usair_begins_with_u
Veteran
- May 9, 2004
- 623
- 0
Yet they [SWA] still have the lowest load factor
And they still make a profit??
Interesting... they must have a pretty solid business plan to pull that off? Imagine that.. making money at lower LF%. Sounds like they pick their routes strategically.
The new U is going to make a living running away from SWA just like it has in the past.
These airline guys don't get it.. You have to pick your core market.. you cant compete for the long run in no-mans-land. That's why "old" Uair failed. Is the new US going to be low cost, or high service?
If the answer is low cost, then you better believe SWA is your competition, and they are sitting on a pile of cash, and they don't have a heavy debt burden to weigh down their free cash flows. Ahh the hidden costs of capital structure.. Besides fuel, I expect the burden of the new U's interest payments to be a big big challenge in their quest to break even... gotta love those debt tax shields though!!