US Airways increases offer for Delta Air Lines
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Maximilian_Jenius
Super User
Looks like all the rumors might be true. But I'll hold my judgement off until the ruling is official!
CFIscare
Well-Known Member
That doesn't mean anything though!
Competition is filling those planes, no doubt about it. But that's what is killing the industry. They are filling these planes with to many "Super-dooper low fares". Every airline, again except for WN, has lost its power to price the fares they need to be profitable. Instead, they rely on the competition to set the bar. With US and DL merged, there will be less competition, meaning they will regain control of pricing and set it to a profitable level that would make them secure for the long run, and not relying on current events to dictate how profitable they are.
It isn't about full flights. It is about what those customers paid to get on those flights. Reduce the supply. The demand will still be there, but more revenue would be generated.
kellwolf
Piece of Trash
Even with the decreased demand, they're not decreasing it from WN, AirTran or the other "price setters," so I don't think they get that back. On the routes they DON'T compete with WN on (say JFK-AMS) they can still set their price even now. On an MCO-BOS route, not so much, even if they did merge. WN is still gonna be the price setter. I still don't see it helping too much, at least not enough to gamble a billion on.
CFIscare
Well-Known Member
LCC's absolutely will not go along with it. And that is why I think Parker wants DL, since their network overlaps US so much, it greatly increases the effect of what he is after in these airline mergers. Most of the markets DL and US flies to do not have competition for WN and such, and by merging with the main competitor (DL), they greatly increase their affect of pricing power.
Since LCC's will never go away, there is no use in fighting a fellow legacy carrier that can never be won. Instead, use the combined resources to fight the harder competitor....the LCC's.
Maximilian_Jenius
Super User
Psssst,you forgot to include the word synergies in your post!
Maximilian_Jenius
Super User
You really seem to have a hard-on for US Airways. Look,they're a two bit major who only really has routes in the US. If you go outside of the country you hardly see them. They barely have any international flying. Europe,hardly. Asia? Nope. Which is yet another reason they want Delta like a NAMBLA member lust after a boyscout.
How's about instead of buying their way to greatness. They *gasp* actually build up they're airline, start new routes and become more of an international presence in their own right.
CFIscare
Well-Known Member
That's a given. :nana2:
CFIscare
Well-Known Member
No, I have a hard-on for this industry. I truly think this is what is best for this industry.
I'll tell ya what....i highly doubt it has to do with the LCC carriers since Delta is more of an international company than a domestic company.
CFIscare
Well-Known Member
I'm a little confused. Are you talking about the merger?
surreal1221
Well-Known Member
You have a family member, a father correct, that flys/works for US Airways. . . err, America West. . . err, whatever you guys call yourselves, right?
Now do you truly think this is what is best for the industry, or are you just stating the repeated Kool-Aid coming through the door via your father (or other family member)? Or is it you yourself that is drinking straight from the pitcher?
As much as I hate ivy league financial advisors and planners (they really know how to screw hard working individuals in this country by lowering the bottom line, instead of raising product purchase price), I really hate those who think they know what is best for the industry without providing any substantial guidance to persuade others to either agree with them, or disagree with them further.
Maximilian_Jenius
Super User
As you're husband would say. Xctly. US Airways strong suit is the eastern US seaboard,they have that locked up. Delta is their largest competitor east of the Mississippi. They're (US Airways) more of a domestic airline with no real international presence. Verses a domestic airline WITH an international presence!
CFIscare
Well-Known Member
You have a family member, a father correct, that flys/works for US Airways. . . err, America West. . . err, whatever you guys call yourselves, right?
He use to...yes.
Now do you truly think this is what is best for the industry, or are you just stating the repeated Kool-Aid coming through the door via your father (or other family member)?
Now how exactly would this be kool-aid coming from my father? He could be hurt the most from this.
I really hate those who think they know what is best for the industry without providing any substantial guidance to persuade others to either agree with them, or disagree with them further.
I'm trying my best to keep my cool here buddy, but do you know what I hate? I hate people who argue with people by only flaming them personally (false flaming I might add) and don't provide any "substantial guidance to persuade others to either agree with them, or disagree with them further."
He use to...yes.
Now do you truly think this is what is best for the industry, or are you just stating the repeated Kool-Aid coming through the door via your father (or other family member)?
Now how exactly would this be kool-aid coming from my father? He could be hurt the most from this.
I really hate those who think they know what is best for the industry without providing any substantial guidance to persuade others to either agree with them, or disagree with them further.
I'm trying my best to keep my cool here buddy, but do you know what I hate? I hate people who argue with people by only flaming them personally (false flaming I might add) and don't provide any "substantial guidance to persuade others to either agree with them, or disagree with them further."
Lemme give you a little sodium pentathol, allow some time to digest and I'll ask you the question again!
CFIscare
Well-Known Member
...and that has to do with what here?
This merger isn't about how many big bad widebodies an airline flies. It is about competition here at home. International routes are just icing on the cake.
Remember that last major U.S. airline that only had its major presence internationally? I'll give you a clue. It starts with a Pan.
CFIscare
Well-Known Member
Lemme give you a little sodium pentathol, allow some time to digest and I'll ask you the question again!
surreal1221
Well-Known Member
No flame . . . just asking why, (perhaps I missed it in the previous US Airways/America West cheerleading fest), this is going to be good for the industry.
And don't worry, you can lose your cool with me buddy. Perhaps some honesty will assist in bringing the truth out.
I see a power hungry CEO, who lacks the ability to develop his route structure to the markest that Delta current holds strong. Those routes, are all international routes. US Airways would make billions off of this deal, off of the backs of hard working Delta employees who DO NOT want to work for a power and money thirsty CEO who HAS YET to deal with labor issues at America West or US Airways. Please buddy, tell me how this is going to be good for the industry? How is this move, if successful by US Airways, going to better labor relations within the aviation industry? How is this move, if successful by US Airways, going to be good for the customer? How is this move, if successful by US Airways, going to be better for retired Delta employees, or Delta's pilots who have just lost pensions and now will - on average - draw in the $35,000 range in retirement.
Far too many negatives there for me, and I think any other honest individuals to support this idea. At least any individual who is pro-aviation labor.
And don't worry, you can lose your cool with me buddy. Perhaps some honesty will assist in bringing the truth out.
I see a power hungry CEO, who lacks the ability to develop his route structure to the markest that Delta current holds strong. Those routes, are all international routes. US Airways would make billions off of this deal, off of the backs of hard working Delta employees who DO NOT want to work for a power and money thirsty CEO who HAS YET to deal with labor issues at America West or US Airways. Please buddy, tell me how this is going to be good for the industry? How is this move, if successful by US Airways, going to better labor relations within the aviation industry? How is this move, if successful by US Airways, going to be good for the customer? How is this move, if successful by US Airways, going to be better for retired Delta employees, or Delta's pilots who have just lost pensions and now will - on average - draw in the $35,000 range in retirement.
Far too many negatives there for me, and I think any other honest individuals to support this idea. At least any individual who is pro-aviation labor.
CFIscare
Well-Known Member
No flame . . . just asking why, (perhaps I missed it in the previous US Airways/America West cheerleading fest), this is going to be good for the industry
Just look on page 1.
And don't worry, you can lose your cool with me buddy. Perhaps some honesty will assist in bringing the truth out.
I may be young, but I am not stupid. Losing my cool only provides fuel for people to flame me.
Experience....you betcha.
Just look on page 1.
And don't worry, you can lose your cool with me buddy. Perhaps some honesty will assist in bringing the truth out.
I may be young, but I am not stupid. Losing my cool only provides fuel for people to flame me.
Experience....you betcha.
Maximilian_Jenius
Super User
Duuuuuuude. You don't know what you're talking about. International flights are the big money makers,not domestic. And if you think that Pan Am was a domestic only company,then how exactly did Delta become the number one airline to Europe???
