BOS,LGA,andLAS bases to close in 2010

[BoeingBoy]

If this deal is approved (DL/US transaction) and there is another merger attempt with UA why could it not go through this time around after a DL monopoly in the NYC market was already approved?

DL hardly has a monopoly in the NYC market, especially if you consider EWR as serving NYC. Internationally, DL doesn't have anywhere near 50% of the JFK market and none of the EWR market. Domesitcally, B6 has the largest share @ JFK (42% vs DL's 26%), DL will still not have 50% of the flights @ LGA after the slot transaction although they will pass AA as the largest carrier, and obviously is a minority carrier at EWR (like about everyone but CO).

The DL/US slot swap will give US a bigger market share at DCA than DL's market share in NYC after the slot transaction - US currently carries almost 50% of DCA enplaned passengers. Add in UA's relatively few slots at DCA and a merged UA/US would have a majority share of DCA traffic. At IAD UA carries about 50% of domestic enplaned passengers which a merger with US would only add to.

So which do you think the DOT would scrutinize more - a deal that let's DL move ahead of AA for the honor of largest carrier at LGA without changing much at JFK/EWR or a merger than solidified UA/US's wide market share lead in the DCA/IAD market?

Jim

 

[Freighterguynow]

Remember that it was the concentration of market power @ DCA that shot down the UA/US merger and the DL deal would give US a larger share of the market than that merger would have given US/UA.)

Jim

I believe it was the combined BWI, IAD and DCA market share as well as the lack of low cost competition that was the problem.

 

[Phoenix]

I believe it was the combined BWI, IAD and DCA market share as well as the lack of low cost competition that was the problem.

Frankly I think the circumstances were such that the DOJ could have justified an answer either way.. but the buyers didn't want it anymore because of the change in the economy.

I think the buyers had a change of heart and dreaded the thought of actually having to go through with the deal. Is it possible that UAL panicked and used back channels to "lobby" the DOJ to give them the out? The economy was roaring when they made the deal at $60 share price but the economy tanked right after they signed and the deal no longer made any sense. I think it could have tipped either way.. perhaps the money had a change of heart and said no.

 

[BoeingBoy]

I believe it was the combined BWI, IAD and DCA market share as well as the lack of low cost competition that was the problem.

Yeah, throwing in BWI with WN's "focus city" high cost presence pushed US/UA market concentration over the line...

Jim

 

[2clippedwings]

Don't go pissing on Hector. He is the best thing to happen to US Airways in a long time. He spent A LOT of time in LGA AND BOS< FYI!!

That's interesting because I never heard or read that he visited these two bases. Maybe in closed door meetings with management but in the crew rooms? Or maybe he popped into the crew rooms after the first bank (and very very early bank) of flights were gone. I think it is interesting that AFA Local 66 (west) has published more information about our current mess than AFA east locals, including a letter from Hector.
If the company was smart, they would put pertinent info into the crew information system as a "must read", then everyone who checks in at some point will see it.

 

[Glucose Intolerant]

I keep forgetting we're US in name only.. this is really America West trying to compete on the east coast and doing poorly. :down:

Spot on

 

[Travelpro72]

DCA only works marginally because no one else can get in. :down:

Man isn't THAT the truth. Open up the airport and watch US cut back in DCA too. It's the way US works....why would it be any different.

 

[Furloughd4now]

Don't go pissing on Hector. He is the best thing to happen to US Airways in a long time. He spent A LOT of time in LGA AND BOS< FYI!!

I'd like to know when because I (or any other FA based in LGA) NEVER saw or met him. A letter should have been sent directly (at least through CBS) to the affected crews. I found out HERE that it was posted on Wings. AFA didn't even post it. A link posted on AFA website titled "VPInflight letter" is in fact, the letter posted from DP. Perhaps they corrected, but on the 28th thats what it was.

 

[flybynite]

Our management at work.

 

[Glucose Intolerant]

Well USairways is YET AGAIN shooting themselves in the foot. BOS and LGA are major US cities and US just cant and WONT compete. Always has been a TIER II airline, now they just moved to TIER III. Just handed over yet another major operation to another carrier. GOOD FOR JB. They know how to run an airline. US never has known and NEVER will. SO SAD! h34r: :down:

Henry Harteveldt, principal airline analyst for Forrester Research Inc., said US Airways has suffered from the inefficiencies of having two distinct groups of workers, a result of its 2005 merger with America West Airlines.

“This is reactive; it’s not proactive,’’ Harteveldt said. “This is the effect of running a bad airline in a bad way.’’

 

[Dorf]

Dorf,

Common man get with the program! In these difficult economic times we need to start giving out retention bonuses to keep all of the talented vice presidents and directors here because they are doing such a bang up job. We wouldn't want them to leave and go to some other airline with all of the majors hiring at the moment!

SORRY, what was I thinking??!! You are absolutely correct...better triple their pay! LOL

Dorf

 

[HPDriver]

Henry Harteveldt, principal airline analyst for Forrester Research Inc., said US Airways has suffered from the inefficiencies of having two distinct groups of workers, a result of its 2005 merger with America West Airlines.

“This is reactive; it’s not proactive,’’ Harteveldt said. “This is the effect of running a bad airline in a bad way.’’

Suffered how? I seem to remember getting a few bonus payouts in recent months.

Parker is seeing about 95% of the synergies already. And "inefficiencies" are more than made up for with the $100M in savings Parker gets from LOA93.

The goal is never to run a perfect airline - that would be too costly.

The goal is the run an airline good enough - that's it.

 

[Dog Wonder]

If your goal is mediocrity, it can be done.

 

[Glucose Intolerant]

The goal is never to run a perfect airline - that would be too costly.

The goal is the run an airline good enough - that's it.

Who's goal exactly? Team Tempe?

We are seeing the results of managing things "good enough":

Base closures,
Assets Sales (then calling them a "slot swap"),
Outsourcing jobs, MX, and flying,
Erosion in the level service expected with a business airline,
2 failed mergers, 3 if you count our own,
Labor contracts in their fourth year of negotiations with no foreseeable resolution on the horizon.
Obscene BONUSES to retain a management team that continues to lose money and market share.
All the above while shrinking the airline smaller and smaller.
oh and I forgot this....
To Cut Costs, Airlines Send Repairs Abroad

That's "good enough" alright. But I would really hate to see these guys version of "mediocre".

Your right, the goal isn't to run a perfect airline (these guys couldn't do it if they wanted to) that would be too costly. But what is the cost of running a CENSORED airline?

What do other successful airlines do?

Treat employees as assets instead of a liability.
Employees are happy and take care of the customers.
Happy customers take care of the now happy shareholders.

Now there's a concept .....
Someone should definitely do that.......
Someone does?

Well if that's "good enough" for SWA ...... pretty simple if you think about it :huh:

Good Enough?

 

[HPDriver]

Who's goal exactly? Team Tempe?

Base closures,

Times, markets, competition, etc have all changed and all require a company to adapt. Base closures are simply a byproduct of keeping up. Its never about the fittest surviving, its about the most adaptable.

Change hurts, is scary, but is necessary.

Assets Sales (then calling them a "slot swap"),

Many a pundit has called this a wise move. Instead of airlines beating each other over the head trying to compete in a market, they trade out and and are allowed to focus on a particular market.

Outsourcing jobs, MX, and flying,

Common practice at most corporations. Which is why having a union with some actual political muscle would be a great help. Unfortunately, the pilots don't have one.

2 failed mergers, 3 if you count our own,

How has this one failed? We're no worse off than our peers. Just because we pilots are still separate groups shouldn't be used as to measure the success of this merger. We pilots don't have a contract because USAPA doesn't want us to have a contract and Parker is saving $100M a year on the east's LOA 93 alone.

Labor contracts in their fourth year of negotiations with no foreseeable resolution on the horizon.

Ya, that "contract by the end of the year" promise USAPA made came and went when they figured out Nic couldn't be undercut. And what do you expect for a company when they deal with a union that has no leverage and a leader the Parker won't even give 5 minutes of his time to see.

Obscene BONUSES to retain a management team that continues to lose money and market share.
All the above while shrinking the airline smaller and smaller.

Once again, change is vital. Smaller, right now, will survive.

oh and I forgot this....
To Cut Costs, Airlines Send Repairs Abroad

Notice "Airlines" is plural. I blame the FAA for allowing this to happen.

Your right, the goal isn't to run a perfect airline (these guys couldn't do it if they wanted to) that would be too costly. But what is the cost of running a CENSORED airline?

Running a perfect airline is easy when you have all the money in the world with which to do it. Unfortunately, no one out there does. Say what you will about Parker, but I'd rather have him up in the office than any other CEO. Unfortunately, you east folks only see an airline for what its can do for you (as was made very clear by Cleary's unfortunate letter) and not as a business.

Treat employees as assets instead of a liability.
Employees are happy and take care of the customers.
Happy customers take care of the now happy shareholders.

Name an airline that doesn't have its problems.

SWA? Code share with WestJet, voting down a TA, downgrades and, eventually, furloughs.