It still amazes me how so many of you claim to not want bad to happen to the "struggling airlines", which is ALL but maybe 2, yet the tone of these postings speak another opinion. We at US carry MILLIONS of passengers a year. So we are to discredit those millions because it is a chapter 11 airline flying them? $7 Billion in revenue? And this money is to be ignored? Give me a break. Our company is working very hard to turn things around, but like ALL BUT swa, are dealing with almost $60 a barrel. IT'S THE OIL PRICES STUPID!!!!. Let's see what SWA does when you no longer have hedging. Good for SWA for having done that, BUT, my SW friends, none of you have yet to answer the question of what your company will do when the hedging price is gone.
Not a SW employee - but US was in trouble long before the days of $60 oil. This is their second trip to bankruptcy court. This is a capitalistic society. It's based on competition. The strategy of Southwest today is pretty much the same strategy they had 30 years ago. And management, along with labor, have actively explored ways to keep costs low. The strategy of every other airline in the past 30 years appears to be that of becoming an international carrier....a low cost carrier...a full service carrier....a "no frills" carrier....In other words....they tried to be all things to all people. Southwest never went after the business traveller who just HAD to have a first class seat and meal. They never went after the international market. They never tried to be anything more than a transportation tool that offered fairly frequent flights are reasonable fares on a purely domestic system.
What will SW do when the hedges run out? I dunno, but I am pretty sure that LUV management is not sitting back, smoking cigars and patting each other on the back about what a great thing the hedges are....I've got a feeling that they are looking at cost savings when the hedges run out, and five years further than that down the road. Hell...they've already had to adapt on competing with airlines who aren't paying their bills, but are "protected" in the bankruptcy court. And not "ALL BUT" SWA are dealing with $60 oil...I believe Airtran and Jetblue also have hedges in place. You can do that when your credit is not impacted by little things like bankruptcy filings.
You all do not have to preach to the choir where US and incompetence is concerned, but turning things around takes time. I point to my friends at CAL. Their employees HATED CAL. The flying public HATED CAL...and remember how other airline employees just wanted them to go away so it would save the industry? And this was in 1988. Lo and behold, CAL is one of the most respected airlines around and would be doing even better if it weren't for the high cost of oil.
CAL is respected by everyone except the investors who saw their investments drop to zero in both their bankruptcy proceedings. I'd venture to guess that had CAL not taken advantage of the protection offered by bankruptcy court, US might well have been far stronger and not be in the predicament that they find themselves in today.
Given the right management team, the new US Airways CAN and WILL do the same. The negativity towards the fine people of US just fuels my desire to work HARDER for US to survive. Thanks for the motivation.
That "right managment team" appears to be leading another airline right now...an airline that, IMHO, can ill afford to take on the burden of US. And I believe that should this all go thru, we'll see the "new" US back in bankrupcy court in less than two years.
I find it interesting that anyone would suggest another carrier or three goes under. This does a disservice to the country. Let's say 3-4 carriers go under and SWA replaces all that lost revenue. Now I know you all think SW is perfect, but given the opportunity, those ticket prices would skyrocket. Old US Air knew how to make big bucks when they were the only player in town. Funny how so few see this happening now. That's business and if any of the SW faithful think this couldn't happen, well then you are sniffing too much canyon blue paint.
Right now, it looks like the taxpayers may well bear the brunt of bankrupt airline pension plans. What would happen if US or UAL closed their doors...first off, the world ain't just Southwest...American, Delta, Northwest and others would fill a large part of that gap. Yes...Southwest, as well as other LCC's would benefit some, but the greater benefit would be to the industry as a whole. As far as what would happen if SWA were the only game in town...I doubt you'd see "rape and pillage" fares. Compare the PIT-PHL fare on US prior to LCC competition, then compare the MCI-STL fare on Southwest (who "owns" the market since AA pulled out). Full fare, refundable walkup fare is $75. Why haven't they taken advantage of being the only player in town? Furthermore...US and UAL want to maintain that vaunted "market share", and as a result will often times
undercut Southwest's fares. If Oil is at $60 a barrel, and SWA is paying $28 a barrel and charges a fare of "X" on a route, then what is the strategy of an airline paying $60 a barrel for oil in charging a fare of "X minus $10"???
