cubfan02us
Member
- Sep 10, 2002
- 93
- 0
CEO Siegel Digs Out US Airways
- Thread starter cubfan02us
- Start date
FlyingHippie
Senior
- Jan 27, 2003
- 283
- 0
This is pretty damn gloomy for PIT:
"The math is obvious, but everyone has a different definition of excess. Some people say one competitor that has about a 15 percent marketshare and currently is operating in Chapter 11 should go away. Some people would say that everybody has a marginal hub. We have Pittsburgh, Northwest has Memphis, Continental has Cleveland, American has St. Louis and Delta has their position in Dallas and I argue in Cincinnati and Salt Lake. So another way for capacity to come down is for everyone to shut down their uneconomic hub positions.
A third alternative is everyone pares back capacity 15 percent around their networks because they do not want to shut down a hub, but it is not clear what the new level of demand is. Even though the war is over, demand still is depressed. What is the new baseline? It appears to be a permanent drop in demand and we are trying to assess if we have to take additional capacity out. We continue to evaluate our marginal hub position in Pittsburgh."
"The math is obvious, but everyone has a different definition of excess. Some people say one competitor that has about a 15 percent marketshare and currently is operating in Chapter 11 should go away. Some people would say that everybody has a marginal hub. We have Pittsburgh, Northwest has Memphis, Continental has Cleveland, American has St. Louis and Delta has their position in Dallas and I argue in Cincinnati and Salt Lake. So another way for capacity to come down is for everyone to shut down their uneconomic hub positions.
A third alternative is everyone pares back capacity 15 percent around their networks because they do not want to shut down a hub, but it is not clear what the new level of demand is. Even though the war is over, demand still is depressed. What is the new baseline? It appears to be a permanent drop in demand and we are trying to assess if we have to take additional capacity out. We continue to evaluate our marginal hub position in Pittsburgh."
