FA4UA
Member
PHX Flyer said:In order to compete successfully with American, they must grow to a similar size so that fixed cost can be spread over a larger operation.
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That's the question of the ages: Is UA trying to be as big as AA or are we trying to become a money making airline? Some said over the past couple of years UA is trying to become a boutique carrier to fly business travellers around the country and globe. Then as time ticked by we went back to the sentiment that we need a product for every market and every class of traveller.
At the end of the day, business travellers want one carrier to carry them everywhere they need to go so they can get the recognition and perks. Does this mean having 700 frames? Only time will tell!
Concerning the new US/HP combo... US will remain Star during integration and I think even beyond. We still have a lot to gain from them then loose post-merger.
If UA lost US from STAR it wouldn't be the end of the world since we do only gain $150 million a year from our arrangement (compared to monthly revenues at UA of nearly $2 billion). A codeshare from CO's network might be a better arrangement in the end anyways.
FA4UA
PS: disclosure- In no way do I think we should disregard US' contribution of $150 million a year, I'm just saying we should evaluate all possible marketing arrangements from all possible suitors that could better compliment out network and offer UA more revenue. $150 million is nothing to just ignore especially given our recent financial performance! Wonder what CO could offer UA?