What's new

The Charlotte Observer

madders said:
Expansions can be a blessing and a curse...
WN expansion into CLT could be what breaks this bull back..cost at CLT for Usairways is lower than PHL and PIT .....
And after June ..Usairways may not be bleeding so badly anymore....
[post="238845"][/post]​

But they will still be bleeding while Wn is still making money. US has no cushion to fall back on like WN.
 
MiAAmi said:
But they will still be bleeding while Wn is still making money. US has no cushion to fall back on like WN.
[post="238885"][/post]​


And AA has a cushion??? :lol:
 
a320av8r said:
MiAAmi maybe?

Why not- lower costs than AA.
[post="238814"][/post]​

Isn't the reason US is mini-hubbing in FLL a direct shot at AA in MIA?
 
a320av8r said:
And AA has a cushion??? :lol:
[post="238888"][/post]​

Thats not the issue here. The topic was about WN vs US. Listen I admire your commitment to US and your hopes for them, I just think its pointless to think that US will be able to pull out of this let alone become a fierce competitor. The plans for FLL have already been scaled back and even with those flights US on has one or two flights to each destination hardly a threat to AA at Miami. If anything Spirit will be giving US a run for their money at FLL.
 
a320av8r said:
And AA has a cushion??? :lol:
[post="238888"][/post]​


Uh, yeah. Over $3 billion of unrestricted cash. More than any other airline.
 
FWAAA said:
Uh, yeah. Over $3 billion of unrestricted cash. More than any other airline.
[post="238893"][/post]​


I was going to say that!
 
latreal said:
I was going to say that!
[post="238897"][/post]​


:up: I forgot to add:

And that's after AA paid all its bills in 2004, including $461 million in pension contributions (in sharp contrast to US and UAL, which didn't pay their required minimum contributions and are seeking to cancel said pensions). 😀
 
Even though this rumor does make sense for Southwest, we have to remember that it is just that...a rumor. Southwest would want more then the one gate that ATA had, so what gates would they use if they pick CLT next? I don't think there are any available.

Jerry Orr mentions forks in the road before Southwest could land in CLT. I mentioned one above. I believe these forks are purposely there and set by the city and airport to block Southwest or any other major LCC from entering CLT in order to protect US Airways and it's hub.


Last week when asked about other airlines... "It would be improper for me to talk about other scenarios when our goal here is to keep US Airways solvent,"- Charlotte Mayor Pat McCrory

While I do think it's admirable that the city and airport continue to support US Airways even after PHL and PIT have now started opening the flood gates to LCC, I am a little concerned that this attempt could seriously backfire if US does liquidate.
 
I don't think SW cares about some knucklehead mayor. They're going in anyway and are going to further bleed US Airways.
 
All airports (or at least the ones that would like to receive federal funds) are required to at least attempt to provide access to carriers which want to provide service in that city. Further, the government has been particularly aggressive in requiring that legacy carrier hub airports provide gates to LCCs if they wish to enter. I’m not familiar enough with CLT to know the gate situation but using lack of gate space will not fly in the eyes of the feds. Right now, the feds think LCCs can do no wrong while the legacy carriers are a much of never-die buffoons.
 
Folks, SW is slowly becoming a non issue as far as US is concerned. One year ago, this would have been "not good" With Us cost structure very close to being in place, soon across the board there will be a level playing field. In fact, sooner rather than later, SW will have to address it's mounting cost structure. This was really reflected in US response to SW announcement about its PIT arrival. SW is slowly gonna have to compete on a flat surface.
 
usfliboi said:
Folks, SW is slowly becoming a non issue as far as US is concerned. One year ago, this would have been "not good" With Us cost structure very close to being in place, soon across the board there will be a level playing field. In fact, sooner rather than later, SW will have to address it's mounting cost structure. This was really reflected in US response to SW announcement about its PIT arrival. SW is slowly gonna have to compete on a flat surface.
[post="238926"][/post]​

The playing field is not even close to level. Post-concessions, LUV's CASM will still be well under U's. It's fare structure is already rationalized. It has fuel hedges in place that U can only dream about.

Southwest addresses increased costs in two ways: by having a laserlike focus on efficient operating practices (something that U knows nothing about) and by growing (such that the growing costs are spread among an even larger number of RPMs). U has no aircraft of meaning set for delivery this year (RJs have a CASM that is out of this world).

LUV is taking 30+ 737s with a sub-7 cent CASM.

Rose colored glasses at 11.
 
Tim Nelson said:
Southwest is either overextending itself drastically and in for a terrible beating if US AIRWAYS pulls out of this or banking on more US AIRWAYS poor management.

Although top industry analyst have already confirmed a bleak US AIRWAYS predicament with such words as "Stick a fork in it", if by some freak of business that U does survive, a reversal of fortune would no doubt cause SW dreadful consequences.

I wouldn't bet against SW who is moving aggresively and with good reason, but if they are wrong then they could end up dead on arrival.

regards,
[post="238872"][/post]​

Gary Kelly is a leader. Smart enough to hedge fuel. Smart enough to STOP Airtrain's advance in to MDW. Herb was smart enough to bring him up. Only time will tell, but we have a FULL wallet and can take the risks now.
 
Time can be an enemy or your friend..
As time goes by and the hedge fuel goes down and WN cost goes up with more planes and more cities and more employees something will have to give..

I say in 3 years WN wont be so rosy after all remember I am willing to wager when most major gets their cost in line and prices remain low ..
the perks the majors can give out will make them a better choice to WN
 

Latest posts

Back
Top