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Thread: United vs American

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    United vs American


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    United Airlines Strengthens Domestic Route Network: Announces New Washington Dulles - Miami Service and Expands to 33 New Destinations in Four Months.

    American is losing domestic market share.
    One of the most troubling aspects about American Airlines' recent performance is a slowdown in domestic growth.
    A big portion of this pressure can probably be explained by United Continental's aggressive efforts to regain domestic market share. United expanded capacity in the domestic market by 7.4%.
    American Airlines and United Airlines have competing hubs in a number of key markets. As a result, United's recent resurgence has likely come at the expense of American, more than any other carrier. That's bad news, given that United Airlines plans to continue expanding rapidly in the domestic market for at least two more years.
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    Quote Originally Posted by NoOtPilot View Post
    United Airlines Strengthens Domestic Route Network: Announces New Washington Dulles - Miami Service and Expands to 33 New Destinations in Four Months.

    American is losing domestic market share.
    One of the most troubling aspects about American Airlines' recent performance is a slowdown in domestic growth.
    A big portion of this pressure can probably be explained by United Continental's aggressive efforts to regain domestic market share. United expanded capacity in the domestic market by 7.4%.
    American Airlines and United Airlines have competing hubs in a number of key markets. As a result, United's recent resurgence has likely come at the expense of American, more than any other carrier. That's bad news, given that United Airlines plans to continue expanding rapidly in the domestic market for at least two more years.
    A lot of United's growth is by capitalizing on previously unused capacity at certain hubs to markets they have essentially previously put on the back burner. But, United CAN do this not JUST because they have those gaps to fill, but because they can staff it and have a more motivated employee base with far less "culture" problems then AA. We won't even mention Delta which by all metrics (competitive, financial and culture) have left AA in the dust. For United though which has a fraction of AA's debt and more resources, it also makes it more easily accomplished. AA is hamstrung in virtually all areas EVEN if they did have route gaps they could fill. The primary way AA has boosted RPM's is simply by working their crews harder, essentially flying more on the back side of the clock. The vibe at AA is that from a scheduling perspective, it's like flying for a regional now. But, what's of more concern is that AA needs and wants to do the opposite of what the rest of the more financially healthy carriers are doing and that is to DECREASE capacity in the hope of raising fares to offset skyrocketing fuel prices. If AA can't get that to happen (an almost certainty), they suffer even more as increased capacity usually results in CHEAPER fares which for AA, means a further loss of revenue.

    Caught in somewhat of a Catch-22, AA now seems more along for the ride as opposed to controlling its destiny and is at major risk should an industry setback occur. The toxic culture only adds headwind to their competitive and financial conundrums. When I talk about "culture", I mean from the top. In the past, executives talked about moving AA to become more of a "Travel" company and less about operating an airline (think outsourcing). Considering AA's present situation and the future, who knows if circumstances will push them closer to morphing AA into that. For the time being, I think the best thing AA can do is hold its breath and pray fuel goes back down and no significant situations occur that negatively impact the airline industry for they head and shoulders above all others are at most risk IMO. It was bad decisions, disregard and erroneous assumptions that put Lehman Brothers at risk and once a crisis hit (littered with red flags ignored, BTW), there was nothing in the tank to move out of it and the result was a forgone conclusion.
    Last edited by Beagleboy; 08-02-2018 at 10:22 AM.

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    Culture problems at AAG?!
    Fake news
    Just ask Da Spooge

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