American Airlines establishing a hub in Austin? (Houston, San Antonio: taxi, prices)

[Exult.Q36]

Delta messed up when they left DFW years ago. That business move made them a none factor in the state. American & Southwest will make sure they don’t gain a foot hole back in Texas.

[As Above So Below...]

Originally Posted by Exult.Q36

Delta messed up when they left DFW years ago. That business move made them a none factor in the state. American & Southwest will make sure they don’t gain a foot hole back in Texas.

They were losing so much money at DFW. It stinks but they could hang on financially. I can’t call it a mistake because it would have driven them under to hang on.

[ParaguaneroSwag]

Originally Posted by Exult.Q36

Delta messed up when they left DFW years ago. That business move made them a none factor in the state. American & Southwest will make sure they don’t gain a foot hole back in Texas.

That wasn’t a mistake at all. It didn’t make any financial sense.

[KerrTown]

Originally Posted by Exult.Q36

Delta messed up when they left DFW years ago. That business move made them a none factor in the state. American & Southwest will make sure they don’t gain a foot hole back in Texas.

Delta was bankrupt in 2005. According to a January 30th article:

Delta ending three decades of hub operations at DFW Airport

Two dozen gates at Dallas-Fort Worth International Airport are up for grabs with financially troubled Delta Air Lines shutting down one of its four airport hubs.

The Atlanta-based carrier on Monday was to end three decades of hub operations at the North Texas airport, leaving a dramatically reduced number of flights at DFW.

Then later in the year:

Delta Air Lines - Wikipedia

On September 14, 2005, the company filed for bankruptcy, citing rising fuel costs. It emerged from bankruptcy in April 2007 after fending off a hostile takeover from US Airways and its shares were re-listed on the New York Stock Exchange.

As a result, AA was able to become more dominant in its DFW home.

[Mr. Clutch]

Originally Posted by KerrTown

More likely Houston. DL still needs a western hub to serve the Southern U.S. more effectively. The Houston market is ripe for a competitor to UA's stranglehold. After the merger, hometown loyalty evaporated as everything moved to Chicago and United brought Yankee management and customer service to the South.

UA is focused on business and international connection travel--the other hubs are in the Big 5 of N.Y.C., D.C., Chicago, L.A., and S.F. and Denver being the center of the Rocky Mountain West. DL and AA have the bigger share of domestic and leisure travelers for the Big 3. Austin just doesn't have the demand to justify a Big 3 hub.

If the whole idea of burning through millions of dollars for years (and the lack of gates) didn't exist, they probably could eventually supplant UA in Houston. We mostly fly UA because we have to, but I do think theyve improved over the years and they don't seem to be as hated locally as in years past.

[ParaguaneroSwag]

Originally Posted by Mr. Clutch

If the whole idea of burning through millions of dollars for years (and the lack of gates) didn't exist, they probably could eventually supplant UA in Houston. We mostly fly UA because we have to, but I do think theyve improved over the years and they don't seem to be as hated locally as in years past.

Not a chance. It MAY in Austin because it doesn’t already have one of America’s premier airline hubs. It’s silly to even think it were possible.

Also, American is the worst of the big 3. We are blessed to have them instead of American. Delta is ranked the highest with American last. The reason for market share throughout Texas all deal with history.

And even if it were about a long bloody price war, there’s not a single beneficiary for American. United is MUCH healthier financially than American and it’s not close. American would lose that war even if it were only about finance.

Edit: I changed my it works to it May work. Even Austin is a question mark long term.

[masssachoicetts]

AA Hubs in 2003 post TWA Merge
-Dallas/Fort Worth
-St. Louis Lambert
-Chicago O'Hare
-Boston Logan
-San Juan
-Miami International
*Focus City: Los Angeles*
*Focus City: San Jose, CA
*Focus City: New York Kennedy*

AA Hubs in 2008 post restructure
-Dallas/Fort Worth
-St. Louis Lambert
-Chicago O'Hare
-Miami International
-San Juan
*Focus City: Boston*
*Focus City: St. Louis
*Focus City: New York Kennedy
*Focus City: Los Angeles*

AA Hubs in 2012 post 'cornerstone' strategy model
-Dallas/Fort Worth
-Chicago O'Hare
-Miami International
-Los Angeles
-New York Kennedy
*Focus City: New York: LGA

AA Hubs 2021 post US Airways Merge
-Dallas Fort Worth
-Charlotte
-Chicago O'Hare
-Miami
-Philadelphia
-Washington National
-Los Angeles
-New York LGA
-New York Kennedy
*AA in procees of adding 18+ new destinations to Austin*
*AA in process of adding cities like London-LHR, Fort Lauderdale, St. Louis, Raleigh, Indianapolis, Toronto, Colombus, Cincinatti, and ~10 others. New partnership with B6 in BOS and frequency increases*
*AA adding international routes out of SEA including London, Bangalore and Shanghai in partnership with AS*

Looking at the Hub History, AA always plays around with them. AUS BOS RDU have all recently ramped up in recent months. I think in the next three years, AA does have plans to grow into either a focus city or hub in BOS and AUS. More so in AUS. AA seems to want to tackle some business and leisure in/out of AUS and this seems like a smart next decision to make.

Id say 60% chance AUS becomes a hub/focus for AA by 2023.
45% for BOS. 30% for SEA/RDU..

[Mr. Clutch]

Originally Posted by ParaguaneroSwag

Not a chance. It MAY in Austin because it doesn’t already have one of America’s premier airline hubs. It’s silly to even think it were possible.

Also, American is the worst of the big 3. We are blessed to have them instead of American. Delta is ranked the highest with American last. The reason for market share throughout Texas all deal with history.

And even if it were about a long bloody price war, there’s not a single beneficiary for American. United is MUCH healthier financially than American and it’s not close. American would lose that war even if it were only about finance.

Edit: I changed my it works to it May work. Even Austin is a question mark long term.

No, I meant Delta could supplant UA in Houston, not American. Sorry should have made that more clear. American sucks lol. I don't love United, but I'll take them over AA every time.

[DCtoTejas]

This is great. I don't fly often and don't know when the next time I will but more direct flights and more carrier options is a good thing for the average flyer. Southwest totally dominated Austin when I moved here and I used to really like them back a long time ago but now I think they are as expensive as the others and I never cared much for the whole open seating thing, I think it's a game to get people to the gate early to improve their on time departures. The easy baggage policy also encourages a lot of families with young children to fly them which is great for them but not so great for me as I fly for business solo about half the times I do fly. It's also nice to have the option to purchase a first class upgrade since I'm not paying for the flight itself a lot of times.

[As Above So Below...]

Originally Posted by KerrTown

More likely Houston. DL still needs a western hub to serve the Southern U.S. more effectively. The Houston market is ripe for a competitor to UA's stranglehold. After the merger, hometown loyalty evaporated as everything moved to Chicago and United brought Yankee management and customer service to the South.

UA is focused on business and international connection travel--the other hubs are in the Big 5 of N.Y.C., D.C., Chicago, L.A., and S.F. and Denver being the center of the Rocky Mountain West. DL and AA have the bigger share of domestic and leisure travelers for the Big 3. Austin just doesn't have the demand to justify a Big 3 hub.

Houston has about 2/3 of the O&D that the DFW market has. If it didnt work there, it wont work here.