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Re: Reality Bites!

Sniper@YourFeet said:
Good luck ACA/Indepence.

Thanks! Our financial guys have stated that they project revenue to top $1B in 2006. That's what being a "major" is based on if I am remembering correctly, right? Only time will tell. We have much more urgent matters to deal with now thanks to JO.

BTW - You've demonstrated why I am not a real big fan of our new name....there are too many mis-spellings! :)
 
Sniper@YourFeet said:
Independence - ya' got me. What are you, a former Chit-taco pilot?

Nope but I live in Independence, KY so I've seen one or two mis-spellings! My first paystub from ACA after I moved here was "Indepence, KY" - I hope that's not a bad omen!
 
Re: Reality Bites!

Sniper@YourFeet said:
Why would you want to fly for the highest paying (best contract too?) regional when you could fly for a risky start-up? :)

A sobering dose of reality: Only ONE airline that has been founded since deregulation (in 1978) has ever become a major - AmericaWest. JetBlue looks like they might make it 2.

Good luck ACA/Indepence.

I'm not sure that Indpendence Air qualifies as a traditional startup. Let's look at some differences:

1. Independence already has 85+CRJ's

2. Has over $230mil now

3. Expecting to have $300mil by year-end

4. Owns the gates at IAD

5. Made more money revenue sharing than under fee-per- departure

6. Made up to 22% margins while NOT fee-per-departure

7. Already has operated a marketing department and now has a new one

I'm sure I'm skipping some things but overall it is not really a "startup" per say. The real term, I believe, is a new "platform" as opposed to "startup".

What do you think?

Chow
 
Cappy :

It all depends on whether Dulles can support an airline. RDU was not able to support Midway after the tech downturn.

I keep seeing parallels between Midway and ACA - am I way off the mark?

~~~^~~~
 
~~~^~~~ said:
Cappy :

It all depends on whether Dulles can support an airline. RDU was not able to support Midway after the tech downturn.

I keep seeing parallels between Midway and ACA - am I way off the mark?

~~~^~~~

Midway was a traditional startup that burned through cash relatively quickly. As I posted earlier I believe that Independence Air is different because of the possesion of hard and liquid assets...and $300mil is a lot.

RDU never attained the critical mass in tech or population to sustain Midway while AA was lowballing them with ERJ's.

My $.02
 
~~~^~~~ said:
Cappy :

It all depends on whether Dulles can support an airline. RDU was not able to support Midway after the tech downturn.

I keep seeing parallels between Midway and ACA - am I way off the mark?

~~~^~~~

Don't forget that Washington D.C. is 5th in the nation when it comes to annual passengers. I think about 42 million was the number that mgmt was quoting. The Raleigh/Durham area wasn't even in the top 10. These facts coupled with the financial info that Cappy was talking about and I think that Independence is quite different than Midway.
 
Re: What Routes

Tim47SIP said:
Since they own their own gates, will the routes flown actually be United routes coupled with new routes? There is no way United can get that many aircraft on those routes by late spring. Not even Mesa can expand that fast. Seems like ACA might be in a great position to compete directly with United's route structure. I hope they kick A$$. Good luck guys!;)

Just another nail in the United coffin. :rolleyes:
 
Irrational Exuberance

Cappy said:
RDU never attained the critical mass in tech or population to sustain Midway while AA was lowballing them with ERJ's.

And just where do you think all the UAX branded Mesa CRJ's are gonna' go? Everywhere you go, you will be followed by UA, stalking you, undercutting you. Sucks when someone undercuts ya', huh?

Yeah, UA's Ch. 11, but the US Gov. won't let the 2nd largest carrier in the US (in the world?) just up and die. ACA could vanish like a fart in the wind and nobody would really notice right now (other than some United passengers in WV and the Carolinas).

I want ACA to do well (if only so that Orenstein doesn't get his hands on NB's or all of ACA's cash so he can really grow like the cancer he is), but I think this might be a case of 'irrational exuberance'. Time will tell.
 
Last edited:
Pan Am died, Eastern died, Braniff died...... With A Republican administration, there are going to be less government handouts - especially to corporations in Democrat states. Didn't Illinois go for Gore?
 

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