UAL Decision Soon Amid Worries/Questions

[Ty Webb]

George Will says that AWA is the only airline since deregulation to become a major . . . . AirTran revenues for 2004 will be above the $1 Bil. in revenues that currently define a major.

 

[FDJ2]

Of course AWA was one of the first airlines to apply for an ATSB loan and has already been through BK once. Perhaps Mr Will should note that a reduction in capacity would have already happened at Frontier and AWA if it were not for BK protections and in AWA's case and other LCCs an ATSB loan.

 

[Mugs]

Ty is also partial to Home Depot for some reason. I was just on a trip and wound up having a "debriefing" with a couple of Airtran guys on a layover. Very down to earth fun guys to hang around with. What surprised me though was how much they complained about things. They laughed out loud when I told them I thought they spent their days off going to pep rallies. What it convinced me of is that Airtran's success will lead to labor showdowns in the future-- just like the legacy carriers. The entire cycle is bound to repeat.

 

[GogglesPisano]

George Will says that AWA is the only airline since deregulation to become a major . . . . AirTran revenues for 2004 will be above the $1 Bil. in revenues that currently define a major.

Actually he said AWA is the only airline founded since deregulation to become a major. ATA's birth predates deregulation.

 

[Ty Webb]

Actually, I hate Home Depot. Ever try to find something there that was actually made in the US? Good luck.

As for what you wrote regarding AirTran, there is a big difference between some of the former VJ guys' expectations and those of us who have hired since the merger.

While I don't think any of us expects Delta-like pay, I think we will be looking for something more like ATA's contract. Improvement in work rules and a tightening of the contract language will also be very important.

Regardless, you won't hear any "choke the last golden egg from the goose talk" from either group.

 

[UpNDownGuy]

Actually he said AWA is the only airline founded since deregulation to become a major. ATA's birth predates deregulation.


I assumed someone else would point this out, but ATA is not AirTran. Two different airlines. ATA has been around for more than 30 years.

 

[F9 Driver]

Say what?

Perhaps Mr Will should note that a reduction in capacity would have already happened at Frontier and AWA if it were not for BK protections and in AWA's case and other LCCs an ATSB loan.

Frontier wanted a line of credit from ATSB in case UAL got their loan, but ATSB only would back a loan, so we took it. We paid it back IN FULL - taking a prepayment penalty in the process, and still owe warrents to the govt.

We were never close to cutting capacity. If UAL weren't able to price irrationally under BK protection we'd be MORE profitable and bigger. IMHO

Flame away....

 

[GogglesPisano]

Actually he said AWA is the only airline founded since deregulation to become a major. ATA's birth predates deregulation.

Disregard. Where's that delete button?

 

[Ace McCoy]

George Will may be right about the industry needing a reduction in capacity but it will never happen. As soon as someone goes away another one starts up to fill the oversaturated market. Welcome Virgin America and Mesa 737's.

It is gonna be funny when today's LCC pilots are called greedy by the next generation of pilots.

 

[WatchYourElbows]

It is gonna be funny when today's LCC pilots are called greedy by the next generation of pilots.

It's gonna be sad! But you're right