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CanoePilot
05-23-2014, 12:31 PM
Just was reported that AA is getting 4 of United's gates in LAX for growth. I think united is pulling back on some routes (cutting LAX-PDX). This will make AA the largest operator out of LAX.


fosters
05-23-2014, 12:41 PM
Excellent hopefully they can turn it into a hub into Asia

Arado 234
05-23-2014, 01:23 PM
This will make AA the largest operator out of LAX.

You better call Eric Holder and Bill Bear right away to intervene...


kingairip
05-23-2014, 01:25 PM
Do you have a source?

InformationEcho
05-23-2014, 02:11 PM
Has Southwest filed an Amicus brief detailing how they should get the gates so they can "Bring low fares to all" yet?

/sarcasm

CanoePilot
05-23-2014, 02:19 PM
Do you have a source?

It was posted on twitter.

CaptainBigWood
05-23-2014, 05:26 PM
What terminal?

Freeflyfreak
05-23-2014, 06:37 PM
It was posted on twitter.

Posted on Twitter by whom.

TheFly
05-23-2014, 06:39 PM
Posted on Twitter by whom.

a little birdy. Move along now, move along.

HeadInTheTops
05-23-2014, 06:43 PM
Nah, they need to make PDX the new AA hub. And then staple Alaskan Air Lines.

FredFlyer
05-27-2014, 10:01 AM
American reaches agreements regarding gates
American has agreed to sublease four new gates and related space in Terminal 6 at LAX. This will allow us to improve customer service at a capacity-constrained hub. The transfer of gates and other space at LAX is expected to be completed during the third quarter of this year.

In a separate agreement, American has agreed to return two gates and related space currently operated by US Airways in Terminal 2 at ORD. This will allow us to more quickly co-locate operations in Terminal 3. The return of gates and other space at ORD is expected to be completed by the end of the second quarter and will not impact staffing levels or flight schedules.

Ultimately, both of these moves will provide our customers with a more seamless travel experience.

samballs
05-30-2014, 07:44 AM
UA is slowly becoming the new usairways of the industry

CanoePilot
05-30-2014, 08:29 AM
UA is slowly becoming the new usairways of the industry

I was thinking the same thing but didn't want to be the one to make the comparison. They are cutting back massively on the west coast.

cactiboss
05-30-2014, 12:32 PM
UA is slowly becoming the new usairways of the industry

That's no good, our contract is tied to theirs.

flybywire44
05-30-2014, 03:28 PM
What is United doing with thee T6 gates now? Any pacific destinations?

"Additionally, Keay said, American benefits from labor costs that are $1 billion annually lower than United's labor costs."

http://www.thestreet.mobi/story/12720681/1/whats-wrong-with-united-airlines-a-little-bit-of-everything.html

Packrat
05-30-2014, 07:06 PM
Code sharing with AS in T-6.

flybywire44
06-06-2014, 03:27 PM
http://crankyflier.com/2014/06/05/american-picks-up-some-united-gates-at-lax-but-why/

flybywire44
06-07-2014, 07:33 PM
http://www.fool.com/investing/general/2014/06/05/united-continental-holdings-inc-is-retrenching-in.aspx

United Continental Holdings Inc. Is Retrenching in L.A.
By Adam Levine-Weinberg | MOTLEYFOOL.COM
June 5, 2014 |
United Continental Holdings (NYSE: UAL ) recently closed its persistently unprofitable Cleveland hub, and some analysts have urged further cutbacks. The struggling legacy carrier may be taking this advice to heart by closing its smallest remaining domestic hub: Los Angeles .
United Airlines is giving up four gates at Los Angeles International Airport later this year.
United later this year will begin subleasing four gates it controls at the crowded Los Angeles International Airport toAmerican Airlines (NASDAQ: AAL ) . United and American have been jockeying for the top market share position at this highly fragmented but strategically important airport. By giving up valuable gate space at LAX, United is all but throwing in the towel.
The battle for Los Angeles
Los Angeles is arguably the most competitive U.S. air-travel market. In terms of passenger market share, United Continental and American Airlines have been evenly matched recently. They led the market last year, with each holding a roughly 20% share (combining the American/US Airways passenger boarding numbers).
Delta Air Lines has been bulking up in Los Angeles recently.
However, Southwest Airlines (NYSE: LUV ) and Delta Air Lines (NYSE: DAL ) -- the other members of the big four that dominate the U.S. airline industry -- are not far behind, each holding 12%-13% of the market. Delta Air Lines has been gradually adding flights in the past year or so in its clear effort to bolster its presence in L.A.
Helping a rival?
Los Angeles International Airport is one of several major airports in the U.S. where gate space is the limiting factor preventing airlines from growing. As part of its settlement with the Department of Justice over the merger with US Airways, American agreed to give up two gates at LAX that will go to low-cost carriers.
The loss of gate space would have forced American to reduce its flight schedule in Los Angeles . By subleasing four gates from United, American can maintain its current flights and even grow somewhat. Meanwhile, United has already cut several cities from its L.A. route map.
In the short run, it may make sense for United to eliminate some unprofitable flights in L.A. if it can instead make money by subleasing its gate space. However, due to the economics of airline hub operations, this decision could make the rest of United's L.A. hub operation less viable in the long run.
Why market share is key
There are two main issues here. First, after cutting its flight schedule, United will not be able to offer as many connections in Los Angeles . This will have a marginal effect on the demand for all of United's other flights out of Los Angeles . For example, a traveler looking to go from San Jose to Sydney will no longer be able to fly United with a connection in Los Angeles .
The second -- and more serious -- problem is that high-value corporate customers care about how many flight options each airline offers. American is already running neck and neck with United, and Delta is nipping at their heels. By retreating while its top competitors expand in L.A. , United risks losing lucrative corporate clients who find better flight choices at American or Delta.
American's growing market share lead in LA will help it win corporate contracts.
By shrinking its L.A. footprint rather than trying to improve results while maintaining its current scale (or even growing), United risks losing the critical mass necessary to operate a hub in Los Angeles . As a result, the airline's small downsizing this year could be a preview for a much larger downsizing in the future.
Foolish takeaway
Following the de-hubbing of Cleveland , Los Angeles is United's smallest domestic hub, with fewer than 200 daily departures; it's set to shrink further later this year. Meanwhile, United is subleasing four gates to its biggest rival, American Airlines, which will allow American to grow in the future.
United's management must realize that shrinking while its rivals are growing could put it at a long-term competitive disadvantage in Los Angeles . This course of action only makes sense if United is ultimately willing to shut its L.A. hub for good. In a few more years, that may be its only viable option.

Sniper
06-22-2014, 08:36 AM
So AA is forced to give up 2 gates in ORD (L1 & L2) by the DOT, then gives 2 of the 4 gates US Airways has in Terminal 2 in ORD to UA, in exchange for leasing 4 gates in LAX from UAL.

US Airways just moved their gates (4 gates?) from T1 to T3 in LAX. I assume 2 of those gates will be the gates that AA is being forced to give up by the DOT. However, who's getting US Airway's former gates in T1 in LAX? Please tell me its NOT SWA ... please.

Is AA giving up 2 gates in T1 or T3 in LAX?

R57 relay
06-22-2014, 08:43 AM
So AA is forced to give up 2 gates in ORD (L1 & L2) by the DOT, then gives 2 of the 4 gates US Airways has in Terminal 2 in ORD to UA, in exchange for leasing 4 gates in LAX from UAL.

US Airways just moved their gates (4 gates?) from T1 to T3 in LAX. I assume 2 of those gates will be the gates that AA is being forced to give up by the DOT. However, who's getting US Airway's former gates in T1 in LAX? Please tell me its NOT SWA ... please.

Is AA giving up 2 gates in T1 or T3 in LAX?

The T1 gates have already gone to SW. They have the whole terminal now, just one of the many gifts from US.

US moved to T3 several months ago and I believe we only actually only have 2 gates, using others as needed/available. It's been a mess, but has been running a little better the last few times I was there.