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Is US Air Doomed?  
User currently offlineDayflyer From United States of America, joined Sep 2004, 3807 posts, RR: 3
Posted (9 years 9 months 17 hours ago) and read 2081 times:

Read this and you may agree

http://www.usatoday.com/travel/columnist/brancatelli/2004-09-17-brancatelli_x.htm


One Nation Under God
6 replies: All unread, jump to last
 
User currently offlineSupa7E7 From , joined Dec 1969, posts, RR:
Reply 1, posted (9 years 9 months 17 hours ago) and read 2033 times:

Brancatelli is one of the foremost Crayola-wielding armchair CEO's of them all. This column takes the comments of the Sept BK filing papers far out of context, that being market shifts that NO ONE, including financial markets, predicted. Oil at $53, did Wall St predict this? No. FlyI, did they exist last year? No. This guy has a job to scribble a dollop of "thoughts" for the public, but he has no expertise.

This guy wrote a column just today saying all legacy carriers should immediately adopt LCC simplified fares. MMMmkay..... He must think he's smarter than the army of people who work at legacy carriers. Perhaps he is. Or perhaps he works for a crummy paper and knows virtually nothing, which is my belief.


User currently offlineATLhomeCMH From United States of America, joined Dec 2003, 770 posts, RR: 3
Reply 2, posted (9 years 9 months 17 hours ago) and read 2017 times:

According to the filing, US Airways' "plan projections for 2004" pegged jet fuel at 80.5 cents a gallon. The airline's net cost is currently $1.105 cents per gallon.

How is this even possible? I know they can't predict the future, but given that their current cost is $1.105 a gallon, how could they possibly plan for it to be so low? I could maybe see a disparity of $0.10....but $0.30?!?!

It's frustrating b/c mistakes this foolish are going to cost a lot of hard-working people their jobs.

So in response to the initial question of the forum, I submit: "Yes."



"The most terrifying words in the Engligh language are, 'I'm from the government and I'm here to help.'"-Ronald Reagan
User currently offlineDayflyer From United States of America, joined Sep 2004, 3807 posts, RR: 3
Reply 3, posted (9 years 9 months 17 hours ago) and read 1977 times:

One would think they are doomed from the article, but I doubt anyone could foresee the spike in oil prices. But the point is: IT IS NOT JUST THE OIL prices. The airline has been mismanaged and the whole Southwest point is well taken. They were beaten on many different fronts by SW and had to retreat from the best hub they had: Baltimore. SW attack on US has been relentless, like a shark that smells the blood of a baby seal in the water.

IMO, From Baltimore US could have expanded International service and had a far better reception than Philladelphia-with higher yeilds and better frequency; Southwest would have had no effective answer other than to increase domestic capacity. US Air should have matched rates all along, with the higher international yeilds subsidizing the battle with SW over Baltimore.



One Nation Under God
User currently offlineEA CO AS From United States of America, joined Nov 2001, 13517 posts, RR: 62
Reply 4, posted (9 years 9 months 16 hours ago) and read 1900 times:
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Is US Air Doomed?

Yes. They simply don't have a viable business.



"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
User currently offlineATLhomeCMH From United States of America, joined Dec 2003, 770 posts, RR: 3
Reply 5, posted (9 years 9 months 16 hours ago) and read 1871 times:

One would think they are doomed from the article, but I doubt anyone could foresee the spike in oil prices. But the point is: IT IS NOT JUST THE OIL prices.

That was my point as well. Notice, I said mistakes this foolish are going to cost a lot of hard-working people their jobs.

This poor financial planning is just one of the indicators of how inept the management has been. I just honestly don't believe that US could have realistically anticipated such a low fuel cost, predicition or not.



"The most terrifying words in the Engligh language are, 'I'm from the government and I'm here to help.'"-Ronald Reagan
User currently offlineSupa7E7 From , joined Dec 1969, posts, RR:
Reply 6, posted (9 years 9 months 16 hours ago) and read 1797 times:

ATL, in 2002 mgmt made a plan. Union at the time called it too pessimistic. Now they call it too rosy in retrospect. All well and good, but any outfit must respond to changes... not just predict them perfectly, which no one did, except Southwest.

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