Your wish for the demise of US has become almost a fetish with you. The company is on a successful road to restructuring, and as a matter of fact gained additional liquidity today with the higher offer accepted from RSA vs. the orginal TPG offer. Seigel has done an outstadning job getting the labor groups on board. With a significantly increased RJ fleet, and the UAL codeshare, revenues will stand to increase significantly in the next year. This is coupled with costs which will be an estimated 6% below Continental. The rumored introduction of the EMB-170 at Mid-Atlantic Airways will give US a unique competitive advantage in the east with mainline aircraft sized seating, a first class cabin, and stand up room throughout. This will be an advantage to gain back market share from the revenue poaching of Delta Connection and Eagle that has occurred for years.
The interesting thing to watch will be how the other majors react to the changing economic realities of today's marketplace. Will they work to reinvent themselves as US has done, or will they continue to place their heads in sand waiting for better days, with no guarantee when the cash burn will stop?
Sorry, but I have to side with DCA-ROCguy on this one. I'm not a big fan of companies that get out of financial problems by stiffing their creditors, paying their employees less, and then make it sound like they're "working hard" to "reinvent" themselves. Even you cannot deny that there is some degree of unfairness evident toward airlines that more or less have their financial house in order. In this case, the airline most exposed is Delta, long hailed as one of the most fiscally responsible companies in the industry.
But there's nothing we can do about that.
What really gets me is when Delta starts taking steps to defend its markets and ensure its continued competitiveness, David Siegel resorts to childish, immature name calling. I mean, let's be real here. US Airways goes into Chapter 11, simply walks away from a good chunk of their financial obligations, forms an alliance with United, and talks about entering the Star Alliance, and on top of that, David Siegel expects Delta to simply roll over and let US, with United's aid, eat into Delta's valuable east coast market share?
Unfortunately, the reality is different. There's talk now that negotiations between US and creditors are turning nasty, and may keep the company from emerging from Chapter 11 by Q1 '03 as their Great Fearless Leader, David Siegel predicts. And like it or not, Delta's financial resources, fleet of RJs, and global reach are things that US can only dream of. The DL/NW/CO alliance will be a formidable competitor for UA and US to reckon with. For anybody at US Airways to somehow convince themselves that bankruptcy will solve all their problems is frankly laughable. If, of these two companies, one must die, the one that has been the responsible one will not be the one to go. Of that you can be certain.
Here's to more Delta Connection RJ's at National.... Maybe we can get a 757 or something painted up in a special "Axis of Evil" livery.
It's a new day. Every moment matters. Now, more than ever.