Awa Sees Less Hedging Benefit When Merger Complete

tug_slug

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Sep 9, 2002
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www.usaviation.com
Article

America West Airlines has hedges in place for more than half its fuel purchases through September and is hedged at 50 percent for the fourth quarter, the airline said on Tuesday.
But in a filing with the U.S. Securities and Exchange Commission, America West said the impact of hedging, or purchasing fuel contracts in advance, would be less than 50 percent once it combines operations with US Airways


When America West and the much bigger US Airways announced their merger in May, the companies said they would create a business healthy enough to make money even with oil at $50 per barrel. Two months later with prices $10 higher, America West said the new US Airways "can be a survivor" and potentially make money IF the industry sheds capacity.
 
tug_slug said:
Article

America West said the new US Airways "can be a survivor" and potentially make money IF the industry sheds capacity.
[post="291595"][/post]​

Who's capacity needs to be shed?

Every CEO of a hub-and-spoke carrier has the same mantra. "The industry needs to shed capacity to return the industry (read: my carrier) to profitability."

But all of them expect the other guys to do the shedding.

And if the hub-and-spoke carriers do shed, the LCC's just add that capacity back to the industry with their new aircraft deliveries.

What makes me nervous is that Parker is ready to shed even more "USAirways capacity" than is already planned. I understand that the airplanes leaving USAirways property is part of the deal with GE Capital to allow us to emerge from bankrupcty. But when that's complete, it's time to shore up the operation, think "out of the box," and begin to ADD capacity to the merged USAirways. Let's force the other guy to shed capacity for a change by EFFECTIVELY utilizing the incredibly far-reaching tools the employees of USAirways have given to the company.
 
nycbusdriver said:
Who's capacity needs to be shed?

Every CEO of a hub-and-spoke carrier has the same mantra. "The industry needs to shed capacity to return the industry (read: my carrier) to profitability."

But all of them expect the other guys to do the shedding.

And if the hub-and-spoke carriers do shed, the LCC's just add that capacity back to the industry with their new aircraft deliveries.

What makes me nervous is that Parker is ready to shed even more "USAirways capacity" than is already planned. I understand that the airplanes leaving USAirways property is part of the deal with GE Capital to allow us to emerge from bankrupcty. But when that's complete, it's time to shore up the operation, think "out of the box," and begin to ADD capacity to the merged USAirways. Let's force the other guy to shed capacity for a change by EFFECTIVELY utilizing the incredibly far-reaching tools the employees of USAirways have given to the company.
[post="291798"][/post]​
I thought I read somewere were Southwest is suppose to receive another 104 737s, 1 per week over the next 104 weeks, and of course jetBlue has ordered more Airbus aircraft and 100 EMB 190s.
 
What does it matter anymore?
If the NEW US Aiways doesnt make it they'll just head back into bankruptcy again, its the same old song and dance just different players.