US Airways May File Papers in Weeks on Delta NYC-Washington Swap
- Thread starter USA320Pilot
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PullUp
Veteran
- May 22, 2010
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The only reason the feds objected is because LUV wanted into LGA and DCA. Now that they acquired AirTran, the feds objection is moot.
The only thing left was to save face, thus the negotiations.
Probably a done deal, see you at the MAT.
Oh, by the way, those first class seats that DP described to the public on the 'new' DCA routes post swap are on the regional RJ's, not mainline.
It just keeps getting better...
Cheers.
I am curious to see what happens next. WN now has access to DCA. And, US is now a distant fourth in terms of size, with UA/CO, DL, AA and WN all much larger players now. The landscape has drastically changed since this deal was originally proposed.
I still don't like the idea of US giving up on LGA. Seems crazy that key NYC assets can't be better leveraged. One guess is reducing NYC makes US a better option for a merger down the road, since all the other players who could be merger partners already have a sizable NYC presence.
I still don't like the idea of US giving up on LGA. Seems crazy that key NYC assets can't be better leveraged. One guess is reducing NYC makes US a better option for a merger down the road, since all the other players who could be merger partners already have a sizable NYC presence.
BoeingBoy
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- Nov 9, 2003
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Except not in the area where the DOT had concerns - a majority of DCA slots and half of LGA slots in the hands of a single carrier at each airport. It was that concentration of power that the DOT objected to, and with the push to relax/eliminate perimeter restrictions by some carriers (including US and DL) that domanance becomes a bigger issue.
Jim
Everything is politically driven and the US economic recovery is lukewarm to cooling and the airlines are loosing money and marginally profitable at best. It's very possible that you might see the DOT get out the way because anything that promotes job retention or job growth, no matter how small is probably looking vital while the economy is on a precipice. Regardless of market concentration concerns.
Both airlines have said they would grow and add jobs because of better profitability and asset utilization plus Delta would build a 100+ million connector between the terminals promoting local construction activity.
Its fast approaching the US presidential election year.
Both airlines have said they would grow and add jobs because of better profitability and asset utilization plus Delta would build a 100+ million connector between the terminals promoting local construction activity.
Its fast approaching the US presidential election year.
I really have a problem with the DOT deciding who gets what slots. Fact is, US and DL invested over the years to build their respective DCA and LGA assets, and they should be able to sell/buy slots at will. The DOT needs to get out of the way once and for all. I also agree the perimeter restrictions should be dropped at both airports.
Now that the idiot Jim Oberstar and NW are out of the way things might not be as political. Or at least the politics have changed.
http://minnesota.publicradio.org/display/web/2010/11/04/house-transportation/
http://minnesota.publicradio.org/display/web/2010/11/04/house-transportation/
BoeingBoy
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That's probably the more likely result. As long as Congress doles out the money, politics will play a role.
Jim
SparrowHawk
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- Nov 30, 2009
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Funny thing about Oberstar is IIRC he never had a commercial airport in his district, not even EAS service.
UPDATE: I was wrong he did have Duluth, which explains NW building a mtc operation there pre-merger. Otherwise he had the entire Iron Range west to to the middle of the state. Lots of lakes, trees, dear and precious few airplanes.
He pretty much single handily blocked United from paying 50 per share and buying US Airways. He was protecting NW, but called himself looking out for consumers. He caused the PBGC to end up the the US and the UA pension? Leadership like that is what has devastated this nation? The government should redeem itself by requiring airlines to provide health-care to their retirees before approving any of these mergers and deals they want now. I know, it will never happen ....
- Thread Starter
- #11
Could the Slot Transaction be re-worked and take on a all different look with US Airways divesting less of its LGA slots/facilities and getting less of Delta's DCA slots?
Could the federal government pass legislation permitting airlines to have more DCA beyond slots and permit current companies to transfer their current in-perimeter slots to beyond slots allowing US Airways to fly non-stop between DCA and SAN, LAX, & SFO?
Will the PANYNJ allow US Airways to transfer its JFK-PHX route authroity to LGA, which would permit US Airways to close its JFK operation and average down NYC unit costs?
Could US Airways consolidate its Mainline, Shuttle, and much of its Express operations within LGA gates 1-10 and use its 3 remote parking slots off of gate 1; along with its remote spots near the old TWA hanger, to reduce most of its $71.4 million LGA terminal lease, utiity, and maintenance expense?
Could US Airways adjust its network to fly to higher O&D markets with A319 aircraft from LGA to locations such as BUF, ROC, PIT, GSO, RIC, etc where it carries about 500 passengers per day per market?
Could US Airways begin hourly A321 LGA-CLT service?
Would these type of changes, along with the divestiture of gates LGA 11-22 and Blast Pad remote parking slots, make NYC profitable and DCA more profitable for US Airways?
Who knows what will happen, but one thing is for sure. Negotiations have been on-going for almost two years and there must have been a lot of discussions between DL, US, PANYNJ, MWAA, and the DOT.
Could the federal government pass legislation permitting airlines to have more DCA beyond slots and permit current companies to transfer their current in-perimeter slots to beyond slots allowing US Airways to fly non-stop between DCA and SAN, LAX, & SFO?
Will the PANYNJ allow US Airways to transfer its JFK-PHX route authroity to LGA, which would permit US Airways to close its JFK operation and average down NYC unit costs?
Could US Airways consolidate its Mainline, Shuttle, and much of its Express operations within LGA gates 1-10 and use its 3 remote parking slots off of gate 1; along with its remote spots near the old TWA hanger, to reduce most of its $71.4 million LGA terminal lease, utiity, and maintenance expense?
Could US Airways adjust its network to fly to higher O&D markets with A319 aircraft from LGA to locations such as BUF, ROC, PIT, GSO, RIC, etc where it carries about 500 passengers per day per market?
Could US Airways begin hourly A321 LGA-CLT service?
Would these type of changes, along with the divestiture of gates LGA 11-22 and Blast Pad remote parking slots, make NYC profitable and DCA more profitable for US Airways?
Who knows what will happen, but one thing is for sure. Negotiations have been on-going for almost two years and there must have been a lot of discussions between DL, US, PANYNJ, MWAA, and the DOT.
JFK-PHX route authority? Did PHX or JFK somehow miss out on the Airline Deregulation Act of 1978?
No, I don't think so. I could be wrong, but I think JFK is slot-controlled at various times of the day, and LGA is slot controlled all day. Anyone with a Part 121 Certificate and a slot (if required by the time of day) can operate JFK-PHX without any sort of "route authority."
US also operates JFK-CLT by the way.
With 5 or less flights a day to JFK I could see them closing the operation there, but I am not sure that the PA will relax the perimeter rule any time soon--they've been talking about it for years and it still hasn't happened.
With 5 or less flights a day to JFK I could see them closing the operation there, but I am not sure that the PA will relax the perimeter rule any time soon--they've been talking about it for years and it still hasn't happened.
