Us Airways Expects To See Profit In 2006

[USA320Pilot]

US Airways has not affirmed any affiliate carrier Express contracts. US Airways is attempting to gain concessions from its affiliates.

Regards,

USA320Pilot

 

[mweiss]

There's far too much capacity here in the USA.

As I said to you elsewhere, "too much capacity" and "too high production costs" are synonymous terms when speaking of market conditions.

If a couple large carriers shut down tomorrow, the passengers who are willing to pay higher fares would be shared among fewer airlines. Additionally, the reduction in capacity could not be instantly restored by the hated LCCs - leading to a long-overdue rise in fares.

Which would provide breathing room for perhaps a year or two. Then it'll be right back to where it is. This cycle cannot persist forever. The high-cost carriers must justify correspondingly high fares, reduce costs, or shut down.

 

[Fly]

It's a vicious cycle

 

[mweiss]

Fly, it's a vicious cycle that is the very definition of a maturing competitive industry. It has just taken a very long time (over twenty years) for the maturity to take hold. Much of the credit/blame for the delay can be placed at Bob Crandall's doorstep.

 

[ClueByFour]

US Airways has not affirmed any affiliate carrier Express contracts. US Airways is attempting to gain concessions from its affiliates.

Regards,

USA320Pilot

[post="247116"][/post]​

Given the sudden loss of the ability to finance dozens of new RJs, this is probably a pipe dream (who does not fly for US and would fly for lower rates than what US is currently being charged)?

 

[PITbull]

If you believe this report............
I have some beach front property for sale in Nevada!

[post="246825"][/post]​

"ditto".

 

[PITbull]

funguy,
dave davis is gone now...i'm sure the new guy has new numbers...

[post="247049"][/post]​

Yup! Anyone can "COOK" a goose.

 

[usfliboi]

Remember that pitbull! 🙂

 

[funguy2]

Given the sudden loss of the ability to finance dozens of new RJs, this is probably a pipe dream (who does not fly for US and would fly for lower rates than what US is currently being charged)?

[post="247129"][/post]​

Not necessarily...

FlyI, for one, doesn't fly for US Airways, and may need to get back into the pay-per-departure business... And Air Wisconsin, for a second, may need a new partner, as United has put its Air Wisconsin contract out to bid, essentially, with AirWis, FlyI, Mesa, Chautauqua and others as bidders.

US Airways could certainly do something similar. If you believe Mike Boyd (and while I don't agree with him 100%, I think he has a point here...) the 50-seat RJ market is tapped out, and some players will begin to lose... He sites the ACA/FlyI situation a evidence. If this is true, then growth for one company must come at the expense of another company, like what is happening to AirWis. So US Airways could say, take its Trans States contract and offer that flying as a growth opportunity to Mesa or Chautauqua or FlyI or AirWis, as long as they can do it at a lower rate, and play the same game UAL is playing to essentially get their partners to lower costs by under-bidding each other.