American Airlines confirmed (01-Aug-2013) the commencement of 76-seat Embraer E175 operations on 01-Aug-2013. The aircraft will be operated by Republic Airlines under the American Eagle Airlines brand as part of a 12-year capacity purchase agreement, and will initially be based at Chicago O'Hare. The carrier expects two to three E175 aircraft to enter service per month, reaching the maximum of 47 in 1Q2015. The aircraft are configured with 12 first class, 20 'Main Cabin Extra' and 44 economy seats. American Airlines VP network planning Chuck Schubert said: "For the first time in American Airlines history we are offering large regional jet flying as an option. In addition to strengthening our longstanding partnership with Republic Airways, this is a strong step forward in the diversification of our fleet and an important enhancement from one of our key hubs. It’s also great news for our customers, who will now have even more flight choices and opportunities to travel in the first class cabin." [more - original PR American Airlines] [more - original PR New Orleans Airport]
American Airlines confirms launch of E175 oeprations
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United Airlines Part 1: New management declares ambitions to usher in a new competitive era
For years United Airlines has operated at a competitive disadvantage to its large US network peers. The challenges that United never seemed to overcome were largely self-inflicted, and ranged from widespread employee discontent to consistent revenue shortfalls.
Now United finally appears to be charting a course to level the competitive playing field with its large global US network competitors, to close the long-standing revenue gap it has held with its rivals. The elements of United’s plan to shore up revenues include bolstering connections at its hubs, improved revenue management, and product segmentation that entails a new basic economy fare structure whose restrictions are more stringent than those of its peers.
United’s revenue transformation will not occur overnight, but for the first time since its 2010 merger with Continental the company seems laser-focused on shrinking the competitive challenges that have hindered its performance. It projects billions in improvement – to pre-tax profits by 2020 – as a result of its doubling down on efforts to shore up revenue. Obviously the measure of United’s success lies in its execution and its ability to navigate competitive responses to its revenue-generating strategies.
This is part one of a two part series examining United’s strategies to compete more effectively with its peers on revenue and costs.
Interjet’s international passengers soar with new US transborder push against Mexican and US rivals
International passenger numbers for the Mexican low cost airline Interjet skyrocketed more than 50% in the first seven months of 2016, reflecting the launch of more than 10 new international routes during that period, and with US transborder routes representing the bulk of Interjet’s international expansion.
Interjet is no doubt positioning itself to seize on opportunities created by a new, finalised bilateral between the US and Mexico that lifts restrictions on the number of airlines operating on specific routes between the two countries. Interjet’s rival Volaris has also grown its US transborder passengers in 2016, but it has a different route profile from that of Interjet. Generally, Interjet is subject to higher levels of competition on some of its transborder routes than Volaris, given that Interjet and Volaris offer different products to their passengers.
During the past two to three years Interjet and Volaris have been essentially tied for the coveted position of Mexico’s second largest domestic airline. But for the seven months ending Jul-2017 Volaris logged 22% domestic passenger growth, while Interjet’s passenger numbers inched down slightly, resulting in Volaris assuming full command of the second place ranking.