Kharma Police
Don't mess with Texas
- Joined
- Mar 16, 2004
- Posts
- 2,099
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I wonder if Kelly will be able to fool the regulators by offering us 'trannies "preferential" interviews a'la ATA?
We currently compete against Air Tran in ATL, and Southwest potentially buying them doesn't change the fact that we compete against a LCC. We don't fly to exactly the same cities, and we get feed from cities that Air Tran doesn't fly to, to fly off to other cities AirTran doesn't fly to. Also, ATL has no more room to expand, and neither does any of our other hubs, (SLC, LAX, JFK), with the exception of CVG. If you want to invade CVG, go right ahead.
Our costs were paired down tremendously in BK, so we could fight BETTER than before against Southwest, and even the article stated that their hedges are decreasing over time, which means more fare increases are needed. I don't think our management relishes a fight with Southwest, but we are better equiped now to deal with the situation. We have 70% of all flights at ATL, and that won't change thanks to the lack of gates. Same at JFK, where everything was just capped. Same at SLC, LAX, etc. Get my drift sarge? Southwest would do great at MDW getting rid of a competitior, and also BWI (both small hubs for Airtran).
Bye Bye--General Lee
Your cost may be "paired down" due to BK, but they are still higher than SWA. So if you had to compete head to head out of ATL how do you get your costs lower? I imagine they'll come looking to you again. You can't really negotiate the price of oil...but they know you'll give up pay. If you had gotten your pay raise (which you deserve) in Jan then you would be less competitive with SWA. As it stands, the raise you do get next year (albeit small and not even keeping up with inflation) puts you at a further disadvantage with SWA. A SWA/Air Tran merger should be something of concern to your domestic operation.
Shoot...maybe SWA will buy Delta and improve your lot in life.
Probably be good for DL if SWA did buy Airtran. DL would be competing with a company that has much higher costs than Airtran and there would be lots of overlap to trim. Anything can happen in this business though. SWA may surprise everyone and buy a legacy to get an instant international operation.
I'm not really sure that SWA has to rely on the 25 minute turn as much. I'm sure they don't get those in PHL. But then again, how many times in it's history has SWA been told that they can't do something? Read Hard Landings. Taking over in ATL wouldn't be that far fetched.
Looks like things will get interesting this coming year. High oil and an looming recession...maybe the AF isn't a bad place to be to ride it out. I get a 3% raise every year. Hope with a sluggish economy they don't ask for pay cuts with you guys again...because we all know that you'll roll and give them up.