contrail67
Well-known member
- Joined
- Oct 13, 2003
- Posts
- 954
If the article is true, then why is F9 in bankruptcy? Because of United? This isn't the first market SWA has struggled with after opening. They are doing what many businesses try to do. Buy out the competition. This is not a new tactic for any industry. Its simply capitalism in action.
One reason for the F9 BK is that they were unable to lure the loyal United passengers in Denver to fly F9....even with their LOW fares.....then SWA moved into the market and they found out they just cannot show up and everyone hops on their aircraft....and that is why they are struggling too...not to mention trying to compete with the F9 fares. You cannot have 2 low cost carriers in Denver. The one thing that will be interesting is if the current SWA bid holds ground....last week UAL stock went up 40% in 3 days....for what?...will just have to see, but something is up.
F9 going away will actually help United more than anything in Denver...will just have to see if UAL puts up a bid close to the end....may be why they just got the 150 million in the bond on their aircraft parts. You just don't go out and do that without a reason.