Yet Another Comair Update

[zasca]

colgan perhaps...........?

 

[Speedtape]

I don't think Southwest is "making money", rather not losing as much thanks to their hedges. Their hedges keep them in the black, since they can price what they want in the market. Without the hedges, I think they would post a loss. Domestic travel isn't very good right now for any US airline, and having great hedges like SWA does helps them out tremendously. The legacies have to find revenue elsewhere, and right now that is anywhere but the USA. Also, with $150 a barrel oil, many airlines will unfortunately cease to exist. That will help the remaining airlines eventually make a profit, with less capacity and higher fares. One thing is for sure though, 50 seat RJs don't work in a high oil environment.


Bye Bye--General Lee

What's a high oil environment? Is that where supply exceeds demand?

Your statement in bold is broad and absolute and is simply flawed. In some scenarios, given present conditions, most airplanes don't work with high oil prices--but not in every scenario. There is no one simple solution resolved by one type aircraft in all condtions.

Presently, international travel is the least affected and best opportunity for growth. However, most traffic does not originate or terminate in the gateway city. Therefore, feed is necessary. Better rationalization and utilization of the "tools" under present and future, ever-changing market conditions is mandatory and each plane (no matter what size) will play a role. RJ's will not go away but the fleet size will be reduced (like every other size aircraft)--for now. But, RJ's make even more sense in many ways. Markets served by narrow bodies will thin. RJ's will once again be Replacement Jets!

Your notion of reducing RJ frequency and replacing with one narrow body in a market makes sense if there is no other competition in that market and the environment remains static. That would be a very rare situation. RJ's enhance competition and have actually reduced narrow body service in many medium size markets. That will not change.

General, your awakening will occurr post-merger. There is a post merger plan--it's just that no one on our level knows the specifics. Hubs, fleet, and staffing will be greatly impacted. The crown jewel in this merger is the Pacific Rim Routes and the reason for the quest. Nothing else matters, and the post merger, domestic morphing will have far reaching affects as the restructuring and slashing starts.

 

[Speedtape]

Originally Posted by General Lee
I don't think Southwest is "making money", rather not losing as much thanks to their hedges. Their hedges keep them in the black, since they can price what they want in the market. Without the hedges, I think they would post a loss.

Southwest is making money. If they were breaking even, they would still be in a better position than every other airline to endure the storm. They are making money for lots of reasons. Yes, hedging is one of the important reasons. Hedging gives them the competitive edge, more importantly, the staying power! THEY got it and most others don't. It will get them through when others will fall. When Southwest starts losing money, we will all have alot more to worry about!

Saying without the hedges they would post a loss, could be true--but that is a hypothetical that ignores the facts and reality. General, without an airplane, you could not fly! And without FLIGHTINFO, you would be your real world status of BUCK PRIVATE--with your writings and insults found only on the bathroom walls.

Ba-Bye