I disagree. I think the future of U is bright. 3rd quarter last year U lost 390 million dollars. 3rd quarter this year only 90 million. A 300 million improvement.
The star alliance will bring an estimated 100 million a year in additional revenue. A good example will be the new MUC-CLT flight operated by LH. This flight will not cost U any money, but will deliver 300 additional passengers a day into the system per day. and that is just one flight.
Also in helping to bring more people into the system will be the rjs. For PSA the 60 rjs alone will increase our seats in the system by 600. If you figure 5 banks a day. That is an ADDITIONAL 3000 people per day that can be in the system.
SWA in PHL. This presents a very unique problem. But one that U is able to win, if management and the unions can work together. We have to be able to match cost with SWA on the routes they fly. There are 2 ways this can happen. Mainline lowers their operating cost OR provides scope relieve to add large rjs to fly those routes. If you have a CRj705 for instance. You can have flights for the same fare, because of the lower costs. But in addition, you have 1st class seats, frequent flier miles, and access to 126 countries that the Star alliance serves. If it costs the same, who would you go with?
You do not bring jobs back by adding mainline flights at this time. You grow the feed, and the growth at mainline comes a little later. How do you grow the feed? RJs and alliances. Why are the most financially stable carriers the largest rj operators? Because the have the feed to fill up the mainline jets.
U is not doomed. Seigel said himself that he did not expect a profit until 2005. That is still a year away. A 300 million improvement in just one quarter alone is a very good step in the right direction. In fact, i think the future will be bright. We all just have to work together.