What's Next for US?

[SS255]

Exactly when or where has US Airways demonstrated that it can run a "Good" airline post merger? Was it during the res migration?

Then maybe that's what they should concentrate on doing? 😉

I don't know......to me all of this airline merger mania has more to do with ego and big executive payouts than with good business sense. WN and B6 are small potatoes compared to CO, UA, AA, US & The New DL, and you don't read about them looking to merge.

 

[ggiby]

Doug's rationale for US merging is to reduce capacity. The UA-CO merger will accomplish that. What is wrong with US just being a small fish in a big sea? If they can run a good airline, what does size matter?

We have always been a small fish in a big sea... and did fine that way...

Even w/ the Mergers we have had over the last 20 years, we are still the small fish.... as long as we can survive and make a paycheck...
who cares... we don't have to be the biggest... should just strive to be one of the best.

 

[VegasGambler]

I see that Hawaiian is growing in the Pacific again.....

http://www.bizjournals.com/pacific/stories/2010/06/28/daily19.html?ana=e_du_pap

This company would I believe to be a great fit for USAiirways to expand internationally and give us access to much needed Widebody A330 AC

This could be an awesome fit for us both to merge....anyone else think this seems a worthy idea???

 

[etops1]

I see that Hawaiian is growing in the Pacific again.....

http://www.bizjournals.com/pacific/stories/2010/06/28/daily19.html?ana=e_du_pap

This company would I believe to be a great fit for USAiirways to expand internationally and give us access to much needed Widebody A330 AC

This could be an awesome fit for us both to merge....anyone else think this seems a worthy idea???

No chance ,They have a weak route structure (leisure only no business traffic).They would have liquidated except that Aloha and ATA got there first, and they have a bloated cost structure. But mostly,they don't have a good route network that's worth buying. It may look good to the eye on paper but financially it's suicide. The only airlines that US is interested in merging is AA,DL, and the new UA .

 

[cynic]

What is wrong with US just being a small fish in a big sea? If they can run a good airline, what does size matter?

Less pricing power and more at risk to one of the bigger airlines targeting your service on a particular route. Other than that, I agree with you. They've done everything possible to keep the lights on and the doors open during the last couple years, and should be commended for that. Now it's time to prove that they can make money during the "up" cycle.

 

[redheadtempe33]

No chance ,They have a weak route structure (leisure only no business traffic).They would have liquidated except that Aloha and ATA got there first, and they have a bloated cost structure. But mostly,they don't have a good route network that's worth buying. It may look good to the eye on paper but financially it's suicide. The only airlines that US is interested in merging is AA,DL, and the new UA .

? It has a route and cost structure that somehow made money in 2007, 2008, and 2009 (years that almost every other airline lost huge amounts of money). Hawaiian would be a good way to enter the Pacific, I just wonder how many east coast flyers would be willing to go (for example): BOS-PHX-HNL-SYD when they could go BOS-LAX-SYD. The fares would have to be really good.

 

[bigbusboy]

? It has a route and cost structure that somehow made money in 2007, 2008, and 2009 (years that almost every other airline lost huge amounts of money). Hawaiian would be a good way to enter the Pacific, I just wonder how many east coast flyers would be willing to go (for example): BOS-PHX-HNL-SYD when they could go BOS-LAX-SYD. The fares would have to be really good.

I think you may have answered your own question. Why would you market a two connection flight to the south pacific/orient when your competition offers a one connection via LAX, SFO, and possibly ORD? "Fares would have to be really good" translates into at or below cost in order to compete. ETOPS is absolutely correct when saying this would be financial suicide. HA's cost structure may be good, but combining the route structure with ours just doesn't make sense.

 

[BoeingBoy]

? It has a route and cost structure that somehow made money in 2007, 2008, and 2009 (years that almost every other airline lost huge amounts of money).

Try 2006 and 2007. AMR & CO, the two other legacy carriers not in bankruptcy, made money both of those years also.

Jim

 

[FWAAA]

I see that Hawaiian is growing in the Pacific again.....

http://www.bizjournals.com/pacific/stories/2010/06/28/daily19.html?ana=e_du_pap

This company would I believe to be a great fit for USAiirways to expand internationally and give us access to much needed Widebody A330 AC

This could be an awesome fit for us both to merge....anyone else think this seems a worthy idea???

So US has a need to become the airline of choice for Asian tourists to Hawaii? That's behind the HA expansion and its slew of new transpacific routes. It's not a certainty that HA's strategy is going to work, as Asian tourists generally prefer Asian airlines and not US-based carriers.

US has a need for more A330s? Doug could get more of them by picking up the phone and calling Airbus and offering to pay for some, just like HA did. Besides, HA already has flights lined up for its A330s, so even if US and HA merged, it's not like US would have some extra new A330s to expand routes from PHX, PHL and CLT. HA's new A330s are for flying to Japan, Korea, Australia and the Phillipines from HNL, not for serving US Airways.

As others have said, HA does not have many business travelers - and there's no way US captures business travelers from mainland US to Asia if they have to stop in HNL on the way to Asia.

No, there really would be no point for US and HA to merge.

 

[czerny]

This fleet type discussion I believe is moot Airbus or Boeing, doesn't matter. When a plane out lives its usefullness, its replaced. There are now A320's and 330's flying in Delta colors.. Who'd a thought that a few years ago huh? Now United will have both types in its fleet as well, with A350's on order to boot. So for AA to inherit some Buses to me is not totally far fetched.

AA got rid of it's old A300s. 737s are now replacing MD80s. Over here at AA, it's quiet about mergers. Amongst fas and pilots, the talk is about contract, possible strikes etc. etc. Then again, if something is in the "works", we'd be the last to know. Good luck to us all in this industry.