While domestic airlines might have you believe they are in serious jeopardy of losing American jobs due to unfair competition from international carriers, recent news stories post a fairly rosy picture for the commercial aviation industry in the United States.
Just a few days ago, American Airlines CEO Doug Parker told investors he believes the airline is "never going to lose money again."
There are plenty of indicators this may be true, including record profitability and employment levels by domestic carriers. While some suggest it's the ancillary fees-monies made from baggage fees and credit card rewards programs-that are keeping airlines flying high, there's also, apparently, plenty of money to be made from ticket sales as well.
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Case in point, American Airlines dropped the charters of six NFL teams in April. According to an internal memo obtained by Forbes, the airline cited a lack of available aircraft, when it ended its partnership with the Arizona Cardinals, the Baltimore Ravens, the Indianapolis Colts, the Jacksonville Jaguars, the Miami Dolphins and the Pittsburgh Steelers for the current season.
In other words, a plane full of paying passengers yields more revenue than does an aircraft chartered to an NFL team.
Incidentally, United Airlines also dropped a number of teams, including the Buffalo Bills and the Detroit Lions. NBC Sports' Mike Florio estimates that up to 20 teams could eventually find themselves lose their charter agreements with major airlines.
Now, according to ESPN, reality is starting to set in around the NFL as teams determine the best operational plan without a major airline at their side.
According to the ESPN report, the teams are now contracting with smaller charter companies that don't have the same resources as bigger airlines. What's more, teams are relying primarily on two companies, Atlas and Omni Air International, which says ESPN, give priority to their military contracts. All this amounts to the very real fact that a team could be left stranded in the case of an equipment malfunction or in case aircraft are suddenly called up to send the military to a danger zone or hotspot.
The NFL leaves travel arrangements up to the individual teams and unlike the NBA, NFL teams do not generally own their own airplanes. The New England Patriots, however, broke that mold in August, when it became the first NFL team to purchase its own aircraft.
As reported by ESPN's Darren Rovell, air charter costs have been increasing and just one team could pay in excess of $4 million for 10 round-trip charters in a season. The purchase price for the Patriots' two new aircraft was not disclosed, but used planes can sell for several millions of dollars.
As other teams explore their options, at least one is relying on the kindness-or fiscal genius-of the NBA.
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The Buffalo Bills reportedly flew to Atlanta this weekend on aircraft owned by the NBA and operated by Delta. Delta apparently approached the NBA to initiate the agreement, which was signed off on by the league for as long as it doesn't need to use the aircraft.
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