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American Airlines President: “We Won't Make Things Better For Passengers Unless We Can Make a Profit Out of It”

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You're not a customer. You're a profit center. And American thinks you need more Basic Economy seats. (www.inc.com) עוד...

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ToddBaldwin3
ToddBaldwin3 4
American was my go-to airline for trips back home. Since they took the fare I was paying and turned it into basic economy, another airline, that offers two free checked bags is now my go-to airline.

Yes, AA can, and must make a profit, but if the service you provide is sub-standard, the customer is free to take their business elsewhere, and they will.
canuck44
canuck44 2
This should be a surprise to none. At the time of the merger, many on this forum predicted the resulting airline would be more like US Air than American and that it would create a race to the bottom to displace Spirit for that "distinction". Sure enough.
s2v8377
s2v8377 2
I think it's funny AA thinks they'll make more money adding 12 seats to their B738 fleet to match the MAX configuration. If you think about the money involved in a Mod of this scale of over 300 aircraft, I wonder how long it will take to break even??? Same for the A321 fleet which will undergo a similar Mod. Not to mention the 777s which have had several Mod's on their configurations over the last few years. Spending big money to maybe make more money???!!!
Highflyer1950
Highflyer1950 2
That’s why the government/FAA should mandate a comfortable seat pitch. The inflight service has dropped to nonexistent and you can always buy a meal on board. Who cares what type of aircraft you are on as long as it gets you there? The airlines will figure out pretty quick what frequency is needed on routes in order to make a profit. 34” should the bare minimum and if the airlines want more seating........the aircraft manufacturers will build it!
dbaker
Daniel Baker 2
In general, I'm not sure that we want government regulating the comfort and amenities of a service or product provided by the private sector.
flypilot12
flypilot12 0
There is another topic in the forums about that very thing. Back in the 70's and early 80's the airlines WERE regulated. Service was a paramount for all airlines back then, "We love to fly and it shows", has fallen to, "Get in an shut up", so yes, the government can and does regulate things all the time, such as...wait for it...the internet. "We don't need to enforce net neutrality the industry can do it themselves" because it worked so well for the airlines right? It brings to mind the adage of "letting the fox guard the hen house."
dbaker
Daniel Baker 0
The government regulated prices and routes, so airlines had to compete on quality. Flying was massively more expensive during regulation. If folks were willing to pay closer to $1,000 for a typical ticket vs $300, I'm sure the quality could be a lot better. Will a family of four pay $4,000 for flights vs $1,200?

https://www.theatlantic.com/business/archive/2013/02/how-airline-ticket-prices-fell-50-in-30-years-and-why-nobody-noticed/273506/
flypilot12
flypilot12 1
The point is, they used to. It was airlines that dropped their prices and now they are complaining that they have to make a profit? Get real. That article is old news. They dropped and they are in worse shape than under regulation. Lower fares doesn't mean better service. Maybe if they paid their aircrews better and the executives less maybe they wouldn't have these issues. No, they ALWAYS cut from the bottom, to keep the share holders happy. That precious bottom line can't go down it has to go up up up. Corporate greed is not a good argument, and the evidence is astoundingly present. We have fewer airlines now than we did even 10 years ago but airlines keep crying about not making money. Why? Where is the money going? Can't be going to competitors there aren't many in the US anymore. It's going to line the pockets of executives. What don't the US aircarriers want foreign airlines in the US? Profit. They site lower maintenance practices, and government subsidies as the reasons but guess what? That is here in the US as well. All airlines have gotten money from the government to buy planes that is why the Civil Reserve Air Fleet is a thing. No, there is no excuse for this kind of bs. It's corporate greed pure and simple, and I no longer support it, as is my right in a free market.
dbaker
Daniel Baker 2
They're a business, not a charity, so that is the nature of how things work. The majority of the traveling public, when given the option, would prefer to pay less (even a very small amount less) even if it means a less optimal experience. The market has spoken.
s2v8377
s2v8377 3
It is certainly true that airlines are in business to make money. What makes me frustrated with the US airline industry is how they spend their profits. Configuration mod's that never end, spending big money on technology which isn't user friendly for their employees, lounges and company facilities which aren't needed, overly aggressive fleet replacement plans old planes even with fuel going up are generally still cheaper to fly than new ones when you figure in the expense of purchasing/leasing them, over hiring management positions, and of course rebranding that never ends.

Perhaps if airlines spent their profits better they would not have to cut costs at the expense of their passengers.
flypilot12
flypilot12 1
The market has spoke up to this point but it never stops speaking. What flew yesterday may not fly tomorrow, and people ALWAYS reach a breaking point where they say enough is enough. I already did. Years ago.
flypilot12
flypilot12 1
Ever since the merger American is no longer American, it's US Scareways, that being said, because of the deregulation of the airlines it has just been going further and further down hill. Airlines keep packing people in on fewer flights because people are voting with their dollars and driving more or taking trains these days. The airlines are doing it to themselves and trying to blame the cargo for the issues. That's right, cargo, that is all you are to modern airlines. Self. Loading. Cargo. I only fly in helicopters these days for work, but when I travel, I drive. I'll never step foot onto another air carrier.
HighFlightChannel
Ingo Breuer 1
I think American should stay committed to Boeing Aircraft. I saw the most ridiculous sight recently in Atlanta. A whole line of aircraft with a big "American" liverie on their side and they were all A320s. That is not coherent and really annoying. If it says "American" on the outside, it better be "American" on the inside. This means: steady orders for American-made Boeing 737s!

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