Business models - AA, US

[rettofly]

WSJ on 22 June published an article about the AA/US merger possibilities. The article includes a table that has me puzzled:

AA US
DAily flights 3,400 3,200
Employee headcount 80,000 32,000
2011 Revenue $24B $13B
2011 Profit/(Loss) ($1.98B) $0.71B

How does US Air run 3,200 flights per day with 40% of the headcount that it takes AA to run 3,400 flights per day? Is it safe to say that the headcount disparity accounts for AA's $2B loss (vs US's $.7B profit)?

How does AA produce 84% more revenue than US with 6% more flights?

 

[Flyby1206]

AA routemap

US routemap

People pay more to fly longer international routes like the ones AA flies, as opposed to CLT-GSO 10x a day like US flies.

 

[Ky.BrownBourbn]

How many of the employees at the LCC contract carriers are not included in that 32K # (my guess is 0). Their are many stations that are run by commuter employees, are those included...Could be lots of fuzzy math involved! YES, AA is fat on employees but not sure exactly how "lean" LCC is...Just saying!

KBB

 

[Green]

WSJ on 22 June published an article about the AA/US merger possibilities. The article includes a table that has me puzzled:

AA US
DAily flights 3,400 3,200
Employee headcount 80,000 32,000
2011 Revenue $24B $13B
2011 Profit/(Loss) ($1.98B) $0.71B

How does US Air run 3,200 flights per day with 40% of the headcount that it takes AA to run 3,400 flights per day? Is it safe to say that the headcount disparity accounts for AA's $2B loss (vs US's $.7B profit)?

How does AA produce 84% more revenue than US with 6% more flights?

pretty sure that includes all the LCC feeder carriers who run very lean staffing numbers. Then as someone pointed out the international ops (which LCC has little of) require a much larger headcount.

 

[Sandhawk]

Then as someone pointed out the international ops (which LCC has little of) require a much larger headcount.

Are you kidding me - LCC flies to 13 cities in Europe - those guys are the worldwide Gods of aviation... You know, the Super Senior Very Experienced International Captains.

I mean 13 whole cities in Europe... WOW, just WOW!

:laugh:

 

[TWA Dude]

My guess is the WSJ included Eagle in AA's numbers. Eagle is much larger than USAir's wholly-owned regionals.

 

[rettofly]

Thanks, guys. I knew there are multiple factors. It all makes sense when you roll them into the equation.

 

[formerdal]

Are you kidding me - LCC flies to 13 cities in Europe - those guys are the worldwide Gods of aviation... You know, the Super Senior Very Experienced International Captains.

I mean 13 whole cities in Europe... WOW, just WOW!

:laugh:

And AA only flies to 9!!! What's your point?

 

[AA717driver]

Are you kidding me - LCC flies to 13 cities in Europe - those guys are the worldwide Gods of aviation... You know, the Super Senior Very Experienced International Captains.

I mean 13 whole cities in Europe... WOW, just WOW!

:laugh:

But do they have five stripes on their sleeve? Do they fly "ER's"? If not, they've got a ways to go to qualify as "Gods of the North Atlantic".


TC