WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,662
- Banned
- #46
Whether you want to say that it was F9 mgmt or F9 pilots who decided they didn't want to be acquired by WN doesn't really matter. The fact that F9 decided they didn't really want to be acquired by WN, created hurdles large enough that WN said it wasn't interested in pursuing the deal, and instead of having a potentially nasty labor situation on their hands after the deal was announced, WN walked away and instead pursued the FL deal which gives them more of what they needed anyway - a presence on the east coast. It may well have been also that FL mgmt started talking seriously with WN as the F9 deal was being worked and told WN they could do a deal - there had been discussions for years w/o a deal - and WN decided this was going to work and it was no longer worth pursuing F9 given the likelihood of a deal with FL which could yield far more benefits.
.
No, I'm not wrong... F9 - regardless of whether it was mgmt or labor - didn't do a deal with WN on terms that WN could accept so WN will now be F9's archrival and probably will not stop until F9 is taken out.
.
Lest anyone think that WN management isn't as bloodthirsty and as desirous of eliminating nasty competitive fights as I make them out to be, it should not be lost on anyone that WN had significant network overlap with both F9 and FL. FL mgmt was smart enough to realize that everywhere they tried to add capacity and grow outside of ATL, WN was standing there and fighting to limit FL's growth.
FL mgmt was smart enough to know the best option for their company and their employees was to sell out before WN moved in for the kill - which is exactly what they are going to do with F9. FL also has enough assets outside of WN overlap markets that WN sees much more value in what it gain from FL than the duplicate capacity which they will eliminate.
.
US could go after F9 but why would they want to get in the middle of a nasty 3 way battle in DEN as well as in the midwest including MKE where WN is hell bent on eliminating them?
.
At the end of the day, there will be less capacity in MKE and DEN and BWI than there are today and WN will have achieved that by eliminating competitors - whether it be by acquisition/merger with FL or an all out competitive knockout with F9.
In that regard, WN's competitive strategies are no different from some network carriers who have vigorously protected their markets during competitive attacks by other carriers only to reduce capacity and raise fares after the fact. The only reason WN hasn't done that near as much before is because they have largely operated from airports where they were was little competition before and where they were able to grow the markets to grow what they wanted.
Now, they have to compete with other carriers to grow their share of the market; sometimes they win through all out competition and sometimes they win by acquiring their competitors.... either way, nothing that network carriers before them haven't done before.
.
No, I'm not wrong... F9 - regardless of whether it was mgmt or labor - didn't do a deal with WN on terms that WN could accept so WN will now be F9's archrival and probably will not stop until F9 is taken out.
.
Lest anyone think that WN management isn't as bloodthirsty and as desirous of eliminating nasty competitive fights as I make them out to be, it should not be lost on anyone that WN had significant network overlap with both F9 and FL. FL mgmt was smart enough to realize that everywhere they tried to add capacity and grow outside of ATL, WN was standing there and fighting to limit FL's growth.
FL mgmt was smart enough to know the best option for their company and their employees was to sell out before WN moved in for the kill - which is exactly what they are going to do with F9. FL also has enough assets outside of WN overlap markets that WN sees much more value in what it gain from FL than the duplicate capacity which they will eliminate.
.
US could go after F9 but why would they want to get in the middle of a nasty 3 way battle in DEN as well as in the midwest including MKE where WN is hell bent on eliminating them?
.
At the end of the day, there will be less capacity in MKE and DEN and BWI than there are today and WN will have achieved that by eliminating competitors - whether it be by acquisition/merger with FL or an all out competitive knockout with F9.
In that regard, WN's competitive strategies are no different from some network carriers who have vigorously protected their markets during competitive attacks by other carriers only to reduce capacity and raise fares after the fact. The only reason WN hasn't done that near as much before is because they have largely operated from airports where they were was little competition before and where they were able to grow the markets to grow what they wanted.
Now, they have to compete with other carriers to grow their share of the market; sometimes they win through all out competition and sometimes they win by acquiring their competitors.... either way, nothing that network carriers before them haven't done before.
h34r:
