No frills American?

Wardogg said:
Aren't we talking about two different markets here? American vs Spirit/Frontier?
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Yep. What works for NK+F9, probably won't work for the others. The cost of going from A-B is calculated, then divided by how many seats are available, then multiplied by 18%. You can't do the same simple math when you have 4-5 different cost structures on the same leg.
 
It's sad that our management thinks that Frontier and Spirit are our competition.

It's time Parker and Co. wake up and realize this isn't America West or a bankrupt U.S. Airways. This is a legacy carrier with a large international market. If we continue with this management style, we are going to fail at "Going for Great" and Delta will continue to kick our ass (you can totally say bass on here) well into the foreseeable future.
 
scooter2525 said:
Isn't that what TED and SONG were?
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TED was created to compete with Frontier and SONG was created to Compete with jetBLUE. Both TED and SONG failed and were eventually rolled back into their mainline's respective fleets.

The majors operate and cater to a different customer than Spirit and Frontier do. I the more the a major tries to be like the ULCC they are setting themselves up for problems. They are going to do nothing more than create confusion and tick off customers who don't read the fine print and sole shop by price.
 
Nark said:
Yep. What works for NK+F9, probably won't work for the others. The cost of going from A-B is calculated, then divided by how many seats are available, then multiplied by 18%. You can't do the same simple math when you have 4-5 different cost structures on the same leg.
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Not sure what you are getting at here as you already have 4-5 different cost structures on the same leg.

Are you just regurgitating what Spirit Management is saying?
 
Spirit has something brewing. Half the company value wiped out. Stock was at 84.xx last December today down to 34.xx , market cap from over 5 billion down to under 2 billion now. All in less than one year, it's unbelievable. Market cap is different, but it's crazy when Spirit's stock price is now lower than Virgin's.
 
Cherokee_Cruiser said:
Spirit has something brewing. Half the company value wiped out. Stock was at 84.xx last December today down to 34.xx , market cap from over 5 billion down to under 2 billion now. All in less than one year, it's unbelievable. Market cap is different, but it's crazy when Spirit's stock price is now lower than Virgin's.
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I think institutional investors are pushing for a merger and are valuing it appropriately for that.

Seeing the absolute blindness by some on APC towards a merger is comical.
 
Cherokee_Cruiser said:
Spirit has something brewing. Half the company value wiped out. Stock was at 84.xx last December today down to 34.xx , market cap from over 5 billion down to under 2 billion now. All in less than one year, it's unbelievable. Market cap is different, but it's crazy when Spirit's stock price is now lower than Virgin's.
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I was recently looking at the same thing. Earnings are going up but stock is being devalued considerably. Maybe time to pick up some shares.
 
ctab5060X said:
It's sad that our management thinks that Frontier and Spirit are our competition.

It's time Parker and Co. wake up and realize this isn't America West or a bankrupt U.S. Airways. This is a legacy carrier with a large international market. If we continue with this management style, we are going to fail at "Going for Great" and Delta will continue to kick our ass (you can totally say bass on here) well into the foreseeable future.
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If you don't take them seriously, they will be major competitors in several years.

Look at Europe and how the ULCC's have not only decimated the local markets, but are pushing into the trans-Atlantic routes as well.

AA has a good opportunity to leverage their network with higher capacity seating. You can still have two or three products, they certainly need to work on the first class experience but I think increasing seating capacity in their aircraft is the right way to go.
 
You think some PAX will read the fine print and realize they are getting the pay for everything deal. This will just lead to more issues on a flight when the FA tells the guy in 37A that will be a dollar and the guy in 37B is free.
 
Seggy said:
With TED and SONG you had 'airlines within airlines', but offered 'full services' such as free checked bags, assigned seating ahead of time, drinks, etc... This is just a different fare structure. HUGE difference.
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I see what you are saying. Delta/United created a different airline vs AA just competing with the ULCCs.

Doesn't seem like the TED/Song worked to compete, will AA be able to?
 
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