US Airways Debate

CaptChris

CaptChris

New Member
I read about US Airways going out of business, and as a pilot I feel for the airline and its employees. However, putting that aside---it is a subject that bothers me a lot. US Airways is doing no good right now for the industry, they are hurting suppliers and manufacturers. My father works for Goodrich, and US Airways currently owes them $3.6 million just in wheel and brake services which they will never see. However, all of the other airlines are in good standing with Goodrich as far as wheel and brakes are concerned.

Moreover, US Air owes for its aircraft, avionics, evacuation systems (another Goodrich product US Air owes $1.2 mil in this dept.) etc. It simply isn't fair that they can be in bankruptcy, not paying their bills, and still operating their aircraft as if everything was fine. US Air is bringing the industry down and its about time that someone put a fork in them.
 
However, USAir submerging is going to devastate Mesa, Chautauqua, Allegheny, etc. I'm not sure if anyone is going to absorb that amount of feed with no airline to connect to and we've all seen how difficult going it on your own with a fleet of RJ's is vis a vis Independence Air.

Here's my drugstore cowboy prediction if (when?) USAir fails. There's going to be a rush of suitors for USAir's assets, it'll probably over the medium term spawn a couple of new airlines each trying to capture some of the market share, some will make it, most will fail. It's just not as simple as another airline stepping in and resuming the routes.

Why my prediction? It's what always happens. I've heard about 'paradigm shifts', 'new idea', 'revolution in the skies', etc, but if you look at the business in a macro sense, there's not a darned thing new going on. Anyone remember PeoplExpress?

If USAir actually goes belly up this year, I'll be suprised. Not shocked, but certainly suprised because airlines normally swirl around the toilet bowl for years before either going defunct or someone acquiring their assets.
 
My roommate in EWR is former Peoples Express! He's been at 6 airlines... I should ask what he thinks being two years from retirement.
 
Actually, doing a little USAir research, I take it all back, holy cow, the end is nearer than we think!

chesnut_winner.jpg

USAirway's Marketing

I take back all of the negative things I said under my breath about Ted and Song.
 
No. Go to the site. I'm serious as a severe myocardial infarction!

Just when I think I've seen it all.
 
Hey that's the go fares guy...leave him be.

I talked to a mid atlantic guy today who was a total optimist.

"I think this may be it...it'll be over in 2 weeks. Well...I've been saying that for 20 years. This place will never die..."

Sorry folks...I think you'll be surprised where Airways goes in the next 6 months. Things are a-ok out here in Airways land.
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[ QUOTE ]
Sorry folks...I think you'll be surprised where Airways goes in the next 6 months. Things are a-ok out here in Airways land.
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[/ QUOTE ]

<sniff, sniff>

Reefer.
 
[ QUOTE ]
[ QUOTE ]
Sorry folks...I think you'll be surprised where Airways goes in the next 6 months. Things are a-ok out here in Airways land.
bandit.gif


[/ QUOTE ]

<sniff, sniff>

Reefer.

[/ QUOTE ]

No, newbie. Big difference.
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The "Go Fares" guy is a freak. U has slashed fares to extremely low rates. They need cash fast. They have none. How they made it through the holidays is beyond me, but let's just say I'm not buying anything big in the next few weeks.
 
Fantastic. I'm just about to start a trip tomorrow morning, now I've got to hear about "XYZ Air screwed me, they wanted $27 to fly from Boston to Los Angeles with a walk up fare, sons of *blanks*"

You guys certainly aren't helping my enthusiasm as I pack for my trip!
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Doug,
If thats the case you should be depressed. From Akron, OH-Charlotte, NC they want $47 one way. In any event... I might go visit my parents for dinner tonight!
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All I have to say is that the marketing people at every gosh darned (edited so doug doesn't get mad) airline in this country need to be replaced by someone that are going to be willing to raise ticket prices $10 across the board so airlines can start generating some liquidity so I don't have to deal with the survival probability of US Airways changing leg to leg (and I fly 40 minute legs regularly).

And for the record you all can say whatever you want but when it's YOUR job on the line, you can believe you won't have any sympathy from me. Reefer or no reefer...crack head.
bandit.gif
 
[ QUOTE ]
And for the record you all can say whatever you want but when it's YOUR job on the line, you can believe you won't have any sympathy from me. Reefer or no reefer...crack head.
bandit.gif


[/ QUOTE ]

Seriously dude what's up with this?

Raising ticket prices across the board would help tremendously, but The Powers That Be seem to think that their loads would drop as all the passengers scramble to AirTran, jetBlue, and Southwest. Little do they realize that those 3 airlines do not have enough seats.

Take the airlines off of Wall Street. Let's see what happens then.
 
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Take the airlines off of Wall Street. Let's see what happens then.

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Decision making seperate and apart from the 'catch phrase du jour' if they possess the right leadership.

I've been "paradigm-shifted", "new reality'ed", "change in pricing powered", yadda yadda yadda to death.
 
[ QUOTE ]
Raising ticket prices across the board would help tremendously, but The Powers That Be seem to think that their loads would drop as all the passengers scramble to AirTran, jetBlue, and Southwest. Little do they realize that those 3 airlines do not have enough seats.

[/ QUOTE ]

Little do you realize that it's not the LCCs the pax would scramble to, it's the other legacies. Because there are so many hubs, all the legacies compete on almost every city-pair. This, along with internet pricing, is what has forced yields down.

The network carriers have continued to use yield management and to charge higher fares where they can. That's why the change in fare strategy by Delta caused such a stir last week. They feel their past efforts to raise yields has permanently lost them a lot of business traffic. They are trying to get it back.

[ QUOTE ]
Take the airlines off of Wall Street. Let's see what happens then.

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? What does that mean? Do you mean make it so they don't have to make a profit or make them all private companies? How would either of those things help? (Well I suppose it would help if they didn't have to make money)

Wall Street has all but abandoned the airlines, making them mostly penny stocks or highly speculative investments, except for LUV of course. The airlines don't really dance for the stock holders any more. It's more for the creditors and credit rating agencies. I suppose some of them have offices on Wall Street.
 
Airlines are just very complicated business. One thing that really hurts about the industry is that once you have a lot of capital it is not that hard to start up one. This tends to happen on the upswing of things and ususally steals market share from the big developed airlines. Another downfall with the industry are the high barriers to exit, with bankruptcy laws that keep failing airlines around and hurt the airlines that are in a position to do really well. US load factors are high but the industry is still hurting, I wonder why? Many people criticise Delta and the other majors for cutting fares, but I think there is strategy behind that. Lower fares enough the create predatory pricing and run the failing airlines out and thus leave the industry in a position to do well. But who knows.
 
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