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
You may also be interested in the following articles...
Southwest Airlines layers back short haul flying as it contemplates its long term network strategy
Southwest Airlines has drawn much attention during 2015 for the disruption that its massive expansion from Dallas Love Field has created in the overall Dallas market. The capacity additions and overall lower fares have resulted in Dallas emerging as the largest US market, with deterioration of pricing traction being a major feature.
The reality is that Southwest is capping off a few years of changes, including the full integration of AirTran, a de-hubbing of Atlanta, and the launch of Southwest-branded international flights from a new terminal at Houston Hobby.
As Southwest’s domestic network continues to reach higher levels of penetration, questions are arising over the airline’s network strategy going forward. Recently it has hinted the timing could be favourable to shore up short haul markets, after focussing on longer haul flying for the last decade and a half. Some of its planned new routes for 2016 reflect Southwest’s willingness to test the waters on short haul flights.
US major airlines recognise the ULCC threat. Marketplace dynamics will change. But beware cost creep
Recent justifications by American Airlines for the matching of low cost and ultra low cost airline fares in its markets challenge one pillar of Spirit Airlines’ business model – that large network airlines are unconcerned about Spirit’s market entry, and largely ignore the ULCCs' presence.
American for quite some time has stated that it pays attention to Spirit’s movements, and has concluded the ULCC is a formidable competitor. Throughout 2015 American has highlighted the increased competition it faces, but it recently quantified the threat it faces from ULCCs and now finds itself assuring investors that its matching of fares offered by discounters is not permanently threatening its revenue profile.
Spirit has not escaped the effects of American’s price matching. Its unit revenue degradation in 2015 has been the steepest among US airlines, and it sees no immediate end to the pricing pressure it faces in the market place. As large US airlines devise strategies to compete with Spirit, it appears that the passenger segment Spirit targets is relevant to airlines operating all types of business models, particularly in an environment where fuel costs remain well below historical highs.