Another Competitor In Bk--

[Hope777]

My Take, In the Long Term this should benifit USAirways. In the Short Term, IT HURTS. FLYi contracts out service and Facilities from USAirways. Guess we will be getting Pennies on the Dollar for the cash they owe us.

 

[dc3fanatic]

LCC stock up today ($29.27). This maybe due to the news of Flyi.

or it might be a short squeeze. Look at how many shares are shorted.

 

[WorldTraveler]

I can't see how USAirways can be considered more impacted than United.

IAD is growing so fast because FlyI dumped a bunch of capacity into the market which clearly could not be maintained. They did give other carriers a very good idea of how well IAD could be stimulated so I think it is a given that UA will get a new and better run competitor at IAD.

It seems very doubtful that any passenger will buy tickets on FlyI beyond New Years unless they get some sort of bridge financing to keep them flying beyond that period. I suspect FlyI knows the chances of anyone buying them is slim but they have to keep that 60 day window for lease rejections open.

 

[whlinder]

I’ll bet you the greatest benefactors of a Flyi bankruptcy and/or liquidation will be either Air Tran or jetBlue. I read in Air Transport World several issues ago that Dulles is one of the fastest growing airports (passenger enplanements) in the country. Having lived between DCA and IAD and today having to travel to Dulles often, the growth in North Virginia as far west as Winchester is just simply out of control. If an airline has got some available aircraft or unprofitable routes being flown by current aircraft, then move them into Dulles before Air Tran and/or jetBlue does.

FlyI is the main reason that IAD is one of the fastest growing airports in the country. While the growth you mentioned is certainly helping Dulles grow, DH's below cost fares have been the biggest driver of growth at the airport in the past year or so.

 

[ringmaruf]

I can't see how USAirways can be considered more impacted than United.

I can see the reasoning, I'm just not sure I agree with it.

Obviously, there's considerable overlap between US's nonstop routes at DCA and DH's nonstop routes at IAD. This capacity overlaps with UA's routes at IAD as well. Here, though US often offers just as much capacity on the routes, US obviously can maintain a premium at DCA and is not completely competing with IAD.

I think, though, where the analyst is claiming US is most affected is not necessarily in the Washington local markets, but some of the higher-yielding connecting markets like GSP/CRW/HPN/etc. These are markets where US is much larger than UA, so they'd be more affected by DH trashing the yields.

 

[rvolkcpa]

My Take, In the Long Term this should benifit USAirways. In the Short Term, IT HURTS. FLYi contracts out service and Facilities from USAirways. Guess we will be getting Pennies on the Dollar for the cash they owe us.

I think you indicated a while ago that one of USAirways' gates at EWR was subleased to FLYi. Would getting this back be useful for USAirways operations in Newark now that America West's flights are also operating from these gates?

 

[Dog Wonder]

Although a certain visionary once posted EWR would be the first station to integrate operations it still has not. Some sort of facility issues.

 

[USA320Pilot]

"While Independence expects to continue operating in the interim, we believe the company's announcement of intentions to auction its assets means the carrier will shrink significantly or cease operations over the next 60 days," wrote Lehman Bros. analyst Gary Chase in a research note Monday.

Chase also pointed out that Independence Air's capacity has been coming down all year. "As Independence shrinks further, we believe US Airways and AirTran will be the largest beneficiary," he wrote.

USA320Pilot comments: Dog Wonder, in regard to Newark being the merger integration test location, I reported on this website that it was going to be the integration test city on this website and then it was announced in "Plane Deal". Did you miss that edition?

Regards,

USA320Pilot

 

[firstamendment]

Although a certain visionary once posted EWR would be the first station to integrate operations it still has not. Some sort of facility issues.

I was there right after Day One and it WAS integrated.

 

[Hope777]

Trust me, NEWARK is NOT integrated.

The only thing HP does, is use the Facility. First, Trust me I know first hand since I work in EWR.