U A L : D E N I E D ! ! ! ! ! ! ! ! ! !

[furloughed dude]

Cactus,


What DP is saying is that he doesn't have the access to capital to expand like some of the others like Jetblue. He is certainly utilizing his aircraft alot more, even getting into the transcon market. LCC's with low costs like JB and Airtran are smelling blood and want to have the ability to move quickly when legacy airlines fail.


In short, AWA is definitely adding to the capacity problem as well.

 

[Heavy Set]

Dave,

Are you a Delta pilot? No. If you knew that your paycheck could be cut by 30-40% would you just "accept it" and allow management to have its way with you or would you try to negotiate once an actual plan was presented? Can you even fathom the average Delta pilot's viewpoint? Think about it.

Your statements make it difficult for you to be taken seriously. I am not a Delta pilot but I support the wage "bar" that they are trying to preserve - someone has to while Mesa and USAirways continue to chip away at our financial well-being. If you don't support the Delta pilots and their crusade to preserve a "good percentage" of their salaries (not suggesting that they shouldn't take a cut - a cut is needed in the LCC environment), then you support lower "average" salaries for everyone... Why do you have such a negative viewpoint toward Delta?

 

[DaveGriffin]

Dave,

Are you a Delta pilot? No. If you knew that your paycheck could be cut by 30-40% would you just "accept it" and allow management to have its way with you or would you try to negotiate once an actual plan was presented? Can you even fathom the average Delta pilot's viewpoint? Think about it.

Your statements make it difficult for you to be taken seriously. I am not a Delta pilot but I support the wage "bar" that they are trying to preserve - someone has to while Mesa and USAirways continue to chip away at our financial well-being. If you don't support the Delta pilots and their crusade to preserve a "good percentage" of their salaries (not suggesting that they shouldn't take a cut - a cut is needed in the LCC environment), then you support lower "average" salaries for everyone... Why do you have such a negative viewpoint toward Delta?

Heavy;

I know you are not a DL pilot. GL and his ilk are unwittingly destroying DL with their "max pay to the last day" strategy.

Please don't confuse the issue!! You are hereby authorized to take me as seriously as you choose.

I support junior DL pilots; just not the senior 48%.

The rest have a career also.

( This post is officially certified as no "bad language").

 

[xanderman]

so what is to be done?

Cactus,


What DP is saying is that he doesn't have the access to capital to expand like some of the others like Jetblue. He is certainly utilizing his aircraft alot more, even getting into the transcon market. LCC's with low costs like JB and Airtran are smelling blood and want to have the ability to move quickly when legacy airlines fail.


In short, AWA is definitely adding to the capacity problem as well.

Cactus73, furloughed dude,
If too many seats are the problem (I agree with this) and no company wants to lose market share, what should be done? In the case of AWA I believe that the increased ASM's are due in part because of increased a/c utilization. Also the company wants to expand 8-10% per year through 2006. If AWA feels there is a market share to be gained but also aligns itself with the notion that there too many ASM's... what can be done? Are there any other options besides consolidation or the unfortunate demise of some legacy carrier? Just thinking out loud...
Andy

 

[Cactus73]

Cactus73, furloughed dude,
If too many seats are the problem (I agree with this) and no company wants to lose market share, what should be done? In the case of AWA I believe that the increased ASM's are due in part because of increased a/c utilization. Also the company wants to expand 8-10% per year through 2006. If AWA feels there is a market share to be gained but also aligns itself with the notion that there too many ASM's... what can be done? Are there any other options besides consolidation or the unfortunate demise of some legacy carrier? Just thinking out loud...
Andy

AWA, as all the LCC's, are in a classic situation in this business. They either grow or wither away. If they grow they are adding to their own problems. Peoples Express had this problem back in the 80's. They had to grow but everytime they added seats, the a majors added even more.

IMHO, there will be consolidation among the LCC's. Southwest will remain free standing no matter what. The east coast LCC's may have to do some mating with the west coast LCC's to bring some rationalization back to the industry. Then you have the wild cards, Virgin, IAIR, and ATA.
If USAirways goes under, it won't fix the overcapacity problem because the majors and LCC's will just jump in and fill the void.

Now the question remains, who is going to merge? Its got to happen.

 

[Publishers]

marketshare

This is like the story of a conference where each airline claimed that they had X% marketshare. When you added them up, the all had about 137% of the market, a good trick if you can do it. Seats in a yield system follow the market until saturation exists. When they are all there,, then the premium seats have been taken away and there is a shortage of them.The process reverses.

This is the cycling of the industry that we all talk about constantly.