Sun, Jun 17, 2012
Cornerstone Network Strategy Necessary For Post-Chapter 11 Success
A new report published Thursday assesses the American Airlines cornerstone network strategy through both domestic and international lenses. The domestic route structures of oneworld, Star, Skyteam and the unaligned airlines are reviewed. In addition, connectivity to international networks is assessed.
Darryl Jenkins, Founder and President of Theairlinezone.com, published the report. He says in combination with oneworld and immunized joint ventures with IAG and others, the cornerstone model is well suited to industry conditions. oneworld is well positioned in the cornerstone markets for the following reasons:
They are number two overall in the largest markets.
Cornerstone markets have plentiful O&D (origin and destination) traffic and lucrative corporate traffic. American's key gateway hubs – including New York JFK, Los Angeles, Dallas/Ft. Worth, and Miami – have advantages for global traffic relative to Delta's and United's major hubs.
There are several key reasons why American Airlines finds itself uncompetitive in cost. These include its late entry into immunized alliances, its fleet imbalance, and the competitive impact of industry consolidation.
In order for American's cornerstone network strategy to be fully realized, however, the breadth of international service from these cornerstone hubs must be complemented and fed by regional feed with aircraft better suited to market sizes and yields. The combination of smaller mainline aircraft and regional scope relief should further unlock the value in the cornerstone markets.
Jones says the cornerstones are an important and necessary part of American's network. The report also includes an analysis of the competitive landscape in each of the cornerstones and other important US markets.
More News
How To Get A Story On Aero-TV News/Feature Programming How do I submit a story idea or lead to Aero-TV? If you would like to submit a story idea or lead, please contact Jim Campbel>[...]
Aero Linx: International Association of Professional Gyroplane Training (IAPGT) We are an Association of people who fly, build or regulate Gyroplanes, who have a dream of a single >[...]
NORDO (No Radio) Aircraft that cannot or do not communicate by radio when radio communication is required are referred to as “NORDO.”>[...]
Beyond Visual Line Of Sight (BVLOS) The operation of a UAS beyond the visual capability of the flight crew members (i.e., remote pilot in command [RPIC], the person manipulating th>[...]
Aero Linx: Malibu M-Class Owners and Pilots Association (MMOPA) The Piper M-Class Owners & Pilots Association (PMOPA) is a not-for-profit organization dedicated to the interest>[...]