diogenes said:
Being as HP/US has wrung major costs as low as thye can go via BK, I wonder where that $600 mil in 'synergies' is gonna come from?
Parker has addressed this question several times, including in yesterday's conference call. He has said the 'synergies' come from the following:
~ Consolodated facilities - airport and non-airport
~ Reduction of unprofitable flying at both HP and US (remember 60 less mainline aircraft, and I think there was some discussion of moving some of HP's 90-seaters to the east, not in yesterday's call, but in previous calls)
~ Placing HP's fare structure on US's flights
~ In-sourcing US's IT to HP, which is currently out-sourced
~ Additional revenue from adding HP's system to the Star Alliance
~ Additional revenue from becoming more competitive in major markets (he cited DFW yesterday, saying US in No. 7 and HP is No. 8 at DFW, but combined, they would be No. 3)
Those are the items I can recall... Maybe there are more? I don't know. Most of that, he discussed yesterday, but some of that is from the conference calls immediately following the merger announcement.