US Airways CEO:Some In Washington 'Hell-Bent' On Interfering In Indus

[FM2436]

Randy Babbitt says its the airline's fault for delays.

http://news.yahoo.com/s/ap_travel/20100519/ap_tr_ge/us_travel_brief_faa_flight_delays

 

[Onestep2flt]

Really, didn't the US Government lend a few Bucks to the auto industry? Did they regulate them as to what cars they could sell, and where they could or couldn't sell them? Any input as to how much they should sell them to the public for? Did they tell GM that they couldn't sell off any of their brands, or discontinue any of them all together? I don't think so....Get the picture now? Most of the Airlines got the ATSB loans, and all paid them back as far as I know. If US and/or DL own these slots, they should be able to do whatever the heck they want to with them, buy, sell, trade, etc. Too many other Airlines run and cry foul to their pals in Washington with hopes of getting something they have no rights to.

Your point is valid and well taken. However, those loans to the car companies did come with some strings attached. Remember most of the investment in GM was not loans but was money converted to an ownership stake in the company. So yes, the loan has been repaid but I do not believe that the government has sold any of their major stock ownership. Given that I would say that the government does indeed have some role in the decisions being made there. There were also quite a few airlines that were denied ATSB loans. I am sure the government did not just pick and choose the airlines that would live or die, but it it still was government influence on the process.

I am all for the free market and believe that less government is better. I guess the question I have to ask is what are the specific slot rules? Like it or not the airline industry is heavily regulated. Do they (airlines) actually own the slots? Or is it like software you buy from your favorite vendor? With most you are buying the right to use the software but the ownership rights still belong to the vendor. Are the slots like this? Does US only have the right to utilization? I don't know and would really like to know the answer.

So, I will say that you are correct to point out to me that Mr. Parker has the right to rant about something he may feel is wrong. I will give you that. The only point that I was truly trying to make is Mr. Parker likes to talk from both sides of his mouth. Any new fees will hurt US on one side. On the other he wants the government to pay for the upgrades to his planes. Stay out of our business but please upgrade our planes. I am not saying there should be new fees. But the airlines have a habit of saying it will cost them for the fees. No, it will cost me the flying public the fees. They pass those right off on me. The only thing it hurts is maybe the ability to charge more fees himself for the bags.

I think his number one concern should be finishing the merger that he started. Thus the reason I threw the Meddling in other airlines affairs. He wants to be a party to a merger, yet over four years later has not put the one that he is currently in together. Maybe it is because according to the government (FAA) US Airways is already one carrier.

 

[necigrad]

Parker also restated his support for the planned merger of Continental Airlines Inc. (CAL) and UAL Corp.'s (UAUA) United Airlines Inc., saying the deal would improve efficiency in the industry.

And now his seat is hell has been secured. I know Parker has been insistent for a long while that consolidation is the way to go, but to support a competitor that got exactly what you were trying for? What's the back end deal here?

 

[redheadtempe33]

And now his seat is hell has been secured. I know Parker has been insistent for a long while that consolidation is the way to go, but to support a competitor that got exactly what you were trying for? What's the back end deal here?

Well, there is the possibilty that the new UA will have to divest some gates/slots that US may want. What gates/slots I don't know, but you never know ... I think a SFO focus city has possibilities.
Other than that, there is always AA. While it is a much bigger airline, it lost a HUGE amount last quarter compared to UA, CO, DL, and US. It is conceiveable that if AA continues on this course, they will have to declare bankruptcy, and US could merge/aquire/be aquired at that point.