DOT approves slot swap!

smoot4208

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Nov 6, 2006
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This is great to see. the DOT essentially approved their May 2011 filing. US will have to divest 8 slot pairs in DCA while DL will have to divest 16 slot pairs in LGA
 
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It should be as this is what both airlines proposed back in MAY (16 in LGA and 8 in DCA) I don't believe any changes will happen until beginning of 2012
 
Great news indeed... and it furthers the trend toward establishment of a dominant carrier at the large coastal airports which have traditionally had much more evenly divided service among airlines.
The slot deal will very likely make it possible for DL to become the dominant airline for local service in NYC while US' already dominant position at DCA will be further strengthened.
After many months, this deal is finally about to become reality....
As for timing, the DOT agreement requires a 90 day waiting period and then a phased in approach to allow new entrants - recipients of the divested slots - opportunity to establish themselves in the market.
 
The link seems to not have too many details. Does this still include US getting Japan and Brazil? Otherwise it is very uneven. This is especially true considering your management recently said:

"The airline says it has a revenue disadvantage compared with its major competitors. Its hub cities in Charlotte, Phoenix and Philadelphia aren't as lucrative as competitors' markets such as Atlanta, New York City or Chicago, the company says."
Read more: http://www.charlotteobserver.com/2011/05/05/2272612/merger-talk-still-simmers-at-us.html#ixzz1SmoKt5Yl

Your current hubs are not as lucrative so you close the base and get rid of most of your access to the lucrative New York market? These comments were actually made in regard to merger rumors but the point still is the same.

I know that DC can probably provide significant revenue to US but I think the deal is weighted significantly in Delta's favor. Wonder how many of any of those slots will be filled with actual US aircraft and employees?
 
the deal gives DL and US each about 50% of the total LGA and DCA slots. It is doubtful they could have obtained approval if the number of slots had been increased even more.
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Japan is not a part of the deal because there is now Open Skies which includes a gradual increase in slots at NRT, making it unnecessary for US to ^buy^ its way into the market.
 
The link seems to not have too many details. Does this still include US getting Japan and Brazil? Otherwise it is very uneven. This is especially true considering your management recently said:

"The airline says it has a revenue disadvantage compared with its major competitors. Its hub cities in Charlotte, Phoenix and Philadelphia aren't as lucrative as competitors' markets such as Atlanta, New York City or Chicago, the company says."
Read more: http://www.charlotteobserver.com/2011/05/05/2272612/merger-talk-still-simmers-at-us.html#ixzz1SmoKt5Yl

Your current hubs are not as lucrative so you close the base and get rid of most of your access to the lucrative New York market? These comments were actually made in regard to merger rumors but the point still is the same.

I know that DC can probably provide significant revenue to US but I think the deal is weighted significantly in Delta's favor. Wonder how many of any of those slots will be filled with actual US aircraft and employees?

That's the thing though. NYC wasn't lucrative for US. Why I don't know, but DCA and CLT are routinely mentioned as the most profitable hubs.

As far as actual US aircraft and employees ... there certainly will be more mainline gate, ramp, admin, etc. openings. As far as the planes though, when US made the propostion, they said the new routes would be 2 class jets. At the time that meant mainline, but now with Express getting first class ...
 
That's the thing though. NYC wasn't lucrative for US. Why I don't know, but DCA and CLT are routinely mentioned as the most profitable hubs.

As far as actual US aircraft and employees ... there certainly will be more mainline gate, ramp, admin, etc. openings. As far as the planes though, when US made the propostion, they said the new routes would be 2 class jets. At the time that meant mainline, but now with Express getting first class ...


That was the plan the whole time! Where have you been? Its too bad they closed the LGA base immediately after they made the initial announcement. If they waited until now (the actual approval) their profit margins might have been a tad higher. I never thought it was a good idea to begin with. Why is US the ONLY airline that can't seem to make money in LGA, and yet airlines are tripping over themselves to take US's slot????

However, the statement I quoted confuses me. You say "more mainline jobs...." and you end it by saying "but now with Express getting First Class".

As they say "it is what it is". Unfortunately now DCA will be laden with "2class" Express Jets, while Mainline flying will continue to go the way of the Dodo.
 
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That's the thing though. NYC wasn't lucrative for US. Why I don't know, but DCA and CLT are routinely mentioned as the most profitable hubs.

As far as actual US aircraft and employees ... there certainly will be more mainline gate, ramp, admin, etc. openings. As far as the planes though, when US made the propostion, they said the new routes would be 2 class jets. At the time that meant mainline, but now with Express getting first class ...
 
The DOT has to wait 30 more days before it can finalize its tentative approval. Then it goes to what everybody is forgetting and that is a DOJ review, ruling, comment period and final approval. Lets see if AMR and B6 come to the table with lawyers now that the headlines read "AMR on the ropes" and DL will DOMINATE NYC.........................................................
 
That was the plan the whole time! Where have you been? Its too bad they closed the LGA base immediately after they made the initial announcement. If they waited until now (the actual approval) their profit margins might have been a tad higher. I never thought it was a good idea to begin with. Why is US the ONLY airline that can't seem to make money in LGA, and yet airlines are tripping over themselves to take US's slot????

However, the statement I quoted confuses me. You say "more mainline jobs...." and you end it by saying "but now with Express getting First Class".

As they say "it is what it is". Unfortunately now DCA will be laden with "2class" Express Jets, while Mainline flying will continue to go the way of the Dodo.

I just meant that while I would bet most of the new flying will be express, but there will be more mainline gate, ramp, admin, tower, etc. Not everything revolves around pilots and FA's.
 
US Can't make money in LGA because they run a POS operation.
Nobody wants to bounce there way to ALB or SYR or BUF on a Dash...

get real...

If US bought More E190's and flew to those cities, even with less frequency they would be fine.

They also should fly AM and PM to MCO, FLL,, RSW...

as well as going after LGA_ORD...

the typical CLT and BOS shuttle.

it's managment folks, and I'm glad they have you all believing.. the market of close to 16 Million folks doesn't cut it.

what a joke, team tempe.
 
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I just meant that while I would bet most of the new flying will be express, but there will be more mainline gate, ramp, admin, tower, etc. Not everything revolves around pilots and FA's.

When LGA closed ALOT of people lost their jobs, FAs and Pilots (if they didn't quit or retire) got displaced to other bases. Some other "mainline" employees did as well, but there are many good people who are no longer with US :angry:

At a meeting that was held when they first made the announcement (almost 2 years ago) they said US ground employees could "apply" for a Job at DL, but there were no assurances (or agreements) that stated they "would" get a job... Figure the conclusion on your own.....

Its really sad because we lost some really good people! :(
 
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