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Thread: And more gates to go AAway...

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    Registered User NoOtPilot's Avatar
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    And more gates to go AAway...


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    Delta is getting room to grow

    To better accommodate its two fastest-growing airlines,(Delta & JetBlue) Logan Airport has been renovating its terminals and moving other airlines around. In early 2019, American Airlines will give up four of its 18 gates, as it has been shrinking in Boston (and other non-hub cities) recently.

    December 11, 2018
    Welcome to the Family...

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    Registered User ardvark's Avatar
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    4 is good. Heard it was 8 from aa people. Better get ready to spend a lot of time in holding pads in boston.

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    Registered User Koojo's Avatar
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    They are just rightsizing. Nothing to see here.

    But, Beagleboy here to throw gas all over it and flame it up into something bad in 3, 2, 1.....

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    Registered User ardvark's Avatar
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    Rightsizing, new phrase for capitulation.

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    Quote Originally Posted by ardvark View Post
    Rightsizing, new phrase for capitulation.
    If only gasoline could reignite AA into a competitive animal capable of vision, innovation, expansion and flexibility. Again, the fact is that AA is stagnant in fleet size and is forecast to stay that way. They're broke. They make money (for now), but their liquidity-to-debt ratio is disasterous. Good financing on all those planes only means they can dump them in a crisis, but that won't bolster the business. They could refi in C11, but the rates are already good, so probably couldn't get a judge to knock them down much, if at all. If anyone here ran their lives this way, it would be akin to being upside down on your finances by about a 4-1 ratio (even though you for now had a good paycheck) and then buying all new furniture for every room in the house you own on the idea it would look good as a rental, if you needed to go that route. Problem is, if you lose that paycheck and the rent can't pay your 4-1 flip-flop. The only "growth" occurring is by working AA pilots harder flying more backside of the clock, both earlier and later in a 24-hour period and of course, adding a few RJ's. AA pilots are now just regional pilots flying larger RJ's, at least the majority in Group II. Thus, in addition to descending in quality, the AA brand really has no mechanism or new place to grow.

    Since the present tack due to their hamstrung situation is to reshuffle the limited assets they do have to their most profitable hubs of DFW (especially RJ's) and CLT, contraction must occur elsewhere, and this is both the "rightsizing" and "capitulation" demonstrated at the now withering AA Boston hub. Look for further future contraction there and elsewhere. On the premier legacy side, both of the only remaining players Delta and United are expanding and growing. On the LCC side, AA's direct competition Southwest, Spirit and JetBlue are all moving forward and the latter two are actually ripe for merger together or with someone else. It was a primary argument of the merger that American Airlines and US Airways needed to merge as separately they had no future place in the market being neither fish (premier legacy) nor fowl (LCC), yet it appears that is what they are becoming operationally even as they have morphed their product to that of an LCC. IMO, the ultimate destination is at high risk to prove the same and it's the same destination both would have had without the merger. All that has occurred is delay. A few more years down the road should be an interesting ride.

    Klooless Jo wants to make this about me, because like his chums he's bankrupt of substance, but my points here are simply a reality determined by the choices of the present leadership of AAG.
    Last edited by Beagleboy; 12-11-2018 at 04:08 PM.

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    Registered User NoOtPilot's Avatar
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    Quote Originally Posted by Koojo View Post
    They are just rightsizing. Nothing to see here.

    But, Beagleboy here to throw gas all over it and flame it up into something bad in 3, 2, 1.....
    99% with you nothing to see here.
    Rightsizing(which they had to wait by DOJ from 2013-2018) is when 2 airlines become one and the musical chairs game begins.
    Lots of people at AAG HQ, lost their chairs, more to come.
    Tic-Toc, Tic-Toc...
    Last edited by NoOtPilot; 12-11-2018 at 09:18 PM.

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