Dulles In The Picture?

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Dell:

Yes, I do, however, it's due to industry fundamentals.

Prior to September 11, I would have said no. But due to the current revenue environment, from a pragmatic view, there is too much capacity in the system and the Bush Administration understands this point.

However, the most important point is the "failing carrier guidelines" where current Justice Department guidelines provide for an antitrust exemption if a company is in bankruptcy and could fail. This is the same language that permitted American to acquire TWA, even with the St. Louis antitrust issues.

Regards,

Chip
 
Chip: If say for instance, US does aquire the Dulles Hub, what if any affect will it have with regards to BWI and DCA? Also, would US have to surrender slots and anything else in order to obtain the Dulles Hub?
 
Flying Titan said:
As for MIA, as another post pointed out, there is the problem of dealing with AA there and IMHO, it's only a matter of time before some LCC decides to establish a serious presence there - perhaps Virgin America?
Oh Really, the majors are slowly getting back their strength and LCCs are not always that successful in going into major hubs and trying to compete directly with the largest carrier there. If you want proof ask Jetblue about their Atlanta experience with Delta and Airtran.
 
Got a copy of Dave's Speech:

"The Point is, ladies and gentleman, is that Greed for the lack of a better word...is GOOD. GREED is right, GREED works. GREED clarifies, cuts through, and captures the essence of the evolutionary spirit. GREED, in all of its forms-GREED for life, for money, for love, knowledge has marked the upward surge of mankind. And GREED-you will mark my words- will not only save US Airways, but that other malfunctioning corporation called the U.S.A."
 

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Robbedagain:

Robbedagain asked: "If say for instance, US does aquire the Dulles Hub, what if any affect will it have with regards to BWI and DCA? Also, would US have to surrender slots and anything else in order to obtain the Dulles Hub?"

Chip comments: There is a difference between Baltimore and Dulles in that Dulles is the Washington area international O&D market, therefore, a Baltimore comparsion is different. In regard to antitrust, today is a different day than before and I am not sure how the Justice Department would rule, however, the "failing carrier guidelines" would like apply.

Regards,

Chip
 
767jetz said:
Of course management is going to tell it's employees how rosey things are in an effort to maintain moral. Do you think if USAir were possibly going to file for Chapter 11 AGAIN, they would come out and say it.
You obviously don't know our management..

They lay ALL the doom and gloom on the table.
Most people would find the bright side in the worst of things..
not this team. They find the silver lining and paint it black.

US Airways management team moto...

"We're Not Happy 'til YOU'RE Not Happy"

Hell, they must be dancing their butts off right now, cause we ain't happy.
 
Andre -
I wouldn't put too much stock into one loss for JetBlue. Fact is, they're generally eating the majors' lunch. Just ask folks at Delta about their NYC-Florida traffic. JetBlue is now the leading carrier on these routes - AND - they're pulling down a higher average fare. Just ask folks at AA about their NYC-California traffic. AA has had to slash fares on some of its traditionally best performing routes. IMHO, JetBlue's ATL decision had more to do with AirTran than Delta. Atlanta is now the hometown of a growing LCC - and that means something for frequent travelers who fly more than just that single route. As for MIA - I'll stand by my position that it's a very attractive market for a well-funded start-up seeking to serve mostly leisure travel to major US markets and those in the Carribean.
 
Chip Munn said:
Immediately after the announcement that Atlantic Coast Airlines (ACA) intended to become an independent company, US Airways chief executive officer Dave Siegel (not Chip Munn) told the Washington Times US Airways was interested in acquiring the Dulles hub. What's important to note this is not Chip Munn saying this; it was Siegel in a public venue.
He also called himself labor friendly, said that US won't outsource anything, said that he was not "feeling the love" from the Washington business community, and said that he wants to run longhauls from DCA.

Chip, you are a smart guy, but don't be a shill.
 
Flying Titan, The main reason why DL and AA were not that strong in fighting off the the lccs in their point to point operations was mainly so because thoes markets were not hubs but were operations connecting markets that they had large operations. The LCCs may have some winning ways but they DO NOT have all of them. That is why when LCC's enter a market where a major has a strong market share and presence don't expect the majors will sit and watch their markets go away. AA's MIA market is their most important international gateway and they will BATTLE with anyone wants to have a share in it!
 
Gee, Chip, you've ignored my earlier posts that pointed out that United and Mesa issued press releases last week that directly contradicted your theories about the future of United's IAD hub. I guess it's really inconvenient when the facts get in the way of your preconceived notions.

Chip Munn said:
... Siegel has said Mesa is the preferred US Airways Express partner.
But Mesa has said that United is its preferred partner. So it really doesn't matter that US Airways wants Mesa, because Mesa and United seem to want each other even more (see the links to their press releases that I included in one of my previous posts).

Chip Munn said:
Also noteworthy, let's not forget United senior vice president of planning Greg Taylor (not Chip Munn) told the bankruptcy court that the United unsecured creditors committee wants the company to sell the Dulles hub.
That's not quite correct -- the creditors' committee wanted United to ANALYZE selling the IAD hub, along with the DEN and LAX hubs also. So not only do you continue to refer to statements from 8 or 9 months ago when United had only recently entered bankruptcy, but you then mischaracterize them as well so they will fit into your anti-United spin.

Chip Munn said:
In regard to financing the deal, let's not forget US Airways chairman of the board David Bronner (not Chip Munn) has said on three separate occasions that United has a 50-50 chance of surviving.
With all due respect to Bronner, he has no more knowledge about United's future plans and prospects than you or me. Thus, you're simply quoting an ill-informed opinion.

Chip Munn said:
In regard to Mesa acquiring ACA, the key here is J4J because US Airways and ACA do not have J4J agreement.
J4J is irrelevant to a Mesa acquisition of ACA that stays within the United system, which appears to be the intent of both United and Mesa (again, see the above-mentioned press releases).

Chip Munn said:
Could this be why United said it wants to craft a deal with Mesa in days because Bronner (actually his consultant -- former United president and current US Airways board member Rono Dutta) may want to submit his own plan of reorganization to the bankruptcy court handling United's formal reorganization?
It seems unlikely -- United has exclusive rights to submit a POR to the bankruptcy court until at least early March 2004, more than 4 months away.

Chip Munn said:
Finally, for those United naysayers who love to dispute every comment I say about a potential corporate combination between the business partners, would you simply contact United WHQ reception and ask them why members of the US Airways and United executive suites have been holding multiple meetings within recent days?
As if United WHQ reception would actually divulge the names of its visitors. And we're supposed to just take your word that (a.) these meetings actually took place and (b.) your beloved UCT was the subject of discussion? You'll have to do better than that.

As usual, Chip, your theories and prognostications can't withstand serious scrutiny.
 
Cosmo said:
Gee, Chip, you've ignored my earlier posts that pointed out that United and Mesa issued press releases last week that directly contradicted your theories about the future of United's IAD hub. I guess it's really inconvenient when the facts get in the way of your preconceived notions.
Yes, that is part of Chip's strategy. Last week I asked him to square the simultaneous expansion of both UA and U into the Caribbean/Latin American markets with his concept of a closer relationship between the two airlines which seems to be contradictory (title of thread: A Serious Question for Chip), and of course never got an answer.

I would normally just chalk it up to being too busy to respond to all posts, but I see he has had plenty of time in the interim to keep on propounding anti-UA and pro-UTC/ITC theories so I am thinking it is more than just a coincidence that he usually "forgets" or "doesn't have time" to respond to ideas contrary to his.
 

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