BP1 From United States of America, joined Aug 2007, 593 posts, RR: 1 Posted (6 years 9 months 1 week 2 days 8 hours ago) and read 2706 times:
With 16 loss leading quarters (4 years), is it time for AQ to hang up the towel? If so, how would you see them selling off assets? Also, if they needed to raise money quickly, what assets and international route authorities do they own that would make good business sense for another company to pick up?
The 737-200's are certainly getting older and the amount of cycles on those jets must be jaw dropping.
Do they own any unused slots at US airports that are worth anything?
Do we think go! is really there waiting for AQ to fail so they can try to pick up the inter-island demand?
Look forward to your thoughts.
"First To Fly The A-380" / 26 October 2007 SYD-SIN Inaugural
F9Animal From United States of America, joined Dec 2004, 5055 posts, RR: 28
Reply 1, posted (6 years 9 months 1 week 2 days 6 hours ago) and read 2588 times:
It is indeed awful that they are still taking losses. GO! has to be hurting them even more. There are so many darned obstacles facing them, especially the price of fuel. To be honest, if fuel drops, then it will be much easier for them to find profit. I can't imagine the agony the employees and execs are facing every time they post losses.
What else can they do to find profit? Maybe park a few planes, but what does that do to the bottom line? How big is their fleet right now? Perhaps they can merge with HA? Or, maybe an investor can come in and grow them into profits? I really want them to survive!!!
SpencerII From , joined Dec 1969, posts, RR:
Reply 2, posted (6 years 9 months 1 week 2 days 3 hours ago) and read 2488 times:
Quoting F9Animal (Reply 1): What else can they do to find profit? Maybe park a few planes, but what does that do to the bottom line? How big is their fleet right now? Perhaps they can merge with HA? Or, maybe an investor can come in and grow them into profits? I really want them to survive!!!
AQ will not find profit in their route structure for quite sometime. They need to & should have diversified their route structure to be less reliant on Hawaii in/outbound & local traffic. Their successful model of the 60's70's 80" and part of the 90"s doesn't work anymore. Hawaiian is on a plan to diversify Internationally as they have done in the past, and they also see that interisland traffic projections are lackluster.
I believe we are seeing the curtain fall on AQ, and if there is any recovery for them, it would have to be through the investment that United has made in AQ, or a drastic company model change to something thats working other places such as Allegiants operations. Other than that, what do they have besides old planes that are "master-Fuel burners" (non-compliant with most mainland airport noise restrictions) ?
My feeling is if they want to do a turn around, they need to start an operation similar to the Allegiant model on the mainland with a bare bones service to somewhere that tourists want to go besides Hawaii.