Aggressive Delta’s move to establish a hub at Boston Logan hub raises a question: Why didn’t American move to grow at Logan?
www.forbes.com
Interesting article on American Airlines continued downsizing at Logan.
Really sad for AA to downsize that much at BOS. Pre US merger it had just 32-34 Flights a day (4x JFK, 4x LAX, 7-8x DFW, 7-8x MIA, 8-9x ORD). Sad. Down from 130+ in 2005 which included flights to MAN, 2xLHR, CDG year round, SAN, BWI, SJC, SFO, STL, SJU, *A Seasonal LIM* ... Crazy. AA states most of its BOS operations were very profitable., but cornerstone was more important to them. So.. their BOS demise is there own fault because prior to 2008, they owned BOS. Now their 3rd wheeling and not really doing much in a market that is basically throwing out free money for airlines to bank on gearing towards the market AA holds. Id say AA business pax in BOS has cut 1/2 since 08, while DL and jetBlue have all exploded. AA should try investing been in the markets that have been proven to be successful for them (Why not go back 2x Daily SFO? Profits were crazy! Or BOS-SJC/RDU... those flight loads were high and profits were also amazing), instead of watching themselves shrivel in a market they still have a lot of loyalty and trust in. I fly AA 80% of the time, and il fly jetBlue the other 15-20 flights a year I take, and I am truly disappointed with AA's casual demise.. although jetBlue's product is better, I feel betrayed by AA in a way.
AA's Cornerstone Strategy: The strategy AA used from 2007-2014,in which they closed most Point 2 Point routes and routes from secondary hubs in exchange to make their "Cornerstone" Hubs, LAX, MIA, JFK, ORD and DFW stronger. So in that time, STL (Although very unprofitable in AA Metal unlike TWA), SJU, BOS and RDU lost secondary hub/focus/significant point to point routes.. in exchange they strengthened their cornerstone hubs. This is why BOS dropped from 130+ flights to 32 a day. They thought even though they closed profitable routes, they could make more money routing the flights to their cornerstone hubs. While I cant test the validity of this claim, most highly believe that STL and SJU routes ran very unprofitable (SJU for other reasons than STL)... while BOS, RDU 00's cuts weren't very justified. American Airlines merged with US Airways in 2014 and gained more P2P routes especially from PIT and BOS, which ultimately saw some cuts (ie. STL-PIT, BOS-PIT, BOS-BUF, BOS-CDG, etc). Since then, there has been very little cuts but AA over the past year seems to want to reverse the cornerstone in some way. BOS-NAS/PLS have been announced, though small, are something.
In the future? I see AA Stengthening from DFW, PHL and ORD at significant levels. I do think AA will cut slightly from JFK and PHX. Possibly.. I could see some minor expansions in p2p as well.