesome David, congrats!!!
    I'm on twitter @eloynet!!!!

    Cheers
     
  13. DestinationDavid
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    Good to know but I suppose I was more focused on all international flights instead of just the ones out of Brazil. Rumor has always been pretty strong that AA's South America routes perform very well. Other international routes have had their profitiability questioned frequently. Since none of it is published, we're all just assuming, and we all know how valid that is. ;)

    Thanks, I appreciate it! Work has been difficult and busy lately so I haven't been able to post like I usually do in the last 2 months. I hope it gets better soon.
     

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