Re: SFGate: American Begins Flights From Love Field

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Interestingly, competition on these routes will actually show AA to be cheaper on the vast majority of consumer websites, as WN keeps its very lowest fares isolated to southwest.com -- but publishes everything else to the masses.
   
  Meaning -- searches on multi-carrier shopping websites Orbitz, Expedia, etc., will show WN at the same price or higher than AA in markets where they go head-to-head, unless WN makes a move.  Because AA (and Marriott and plenty of other travel players) has made a decision to always publish it's entire set of fares and inventory to every distribution channel in which it participates.
   
  Why do these players behave this way?  Their thinking is that wherever, whenever you see their brand, you are entitled to also see the lowest price and the most complete inventory.  WN and a few others see the distribution channel differently for right now...

Bahadir Acuner <bahadiracuner@xxxxxxxxx> wrote:
  David, 
there is not a problem not turning profit for some portion of the services you provide. I don't make money in my ground schools but it brings people in and then they start taking flight lessons. WalMart and other retailers bring in customers with some loss making merchandise items so that they can come in to their store and buy other stuff. 

AA is doing the same thing. Do not forget the power of frequent flyer miles as well.. 

Good weekend to the entire group.. 

Baha 
Fan of WN's $40 service from GEG to SEA 


----- Original Message ----
From: David MR 
To: AIRLINE@xxxxxxxxxxxxxxxxx
Sent: Friday, March 3, 2006 10:13:58 AM
Subject: Re: SFGate: American Begins Flights From Love Field


A good example of what I have been saying for a long time: the majority of the airlines are mismanaged. In another article, American says outright that they will not make a profit on the DAL flights. Yet, they continue to fly them for "competitive" reasons.. 

AA says they need to do the DAL flights because of WN. Okay, I'll give them that. But, two of the routes have been flown by WN from DAL (SAT/AUS) for decades yet AA didn't feel the need to fly them. Now that WN starts service to MCI and STL, AA not only matches the MCI and STL but flies intrastate from DAL, something it has been able to do for a very long time.

David R

-------------- Original message -------------- 
From: Bill Hough 


> =20 
> ---------------------------------------------------------------------- 
> This article was sent to you by someone who found it on SFGate. 
> The original article can be found on SFGate.com here: 
> http://www.sfgate.com/cgi-bin/article.cgi?file=3D/n/a/2006/03/02/financial/= 
> f120248S39.DTL 
> --------------------------------------------------------------------- 
> Thursday, March 2, 2006 (AP) 
> American Begins Flights From Love Field 
> 
> 
> 
> (03-02) 13:25 PST DALLAS (AP) -- 
> 
> American Airlines on Thursday began flying from Love Field for the first 
> time in five years, raising the stakes in a showdown with rival Southwest 
> Airlines Co., which is based at the Dallas airport. 
> 
> American, based at nearby Dallas-Fort Worth International Airport, is 
> flying 16 times a day from Love Field to St. Louis, Kansas City, Austin 
> and San Antonio all Southwest destinations. Love Field is closer 
> to downtown Dallas than the international airport. 
> 
> The flights are in response to Southwest's winning permission from 
> Congress late last year to fly from Love Field to St. Louis and Kansas 
> City. Southwest has been pushing for repeal of a 1979 law that limits long 
> flights at Love Field a move opposed by American. 
> 
> American, owned by Fort Worth-based AMR Corp., has lost more than $8 
> billion since the beginning of 2001. Officials with American said the Love 
> Field flights could be costly in the short term but are necessary to avoid 
> losing Dallas passengers to Southwest. 
> 
> Southwest, the only consistently profitable major U.S. airline, says the 
> 1979 law known as the Wright Amendment is anti-consumer. 
> 
> Sen. Kay Bailey Hutchison, R-Texas, planned to convene a meeting of Texas 
> lawmakers Thursday to consider possible changes in the law. 
> 
> Southwest has said it is reconsidering relocating its headquarters to 
> Phoenix. In addition to the Wright Amendment, Southwest has been upset 
> with recently increased airport landing fees. 
> 
> Dallas Mayor Laura Miller said this week that Southwest's talk of a move 
> is mostly bluff. She said the company has been "finding new ways to 
> accentuate the fact that they would like to fly unfettered, and I think 
> this is a piece of that campaign." 
> 
> Meanwhile, both airlines have rolled out competitive new extras. American 
> began offering triple frequent flier bonuses on Love Field flights. 
> Southwest said it would give frequent-flier rewards to passengers on 
> partner ATA Airlines, which flies to Hawaii. ------------------------------= 
> ---------------------------------------- 
> Copyright 2006 AP


			
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