Cosmo
Veteran
- Aug 20, 2002
- 840
- 0
[blockquote]
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On 1/30/2003 2:32:15 PM chipmunn wrote:
Dlflyer, I disagree with your post. If UA elects to fragment the company US is a better suitor because of the code share agreement.
The combined ASMs whether UA remains intact or "spins off" part of its domstic system, to another airline as indicated by Paul Whiteford, would be part of the combined US-UA domestic alliance if the assets went to US. Therefore, UA could keep code share revenue on the "carve out" portion of their present system, versus transferring these ASMs to a competitor.
Interestingly, this could be a crucial part of UA surviving to help the carrier meet its stringent DIP financing commitments.
Chip
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[/blockquote]
That is pure, unadulterated nonsense! According to the UA/US code-sharing agreement, not only would UA receive NO revenue from that part of a passenger's trip that would be on US if it replaced UA on a route, but it would also have the effect of reducing UA's overall yield because UA would no longer get the higher-yielding local traffic on the dropped segment into the hub. And most UA international flights and virtually all UA mainline domestic flights (JFK-SJU, JFK-SEA, SEA-ANC and PHX-TUS are the only exceptions that I can recall) touch a UA hub at one end or the other of the flight. So UA's overall revenues would drop proportionately faster than its expenses, making UA's ability to meet the DIP revenue projections, and thus emerge from bankruptcy protection, more difficult rather than easier.
Also, Chip, why haven't you responded the questions and observations posed by Bear96 and me on the previous page of this thread? Is it too inconvenient to have to address logical arguments which shoot holes in your fanciful theories that are based on nothing more than hearsay, half-truths and outright fabrications?
And since I'm on a roll, why are you the ONLY person publicly claiming to have inside information about "unique" and "interesting" corporate transactions between UA and US while NOBODY in the general press (including investigative reporters at newspapers and news magazines), the aviation press, aviation consultantcies, law firms or Wall Street brokerage houses have said even a single word about such a transaction? In this day and age of 24/7/365 investigative reporting and news leaks to gauge public reaction, how can this be even remotely possible? Repeatedly hiding behind the excuse that "I can't reveal my sources" sounds too much like the discredited Senator Joseph McCarthy in the 1950s. Frankly, Chip, IMHO it doesn't pass the "smell" test and "there is reason to believe" that you no longer have any credibility on this issue.
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On 1/30/2003 2:32:15 PM chipmunn wrote:
Dlflyer, I disagree with your post. If UA elects to fragment the company US is a better suitor because of the code share agreement.
The combined ASMs whether UA remains intact or "spins off" part of its domstic system, to another airline as indicated by Paul Whiteford, would be part of the combined US-UA domestic alliance if the assets went to US. Therefore, UA could keep code share revenue on the "carve out" portion of their present system, versus transferring these ASMs to a competitor.
Interestingly, this could be a crucial part of UA surviving to help the carrier meet its stringent DIP financing commitments.
Chip
----------------
[/blockquote]
That is pure, unadulterated nonsense! According to the UA/US code-sharing agreement, not only would UA receive NO revenue from that part of a passenger's trip that would be on US if it replaced UA on a route, but it would also have the effect of reducing UA's overall yield because UA would no longer get the higher-yielding local traffic on the dropped segment into the hub. And most UA international flights and virtually all UA mainline domestic flights (JFK-SJU, JFK-SEA, SEA-ANC and PHX-TUS are the only exceptions that I can recall) touch a UA hub at one end or the other of the flight. So UA's overall revenues would drop proportionately faster than its expenses, making UA's ability to meet the DIP revenue projections, and thus emerge from bankruptcy protection, more difficult rather than easier.
Also, Chip, why haven't you responded the questions and observations posed by Bear96 and me on the previous page of this thread? Is it too inconvenient to have to address logical arguments which shoot holes in your fanciful theories that are based on nothing more than hearsay, half-truths and outright fabrications?
And since I'm on a roll, why are you the ONLY person publicly claiming to have inside information about "unique" and "interesting" corporate transactions between UA and US while NOBODY in the general press (including investigative reporters at newspapers and news magazines), the aviation press, aviation consultantcies, law firms or Wall Street brokerage houses have said even a single word about such a transaction? In this day and age of 24/7/365 investigative reporting and news leaks to gauge public reaction, how can this be even remotely possible? Repeatedly hiding behind the excuse that "I can't reveal my sources" sounds too much like the discredited Senator Joseph McCarthy in the 1950s. Frankly, Chip, IMHO it doesn't pass the "smell" test and "there is reason to believe" that you no longer have any credibility on this issue.