Delta, US Airways Announce New Agreement to Transfer Flying Rights in New York and Washington, D.C.
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LCC's financials are reported as one company and that's all creditors/investors care about....cash flows, liquidity and solvency ratios, profit margins, etc. For the most part, all the numbers for LCC have been going in the right direction after combining two companies, both near liquidation. That's what will get their attention and money; DP's financial success....not his labor/marketing/customer service/operational "expertise."
What got the attention and by whom with the non-DL/US merger ??? AA will do a rerun
Jester
Veteran
So it looks as if US will reduce a net of 90 flight pairs as a result of the unequal trade with Delta. Which begs the question where will those planes go instead? Certainly, a reduction in staff for Piedmont, especially in LGA, does that mean a reduction in flying overall in total?
So Ponders Jester.
Its those 35 seat dash-8's wasting space and opportunities by flying to very small cities.Sort of wonder where they will put the dash's since no new express cities have been added.They say clt & phl,but are they talking about adding frequency's or cities? 😱
Almost everything Tempe does is designed to prep US to be a merger/acquisition partner. Downsizing in NY makes a merger with any of the other big players that much easier in such an important market. With the focus on the four key airports -- PHL, DCA, CLT and PHX -- and with the fleet simplification continuing (fleet will be all Airbus and 767/757 within a few years), US is being setup to be tacked onto a bigger player in a few years.
robbedagain
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will they eventually get rid of the B-757/767s in favor of more 330s n 321s as replacements? also if they gonna reduce the NY market with the commuter that could explain the rumors Ive heard that BWI will pick up more cities using the commuters
nycbusdriver
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Try incompetence.
BWI? After the hub was closed, US maintained some point-to-point Express service, operated by Trans States I believe. I think that service is long gone and likely to never resume.
BoeingBoy
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At the latest PHX crew news (F/A) Parker said that they had hoped the A321neo would be a suitable replacement for the 757 but that what they were hearing from Airbus indicates that it wouldn't be able to operate either the Hawaiian or European flights. So the 757's are going to be hard to directly replace. The A332's have plenty of range to replace both the 757's and 767's but with a higher capacity than either. Likewise the A350, if it really does arrive on the property, could replace about any of the wide-bodies US operates with higher capacity and longer range.
The wild card is whatever Boeing decides. If they re-engine and update the 737NG the bigger version may be a suitable replacement for the 757. If they develop a clean sheet design replacement, it'll probably be too far down the road - 2019 or later - before it's available.
Of course, there's the possibility of a future merger making the question moot.
Jim
Synergies not realized, not saving money and labor strife can bring down a company, guess you dont remember an airline called Eastern?
USA320Pilot
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US Airways' FAQs: May 26, 2011
Q. What did US Airways announce with Delta Air Lines?
A. On Monday, US Airways and Delta Air Lines announced a new agreement to transfer takeoff and landing rights at New Yorks LaGuardia (LGA) and Washington D.C.'s Reagan National (DCA) airports. Under the new agreement, which is subject to certain government and regulatory approvals, US Airways would obtain 42 slot pairs from Delta at DCA, Delta would obtain 132 slot pairs at LGA from US Airways and Delta would pay US Airways $66.5 million in cash. We will also acquire additional rights from Delta to operate daily service at one of worlds most important business destinations Sao Paulo, Brazil (GRU).
Q. How is this agreement different from our original 2009 proposal?
A. In our original proposed transaction, US Airways would have obtained 42 slot pairs at DCA from Delta and Delta would have obtained 125 slot pairs from US Airways at LGA with another 15 that it would lease from us and obtain at a later date.
US Airways would also have received rights to operate service to Tokyo, Japan (NRT) from Delta. This is no longer part of the agreement since Japan and the U.S. now have made an Open Skies agreement, which erases limits on flights and opened up a second Tokyo airport Haneda to U.S. service.
Q. Do we think this transaction will be approved?
A. The competitive landscape at LGA and DCA has changed significantly since our original 2009 proposal. New entrants and smaller carriers, including AirTran, JetBlue and Southwest, have gained considerable access to slots at both LGA and DCA and expanded service at these and other airports in the New York and Washington regions. Also, mergers between United and Continental and Southwest and AirTran have dramatically sharpened competition on the East Coast generally and particularly in the New York and Washington regions.
In addition, to address concerns previously raised by the Department of Transportation, the agreement provides for the divestiture of up to 16 slot pairs at LGA and eight at DCA by Delta if required by the regulatory authorities. These changes, together with the transactions exciting benefits for travelers, make this a very compelling proposal.
Q. Why are we acquiring additional rights to Brazil if there is now an Open Skies agreement between the U.S. and that country?
A. The U.S. has signed an Open Skies agreement with Brazil that is scheduled to take full effect in late 2015. However, Brazil is still revising its domestic laws to ensure Open Skies can happen.
Regardless of what happens with Brazilian law, we know as a result of our Delta transaction, we will have uninterrupted service to GRU if we have to return our current frequencies to United, from whom we are borrowing them, in 2015. If Open Skies moves forward as we anticipate, we will have all the assets we need to begin a second GRU flight if we decide to. We dont expect any changes in our Rio de Janeiro (GIG) service as a result of our Delta transaction.
Q. Where will we operate at LGA?
A. Well operate all of our flights at LGA from our existing terminal Terminal C rather than being split between the Marine Air Terminal and Terminal D as we originally proposed in 2009. Well operate out of nine gates in Terminal C: six gates with jetways and three other parking positions that can be easily accessed from the terminal. Our customers will also have access to a new 5,000-square-foot US Airways Club located near our gates in Terminal C.
Q. How will the agreement affect employees?
A. Like the 2009 agreement, this slot agreement will have an impact on jobs. In DCA and at DCA destinations, we may add more airport employees, though its too early to say how many.
Its also too early to say what impact if any there will be to mainline flight crews.
While we will still retain a significant presence at LGA, this transaction does reduce our operations there and therefore the number of jobs needed. We estimate that approximately 300 Piedmont positions at LGA will be eliminated when the reduced flight schedule is implemented next year. Some mainline and additional Piedmont employees who support the impacted regional service at LGA and at field stations could also be affected. This is the most difficult part of any transaction and we will do everything we can to support those employees whose jobs are effected.
Q. What did US Airways announce with Delta Air Lines?
A. On Monday, US Airways and Delta Air Lines announced a new agreement to transfer takeoff and landing rights at New Yorks LaGuardia (LGA) and Washington D.C.'s Reagan National (DCA) airports. Under the new agreement, which is subject to certain government and regulatory approvals, US Airways would obtain 42 slot pairs from Delta at DCA, Delta would obtain 132 slot pairs at LGA from US Airways and Delta would pay US Airways $66.5 million in cash. We will also acquire additional rights from Delta to operate daily service at one of worlds most important business destinations Sao Paulo, Brazil (GRU).
Q. How is this agreement different from our original 2009 proposal?
A. In our original proposed transaction, US Airways would have obtained 42 slot pairs at DCA from Delta and Delta would have obtained 125 slot pairs from US Airways at LGA with another 15 that it would lease from us and obtain at a later date.
US Airways would also have received rights to operate service to Tokyo, Japan (NRT) from Delta. This is no longer part of the agreement since Japan and the U.S. now have made an Open Skies agreement, which erases limits on flights and opened up a second Tokyo airport Haneda to U.S. service.
Q. Do we think this transaction will be approved?
A. The competitive landscape at LGA and DCA has changed significantly since our original 2009 proposal. New entrants and smaller carriers, including AirTran, JetBlue and Southwest, have gained considerable access to slots at both LGA and DCA and expanded service at these and other airports in the New York and Washington regions. Also, mergers between United and Continental and Southwest and AirTran have dramatically sharpened competition on the East Coast generally and particularly in the New York and Washington regions.
In addition, to address concerns previously raised by the Department of Transportation, the agreement provides for the divestiture of up to 16 slot pairs at LGA and eight at DCA by Delta if required by the regulatory authorities. These changes, together with the transactions exciting benefits for travelers, make this a very compelling proposal.
Q. Why are we acquiring additional rights to Brazil if there is now an Open Skies agreement between the U.S. and that country?
A. The U.S. has signed an Open Skies agreement with Brazil that is scheduled to take full effect in late 2015. However, Brazil is still revising its domestic laws to ensure Open Skies can happen.
Regardless of what happens with Brazilian law, we know as a result of our Delta transaction, we will have uninterrupted service to GRU if we have to return our current frequencies to United, from whom we are borrowing them, in 2015. If Open Skies moves forward as we anticipate, we will have all the assets we need to begin a second GRU flight if we decide to. We dont expect any changes in our Rio de Janeiro (GIG) service as a result of our Delta transaction.
Q. Where will we operate at LGA?
A. Well operate all of our flights at LGA from our existing terminal Terminal C rather than being split between the Marine Air Terminal and Terminal D as we originally proposed in 2009. Well operate out of nine gates in Terminal C: six gates with jetways and three other parking positions that can be easily accessed from the terminal. Our customers will also have access to a new 5,000-square-foot US Airways Club located near our gates in Terminal C.
Q. How will the agreement affect employees?
A. Like the 2009 agreement, this slot agreement will have an impact on jobs. In DCA and at DCA destinations, we may add more airport employees, though its too early to say how many.
Its also too early to say what impact if any there will be to mainline flight crews.
While we will still retain a significant presence at LGA, this transaction does reduce our operations there and therefore the number of jobs needed. We estimate that approximately 300 Piedmont positions at LGA will be eliminated when the reduced flight schedule is implemented next year. Some mainline and additional Piedmont employees who support the impacted regional service at LGA and at field stations could also be affected. This is the most difficult part of any transaction and we will do everything we can to support those employees whose jobs are effected.
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