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UAL - LCC deal dead

  • Thread starter Thread starter D-Bo
  • Start date Start date
  • Watchers Watchers 16

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USAPA has guaranteed the death of USAir. Unfortunately, they're taking the AWA guys with them.
 
He is, and I agree with him.
 
US Ai unfortunetly is going to go the way of the dodo....As much as I would hate to see it, it is going to happen. I know Ill hear again all about the 3billion they have, etc...But you have to look long and hard at the figures, the expenses, etc...The future forecasts...If you do youll understand why they prob. wont last into next year...
 
US Ai unfortunetly is going to go the way of the dodo....As much as I would hate to see it, it is going to happen. I know Ill hear again all about the 3billion they have, etc...But you have to look long and hard at the figures, the expenses, etc...The future forecasts...If you do youll understand why they prob. wont last into next year...
I'm going to try and be kind here...

...you state it as an absolute? And you have what kind of experience in the industry????
 
Hard to tell. No doubt the "large four engine jets" are thirsty but they also service the markets where the money is.

From ATW news:

Cathay Pacific Airways plans to phase out 23 747-400s beginning in 2013 in an effort to realize fuel savings of 22% per seat. COO John Slosar told Hong Kong media that the carrier is considering a variety of replacement aircraft and that "the A380 is also an option." In the interim, it will raise its fuel surcharge 37% from June 1 in an effort to negate 40%-50% of the increase in fuel prices. CEO Tony Tyler said fuel now accounts for 40% of CX's total operating costs, up 10 points from last year. "At current prices, it costs us $360,000 in fuel alone to fly a 747-400 to London and back," he said.

.. and they are MAKING money not underwater $500M +
 
From ATW news:

Cathay Pacific Airways plans to phase out 23 747-400s beginning in 2013 in an effort to realize fuel savings of 22% per seat. COO John Slosar told Hong Kong media that the carrier is considering a variety of replacement aircraft and that "the A380 is also an option." In the interim, it will raise its fuel surcharge 37% from June 1 in an effort to negate 40%-50% of the increase in fuel prices. CEO Tony Tyler said fuel now accounts for 40% of CX's total operating costs, up 10 points from last year. "At current prices, it costs us $360,000 in fuel alone to fly a 747-400 to London and back," he said.

.. and they are MAKING money not underwater $500M +

I hope you are not waiting for me to defend UAL management and their decision making process. In my mind there is no doubt Cathay Pacific is a better run operation. In fact they are probably better run than 90% of all US carriers. In addition they do not have the burden of a sick US economy and fly almost exclusively internationally where the money is. In short comparing UAL or any other US carrier with Cathay is not valid. My comment still stands UNITED, in their infinite wisdom, will continue to run the 400’s as there are no other aircraft on order.
 
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