Delldude:
Delldude said: no nonsense,thats for sure...6 years of 'union tranquility'....at the end of six years,everyone will be 30% behind the other airlines.very very interesting.
Chip comments: Dell, in the interview Bronner was very matter of fact and pointed. Either the new TA's are ratified or he will pull the DIP financing and we will liquidate. As the bank behind US Airways, he can do it.
In regard to 30 percent behind the other airlines, this industry will never be the same. Low cost airlines had 3 percent of the market share in 1990, 20 percent in 2002, and many believe they will grow to 35 to 40 percent of the domestic market in the future. Therefore, mature airlines must adjust or die because unfortunately the good ol' days arwe gone.
If UA doesn't quickly change many believe they will be fragmented/liquidated, AA is trying to figure out how to stay out of bankuptcy, and other airlines are trying to figure out how to restructure.
The good news is low cost carriers will see their expenses rise and the gaps between mature airlines and the low cost guys will either narrow, or those with high cost operations will quickly cease to exist (like next month for US Airways).
We have a choice, approve the deals and reach accords or cease to exist in the near future.
I do not like this anymore than anybody else, but it's the reality we live in.
Chip