Srbmod From , joined Dec 1969, posts, RR:
Reply 5, posted (14 years 1 month 2 weeks 10 hours ago) and read 1210 times:
What's happening to AirTran is the same stuff that been affecting the industry as of late. The effects of the current economic slowdown has now reached the companies that had been doing quite well. I wouldn't be surpirsed to see CO and LUV report lower than expected earnings this quarter as well. FL, WN, and CO have been the only airlines this year in the U.S. to maintain profitability. These airlines are now feeling the pinch everyone else is feeling as well. And to add to AirTran's woes is the fact that Delta is going to start competing on three of AirTran's big moneymaking routes next Saturday. I feel that Delta introduction of mainline service on the ATL-VPS route, and new service on the ATL-CAK and ATL-MDW routes are nothing more than predatory practices on the part of Delta. I see Delta staying on the ATL-VPS and ATL-CAK routes for no more than 3-6 months before they realise that those route might be better suited for ASA, and ATL-MDW will probably last no more than a year tops. The advantage AirTran has in CAK and MDW are flights to other cities than ATL from them, and I don't think Delta fully realizes what they're going up against. They should have started up service to MDW and CAK with ASA, and then decide if those routes needed to be upgraded to mainline service. VPS is not really suited for year-round service from Delta, and taking over for ASA on the route is not very smart indeed. AirTran is nowhere near filing for Ch. 11; had the current economic situation happened last year while they were trying to figure how to payoff their outstand debt that was coming due, they might have had to file for Ch. 11. I don't think 10 straight quarters of profit leads a company down the road to Ch. 11.
JetSpotter From Australia, joined May 2005, 0 posts, RR: 0
Reply 6, posted (14 years 1 month 2 weeks ago) and read 1195 times:
As long as Delta plays it fair (No Hacking Computers, No Special MD88's like AA did with the F100, etc) I don't have a problem with it. It means more people to the destination and more people get to enjoy Delta's popular service.