BOS,LGA,andLAS bases to close in 2010

[ClueByFour]

Furthermore, the House and Senate have legislation headed to Conference Committee that is expected to lift the DCA perimeter rule in 2010. Once this occurs Doug Parker indicated in a recent Crew News session that US Airways will fly from DCA to West Coast cities, which is expected to further increase the company's RASM.

It won't get out of markup without a slot re-allocation. At this point, nobody but Ensign has co-sponsored it. It's in the Senate's CST committee--headed by Rockefeller (WV--a corporate whore) and whose ranking member is Kay Bailey Hutchinson (who is firmly in AA's camp and who can already get home on AA directly from DCA).

The other reason it won't happen is this: if they abolish the perimeter and keep the same number of total slots, a lot of places within the perimeter that are small are going to lose DCA service. That's not going to sit well at all with the congresscritters and senators who represent over %60 of the US population that lives within the existing DCA perimeter.

AA/UA/DL have very good lobbyists, congresscritters, and senators. US will not end up with 220+ unrestricted slot pairs.

Separately, US Airways has announced it doesn't intend to pursue a codeshare agreement with Continental, which I find odd for two Star Alliance carriers unless there is another reason why.

The reason is that Continental does not like Tempe, dating to Tempe's decision to "rationalize" pricing a few years ago. If you will recall, Continental dumped the America West codeshare like 3rd period french at that time. As it's essentially the same crew on both sides, why would CO want that lashup again?

 

[Glucose Intolerant]

I firmly believe, had he lived, we wouldn't be in this mess of an integration and Bular would be doing other things.

Maybe he could have been the cool professor emeritus (with actual "airline experience") at Embry Riddle.

 

[Glucose Intolerant]

William Franke a/k/a The Anti-Christ a/k/a Satan

You mean Parker did have a role model?

 

[jimntx]

Or could they be grooming themselves for an AA/US merger?

If AA (my airline) wanted to join the "industry consolidation" parade, why would we link up with an airline that is losing almost as much money as we are, comparatively speaking? Why not AS which made a profit last quarter? They have an extensive West Coast service which we don't have. And, the entire state of Alaska is just about a captive audience for them.

Considering the mess that was made of the TWA purchase by AA, the fact that 5 years in, LCC has not managed to accomplish combined pilot and f/a corps, and the almost total mismatch in a/c fleets, what about the idea of an AA/LCC merger seems attractive (or even possible) to you?

 

[hp_fa]

You mean Parker did have a role model?

Parker is many levels of evil removed from Franke. Don't mistake me as a Parker cheerleader because that is factually inaccurate.

Let me put it this way. If Franke was still in charge and CEO of this combined airline there would be many more complaints about management and the unions would be spending every dime grieving most decisions made by Franke.

I know that folks from the East will wonder how the comparison and characterization could be that bad, but it is. Ask any of the West folks who lived through that sad era.

 

[FWAAA]

I just want to know how some people think keeping all the LGA - Hartford type express routes as opposed to being THE dominant airline out of DCA is stupid... It seems like a no-brainer. I think it was beyond an excellent move - the swap of downsizing LGA to upgrade DCA. I personally think anyone would be stupid not to take advantage of such an oppurtunity. Thats consolidation. That's what the industry needs and that is what is best for US Airways and for Delta. US Airways will have a strangle on DCA and its slot controlled. Yeah, it may be unfair that US Airways is locked in, but who cares?!?!

That's not consolidation, that's market division and allocation, which I suspect will be examined closely before approval is granted.

Consolidation is combining two or more airlines into a single airline, taking two management structures and combining into one (hopefully smaller than the two combined). Combining two reservation staffs into one. Flying fewer flights thru fewer hubs. THAT's consolidation.

A "strangle" on DCA? Think the DoT will rubber stamp a slot transfer that leaves US with a stranglehold on DCA?

 

[back2CLT]

As I previously mentioned, AA/AS is probably the best strategic deal on paper for AA, though one I doubt AS would want unless there is a big exec payday for them.

As far as combining AA/US, it isn't necessarily the fact that they are both money losers that makes it unattractive (US/HP showed that two losers can equal profit in the right economic environment). It's the fact that there is few "synergies". There is no fleet commonality, little hub overlap, bad labor relations at both airlines, etc. etc. etc......in other words, there is few ways to reduce combined operating costs, which is how mergers create value. Also, considering the high-debt loads at both companies, its hard to see how they could take on additional leverage to cover acquisition/integration costs.

 

[USA320Pilot]

Question: "Can someone who knows a little more about these kinds of alliances explain to me why US and CO would not codeshare. Could it somehow be a roadblock if US and UA ever wanted to hook up, or is it, as many other people at other forums have said that US is the proverbial redheaded step child of Star and will be exiting to join another alliance like Oneworld. Or could they be grooming themselves for an AA/US merger?"

USA320Pilot comments: The DL/US Slot Transaction would reduce and possibly eliminate most anti-trust objections if US & UA tried to merge. Due to CO and UA's anti-trust immunity there would be signficant US & CO Express anti-trust issues in markets served almost exclusively between the two companies from LGA and EWR.

The Slot Transaction eliminates this problem and reduces anti-trust issues if US & UA once again try to merge becasue many of US's new DCA marekts are not presently flown by UA from IAD. A market by market analysis would need to be made to check specific anti-trust issues, but I believe the Slot Transaction would eliminate much of any DOJ anti-trust concern in NYC.

The same argument can be made with a US and AA merger, but to a much lesser scale. AA has already pulled down a lot of LGA AMR Eagle/Connection service and US and AA currently compete in less markets than CO & US in NYC airports.

If regard to the DCA pereimeter rule Doug Parker and Scott Kirby both recently indicated in a Crew News session they believe the DCA peremiter rule will be lifted.

Regards,

USA320Pilot

 

[BoeingBoy]

As far as I know, US Airways will basically keep all of its Boston flying...

Nope - eliminating at least 32 mainline flights/week according to the info announced. Don't know about DL - they haven't announced anything about their BOS flying as far as I know.

Maybe you meant to say "US Airways will basically keep all of it's Boston Shuttle and hub flying in this round of reductions." Care to talk about how much BOS mainline flying has been cut over the last 3-4 years?

Jim

 

[nycbusdriver]

You called Parker a numbers man, and he is. Do you honestly believe that if it was costing him more to run two pilot groups that he would continue to do so?

I really think Parker sees the pilot groups at each others' throats to be a mixed blessing. I am certain he is reveling in the money he is saving from having both groups at the bottom of the industry pay scales. If he had any intention of operating LCC as a standalone carrier, he would drag this out forever (and the east pilots would likely let him.)

However, he is a numbers man and he knows LCC (and his ever needy pocketbook/ego) will likely never prosper with the groups divided like this. IOW, there is right now not enough lipstick in the world that could be smeared on this pig to encourage another carrier to buy/merge it. And that, I suspect, really sticks in his craw.

 

[USA320Pilot]

I believe Doug Parker could be motivated to merge with either AA or UA due to the East vs. West pilot logjam. One way to undo the logjam and most likely eliminate USAPA is to merge.

With a merger the NMB would be required to hold a Representation election. I doubt USAPA would win a Merger Representation Election. The 1,700 West pilots and the 500 East pilots who voted for ALPA last time would likely join forces with UA ALPA or AA APA to form a new union and eliminate USAPA.

That may be Doug's only way to stop the US Airways pilot "civil war" created by USAPA with their federal court DFR conviction and Rico lawsuit/Section 29 issues with the West pilots.

Regards,

USA320Pilot

 

[ClueByFour]

If regard to the DCA pereimeter rule Doug Parker and Scott Kirby both recently indicated in a Crew News session they believe the DCA peremiter rule will be lifted.

They are wrong.

Further, the prognostications from certain corners about getting the perimeter lifted and/or expansion at DCA (or LGA, since it also has a perimeter, and parties that really think US is going to get it lifted have gone on here for at least 5 years. Here are some highlights, please noting the dates:

<P align=justify>Reports indicate US Airways management and the MWAA are making progress on building an additional DCA terminal that would be used by US Express carriers including MAA and construction could begin as early as September 2003.</P>

<P align=justify>Meanwhile, management is continuing its discussions with the federal government for authorization for DCA to LAX & SFO service and with the NYPA for LGA to LAX & SFO flights. These four routes would likely be high yield opportunities and would provide significant Pacific Rim code sharing opportunities.</P>

Maybe now we'll see that new express terminal at DCA (they did put in new escalators at some point to 35A). Roll forward a few years:

Separately, Scott Kirby has been meeting with the PANYNJ to have the perimeter rule rescinded or US Airways permitted an exemption to operate LGA-PHX and LGA- LAS flights, which could have crews based in either LGA, LAS, or PHX to operate the service.

Well, maybe if Scottro thinks he can get the DCA perimeter rule nuked today, he really means 2012 or 2013.

Now, of the proposals out there, only S 1209 has a chance--which is the bill that essentially says "if you had slots at DCA on 1/1/2009, you can use frequencies to "hub" airports within the perimeter to fly beyond it." That's probably fairly reasonable. But it's still not out of committee.

 

[The Man]

What can Boston do that Philadelphia can't?

Win a Superbowl!

 

[700UW]

Hmm never seen a Boston team, how about Foxboro and they dont even fly out of BOS, the Pats use PVD.

 

[a320av8r]

Nope - eliminating at least 32 mainline flights/week according to the info announced. Don't know about DL - they haven't announced anything about their BOS flying as far as I know.

Maybe you meant to say "US Airways will basically keep all of it's Boston Shuttle and hub flying in this round of reductions." Care to talk about how much BOS mainline flying has been cut over the last 3-4 years?

Jim

Other than a few Caribbean destinations, Shuttle and hubs, where does US mainline go from BOS?