Looking more like CAL/UAL...

[delta777]

Does this mean LCC will be shacking up with AA?

http://www.nytimes.com/2008/04/26/business...amp;oref=slogin

 

[Ignacio]

Does this mean LCC will be shacking up with AA?

No.


US Airways has;


- PHL [Large city, huge money maker.]

- CLT [Only other Southeast market that can support a large hub operation]

- DCA. [large market]

- LGA [large market]

- BOS [large maret]

- PHX [large market]



US Airways is fine on it's own. Just needs a few longhaul aircrafts...



[I hope no one forgot about Ryanair and our other friends from Europe... and a little thing called open skies... Maybe it is smarter to concentrate at building a stronger national network? Hmmm...]

 

[RowUnderDCA]

Ig-

I'm kind of a contrarian, so I agree that all this focus on international might be a saturated idea that is just past its peak.

 

[grog_sit_reserv]

No.


US Airways has;


- PHL [Large city, huge money maker.]

- CLT [Only other Southeast market that can support a large hub operation]

- DCA. [large market]

- LGA [large market]

- BOS [large maret]

- PHX [large market]



US Airways is fine on it's own. Just needs a few longhaul aircrafts...



[I hope no one forgot about Ryanair and our other friends from Europe... and a little thing called open skies... Maybe it is smarter to concentrate at building a stronger national network? Hmmm...]

I humbly agree... But I'd add we need a lot more long haul aircraft and a focus on ASIA too.

 

[PHL]

Ig-

I'm kind of a contrarian, so I agree that all this focus on international might be a saturated idea that is just past its peak.

There is nothing more to do in the USA and no profit to be made. All the markets that can be served with any respectable margin are done. The real money will come from the long hauls to Asia and Latin America and, to a degree, the smaller tier cities in Europe.

Of course all this will change if/when we are down to 3 legacy carriers in a few years.

 

[FWAAA]

Ig-

I'm kind of a contrarian, so I agree that all this focus on international might be a saturated idea that is just past its peak.

I think you may be onto something. When jetA was less than a buck a gallon, domestic profits could be attacked by low cost carriers like WN, F9 and B6. Since they didn't fly internationally, the legacies tried to transform into international carriers. And to an extent, it worked while fuel was cheap.

Now that jetA is flirting with $4 a gallon, I wonder how many of those international flights will be profitable. Won't matter that LCCs aren't flying the international routes, what will matter is whether the legacies can raise fares on the Int flights high enough without killing demand.

 

[deltawatch]

The executives are busy packing their GOLDEN parachutes. Who mergers with who and which employee group gets screwed depends on which CEO gets the deal HE'S looking for. HANG ON BOYS AND GIRLS.

Personally I think Parker and Kirby want to continue running an airline more than the other gold diggers. Could be good for US employees.

 

[RowUnderDCA]

There is nothing more to do in the USA and no profit to be made. All the markets that can be served with any respectable margin are done. The real money will come from the long hauls to Asia and Latin America and, to a degree, the smaller tier cities in Europe.

Of course all this will change if/when we are down to 3 legacy carriers in a few years.

right, so if you can survive the next few years, your business plan should be focused on that and beyond.

And I'd wonder about the coming collapse of the small jet providers. What would happen to that business model if any large carrier can find a way to reject its 50 seat jet contracts... maybe through bankruptcy. I haven't figured that game theory out.. not that I ever do.

 

[Be Careful What You Wish For.]

http://www.thestreet.com/_iwon/s/reports-u...SIWON1111051500

 

[deltawatch]

But the preferences of the powerful pilot unions can't be ignored. Continental, which hasn't been through a recent bankruptcy and pays its pilots much higher wages, is seen as the preferred partner by United pilots. UAL endured a long bankruptcy earlier this decade and cut its pilots' wages deeply and terminated their pensions.

The United aviators see a Continental deal as a way of raising their pay to come into alignment with Continental pay rates. A deal with US Airways could have the effect of slightly bumping up those pilots' pay, giving United pilots no gains. Leaders of the United and Continental pilots, members of separate branches of the Air Line Pilots Association union, last week vowed to fight against a merger of their employers if their interests weren't taken into account.

http://online.wsj.com/article/SB1209235489...=googlenews_wsj

 

[deltawatch]

A tie-up with US Airways would draw serious opposition from United's unions, which don't want to get drawn into the labor wars of the Arizona-based carrier, sources said. And United and American couldn't combine without divesting much of their O'Hare bases, where the two carriers combined account for about 80 percent of the traffic.

Meanwhile, published reports Friday indicated that Ft. Worth-based American had pursued talks with US Airways and an alliance with Continental.

"Some of this may be positioning on the part of players. Some may be camouflage. Some may be business strategy, just in terms of discussions and discovery," said Henry Harteveldt, industry analyst with Forrester Research, Inc

http://www.chicagotribune.com/business/chi...0,1228234.story