American is getting back into the short
haul market. Those are trips to cities
less than 500 miles apart.
And until recently was thought to be
unprofitable to the big carriers, which
consistently made their money on
transcontinental service.
The conventional wisdom has changed in a
variety of ways.
It's changed because the regulatory
environment has changed.
It's changed because the price of fuel
has changed and it's changed
because competition is entirely different
today than it was in a regulated in a
regulated world.
Randall says American will increase
service to two hundred flights a day out
of DFW and will add two hundred and fifty
employees to this area.
Many of the new flights to be added by
American will compete with Love Field
base Southwest Airlines.
But the chairman of that company says
he's not worried.
I would suggest that it'll be even more
in direct competition with Braniff,
which serves the same cities, most of
them out of DFW.
So I would really say that if you if
you look at it from that standpoint, that
the more going head to head with Pranav
than they are with Southwest Airlines,
rano with major management changes
and a whopping one hundred and twenty
eight million dollars reported lost from
1980 is considered fair game.
American earlier announced nonstop
DFW Hawaii service, which
will compete directly with Branagh's most
profitable flights.
American is hoping the new short haul
service flights will add 15 million
dollars in profits to the company, which
last year had losses of one hundred
twenty five million five letter Channel
5 Action News, DFW.