American Airlines announced they were going to stop serving 15 cities once government payroll subsidies ran out, and they were no longer required to fly to all of their pre-existing markets.
They spread the chosen cities out over 14 states, meaning they affected constituents of 28 Senators. And several members of the House Transportation Committee had their home airports seeing service eliminated. This was a political message.
American blew it somewhat, announcing suspension of service to two cities (Sioux City and Joplin) that they were legally obligated to continue to serve, since they had Essential Air Service agreements in place. They’ve asked the Department of Transportation for permission to leave those markets.
They also announced elimination of service to Roswell, New Mexico – but they have planes parked there they keep sending mechanics back and forth to keep in shape. Roswell worked out a deal to pay American to stay.
Now it seems that American has backed off plans to depart from a fourth of those fifteen cities: Stillwater, Oklahoma. (HT: @IshrionA)
Stillwater, home to Oklahoma State University, gained subsidies regional jet service to Dallas in 2016. Stillwater Regional Airport is about 70 miles from each of Oklahoma City and Tulsa. And the airport says it’s their members of Congress who got American to continue flying.
According to American, the decision [to drop service] was based on low advanced booking numbers and the approaching expiration of federal funding that was provided to airlines back in March. This funding, known as the Payroll Support Program (PSP), came as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The goal of this program was to help airlines protect employees and maintain service as they recovered from the negative impacts of COVID-19.
After receiving the news that SWO’s flights were going to be suspended, the Stillwater community rallied together to show their support. Many people reached out to Oklahoma’s congress members and urged them to continue to provide financial relief for the aviation industry.
…After several weeks of outreach from the Stillwater community and the expressed support of Representative Lucas, Senator Inhofe, and Senator Lankford, American Airlines began a conversation with the airport’s administration about how they could preserve SWO’s air service.
American got political support for more subsidies, and avoided angering powerful legislators, by making and then backing off of the threat to leave Stillwater.
They’re no longer making economic decisions based on providing a service customers want to buy. They’re making political decisions. Senators and Representatives are their customers now. It’s exactly what the CEOs of Delta, American, and United were warning us about from 2015 through 2019.
Fantastic! With Europe still closed for Americans, at least we can start planning a dream trip to SWO. And we know that the loads should light.
What a surprise! Making route decisions to gain political support. Like UA running a flight to the vacation home of the head of the Port Authority in hope of concessions at Newark or Jet Blue serving upstate NY communities to please Chuck Schumer. La plus ca change, la plus ca meme
AA should know better. Sen. Inhofe is one of the most crooked Senators in office today and that’s saying a lot. Check out his latest doozy of an ad. It’s time he goes back to the 1850s where he belongs.
Like Delta does not have the GOP “sourhern boys back”
LOL.
How about reporting Delta’s bad investments in:
Virgin Atlantic-49% bankrupt!
Latam-bankrupt!
Oil rifinery-cant sell it!
Not to mention Delta’s old gas guzzling,workout fleet.
Oh, I forgot JFK-SHUTDOWN.
NO BUSINESS TRAVEL.
REPORT IT ALL!
Oklahoma might be the worst state in the country
Wow, that’s earth shattering news. I would never dream that an airline would use routes to leverage or suck up politically. I sincerely hope that this is not your only job.
Decisions made for political considerations? Shocking! Newsflash: if you want less government influence and interference in business decisions, you’re going to have to get less government first.
Limited government… why hasn’t anyone thought of that?
The purpose of the SWO-DFW flights is to give Texans attending Oklahoma State a quick way to get home (and back to Stillwater as well). I would not be surprised if the effort to restore the route had support from Texas politicians as well.
Oklahoma and its politicians. Ughhhh Oklahoma is the worst state in the union.
“They’re no longer making economic decisions based on providing a service customers want to buy. They’re making political decisions.”
Many times political decisions are made for economic reasons.