Scott Kirby's CLT Crew News Update - July 29

[john john]

How's WN doing in PHL?

I think LCC would be rather happy to have WN + Delta + Continenal + American + Jetblue fight it out. Why fight it out when you can jack up prices in Philadelphia, DCA, and Charlotte?


Speaking of DCA. Will DCA ever get hub status?

Are you that new to USAirways dealings and not aware of the mass amount of marker shares USAirwasy has give to WN

 

[nycbusdriver]

I flew the 727 LGA-BDA and it was always full. Can't imagine why we ever gave that up.

We ran little Airbuses LGA-BDA and they always ran full, too. The BDA got hit with aq hurricane and while they recovered their infrastructure, they were unable to accommodate plane loads of tourists. So they shut the route down "temporarily." That was about 4 or 5 years ago.

Bermuda recovered just fine. Wish I could say the same for USAirways.

 

[ClueByFour]

I doubt the runway at DCA is long enough for a fully loaded 757.....

TWA got a 757 out of there to LAX for a few years.

US won't see any relief at DCA that's not offered to others. And if that's the case, there is a very compelling argument to be made that 3x/day to PHX is plenty. 1x/day LAS is more than enough, given that it comes and goes from time to time.

If slots become available (think F9 if LUV eats them), UA should get a slot or two to SFO and DL should get another roundtrip to LAX (both of which offer equal to or better connectivity out west--and SFO would be a goldmine both from an O&D and Asia connectivity perspective).

On LGA, I still can't believe US can't make that work, even being constrained by the perimeter and RJ costs. Being the highest cost LCC just ain't gonna fly...

 

[usa1]

Here it is, it was in 2005 while in BK. Does Republic still control these slots?

Prior to the effective date of US Airways' plan of
reorganization, but no later than December 31, 2005, US
Airways may exercise its option to obtain approximately $110
million through the sale and financing of certain assets
including ten EMB-170 aircraft currently owned by US Airways
and three EMB-170 aircraft currently committed for delivery to
US Airways, other EMB-170 related assets and a sale/leaseback
financing of 113 commuter slots at Washington Reagan National
Airport and 24 commuter slots at New York LaGuardia Airport.

 

[usa1]

Republic Buys Planes, Slots From US Airways.(Republic Airways Holdings, US Airways Express)
July 11, 2005

US Airways has decided to accept Republic Airways' offer to buy its fleet of Embraer 170s.

Last March, Republic offered US Airways a deal worth $235 million. It would invest $125 million to help recapitalize the bankrupt carrier and pay $110 million for the 28 existing Embraer planes and future purchase options, as well as the slot rights at New York LaGuardia Airport and Ronald Reagan Washington National Airport . As US Airways filed its plan to exit bankruptcy, it became clear that Republic will not be one of the investors ...

 

[AirbusAVE]

Are you that new to USAirways dealings and not aware of the mass amount of marker shares USAirwasy has give to WN

Baltimore is the only market I can think of that US Airways "gave" Southwest...



Washington DC, Philadelphia, and Charlotte are good enough for airways, anyways.


- Charlotte - I highly doubt anyone could even dent US Airways in Charlotte. And the only other Hub competitor to Charlotte is Atlanta.

- Washington DC - Slot controlled airport. Large O&D.

- Philadelphia - US Airways is strong and competes very well in the market. Large O&D.



Pittsburgh - Loses money, redudant, too close to many other hubs (cinnci, Cleveland, Newark, JFK, Boston, etc. etc.)
Dayton - same as pittsburgh
Baltimore - same as Pittsburgh
LGA - too much competition and why bother with every airline and their brother trying to dominate NYC.
Las Vegas - Elastic market.




US Airways should concentrate on it's strengths. And build off those strengths. Which is Charlotte, Washington DC, and Philadelphia.

 

[necigrad]

How is location a disadvantage for PIT, DAY, and BWI due to their "close proximity" to EWR, JFK, and BOS, yet PHL is fine? I'm not saying that the volume US has is PHL is irrelevant,. just that it's plain stupid to claim close proximity as a problem when our second busiest hub is just as close (closer actually). LGA has tremendous potential, the trick is to make it work. Don't dismiss any of the NYC airports; with a population of over 8 million (and that's just the City proper, not the Metro area or Newark) there's an insanely HUGE passenger potential. Throw in SWF and you get the entire Hudson Valley. You forgot PHX, AKA The Mothership, and Vegas is only "elastic" (great term BTW) when the economy tanks. Being in Vegas I can tell you that for the 11 years I've been there, it's been B U S Y the entire time until the economy took it's dump.

 

[Be Careful What You Wish For.]

Baltimore is the only market I can think of that US Airways "gave" Southwest...

I can think of the ENTIRE west coast!

But apparently we didn't need it because we had PIT.

Turns out we didn't need PIT after all either.

Now LGA is expendable - who would have thought?

CLT IS vulnerable.

It wouldn't surprise me if PHL becomes disposable if UAL ever gains control.

 

[AirbusAVE]

How is location a disadvantage for PIT, DAY, and BWI due to their "close proximity" to EWR, JFK, and BOS, yet PHL is fine? I'm not saying that the volume US has is PHL is irrelevant,. just that it's plain stupid to claim close proximity as a problem when our second busiest hub is just as close (closer actually). LGA has tremendous potential, the trick is to make it work. Don't dismiss any of the NYC airports; with a population of over 8 million (and that's just the City proper, not the Metro area or Newark) there's an insanely HUGE passenger potential. Throw in SWF and you get the entire Hudson Valley. You forgot PHX, AKA The Mothership, and Vegas is only "elastic" (great term BTW) when the economy tanks. Being in Vegas I can tell you that for the 11 years I've been there, it's been B U S Y the entire time until the economy took it's dump.

Pittsburgh and Dayton didn´t have the O&D. They relied on connecting Traffic, whereas Philadelphia has a large population base.

NYC - US Airways can't compete against it's competitors in NYC. Plain and simple.

Las Vegas - I think any legacy would be crazy to want to keep a focus city in an Low-Fare-Carrier prone airport.

And the reason for which I didn't comment on Phoenix is because I don't know enough about Phoenix to feel justified in having an opinion regarding US's operations in Phoenix.

 

[AirbusAVE]

I can think of the ENTIRE west coast!

But apparently we didn't need it because we had PIT.

Turns out we didn't need PIT after all either.

Now LGA is expendable - who would have thought?

CLT IS vulnerable.

It wouldn't surprise me if PHL becomes disposable if UAL ever gains control.

Yes, I am aware of how US Airways abandoned PSA's western operations. I just wasn't aware that Southwest specifically was the airline that got control of US's PSA operations. I at least thought American and United also gobbled up US/PSA operations.


Pittsburgh and Charlotte are different. Very different. US Airways just pulled down Pittsburgh. It's not like any other airline forced US Airways out of Pittsburgh. US Airways didn't need Pittsburgh. Pittsburgh is expensive to operate out of, pittsburgh was redundant, pittsburgh added nothing of value. Charlotte, on the other hand, is cheap to operate out of, not redundant, and is important in the US Airways network.


And if United does get in control. I highly doubt Philadelphia would get the axe. Philadelphia makes money. Philadelphia is large enough to demand flights based on it's own O&D. Unlike Pittsburgh.

 

[Dog Wonder]

If you can make it there, you can make it anywhere.

It's up to you.

Of course, if you can't make it there.

 

[Be Careful What You Wish For.]

1. Charlotte, on the other hand, is cheap to operate out of, not redundant, and is important in the US Airways network.


2. And if United does get in control. I highly doubt Philadelphia would get the axe. Philadelphia makes money. Philadelphia is large enough to demand flights based on it's own O&D. Unlike Pittsburgh.

Two points:

1. CLT doesn't have the O&D, just like PIT. If WN ever decides to enter they may have a profound affect, just like BWI.

2.PHL's proximity to IAD presents a potential problem. Which one gets the axe - or do any get the axe?

 

[hp_fa]

Here is a far out hypothetical. US Airways tells DL or anyone else to play very nice with us or we will deal much of LGA away to SWA.....

 

[Be Careful What You Wish For.]

Here is a far out hypothetical. US Airways tells DL or anyone else to play very nice with us or we will deal much of LGA away to SWA.....

What are you suggesting?

 

[Dog Wonder]

Here is a far out hypothetical. US Airways tells DL or anyone else to play very nice with us or we will deal much of LGA away to SWA.....

What would Southwest give in return?