Slot Transaction, E-190 Sale, Crew Base Closures, & Realignment Designed to Shop the Company for Sal

[FlyUs]

Interesting and a VERY GOOD point. I said earlier that all of this pruning points to a merger. But now I'm leaning more towards the possibility that, just maybe, they're starting to focus on running a financially viable operation. The SWOT analysis around here has sucked for a long time. In that scenario, the fundamentals of business tell you to assess what makes you money, look for opportunities, but get back to the basics of your operation. I think that's exactly what they're doing.

"but get back to your basics" is another way of saying "run from the competition."

 

[FlyUs]

Actually, yes.

Can you back that up?? I'd love to see the numbers. The number of places US has packed up and run from is mind boggling. It's only a matter of time before WN enters the CLT market and.. you know what happens next.. LOL

 

[USA320Pilot]

FlyUS,

FLYUS said: "It's only a matter of time before WN enters the CLT market and.. you know what happens next.. LOL "

USA320Pilot comments: Southwest is pulling down capacity in PHX and PHL and US Airways intends to increase capacity in both of those markets.

Regards,

USA320Pilot

 

[FWAAA]

USA320Pilot comments: Southwest is pulling down capacity in PHX and PHL and US Airways intends to increase capacity in both of those markets.

Given the profitability history of WN compared to HP (and now US), adding capacity to markets where WN is pulling down capacity doesn't look very smart to me.

 

[zethya]

I think a point to be made with these statements is that Parker surely is well aware he cannot say anything to employees or others regarding intensions/plans for mergers or liquidation which could in any way affect the stock price, prior to filing that information with the SEC. If he did so, he could face stiff fines or worse. One observation from his recent activities/statements that is interesting is his open sponsorship of CLT - with virtually no mention of PHL, or PHX for that matter. If he is indeed setting up the company to sell or merge, it would appear that CLT may be a key element in the plan to either retain or sell. Especially interesting (to me) is there has been no announced international expansion at PHL for 2010 to replace the 4 deletions, even though there may be up to 10 330-200s available by year's end. I mean deleting 4 unprofitable European routes is fine, but a "no growth" european/asia plan for 2010 appears suspicious to me (for PHL). Parker/Kirby have stated several times, there is no plan to start PHX-Europe (FRA) until the 350s arrive - although that could be rethought if some of the 332s were ordered with the new higher take-off weight option (500nm extended range).

 

[goodgirl37]

"You know how you can tell when Doogie is lying?? His lips are moving." Did you just make that up? Hysterical <_< .

As far as doing what is expedient for ...BOD ala share holders, that is his job. Actually he is doing a good job. We are number 1 for on time, number 2 for mishandled baggage (unheard of before), number 1 for financial performance among legacy carriers, etc...
Most of us have goals. Since I was a child mine was to be an airline pilot, you may have one too. Doug wants to be CEO of a global airline and he will be. That is good for us since we will ride on his coat tails. I also believe that as painful as it is for some, the new business plan makes sense and will work. It isn't much different than what the other legacy carriers are doing, retrenching to their core markets. Even WN is pulling down flying and reallocating assets to more profitable markets. jetBlue is not taking delivery of new aircraft so guess where their new BOS flying will be coming from?
Most of us have been through base closings, we adjust and move on. Basically the Allegheny/Mohawk/Lake Central USAir is finally and thankfully gone, what is left is Piedmont, America West and post PI/PS/AL merger US Airways. We are literally scraping the rust off of this company and moving forward. You can come along for the ride or move on to other opportunities. I am optimistic.

Back to lurking...

You must be joking, Right???

 

[Dog Wonder]

Still nothing here.

 

[ClueByFour]

FlyUS,

FLYUS said: "It's only a matter of time before WN enters the CLT market and.. you know what happens next.. LOL "

USA320Pilot comments: Southwest is pulling down capacity in PHX and PHL and US Airways intends to increase capacity in both of those markets.

Regards,

USA320Pilot

US is pulling down capacity at BOS and LGA, and Southwest intends to increase capacity in both of those markets. See how easy this is?

LUV does not need to run 60/day at CLT to ruin US' day. 24 would do it. 4x/day to each of MDW/BWI/HOU/BOS/LGA/PHX. Domestic yields to captive "business" markets implode.

 

[FWAAA]

US is pulling down capacity at BOS and LGA, and Southwest intends to increase capacity in both of those markets. See how easy this is?

I'm willing to bet money that WN will see better yields in its expansion at BOS and LGA than US will at PHX and PHL.

 

[shaka]

This whole reduction smells of a MERGER.

Question is which airline would want the new operation??

 

[back2CLT]

I'm willing to bet money that WN will see better yields in its expansion at BOS and LGA than US will at PHX and PHL.

Uh huh....an airline whose concept is based around low operating costs, and high utilization of its fleet enters into two the of the highest cost airports in the country with the most horrific delays. These moves go against everything that made Southwest successful.

SW is trying to figure out how to please shareholders, and growth in major markets is what they think will win them favors. Current economics dictate that growing total operations isn't financially sound, so they are trying to grow geographically, and position themselves to grow frequencies when the economy turns. I call this a loss leader strategy, as they will take a beating in BOS and LGA from a yeild perspective.

I'm much prefer consolidating to gain market share in already profitable markets, rather than stretch thinner into tough markets. Some people LUV Southwest though, so of course they take the position if SW is doing it, it must be smart.

 

[FlyUs]

FlyUS,

FLYUS said: "It's only a matter of time before WN enters the CLT market and.. you know what happens next.. LOL "

USA320Pilot comments: Southwest is pulling down capacity in PHX and PHL and US Airways intends to increase capacity in both of those markets.

Regards,

USA320Pilot

right.. I'm sure WN is shaking in its boots.. lol. I bet there isn't one route that both airlines compete on where US has the most market share. I can't wait for WN to start BOS-PHL! They'll clean their clocks! lol.

 

[FWAAA]

I'm much prefer consolidating to gain market share in already profitable markets, rather than stretch thinner into tough markets. Some people LUV Southwest though, so of course they take the position if SW is doing it, it must be smart.

You may be right - I don't know. But as to your last sentence above, I'll gladly bet on WN anytime over Doug Parker. Yes, IMO, if Southwest is doing it, it probably is the smart move (financially). And if US is doing it, it might be smart or it may simply be the desperate decision of a drunkard hoping that he chose the right path. Based on past results, it's hard to predict. On whom would you actually gamble real money? WN may stumble occasionally, but it generally chooses the profitable decision. I've been a LUV shareholder for a long time and while the stock has gone up and it has gone down, never has WN canceled my stock in Ch 11 (something with which lots of holders of US and HP stock have experience).

 

[Dog Wonder]

When LUV made out hedging fuel LCC thought it was a great idea.

Back on the five-headed topic beaten to death in countless threads.

Who would buy this herd of cats?

 

[SpinDoc]

When LUV made out hedging fuel LCC thought it was a great idea.

Back on the five-headed topic beaten to death in countless threads.

Who would buy this herd of cats?

This herd of cats IMHO is headed for a merger by the end of March 2010, but it isn't yet clear who the partner will be. There are 2 potential transactions that would make sense for US and the partner:

1. US/UA - The most logical fit based on routes, unions, aircraft types, and customer policies.

2. US East/AA with a spin off of the US West operations/assets/personnel to RP - Gives AA huge growth potential on the East coast, and gives RP/YX/F9 new markets west of the Mississippi.... AND...... drum roll..... rids BOTH surviving entities of the toxic pilot contracts that have kept the HP/US merger from being fully consummated.

We will see. I am probably way off base by limiting my predictions to only 2 possible corporate transactions, but heck, I don't have to put any money down to speculate on this internet message board, so I may as well give my opinion.