United Continental to Cut Seats on U.S. Flights After Merger, Analyst Says

[climbhappy]

I agree with Tweaker for sure. with 2011 set to be a very dicey year with oil prices surging to 120/barrel, one million more foreclosures, and a trillion dollars of commercial real estate defaults forecasted

 

[General Lee]

I agree with Tweaker for sure. with 2011 set to be a very dicey year with oil prices surging to 120/barrel, one million more foreclosures, and a trillion dollars of commercial real estate defaults forecasted

China is in the process of raising interest rates, which may slow down the worldwide economy, bringing oil prices down. You just never know. But, we do know RJs won't be profitable, regardless.


Bye Bye---General Lee

 

[St. Nic]

China is in the process of raising interest rates, which may slow down the worldwide economy, bringing oil prices down. You just never know. But, we do know RJs won't be profitable, regardless.


Bye Bye---General Lee

And if it weren't for Delta giving Comair the keys to take over all guppy flying we wouldn't have this problem general!!!

 

[General Lee]

And if it weren't for Delta giving Comair the keys to take over all guppy flying we wouldn't have this problem general!!!

Comair is being reduced to only 49 total planes. They aren't doing very well these days. You need to think more before you post or just get informed.


Bye Bye--General Lee

 

[MCDU]

Comair is being reduced to only 49 total planes. They aren't doing very well these days. You need to think more before you post or just get informed.


Bye Bye--General Lee

That is because other airlines will do it for less.
Comair goes on strike, gets a better contract and a few years later other carriers comes in and does it for less and you shrink. It is a vicous cycle.

When regionals get an improved contract=less movement and stagnation. Replacement crews usually represented by same Union standing by to do it for less.(quick upgrades). Higher paying jobs go puff and are usually temporary.


M

 

[St. Nic]

Comair is being reduced to only 49 total planes. They aren't doing very well these days. You need to think more before you post or just get informed.


Bye Bye--General Lee

Who cares about Comair today, you guys let the camel's nose under the tent- the rest is history. YOur airline is littered with these job stealing regional jets. Just facts, ma'am

 

[contrail67]

But DAL grows. Makes sense if they are becoming the largest global airline. All others fall in line.

I keep reading that but they are not....careful about "predicting" the future.

 

[Tweaker]

I don't agree at all. More efficient doesn't mean smaller. The purpose of a merger is to lower overhead and bureacracy costs, yes, but not necessarily to provide less product.

They could very well have planned to grow capacity while cutting middle management costs, get synergies from common functions like scheduling, HR, etc. and growing capacity.

They are choosing not to do this.

Well, I agree with you. I think you misunderstood. Initially, they would be smaller by reducing overlap (efficient). Later they could use these savings (again the point of the merger) to grow. The grow part is unrelated to the discussion though.

 

[Ex737Driver]

Well, I agree with you. I think you misunderstood. Initially, they would be smaller by reducing overlap (efficient). Later they could use these savings (again the point of the merger) to grow. The grow part is unrelated to the discussion though.

Latest info regarding 1st quarter estimates is that due to the small capacity reduction, UAL is expected to post a profit. Now that the 70 seat deal has been somewhat finalized, I imagine that the flying they wanted to do with a 70 seater will still have to be done at some point and time later this year which should increase the available flying. The big question still remains; who is going to be doing this flying?

 

[contrail67]

Part of the reduction is also to allow the painting schedule to be met....it is quite aggressive.