First of all, I don''t work for AWA, but I am a shareholder. And I think U''s got the kind of leadership almost any airline would want.
But I''m not convinced about U''s costs. An AP story a day ago quoted Siegel as saying U''s costs after bankruptcy would be 6th-lowest among the major airlines. A little figuring says that''s behind LUV, AWA, NWAC, CAL and DAL. If this were three years ago, I''d say U would be able to compete just fine.
In 2003, however, what sets AWA apart from U (and others) is that it is a low-fare carrier. I just don''t believe we will any time soon get back to the kind of airline revenue environment we had a couple years ago. Maybe in 2-3 years at the absolute earliest, or maybe not. But by then this industry will have forced more change.
AWA is on the verge of joining other low-fare carriers in the black, even in this awful revenue environment.
Now, of course, anything can happen. Mergers are always a possibility, and if U acquired part of UAL''s system, to because a truly national airline, then who knows? Maybe then U could actually get the fare premium it needs. Mind you, I don''t think AMR, CAL, DAL or even NWAC are in much better position.
I like to say that in a few years, there won''t be low-fare carriers anymore, because that''s what everyone will be. Maybe that''s oversimplifying things, but my point remains.
Again, I wish the best for U. It''s been a long, tough road for you guys, and you have many things going for you. I''m just not sure it''s enough.