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American Airlines' Service from JFK to Tokyo-Haneda to be Cancelled
“While we are disappointed to end this route, our Tokyo/Haneda flight has been quite unprofitable, largely because we are allowed to operate only during severely restricted hours, limiting our customers’ options for connecting flights to and from other Asian markets,” American’s chief commercial officer Virasb Vahidi said in a special Jetwire to employees. (aviationblog.dallasnews.com) Más...Sort type: [Top] [Newest]
The question of time slot is not insignificant, as some seem to dismiss. If there are no other incoming flights early enough to feed the AA flight at the early morning slot, there are physically fewer people available to get on the plane at any price. Not only must you consider the cost of an hotel room for the night, which in Tokyo is not insignificant. If you only had to reduce the cost of the airfare by the cost of a Tokyo hotel room to fill the plane, that adjustment enough to make your fligt unprofitable.
Then consider that the highest revenue passengers wouldn't consider an overnight layover in the middle of their business trip at any price. They will pay whatever the asking price to get on a flight that provides them a short layover, and same-day connecting service.
So not only would AA have to fly that seat empty (or deeply discounted) but would miss out on that pay any price passenger, that would shower that revenue largess on a competitor's flight.
Then consider that the highest revenue passengers wouldn't consider an overnight layover in the middle of their business trip at any price. They will pay whatever the asking price to get on a flight that provides them a short layover, and same-day connecting service.
So not only would AA have to fly that seat empty (or deeply discounted) but would miss out on that pay any price passenger, that would shower that revenue largess on a competitor's flight.
Others do it better. Forget the rhetoric about time slots. The Asian airlines do it better than AA. I can get freight in 3 days on the Asian carriers which is faster than both FedEx and UPS. One thing when they beat the hell out of you carrying passengers..but hell when they get upto to FedEx and UPS deadlines you have to ask.
Agree as I have experience with air freight from Asia and the Asian freight haulers do it on time, intact and without loss. Impressive.
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Try EVA...first class company from Taipai. That's an island just off China. Great company, first class kit and good staff. Not about price at all.
Taipei is the capital city of the "island just off China." The island itself is Taiwan, which, depending on whom you ask, is a country in its own right.
The last time that I looked EVA didn't have too great a safety record.
Hmmm, EVA has not had any aircraft losses or passenger fatalities in its operational history. Sounds like great safety record to me. Not sure where you got your information from...
I like them..hassle and poor service can also shorten your life.
Just not as quickly. ;-)
Aviation politics sucks - the asian nations are very unfair with the US. China artificially keeps their currency down to promote their exports and thus cheating. Japan puts tariffs so high on american vehicles that we cannot sell any cars in their markets, while they are allowed to sell here with relatively low tariffs.
The US constantly is forced to "be fair" with asian companies, while Asia is very unfair with ours. This unbalanced trade situation should be stopped.
All we have to do is limit the slots for their airlines - and force them to treat us fairly.... then and only then will we know for sure what caused AA to pull out of that market.
The US constantly is forced to "be fair" with asian companies, while Asia is very unfair with ours. This unbalanced trade situation should be stopped.
All we have to do is limit the slots for their airlines - and force them to treat us fairly.... then and only then will we know for sure what caused AA to pull out of that market.
Don't forget that US is using China workforce to produce most of the American products in lower prices than if they had the factories in the US. They take advantage of the possibility to give really low salaries to Chinese workers to make profit in the rest of the world. That seems much more unfair to me than the "slot issue" of American aviation.
I do agree on the rest that you say, but not that US is forced to "be fair". They might be fair but they do it for their own companies sake...
I do agree on the rest that you say, but not that US is forced to "be fair". They might be fair but they do it for their own companies sake...
The Chinese sell their cheap wares themselves all over the world, without the need for anyone first world partners.
As the Chinese use US Dollars to purchase natural resources and set up ventures around the world, they are not doing so for the Americans, Brits, Europeans or anyone else but themselves.
People from all over the world buy Chinese goods because these are often less expensive. But the job loss impacts are also being felt all over the world.
As the Chinese use US Dollars to purchase natural resources and set up ventures around the world, they are not doing so for the Americans, Brits, Europeans or anyone else but themselves.
People from all over the world buy Chinese goods because these are often less expensive. But the job loss impacts are also being felt all over the world.
I can only agree with what you say, but these things go beyond the aviation prices and the bad slots in air traffic. Name it bad policy from our side or just inability to react to their "weak" currency tactics, that's a general phenomenon and issue we have and we will have to deal with more in the future.
There will be some rebalancing over the next couple of decades.
The cheaper on-shore energy available to bring down the cost of manufacturing, combined with high oil/ transportation cost, and higher labor cost in China alone will provide more favorable economics.
Plus there are geopolitical considerations, hidden costs of manufacturing off-shore and quality/brand issues that also come into play.
Plus don't forget, people want jobs. So there will be more pressure to make things. Hopefully, eventually the tax structure will reward investment in local jobs, or at the very least stop punishing on-shore employment.
Whatever you tax aggressively, you get less of. So pick your poison: taxing employment vs. taxing consumption.
The cheaper on-shore energy available to bring down the cost of manufacturing, combined with high oil/ transportation cost, and higher labor cost in China alone will provide more favorable economics.
Plus there are geopolitical considerations, hidden costs of manufacturing off-shore and quality/brand issues that also come into play.
Plus don't forget, people want jobs. So there will be more pressure to make things. Hopefully, eventually the tax structure will reward investment in local jobs, or at the very least stop punishing on-shore employment.
Whatever you tax aggressively, you get less of. So pick your poison: taxing employment vs. taxing consumption.
That's to bad another Tokyo route bite the dust, San Jose's AA Narita route was cancelled as well. That was a great 777 route!