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Lcc And My Next Door Neighbor---whats A Lcc He Asks

UWCactus,
America West was going into chapter 11 if the investor's monies did not come to be. The investors were very nervous and this merger almost did not happen. There were concerns if the investors found out the true situation they would pull out and take their monies with them and AWA would go into chapter 11 and Airways would go chapter 7.
 
On the US Airways web-site, along side of America West, "Joining Together to Create the World's Largest Low-fare Aireline." Here are some of the roundtrip "low fares" (lowest fares) offered out of CLT (same as before the merger):

CLT - CHS = $467
CLT - ILM = $480 (Tuesday and Wednesday only)
CLT - ILM = $543 (other days)
CLT - RDU = $423 (Tuesday and Wednesday only)
CLT - RDU = $480 (other days)
CLT - ROA = $317
CLT - RIC = $389 (Tuesday and Wednesday only)
CLT - RIC = $440 (other days)
CLT - ORF = $483
CLT - BDL = $419

Now, lets examine cities where there are low fare carriers flying the same routes:

CLT - ATL = $188
CLT - SAV = $228
CLT - JAX = $188
CLT - TPA = $228
CLT - MIA = $178
CLT - DFW = $298
CLT - LAX = $318
CLT - SFO = $318
CLT - MDW = $273
CLT - BOS = $138
CLT - LGA = $342
CLT - DCA = $138

If you look at the America West website, you will find it hard to find a fare from PHX or LAS that is that of a low fare carrier unless WN is also flying the same route. In other words, to say that you are the largest LOW FARE carrier is false advertising and misrepsentation. I may be wrong, but I do not see U lowering any fares until a true low fare carrier enters the market. Unless they do, you will continue to see CLT as a connection hub and RDU a growing O&D market.

I'm sure someone will be quick to say that WN and the other low fare carriers can not take you to LGW or FRA. So what! I have lived in CLT going on 5 years now and have yet to fly U since moving to the area. Prior to moving to CLT, I gave U most of my air travel business. I travel domestic and international, business and leisure, and I have not suffered any by not flying U from CLT.

I'm sure that someone will also be quick to say that the HIGH fares in the first set of cities is due to demand. If that is the case, why are the majority of those cities going from mainline to express between them and CLT?

Hopefully someone in the "new" U will see the money flowing to other carriers in other cities before it is too late.
 
pitguy said:
UWCactus,
America West was going into chapter 11 if the investor's monies did not come to be. The investors were very nervous and this merger almost did not happen. There were concerns if the investors found out the true situation they would pull out and take their monies with them and AWA would go into chapter 11 and Airways would go chapter 7.
Click to expand...

I have to disagree again. The investors were very concerned about US Airways going away, as were the creditors. Many of the players did not want to allow US Airways to go under, too much was at risk..a/c lessors and more. Lets face it, US Airways was clearly on the way to liquidity. America West had enough cash to sustain itself for minimum 12 months,and probably much longer now that fares have increased. so yes like I said in the earlier post, HP eventually would have faced the possibility of Chapter 11...not Chapter 7. With the combination of both, we needed each other for this to save both. Keep in mind....the bankruptcy threat was not due to costs being out of control for HP, but rather the inability to generate the necessary revenue due to increased fare wars and competition and rising price of fuel. HP's costs were definitely under control, which probably the reason why investors had much more confidence in the HP management rather than US.

TXL said:
On the US Airways web-site, along side of America West, "Joining Together to Create the World's Largest Low-fare Aireline." Here are some of the roundtrip "low fares" (lowest fares) offered out of CLT (same as before the merger):

CLT - CHS = $467
CLT - ILM = $480 (Tuesday and Wednesday only)
CLT - ILM = $543 (other days)
CLT - RDU = $423 (Tuesday and Wednesday only)
CLT - RDU = $480 (other days)
CLT - ROA = $317
CLT - RIC = $389 (Tuesday and Wednesday only)
CLT - RIC = $440 (other days)
CLT - ORF = $483
CLT - BDL = $419

Now, lets examine cities where there are low fare carriers flying the same routes:

CLT - ATL = $188
CLT - SAV = $228
CLT - JAX = $188
CLT - TPA = $228
CLT - MIA = $178
CLT - DFW = $298
CLT - LAX = $318
CLT - SFO = $318
CLT - MDW = $273
CLT - BOS = $138
CLT - LGA = $342
CLT - DCA = $138

If you look at the America West website, you will find it hard to find a fare from PHX or LAS that is that of a low fare carrier unless WN is also flying the same route. In other words, to say that you are the largest LOW FARE carrier is false advertising and misrepsentation. I may be wrong, but I do not see U lowering any fares until a true low fare carrier enters the market. Unless they do, you will continue to see CLT as a connection hub and RDU a growing O&D market.

I'm sure someone will be quick to say that WN and the other low fare carriers can not take you to LGW or FRA. So what! I have lived in CLT going on 5 years now and have yet to fly U since moving to the area. Prior to moving to CLT, I gave U most of my air travel business. I travel domestic and international, business and leisure, and I have not suffered any by not flying U from CLT.

I'm sure that someone will also be quick to say that the HIGH fares in the first set of cities is due to demand. If that is the case, why are the majority of those cities going from mainline to express between them and CLT?

Hopefully someone in the "new" U will see the money flowing to other carriers in other cities before it is too late.
Click to expand...

First off..they advertise the "largest low far carrier", so largest is key word here. Everyone measures size in different ways. If you read the papers, you find "5th largest" "7th largest" "6th largest". Anyhow...show me the load factors in these markets and then we'll do a comparison. Fares are market driven and demand. The industry is trying to raise fares, but not at the expense of flying empty airplanes...show me load and we can debate this.
 
Okay you’re right and you all have a job for life. Best wishes to you. I really do mean the part of best wishes. I feel bad for most airline employees today. It is hard for them to make a living wage.


-How much did AWA have in cash at the time right before the merger?
 
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