Proposed Delta Merger and Delta777 & WorldTraveler

[US1YFARE]

So, what you are saying is that UA's load factor is so much lower than US's, their product obviously doesn't help them???? 🙄 I think the blinders they issued you are too tight.

 

[Barbell]

agreed.

agreed.

agreed.

or at least that the service/amenities they provide cut deeply into their profit. You are ignoring all of the other factors involved in analysis, such as the costs of running a global carrier the size of UA.

Not ignoring, just pointing out painful truths, which are more complete than facts.

Look, as a publicly traded company UA has a fiduciary responsibility to return a profit to its shareholders. It's the law. Maybe if they served powdered creamer, and half minis, and shoehorned a few more seats into their immaculate planes, they could have fulfilled that obligation a little better. That's all.


No, but my fabulous new red dress is a little snug. Too bad I have to return it now. I was so looking forward to wearing it to one of 1,000 fabulous European destinations. 🙁

Load factor does not equal profit. Neither does market share. One of these days the other dinosaurs are going to figure that out. Then again, they might not...

 

[US1YFARE]

Maybe if they served powdered creamer, and half minis, and shoehorned a few more seats into their immaculate planes, they could have fulfilled that obligation a little better. That's all.

Can you let me try some of that crack you are smoking?

 

[donttouchthebeauty]

Damn, how did i forget about "merger related" costs. I thought it was supposed to bring about "synergies", not costs.

Oh and dont forget D777 CAL made a significant amount of that money by selling shares of COPA... otherwise they would have posted much much much less... Gotta love those SECONDARY airlines - COPA AirMIKE - or should i say DELTA

 

[BoeingBoy]

Maybe if they served powdered creamer, and half minis, and shoehorned a few more seats into their immaculate planes, they could have fulfilled that obligation a little better.

Well, here's another truth. The HP business model produced a net loss for 2006 while the old US, with less seats on the planes, more F/C seats, real creamer, etc, produced a $345 million profit (making the East about tied with CO as most profitable legacy carrier).

Just food for thought.....

Jim

 

[longing4piedmont]

Typical non-sensical comments by Delta777, L4P, ClueByFour, and 700UW that do nothing but take up bandwidth.

Best regards,

USA320Pilot

Pot, Kettle, Black.... Must be nice to live in your fantasy world. Take some of your own advice and lay off for a while. I can and will out last you. But you have to admit, you are developing quite a fan club.

It is one thing to chat on each others board with an active merger proposal; however, I believe it is different when the deal is dead.

Regards,

USA320Pilot

Oh no. You are going to be eating humble pie for quite sometime until you apologize or back off.

 

[longing4piedmont]

Hey Buddy you're really slinging it lately. Did you use the enema kit LimeBoy sent you???? 😛
Go get'em hotshot

Never make a cockroach mad..... they hurt when they bite

 

[PITbull]

It is one thing to chat on each others board with an active merger proposal; however, I believe it is different when the deal is dead.

Regards,

USA320Pilot

Really? Under whose rules????

 

[ClueByFour]

Here's the simple truth. If you have a vast international network, ala CO, and we are to believe what these Internet "experts" tell us, then their profit should have been far more than $43 million more than US's. Likewise UA's profit of $25 million, at more than double our size and with a vast global network, superior service, and catering to high-yield passengers should have proferred a net profit of at least double our measly $500 million. But it didn't.

CO, unlike US, has not dumped all of it's pensions and has not been (in this cycle) thru bankruptcies.

So, here is the simple truth: people who owned CAL in 1999 still have something. People who owned US (twice) got nothing.

The current success of US is due entirely to slaughtering the costs artificially in BK on the high RASM east side. CO has not had the luxury. UA is a different case--seems like they are about a year away from truly optimizing their network--you are seeing that now, but it takes time with a large international network. I believe, as a percentage, they shrunk less than US/HP.

However, this year proves that passengers are willing to pay for 1 thing, and it's not what CO, DL and UA are offering.

Well, no, it does not mean that. It means that the East BK council and Judge Mitchell did a good job on everyone but management.

We all know why Doogie wanted DL: It's to repeat the "shrink in BK" routine. If they have to manage the airline it's going to get ugly in a few years. You have the airlines with better networks and product squeezing on one end, the real LCCs on the other, and, well, DAL (who has a better network and will emerge with lower costs).

It's really tiring to hear this "gee, we made 500 million" stuff. Given two bankruptcies, a rising aviation market, and reduced capacity--a 6th grade economic student could make money. Give it a full business cycle--the US model is going to have found a niche--it will simply be one that nobody wants to buy.

 

[JAMAKE1]

Give it a full business cycle--the US model is going to have found a niche--it will simply be one that nobody wants to buy.

I am inclined to agree with you. In the short term, the combined US enjoyed a healthy profit coming from healthy RASM (in the east) while lowering overall levels of service for its most important customers. Put another way, in the short-term, the company is riding on the coat tails of US East's traditionally higher revenue premium, while lowering VALUE to its most significant customer base. Over time, unless this trend reverses, I would put money on it that the "new US" will not see profits of this magnitude. The beauty of a free-market system is that the customer ultimately defines "VALUE." It is rather nice to see that USYFare and Piney Bob are finally re-directing their loyalty to companies that provide them with the best VALUE, as they define it...

 

[LCC_#1]

:jerry: :jerry: :jerry: :jerry: :jerry: :jerry: :jerry:

Wow!!!

 

[az_wild727]

:jerry: :jerry: :jerry: :jerry: :jerry: :jerry: :jerry:

Wow!!!

I know right? This is just so amusing to watch and comment on!

 

[Bear96]

It is one thing to chat on each others board with an active merger proposal; however, I believe it is different when the deal is dead.

Regards,

USA320Pilot

So once a deal is dead, people shouldn't mention it anymore?

Can you then explain why every second or third post of yours contains the phrase, "Project Minnow"?