The Sky Is Falling For Major Airlines

[USA320Pilot]

Complete Story

Regards,

USA320Pilot

 

[DR.EVIL]

The sky cant fall fast enough, we are all ready to move on. If you are not, it is time to get off your knees and act like a man, the world does not revolve around a very, very poorly run company. You have to draw the line or cower like a beat dog to these Airline thugs! B)

 

[robbedagain]

i like ot know what that guy vaughn crodle knows about the airlines. i for one dont believe that the big 6 are all going to die. i think may be a few of them including usair become a low cost carrier with international routes

 

[whatkindoffreshhell]

No new information in this article, matter-of-fact the author was pretty darn lazy, just regurgitated old news with an airline analyst (a not-too-sharp one either) looking for publicity.

The analyst, Cordle, says he believes United will exit BK with 95% debt-equity ration and cites labor & non-labor cost savings. He doesn't say anything about the prime issue of new equity and pension liability. I doubt he even is aware.

Also, Cordle states US will be flying through the winter as a low-cost carrier with international flights. Be glad you are not one of his clients for investment advice!

Cordle and robbedagain are in the same orbit. Beam 'em up Scotty!

 

[ua767fo]

The analyst, Cordle, says he believes United will exit BK with 95% debt-equity ration and cites labor & non-labor cost savings. He doesn't say anything about the prime .........

[post="177213"][/post]​

Van Cordle is a UAL pilot and a SCAB.

Denver, CO

 

[WorldTraveler]

Van Cordle is a UAL pilot and a SCAB.

Denver, CO

[post="177217"][/post]​

I'm shooting off a note to Mr. Gillen at the street and let him know that if he wishes to promote horrendously ignorant writers like this one, he can count me out of his readership. His articles demonstrate no intelligence or real knowledge of the airline industry at all. It is patently ridiculous to think that an entire industry will fail to figure out what it takes to survive.

 

[Fly]

Wait....let me guess. Only Delta and American will figure it out, right? Everything else he wrote is correct. You crack me up because your head is so far into the sand. btw, what makes you think you have such a handle on the industry? Do you believe you have a clue because your butt sits in a seat every week or so?

 

[SpinDoc]

Wait....let me guess. Only Delta and American will figure it out, right?

Fly:

What we have here is the inability of many union
members to recognize what is happening in the
world that lies beyond their small space in the company.
Let me elnighten you and the rest:

1. The revenue model has forever changed. Welcome to
Wal Mart and the thin margins that accompany low fares
and mass transit.

2. ALL of the legacy carriers will eventually morph into
the hybrid low cost/hub and spoke model that US will
create through the CH11 process. I know it sounds
amazing and unlikely, but US will be credited with being
the leader in this "race to the bottom" and will likely be
held up as the example for restructuring at DL, UA, AA, NW,
and CO.

3. The only way for US to break the legacy mold and
fundamentally change the way they do business will be
to have a judicial restructuring that will pave the way for
more outsourcing and MidAtlantic wages across the board.
Heck, DL and UA have already created their "alter ego"
airlines with lower wage scales (Song and Ted) and they
will use the same leverage that US does to bring all of
their employees down to the X scale.

4. US is poised to take on WN, B6, and HP and defend
the East Coast markets, but they can't do it without
marginally lower labor costs. The current transformation
plan aims a lot higher than it needs to because the end
result will be that US will have LOWER costs than their
low fare competitors, plus the International route structure
that is lacking in all of the low fare carriers. This is a money
making machine if the costs can be brought down to
an acceptable level.

 

[Fly]

Ummmmm, ok. But we weren't talking about them. We were talking about some totally non-airline employee who thinks he's the airline guru of the years moist hallucination.

Anyway, God forbid anything happen to DAL or AMR...I do believe this guy will shoot himself, if this strange obsession with something that has NOTHING to do with his life is any indication.

 

[GadgetFreak]

Wait....let me guess. Only Delta and American will figure it out, right?

Fly:

What we have here is the inability of many union
members to recognize what is happening in the
world that lies beyond their small space in the company.
Let me elnighten you and the rest:

1. The revenue model has forever changed. Welcome to
Wal Mart and the thin margins that accompany low fares
and mass transit.

2. ALL of the legacy carriers will eventually morph into
the hybrid low cost/hub and spoke model that US will
create through the CH11 process. I know it sounds
amazing and unlikely, but US will be credited with being
the leader in this "race to the bottom" and will likely be
held up as the example for restructuring at DL, UA, AA, NW,
and CO.

3. The only way for US to break the legacy mold and
fundamentally change the way they do business will be
to have a judicial restructuring that will pave the way for
more outsourcing and MidAtlantic wages across the board.
Heck, DL and UA have already created their "alter ego"
airlines with lower wage scales (Song and Ted) and they
will use the same leverage that US does to bring all of
their employees down to the X scale.

4. US is poised to take on WN, B6, and HP and defend
the East Coast markets, but they can't do it without
marginally lower labor costs. The current transformation
plan aims a lot higher than it needs to because the end
result will be that US will have LOWER costs than their
low fare competitors, plus the International route structure
that is lacking in all of the low fare carriers. This is a money
making machine if the costs can be brought down to
an acceptable level.

[post="177387"][/post]​

Wow, now I know where you got your name. Some of the legacy carriers may figure it out. There is a market for premium carriers at higher prices than Southwest. Just not 6-8 times as expensive. UA and others have tried to change fares to a more reasonable spread. Someone will. Perhaps America West will be the leader in this. If one or more of the legacy carriers disappears it will do two things, 1) give the remaining ones more time to adjust and 2) make it easier for the remaining ones to chase the diminishing premium market. Intercontinental Hotels is interesting. They have everything from Intercontinentals to discount hotels. But the price range between the two is a lot less than the range between tickets on legacy carriers and discount carriers used to be. That range is decreasing and some carriers will get the right price point/service provided to provide value that will make people buy their tickets. US is trying to compete head to head on cost, not value with Southwest and the other LCCs. Given the higher costs of US, their inexperience with that model carrier, their debt position and the generally much better perception of Southwest and JetBlue in most consumers minds I cant honestly see how they can possibly succeed. Southwest to PHL or maybe even deciding to emphasize PHL was the game in my opinion. I dont see them coming out at this point. One of those times I hope I wrong but I doubt it.

 

[E-TRONS]

Three cheers for Dr. Evil