Business History Books » Business Plans » American downsizes @ RDU
American downsizes @ RDU
Question:
– Hide quoted text — Show quoted text ->: >Now, if they close RDU, what will happen to all of the stuff that >: >goes there like their Orlando and other non-Miami flights? Will they move >: >them to Nashville and add an hour or so to the flights or will they move >: >them to Miami? Or will they just give up the markets? >: You know?, that’s why I personally think that AA will not leave RDU. >: I mean, that’s like basically saying goodbye to the northeast corridor and >: like it or not, this is a vital geographical area for American to serve and >: do business at. I’m sure they can run a small hub for a while( say 50 >: something jet flights a day) and re-build when the market improves, or some >: airline goes down leaving some sort of a void(USAir at CLT, for example). >: Remember also that American is not abandoning routes, but giving them to >: American Eagle, which is rather large at this airport. In any case, I hope >: they stay. There are a lot of nice people working for AA and building their >: lives around this wonderful area of NC and it would stink for them or >: anybody else to loose their jobs(I also speak for the USAir people at CLT!) >The original plan for the RDU hub was to funnel traffic from the >northeast cities (NYC, BOS, PHL) down to the Florida cities. All was fine >until about 1991/92 when more non-stops started appearing from NYC direct >to more cities in Florida. As nonstops grew, the RDU hub became less >efficient. While it is a great place to connect, most travelers >admittedly do not want to connect…. Unless local traffic improves, I’d >guess that the RDU hub will be more of a commuter hub than anything else, >with jet service to MIA/NYC/DFW/ORD/BNA remaining… >The only jet cities left in Florida are TPA/MCO/FLL/MIA/JAX/PBI; DAB is >now closed, SRQ, MLB and RSW are now Eagle service to MIA only, and I >believe that JAX is not Eagle only from RDU via SAV. The hub’s efficiency >AS ORIGINALLY PLANNED is no longer making the hub self-sustaining. >This is where the 18-month plan steps in — the goal is to increase RDU >local boardings enough to make the hub profitable. Unless it can break >even or above, I would not be suprised to see it downsized further. If it >does eventually downsize further, I’d expect to see more nonstop service >from JFK/LGA/BOS to Florida…. >Please keep in mind that I do -not- have any inside information regarding >RDU or any of our plans to keep service in a particular market. This is >just my semi-educated opinion…. >E >– >| Ticketing and Terminal Services | Fort Worth, TX Oskee-Wow-Wow | >| American Airlines, Inc | PeoplExpress – Gone But Not Forgotten |
I live near San Jose, and saw the birth, life and death of AAs hub there. American spent millions to expand the terminal, install equipment and so forth, so I was shocked when the abandoned the San Jose hub. Don’t be surprised if it happens in Raleigh, even though there is a hell of a lot more potential traffic on the east cost corridor. I suppose the big factors as to why AA couldn’t make SJCs hub work: 1. They could not compete with Southwest. WN was kicking AAs ass in the bay-> LA corridor. Noone flew out of San Jose – it was much cheaper to drive to Oakland, and catch WN for peanuts. 2. There are plenty of non-stop flights from the LA to the Northwest. Why connect?
Response:
: >Now, if they close RDU, what will happen to all of the stuff that : >goes there like their Orlando and other non-Miami flights? Will they move : >them to Nashville and add an hour or so to the flights or will they move : >them to Miami? Or will they just give up the markets? : You know?, that’s why I personally think that AA will not leave RDU. : I mean, that’s like basically saying goodbye to the northeast corridor and : like it or not, this is a vital geographical area for American to serve and : do business at. I’m sure they can run a small hub for a while( say 50 : something jet flights a day) and re-build when the market improves, or some : airline goes down leaving some sort of a void(USAir at CLT, for example). : Remember also that American is not abandoning routes, but giving them to : American Eagle, which is rather large at this airport. In any case, I hope : they stay. There are a lot of nice people working for AA and building their : lives around this wonderful area of NC and it would stink for them or : anybody else to loose their jobs(I also speak for the USAir people at CLT!) The original plan for the RDU hub was to funnel traffic from the northeast cities (NYC, BOS, PHL) down to the Florida cities. All was fine until about 1991/92 when more non-stops started appearing from NYC direct to more cities in Florida. As nonstops grew, the RDU hub became less efficient. While it is a great place to connect, most travelers admittedly do not want to connect…. Unless local traffic improves, I’d guess that the RDU hub will be more of a commuter hub than anything else, with jet service to MIA/NYC/DFW/ORD/BNA remaining… The only jet cities left in Florida are TPA/MCO/FLL/MIA/JAX/PBI; DAB is now closed, SRQ, MLB and RSW are now Eagle service to MIA only, and I believe that JAX is not Eagle only from RDU via SAV. The hub’s efficiency AS ORIGINALLY PLANNED is no longer making the hub self-sustaining. This is where the 18-month plan steps in — the goal is to increase RDU local boardings enough to make the hub profitable. Unless it can break even or above, I would not be suprised to see it downsized further. If it does eventually downsize further, I’d expect to see more nonstop service from JFK/LGA/BOS to Florida…. Please keep in mind that I do -not- have any inside information regarding RDU or any of our plans to keep service in a particular market. This is just my semi-educated opinion…. E — | Ticketing and Terminal Services | Fort Worth, TX Oskee-Wow-Wow | | American Airlines, Inc | PeoplExpress – Gone But Not Forgotten |
Response:
- Hide quoted text — Show quoted text – >Path: >hobbes.cc.uga.edu!news-feed-1.peachnet.edu!gatech!howland.reston.ans.net!s wiss >.ans.net!newsgate.watson.ibm.com!watnews.watson.ibm.com!usenet >Newsgroups: rec.travel.air >Organization: IBM T.J. Watson Research Center >Lines: 15 >Distribution: na >NNTP-Posting-Host: wgros2.watson.ibm.com >X-Newsreader: IBM NewsReader/2 v1.03 >CARRASQUILLO) writes: >bookings on their Mexico and Caribbean flights during the winter. Insiders >of the company tell me that eventually the hub will be closed down unless >there is a MAJOR turnaround. >Well, I guess AA agreed to give North Carolina 18 months to build up the >traffic at RDU. It’s only been 6 months or so, so they still have a year >to go. Now, if they close RDU, what will happen to all of the stuff that >goes there like their Orlando and other non-Miami flights? Will they move >them to Nashville and add an hour or so to the flights or will they move >them to Miami? Or will they just give up the markets?
You know?, that’s why I personally think that AA will not leave RDU. I mean, that’s like basically saying goodbye to the northeast corridor and like it or not, this is a vital geographical area for American to serve and do business at. I’m sure they can run a small hub for a while( say 50 something jet flights a day) and re-build when the market improves, or some airline goes down leaving some sort of a void(USAir at CLT, for example). Remember also that American is not abandoning routes, but giving them to American Eagle, which is rather large at this airport. In any case, I hope they stay. There are a lot of nice people working for AA and building their lives around this wonderful area of NC and it would stink for them or anybody else to loose their jobs(I also speak for the USAir people at CLT!) -W
Response:
>What did it used to be in the heyday of RDU?
In the good old days American had around 123 jet departures from RDU and about 97 Eagle flights. It is still to soon to determine the fate of the hub, with the recent inaguration of the London flight and very strong bookings on their Mexico and Caribbean flights during the winter. Insiders of the company tell me that eventually the hub will be closed down unless there is a MAJOR turnaround. American is a shrinking airline for now and I think it is going to help them a lot. -W
Response:
>bookings on their Mexico and Caribbean flights during the winter. Insiders >of the company tell me that eventually the hub will be closed down unless >there is a MAJOR turnaround.
Well, I guess AA agreed to give North Carolina 18 months to build up the traffic at RDU. It’s only been 6 months or so, so they still have a year to go. Now, if they close RDU, what will happen to all of the stuff that goes there like their Orlando and other non-Miami flights? Will they move them to Nashville and add an hour or so to the flights or will they move them to Miami? Or will they just give up the markets?
Response:
>> Just heard that American is shrinking their Raleigh-Durham, NC > hub to 10 cities. The current 83 flights will be down to 70 by Dec. 15. > No word about their commuter affiliate, American Eagle. >I am confused by your note.. they fly to more than 10 cities from RDU.. >many more, no? I do know, first-hand unfortunately, that they have cut the >number of flights between RDU and Stewart-Newburgh, NY from 3 each way to 1 >each way. >An agent I spoke to about this (who was located in RDU and was NOT happy >about the cutbacks) said that they cut 20+ jet flights, and replaced 10 or >so of them with American Eagle, so the cutback is actually much more severe >than you state. That also seems like a rather low number of daily flights. >What did it used to be in the heyday of RDU?
Right now, American has 83 departures, American Eagle has about 150. Also, American flies to 18 cities, American Eagle flies to 24 cities, and they share routes on 3 cities. About 5 of the routes American flew had 2-3 flights a day (ISP, SWF, ROC, ALB, etc.) A couple of other cities in the Bamahas, in Mexico, etc. had a daily flight. I imagine these may be the ones being cut. Does that help a bit? — Joe Ellen Freeze this moment a little bit longer
Response:
> Right now, American has 83 departures, American Eagle has about 150. > Also, American flies to 18 cities, American Eagle flies to 24 > cities, and they share routes on 3 cities. About 5 of the routes > American flew had 2-3 flights a day (ISP, SWF, ROC, ALB, etc.) > A couple of other cities in the Bamahas, in Mexico, etc. had a > daily flight. I imagine these may be the ones being cut. > Does that help a bit?
Well, yeah, actually, it does, quite a bit. Now, you said origianlly that they were cutting back to 10 cities. Is that true? Or is it just that they will only have multiple flights from those cities and have single flights from others like SWF (did they also cut back on ISP? I’ll have to check on Eaasy Sabre, I did look for LGA and they’ll still have 5 flights from there). It would sort of make sense that they served 18 cities since that is roughly how many gates they have at their terminal at RDU. And the number of cities always seemed larger because they announce all of the Eagle flights as well as the normal AA ones. Anyway, I wonder if this is the beginning of the end for RDU as a hub.. I know they threatened it earlier this year but then gave them an 18 month repireve.
Response:
Just heard that American is shrinking their Raleigh-Durham, NC hub to 10 cities. The current 83 flights will be down to 70 by Dec. 15. No word about their commuter affiliate, American Eagle. When you combine this and their reducing flights out of some midwest cities (CVG, etc.), they really do look like a shrinking airline! — Joe Ellen Freeze this moment a little bit longer