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On 6/3/2003 10:18:13 AM wings396 wrote:
If you don''t work for us, you can''t begin to relate to what is going on with those of us here that do.
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I''ve got plenty of friends and neighbors that work for US and the affiliated carriers. So, I understand what is going on.
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When you see good flights that GENERATE REVENUE get axed, it is obvious that something is rotten in CCY.
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Every flight generates revenue assuming there is a passenger on it or some freight below in the hold. Whether the flight generates a PROFIT is a different matter. Clearly, by looking at US''s 10Qs and 10Ks, generating a PROFIT has not been a easy thing to accomplish.
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In my station I have seen our marketshare vanish to other airlines in the past 2 years. Airport traffic has increased, and ours has vanished. We were the dominant carrier in an area with growing population and a chance to capture it all. By years end we will have handed most of it over to others. With this mentality, US will never make a profit as they have given up too much marketshare.
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Well, without knowing the specifics of what city you''re in, you would have to surmise generally that the city may not have been a profit generator for the airline. Fly planes full all you want, but if you''re doing nothing but losing money on them, why fly? I understand that airlines do offer some flights as loss leaders to ensure a broad network, but if you''re down to counting pennies, you can''t afford additional losses.
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On the RJ issue, even AA UA DL CO that have more than we do, continue to lose their shirts as well.
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RJs are not the only component to profits or losses. US had the fewest number of RJs of all the hub-spoke majors and was the first to post losses (back in 99/00). This is not to say that RJs, or lack thereof, were the singular reason for US''s early fall into red, but the inability to compete on routes (RJs v. turboprops) really hurt - and continue to hurt.