It has been probably well over a year since I have frequented these boards but I was curious to see what is happening to United in the post Delta merger announcement. Well, it seems that the iceberg has moved more than a millimeter and suddenly there is a frenetic rush to make things happen.
I think Messieur Z's question is apt. Where is LH? They performed admirably with Swiss to such an extent that it is said (sorry, no source but one needed if we could treat this as Wikipedia!) that the Alpenlaenders are producing higher unit revenue than the "old" LH. The Italians have been eyed by AF and LH and that seems to be off the table at the moment. JetBlue probably cost LH no more than what the secretary keeps in the petty cash drawer for incidental office supplies so where indeed is the Bund?
I am surpirsed that no one has chimed in on this question. Cosmo? Are you still extent? One side would say that LH only needs to wait on the touchline. United over the years has eagerly given LH what it has wanted. United has been polite enough to stand aside while LH expands its presence in such cities as Denver and Washington and already flies non-stop from (a rough look at the route map) almost 20 other U.S. cities. Granted my knowledge of U.S. geography is not expert, but why would one need to get on a United regional flight to go to a hub when there is a good chance that LH is flying to the nearest big city? (Dallas, Houston, Detroit, Portland, Vancouver (yes Canada), Philidelphia, Boston etc.)
I would have to ask, how much more value would United directly provide for LH? With LH covering the U.S. like a smoothering blanket and United pouring passangers into LH's big FRA and MUC hub, why frankly should they do anything but sit back, relax, and enjoy the revenue that United provides to them for so little effort in return? With all due respect, United has been spurned by Continental so the chance of United finding a new alliance home is nil.
Second, I would imagine that LH would be concerned about accountability of any investment. Looking purely at a peer competitor level, I would think (but again would ask for factual backup) that Mr. Tilton has not instilled the greatest faith in his husbandry of United. Irrespective of the problems faced running an airline, would anyone think that he is making money for the investors? Always "just ready to turn the corner" seems to be thin gruel after all these years and grows old. Why was work not done over the past years? Why is it always "to be done?" The question that LH would have to ask is whether there is any intention whatsoever to run the airline or merely to parcel it up and away. Is there any value as an ongoing economic entity? If not, why would LH invest?
Just musings. With Emirates (yes, not in the Star) hitting NY from Dubai, Singapore non-stop to LA and NY, LH covering the U.S., South African adding an African opening, the route structure of United looks to be on thin legs. Not to sound cruel, but I am sure LH is looking at this to see if an investment would be worthwhile. They are buying aircraft, they can just add more flights across the Pond.
