Yup, as long as you stick to your 16% revenue disadvantage and 19% labor cost advantage, there's no end in sight for LCC.
New US Airways/American Paint Job
- Thread starter FM2436
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Yup, as long as you stick to your 16% revenue disadvantage and 19% labor cost advantage, there's no end in sight for LCC.
wings396
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- Aug 20, 2002
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Bean,
Horton will make a pile of money regardless.. We rode through the last decade under leadership-less moves that allowed tons of money to transfer into the pockets of management. This so called "at risk" compensation was never really at risk and was paid out to the tune of close to a billion dollars while the company floundered. Over at UAL the same this you refer to was working for Tilton. Its how it works.... Side note: http://www.footnoted.com/my-big-fat-deal/sweetening-the-deal-at-united-airlines-…/
As for Delta supporting the merger: Think about that one for a minute.. In a highly competitive, cut throat business, what competitor has ever offered a "good gesture" to the competition? Have you noticed what is happening with their current large competition? 620 million in 4th Q loss... Thats what.. Delta would LOVE to see the AA+LCC abortion propel them well into the next decade without meaningful competition.
As for flooding the market with capacity? I wouldn't call it flooding.. In fact far from it.. AA has been at a disadvantage on a number of fronts that require correcting in order to become a fully competitive, and will be done with or without a merger.. In fact, a merger with LCC would still require a munch of new capacity to come on line.
The hole in the AA system that needs plugged the most, is not the east coast, its the lack of regional feed with premium cabins, and the 90-125 seat category. ORD is getting hammered and in desperate need of larger RJ's and FC cabins to attract and re-gain market share. In MIA, there are quite a few markets that would support an E175, or an E190, or even a 319 that we currently do not have that would be VERY successful, i.e. BUF-MIA. PIT-ORD, SYR-ORD, ALB-ORD,.... Currently, we have a couple hundred E-140's and 145's that could, in MOST markets stand to be upgraded to a larger aircraft with a premium cabin. And thats a FACT. (and this will be done regardless of a merger with LCC). Its pretty patronizing of you and disingenuous to allude to a complacent, non competitive industry, because it might be un-gentlemanly to add capacity.... Besides, given the opportunity, since the beginning of time, carriers have done, well, just that! AA has had to deal with it, so why shouldn't they? Screw-em.. (I know, a new AA minus LCC scares the chit out of Parker)
p.s. send a memo to parker... Better not add PHL-SLC, and CLT-GIG is new capacity, and thats not nice..................
New US Airways/American Paint Job
Is this a valid topic? Is your problem with the message or the messenger?
I've asked you if I've missed a merger announcement and all you can do is take a shot at me and shake your Parker pompoms a little harder?
You've said you have no skin in the game, and will be retired before anything changes one way or the other, so why are you here?
I, unlike you have skin in the game, and think this deal, if it happens will be a lot of pain for AA employees, and result in an un-competitve airline.
Is that all you've got????
Exactly. DL, UA and US have been busy adding capacity, and yet when AA announces plans to do it, it evokes cries of "overcapacity" and "that will set off punishing fare wars."
Here's what UA told the public today about all its new routes in 2012:
- http://finance.yahoo.com/news/united-announces-full-fourth-quarter-123000541.html
- WN, B6, FL and VX grew a lot last decade, as is common with low-cost carriers. Now that AA has punished its employees with bankruptcy, the time is now to put those new lower costs to good use and expand. Could be that other airlines don't want to see that expansion, not because of punishing fare wars, but because they simply couldn't compete (like AA in BOS and JFK when slave-wage B6 moved to town more than a dozen years ago). Now, of course, B6 pays its pilots substantially more than US East pilots on the same equipment.
Zone5
Veteran
- Dec 17, 2010
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IF, this merger happens, Horton's "proposed" new paint job will end up in the dustbin faster than Parker can say "I'm in charge now!". The time honored tradition of the "New Guy" repainting the fleet is as old as the industry. It's the human (assuming you can include airline CEO's in that category) equivalent of "Marking ones territory" in the animal world, they just don't have to lift their leg to do it.
seajay
seajay
If you want a better view of the new paint job, scroll down to Post #32 here:
http://forum.contato...ru/page__st__20
This is the 1st flight of the new AA777-300ER about to land at GRU.
IMO, these photos illustrate just how BAD this design really is. Reminds me of a cheap charter operation. Horton should be ashamed to permit this to represent the NEW AA. Changing the US Airways Name to American Airlines on the existing US aircraft would have even looked 1000x more classy. Hope Parker quickly dumps this.
http://forum.contato...ru/page__st__20
This is the 1st flight of the new AA777-300ER about to land at GRU.
IMO, these photos illustrate just how BAD this design really is. Reminds me of a cheap charter operation. Horton should be ashamed to permit this to represent the NEW AA. Changing the US Airways Name to American Airlines on the existing US aircraft would have even looked 1000x more classy. Hope Parker quickly dumps this.
You know, it kinda grows on you. I think it's unique and will definitely stand-out.
Its sure 100% better than the hybrid mess of a livery US has now. IMHO <G>
I'll agree. I think one could another blue stripe on the underside of AA's tail and then extend that blue stripe forward on the fuselage, ala US's blue belly. and you're done
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