Re: 747s and American Airlines

From:         spagiola@FRI-nxt-Pagiola.Stanford.EDU (Stefano Pagiola)
Date:         27 May 93 11:23:19 PDT
References:   1 2 3
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Two quick points, just as an addition to Karl's excellent discussion  
of AA's 747 operations:
1. AA's choice of the MD-11 to fill its needs for a long-range  
international aircraft was based on considerations of service  
frequency and break-even load factors.  AA considers the 747-400 too  
big for its needs; even when a route becomes popular, it prefers to  
increase frequency rather than aircraft size.  Although seat-mile  
costs are higher, the number of passengers required for the service  
to break even is considerably lower.
As h andrew chuang pointed out in his follow-up, on some routes its  
hard to increase frequency because of timing problems; AA has very  
few such routes.  The ORD-Tokyo route would have been such a route,  
and AA did try to obtain 747-400s for it. (Also, the Pacific  
market--especially the Japanese market--has a strong preference for  
the 747; one of the reasons UA disposed of its L-1011 so rapidly  
(aside from their generally poor condition) was strong resistance to  
this type on the routes to Japan.)
2. The MD-11s actually represent an increase in capacity over the  
747SP (251 vs 203 seats in AA's configuration).
Stefano Pagiola
Food Research Institute, Stanford University (NeXTMail encouraged) (NeXTMail encouraged)