It's lonely at the top?

[signals]

http://www.nbcnews.com/travel/us-airways-american-deal-may-lead-more-competition-2D11585029

 

[nycbusdriver]

http://www.nbcnews.com/travel/us-airways-american-deal-may-lead-more-competition-2D11585029

 
Best and wisest quote from the article:
 
"We are leaving an era where investors are subsidizing consumer airfares. The airlines have been losing money for too long. They need to quit apologizing for the fact that they need to make money. In order to serve their customers, they have to make money."  ---Jay Sorensen, the president of IdeaWorks, an airline research firm
 
Sobering thought:
 
"Even with the divestitures of slots, US Air will be larger at Reagan than it was before the merger," Horton told CNBC.

 

[WorldTraveler]

but low fare carriers, which have had minimal access to DCA, will have a much higher percentage of the airports slots - and they come right out of AA/US assets.

Remember all of those people who touted how high of a margin city DCA was for US? There is a reason why - a couple actually. US had the majority of slots and very carefully controlled the capacity by the use of small RJs. That will be changing dramatically and anyone who can't see the impact on AA/US' finances of moving a 250 flt/day operation from a very protected operation that is heavily dependent on RJs to one that will now have to compete aggressively with low fare carriers is simply unaware of the economics of the airline industry.

 

[robbedagain]

But in other threads u wt said dl would get those slots so the lcc carriers wld not gt them u said dl would win no matter what now here u say the lcc carrier will get more slots in part thanks to the slot divestures

 

[nevergiveup]

but low fare carriers, which have had minimal access to DCA, will have a much higher percentage of the airports slots - and they come right out of AA/US assets.

Remember all of those people who touted how high of a margin city DCA was for US? There is a reason why - a couple actually. US had the majority of slots and very carefully controlled the capacity by the use of small RJs. That will be changing dramatically and anyone who can't see the impact on AA/US' finances of moving a 250 flt/day operation from a very protected operation that is heavily dependent on RJs to one that will now have to compete aggressively with low fare carriers is simply unaware of the economics of the airline industry.

What defines a low cost carrier? 

 

[WorldTraveler]

good question... since DL's costs are just 1% higher than WN's, it's a pretty close call.

And it also doesn't change that ANY competitor that AA/US doesn't have today is a new competitor. Given that UA is the only competitor to AA/US that has higher costs, ANY new competitor is a low cost competitor.

 

[nevergiveup]

good question... since DL's costs are just 1% higher than WN's, it's a pretty close call.

And it also doesn't change that ANY competitor that AA/US doesn't have today is a new competitor. Given that UA is the only competitor to AA/US that has higher costs, ANY new competitor is a low cost competitor.

Is low cost the operational cost or the price of the tickets they sell? One can have high ops cost and sell cheap tickets., vice versa as well. It is nothing more than having the TSA. Saying someone is low cost simply makes the public feel good.  

 

[im back..!!]

Hey world traveler, how does it feel to not be the biggest anymore?

Does it make you want to go buy a bigger watch? You know what number 2 means dont ya?.... First of the losers....

Go toot your horn on the United board, they are your competitor now..

 

[WorldTraveler]

except that AA and US are still 2 airlines and will be until Jan 7 at the earliest.

And DL wasn't the largest since UA and CO merged and yet DL has managed to hand out more pay raises in bigger amounts to its employees, expand its own network internally, run a more reliable network and post bigger profits than its larger peers.

It also doesn't change that AA/US is paying a very steep price for being able to be called #1 - and those concessions to claim that title will cost way more than you and others want to acknowledge.

Let me know how well #1 is after WN by the summer of 2015 after those DCA slots have been in the hands of competitors for a year or more and WN has had a chance to build out DAL.

Somehow the "good ole days of 2013" as separate airline might look pretty good.

 

[700UW]

You need some of this, every thread isnt about DL on this board.
 

 

[nevergiveup]

except that AA and US are still 2 airlines and will be until Jan 7 at the earliest.

And DL wasn't the largest since UA and CO merged and yet DL has managed to hand out more pay raises in bigger amounts to its employees, expand its own network internally, run a more reliable network and post bigger profits than its larger peers.

It also doesn't change that AA/US is paying a very steep price for being able to be called #1 - and those concessions to claim that title will cost way more than you and others want to acknowledge.

Let me know how well #1 is after WN by the summer of 2015 after those DCA slots have been in the hands of competitors for a year or more and WN has had a chance to build out DAL.

Somehow the "good ole days of 2013" as separate airline might look pretty good.

Everyone loved Delta through the 80s until Eastern went under and the city was raped without any competition. You might think that DL is God's gift to mankind, but you're wrong. They too once filed for bankruptcy!

 

[700UW]

Uh oh,
 
Now  you dont it, we are going to get a 100,000 word WT Manifesto about Delta is God and everyone is the devil!
 
http://deltaisevil.blogspot.com/

 

[WorldTraveler]

and if DL is just another ordinary airline, then you have nothing to worry about.

Given that DL is winding up two of the most significant competitive challenges in its history - the NYC expansion and the defense of ATL - they have plenty of cash to grow into key industry markets - which is exactly what they are doing.

If the customers hate DL, then it hasn't stopped them from paying DL $1.12 for every $1 in domestic revenue that other airlines earn.

 

[700UW]

http://finance.yahoo.com/news/fitch-amr-us-air-antitrust-165000658.html
 

As part of the settlement, the combined companies will divest 52 slot pairs at Washington Reagan airport (DCA), where US Airways currently has an estimated 55% market share. Slot pairs refer to the right to take off or land at a given time, and are separate from gates. Despite the divestiture, the merged airline is expected to hold a greater market share at that airport than US Airways had on a stand-alone basis, maintaining a competitive advantage in the D.C. market. The company has agreed to use all of its DCA commuter slot pairs to service small and medium sized communities, but the agreement appears flexible in defining the communities to be served, allowing the company to focus on its more lucrative routes.
 

 

[nycbusdriver]

and if DL is just another ordinary airline, then you have nothing to worry about.

Given that DL is winding up two of the most significant competitive challenges in its history - the NYC expansion and the defense of ATL - they have plenty of cash to grow into key industry markets - which is exactly what they are doing.

If the customers hate DL, then it hasn't stopped them from paying DL $1.12 for every $1 in domestic revenue that other airlines earn.

 
Echoes of Pan Am hubris.