Luv Into Phl

Chip,

Don't forget about UAL selling it's IAD and MIA operations to U. That will help drive costs down a whole heck of a lot!!!!!
 
AA191 said:
Chip, when will WN's entry into Pittsburgh effect US buyout of UA?

:> :> :>
Current projections , excluding one time charge offs and un-forecasted weather events lends reason to believe in Mid-May at the latest. (LOL) :D

There is also reason to believe that Captain Munn will resign from USAirways...and persue his real goal in life..that being taking a position with Carnival Cruise lines and captaining the M.S. Fantasy throughout the western carribean.

News at 11:00.... :D
 
Chip:

If you think Dave Siegel has the intellectual capabilty of competing with WN in PHL or anywhere else you are seriously delusional. He has shown 0 operational expertise since coming here and he has no clue how to motivate and lead a work force. His last weekly message said that the "large" airlines can absorb losses because they are larger. This is the same guy that "downsized" our airline from 430 jets to 279. He speaks out of both sides of his mouth when the excuses are needed apparently hoping we (the employees) don't pay attention to what he has done or neglected to do. His plan is flawed. Seriously flawed. Only DAL has the guts to go head to head with the LCC problem and Song is (according to Mullen) on course and beating them at their own game. And that is without the pilot concessions that are coming.

Unless Siegel goes and someone who knows how to run an airline comes we are in serious crap. This workforce has been beaten down and is consistently reminded (nearly daily) of how bad our company is and how our costs are too high. Yet he has done little to improve the true problem, revenue. Now he wants to hook up with the LCC's. The old "if you can't beat 'em, join 'em concept. He stated yesterday the "the market forces will determine who will be successful". Uh, excuse me Dave, hasn't that already been proven? Sam Walton and Herb Kelleher created their own "market forces". Dave is willing to allow market forces determine our fate. He is inept and clueless that he has the power to move "market forces". He doesn't get it. He is a numbers guy.

This workforce would go to great lengths to defeat WN and the rest. But not with this guy wearing the Captain's hat. Anything he says now is percieved as a lie or BS. That is Siegel's fault, no ours. Your scenarios and opinions are interesting but speculative. Your "inside information" has yet to come to fruition. The only thing we see or hear from our leader is how bad things are. Well, the boss is responsible for changing things. He hasn't. Mostly because he doesn't know how. We are a rudderless ship betting the future on cramped, small airplanes hoping the business traveler soons comes to his senses and begins to be stupid again paying enormous fares for an inferior product. The other major airlines used the small jets to enhance their route structures and add to them. We are using the small jets to replace large jets without enhancing our route structure. That is why so many jets are parked in the desert. We got problems. But WN is not the big problem. Dave Siegel is.

mr
 
This is not BWI and USAirways cost structure is lower now then it was in the BWI fight and it took almost 9 years for LUV to fullty take over it is different now I think LUV is making a mistake because LUV in my oppinion cannot compete with the RJ flying isn't Dave paying slave wages for the express stuff LUV is in for a surprise if Dave and his crew wake up........
 
Doc said:
This is not BWI and USAirways cost structure is lower now then it was in the BWI fight and it took almost 9 years for LUV to fullty take over it is different now I think LUV is making a mistake because LUV in my oppinion cannot compete with the RJ flying isn't Dave paying slave wages for the express stuff LUV is in for a surprise if Dave and his crew wake up........
Hey Doc-

".'s" Look into them!

Thanks
 
Bravo mrplanes!

Well put and why I have been and still am calling for Dave's resignation on these boards. Dave’s an immature arrogant kid with a swelled up chest. I have been getting PMed from him or Jerry G. because I point this out. Unless this sorry team leaves ASAP for the very reasons you pointed out, we are in more trouble than we already are.
 
Chip Munn said:
Southwest will have its own challenges with this expansion. The company will canobalize its BWI focus city and the airline will see operational delays, regardless of what the company says about locating their operation on Councouse E.

How will Southwest handle the de-icing problem and the new pad?

P.S. By the way, with Southwest no longer a threat to enter Pittsburgh in the near-term, I believe Allegheny County will have less leverage in its negotiations with US Airways and the opportunity for the airline to cut its Pittsburgh costs and keep the hub in operation just increased.
Any traffic that LUV steals from itself at BWI will be more than offset by that which it generates at PHL. There are documented examples of the infamous "Southwest Effect" and all of a sudden there will be lots of extra people who can afford to fly from PHL.

Secondly, people cried the same wolf about winter weather when LUV went to Manchester and PVD, and they did just fine. The operational problems might be somewhat of a bear, but let's be realistic--LUV can afford to take a loss at PHL while it bleeds US dry. All of Dave's hypothetical revenue gains, audited by Fitch or not, did not assume that LUV would be in PHL, depressing yields in the hub that allegedly generates %25 of US' revenue.

To address the PIT issue--I disagree that this had any impact in US' favor in the PIT debacle; in fact, it's realistic to think that they will need PIT now more than ever--the fares in PHL are going to drop like a stone, and PIT (as well as CLT) are the only places where US can really exercise any sort of pricing power anymore. What if the county flips US the bird? Are they going to hub all traffic thru PHL with the O&D yields in the tank?

This also poses a huge problem for the infamous UCT as well--Dulles is now bracketed by LUV. Were I Herb, I'd start MDT the minute US/UA tried anything at IAD--there goes all the domestic feed for any longhaul/transatlantic flying. The LCCs have ORD taken care of, SFO surrounded, and LAX is surrounded by the LCC moat. COS could eliminate Denver. In fact, PIT might be the furthest major metro left from LCC pressure, as LUV's CLE footprint is still pretty small due to the airport relationship there.
 
ATC taxi clearances are provided on a first come first serve basis. How is Southwest going to handle the same delays as US Airways? When a thunderstorm rolls through and a ground stop is issued, how much money will a Southwest B737 make on its Philadelphia and subsequent flights throughout the day with its aircraft sitting on the Philadelphia ramp?

How will Southwest handle the de-icing problem and the new pad?

Chip, hate to tell you but with 14 billion in capital time is very much on Southwest side....
 
Chip Munn said:
ATC taxi clearances are provided on a first come first serve basis. How is Southwest going to handle the same delays as US Airways? When a thunderstorm rolls through and a ground stop is issued, how much money will a Southwest B737 make on its Philadelphia and subsequent flights throughout the day with its aircraft sitting on the Philadelphia ramp?
SW may solve the PHL ATC problems by dedicating a fleet of B737's just for that city.
With only 4 gates / 40 flights per day in PHL, SW could afford to dedicate aircraft just for that.

I know, this would add complexity and cost to the SW operations, but it is one way to get around the PHL ATC problems.
 
FrugalFlyerv2.0 said:
Chip Munn said:
ATC taxi clearances are provided on a first come first serve basis. How is Southwest going to handle the same delays as US Airways? When a thunderstorm rolls through and a ground stop is issued, how much money will a Southwest B737 make on its Philadelphia and subsequent flights throughout the day with its aircraft sitting on the Philadelphia ramp?
SW may solve the PHL ATC problems by dedicating a fleet of B737's just for that city.
With only 4 gates / 40 flights per day in PHL, SW could afford to dedicate aircraft just for that.

I know, this would add complexity and cost to the SW operations, but it is one way to get around the PHL ATC problems.
And with 4 gates, they'd most likely never have more than 4 planes on the ground at any given time, none of them at the gate more than 25 minutes. The hub carriers have half their fleet sitting at gates for over an hour - all waiting to leave at about the same time.
 
737nCH11, AA191, & AOG-N-IT:

I find your sarcastic comments hiding from behind a PC interesting and quit telling about your personality.

Regardless, the Southwest entry into Philadelphia will have an effect, but the bigger issue is the enormous LCC domestic expansion.

LCC’s can reduce ticket prices because their costs are lower, across-the-board, thus depressing netowrk airline yields.

It's as simple as that and Econ 101.

Historically, network airlines have had a revenue advantage and that permitted companies to be profitable, but that has changed.

As Siegel told the Washington Aero Club yesterday, “The cause of the major carrier demise? Take your pick: new consumer access to competitive fare information via the internet, business traveler refusal or inability to pay business fares, overall economic downturn, lingering fear of terrorism, so-called ‘commoditization’ of air travel, stubborn fixed costs and uncontrollable cost increases and – my personal favorite, ‘myopic airline management’."

However, with their cost advantage, I agree with Siegel when he said “most of the cause, however, is the evolution of the low-cost airlines – from pesky upstarts a decade ago to worldbeating dragon-slayers that some say are destined to relegate the nation's airline networks to the dustbin of aviation history.â€

Chest thumping, bitching, and sarcastic comments will not change the fact that every network airline has a higher CASM than their LCC counterparts. Thus, to survive network airlines will have heed the wisdom of Charles Darwin. As Siegel noted yesterday in his speech, Darwin, who wrote in The Origin of Species said, “It is not the strongest of the species that survive, nor the most intelligent, but the ones who are most responsive to change.â€

I do not like the reality of the situation any more than anybody else, but the CASM statistics speak for them self.

Regards,

Chip
 
Chip,

No need to get defensive. I'm only agreeing with you. You stated that U was going to take over UAL's operations at IAD or MIA as a result of the UCT/ICT. That would drive U's costs down. Problem solved.

If U could get UAL's Pacific operations that would help even more. Maybe get some A-380s for those routes. The sky's the limit!!!!!!!!
 
Chip Munn Posted on Oct 29 2003, 05:34 PM
I find your sarcastic comments hiding from behind a PC interesting and quit telling about your personality.

Wow.....you are a piece of work. :lol:


<grabs the popcorn> This is gonna be good.
 
Chip,

I find your posts very telling about your personality and your geographic state as well , I believe it's called denial.

Sure , 14 flights may not seem like a lot at first..but the South West effect does charm a lot of people away from legacy carriers...something U can ill afford anywhere at anytime , least of all a hub of the magnatude such as PHL.

Sorry if my humor offends you...but I find your postings on this subject insulting to our intelligence as well.

Dave has already greased the skids to approach us again for more cuts in wages..and likely more people , the latest WN incursion into PHL only magnifies his need for more cost cutting.

His needs and ours differ greatly obviously....I would love to see us attack the problem by expanding to new markets and mamximizing the utilization of our fleet..yet our fleet is dropping by the day over his foot dragging on allowing us to overhaul our planes in a timely fashion.

Had Dave not waged his silly game on verbage of the IAM's contract...and done the only honorable thing , We would be over half-way on having two Acft ready to return to service...and a third ready for induction. As it stands now..we are 3 in the bucket with more coming..yet the lease payments roll in like the tide.

Instead of defending Dave..and denying the truth that WN is going to take some of our revenue out of PHL....why not devise and advise on some plans to counter this problem.

Taking from us in a manner to subsidize a poor game plan is not the answer anymore....he needs to take a few pages out of WN's playbook before he approaches us ever again.
 

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