What Could Cal Be Looking For In Uair?

[XJTGuy]

Could it be slots, A/C (i.e an express carrier)??????
Thoughts?

 

[Cris L]

What Could Cal Be Looking For In Uair ?

What makes you think CAL is looking for anything ?

Can they afford to do so ?

 

[Rob]

Bethune has said they'd be interested in the shuttle and possibly other LGA/DCA slots. CAL could easily come up with $200-300 million for the right assets; more than that and they might need some financing. Doubt if they'd have any interest in a UAIR hub.

Fearless prediction: They will show a profit for the 4th Quarter, based on extraordinary gains from the Orbitz sale; 1st Quarter will be their only loser in 2004, and even that could be cash positive.

 

[johnnyfleet]

How about CLT, that would make more sense than CLE wouldn't it?

 

[mrf777]

Sorry but CLE isnt going anywhere soon.

 

[Rob]

CLT seems to have a bright future; but in the meantime CLE has lots more O&D traffic. CAL doesn't seem to invest in the future of a route - they want profits NOW.

 

[mrf777]

Continental has a very good operation in CLE and has invested millions in doing it. CLE will never be the size of IAH or EWR. It mainly will be express with about 50-100 mainline flights. Gordon has said that CO looks to add one or two new international destinations within the next couple years.

 

[Borescope]

The only thing CAL might be interested in is some of the routes. Why would they pay for them when they can pick them up for free. WN is picking there routes for "free" and judging by what they did to US on the west coast and BWI, they probable feel they can do the same thing in PHL. CAL already has a shuttle out of EWR so they don't need that. Basically there is no value there for CAL.

 

[funguy2]

Prior to the DL-NW-CO alliance, it was always rumored, perhaps even assumed, that CO would be interested in CLT to gain a foothold in the SE USA. However, now with the alliance with DL and NW, and the fact that the industry is generally considered "over-hubbed", perhaps they would be less interested.

 

[skycruiser]

My guess is there wouldn't be much to look at for COA. The shuttle operation is at the wrong airport to mention there is already a BOS shuttle from EWR, DCA already has two much capacity, The hubs are all wrong for the current operation, and I am not sure how many LGA slots would be helpful.

 

[Whadayano]

There might be some value in the U shuttle simply as a way to own more of the NY mkt. If not, LGA slots/gates can always be traded for something of greater worth to CO, say EWR gates. But CLE will stay, the leases are too expensive for CO to get out of, and CO is on the hook. Remember that CO through EAL has some sort of rights to the U terminal that U shares with DAL at LGA. However unless cash flow is going to improve alot, I don't think CO dares risk any cash, unless its a real steal.

 

[funguy2]

There might be some value in the U shuttle simply as a way to own more of the NY mkt. If not, LGA slots/gates can always be traded for something of greater worth to CO, say EWR gates. But CLE will stay, the leases are too expensive for CO to get out of, and CO is on the hook. Remember that CO through EAL has some sort of rights to the U terminal that U shares with DAL at LGA. However unless cash flow is going to improve alot, I don't think CO dares risk any cash, unless its a real steal.

I agree... In fact, I would say that is the base of US Airways problems... With the state of the industry now, no airline has cash to burn, thus everyone will only buy a part of US Airways if it is a steal... And US Airways cannot afford to give up anything at bargain prices...