American Airlines to slash capacity up to 12%

[Just a spotter]

American Airlines said on Wednesday it plans to cut jobs, retire old planes and slash domestic capacity by 11 percent to 12 percent in the fourth quarter as fuel prices reach record highs and the weak U.S. economy saps air travel demand. (http://www.reuters.com/article/newsOne/idUSWNAS489020080521)

Not in this article, but reported by AP that the MD-80's are expected to go.

JAS

[sky sailor]

I'm afraid it is just beginning... more to come. I would be really glad if I am wrong.

[Re-Heat]

Bad news for the short term, and the potential job impact. At least in the long-term the US domestic industry may again become more healthy.

[airfoilmod]

Great A/C, but very high time airframes for the most part; hasn't anyone experienced a "power-back" in the industry besides me? The sad thing about this predicament is the hysteria. Get a Grip, when the World as we know it has 15 minutes to go, we'll know it. Roll with it.

IMVHO, an immediate raise in fares, and consolidate some flight activity. Why Wait?

Airfoil

[CityofFlight]

Also noted...American will start charging $15 for the 1st checked bag beginning June 15th.

They better make sure those bags arrive to proper destination!

[PAXboy]

This is actually good news, as it shows AA have seen the future - in the same way that BA has done. By cutting small early, you can (hopefully) save cutting bigger later.

The US market is reported as being over provided with seats, this will sort the problem. More mergers and more closures will improve the long term strength of the industry. That is, after all, the American Way of capitalism. A lot of people support capitalism when it helps their lives but not when it works the other way.

[Wiley]

... and yet again, as so often before, when EK want crews, they magically become available, this time from the U.S.

[expat400]

"when EK want crews, they magically become available, this time from the U.S."

Well, no wonder, they ALWAYS want crews....;)

[typhoonpilot]

Wiley:

You've been here long enough to know it should be, "wanting". :p:)

americans don t want to leave the US, even if out of a job, least of all to go to the Gulf

While that statement was true post 9-11 it was more because there were other alternatives. SWA, Fedex, UPS, Netjets, Air Tran, jetBlue, etc were all hiring in fairly big numbers. Then CAL and a few others started hiring. Those furloughed pilots could also hold out a little longer on furlough pay and had a reasonable chance of finding a decent job in the USA. We only saw a fractional amount of the total furloughed pilots come to EK. That has changed dramatically in the last year. The RJ pilots now see little to no career potential staying in the USA. The complete shutdown of many airlines and lack of available jobs in the USA is forcing guys to look overseas when they otherwise wouldn't. That coupled with numerous reports from friends/acquaintances that Dubai isn't downtown Baghdad is making people more willing to consider the move.


Typhoonpilot

[Nimrod6]

Can anyone help me..? I'm looking for a quote that somone from AA made within thye last month... it was with reference to bellyholf freight, and the quote was something along the lines of "70% of routes would not be profitable without the additional revenue generated by bellyhold capacity".

If anyone can point me in the right direction I would be forever grateful.

Thanks,

Nimrod

[virginblue]

Not in this article, but reported by AP that the MD-80's are expected to go.

Don't they have 300+ MD80s? So a small percentage will go, and it seems to be more like advancing their retirement given that a lot of 737-800s are coming on-line in the 12 months.