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UAL/USAir 737s

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CalLite is what we call our new FOs because the cant afford to eat and are suffering from tape worm because of the lack of med insurance.
 
Shoot, I bet Southwest could take all the 37s a combined UAL/LCC would dump, and put em to use straight away, and make money to boot. Just to show the rest of the industry how incompetent they are.
 
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Most of the time that I price flights out I get a better deal on the legacies than SouthWest since I have to connect somewhere on SouthWest and they are smart enough to charge more when they fly you more. Their direct flights are usually very great prices while the legacies rape you on those. I fly for NJA and almost never get SouthWest since they charge more to and from where I live than the legacies (though I will be hopping on them to MDW today on a direct flight that is very reasonable). I'm very curious to see how the legacies capacity cuts play out. All the consultants say they must cut capacity big time so that they can charge more, but what happens when they cut capacity and the LCCs just step in and increase their capacity? SouthWest may not grow as fast as originally planned, but they will still grow. And I'm sure they could revise their growth plans pretty quickly if the right opportunities present themselves. I do believe it would be the expressway to liquidation if a combined United/ USAirways tries to start a new company like SouthWest.
 
Southwest's growth is limited to the extent of their hedges in fuel. They do not have unlimited fuel hedges. As long as they can price below the rest of the industry, they retain the upper hand in market pricing and can dominate any market at will.
 
All the consultants say they must cut capacity big time so that they can charge more, but what happens when they cut capacity and the LCCs just step in and increase their capacity?...

That's the kicker JTF....no one can really just "step in" and increase capacity....You need airplanes to do that, and plenty of 'em.

And in case you're behind in current events, LCC's like JetBlue, AirTran, Frontier, etc are currently cutting their own capacity.

It will shake out soon enough with high oil. We need 1 or 2 legacies and a LCC or two to go bye-bye and we'll get capacity down where those left standing will be able to charge enough to make some money.
 

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