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DC Air?

Wed May 24, 2000 10:55 pm

Here's an exerpt below from the Washington paper regarding the US Airways buyout.... apparently, to get the deal done, United is going to have to sell a large part of US Airways' Washington business.

"Out of the crosswinds of the United-US Airways deal, Black Entertainment Television founder Robert L. Johnson hopes to emerge as the owner of a substantial airline that operates out of Reagan National Airport. Named DC Air, the new company is expected to take over most of US Airways' routes out of National. DC Air, which would serve 44 cities with 122 daily departures, would acquire valuable takeoff and landing slots at National that smaller airlines have coveted for years. Sources said Johnson would gain all the current US Airways slots at National except for those kept by United to gain access to international hubs at Philadelphia, Pittsburgh and Charlotte. Sources said that while arrangements are "changing by the hour," Johnson would apparently not buy any planes but would "wet lease" aircraft, meaning that he would lease the planes, the crews, insurance and maintenance from another airline, probably United."

Kind of reminds me of New York Air from the early 1980's. Remember those red planes with the apple on the tail? I wonder what kind of logo they'd use for DC Air.
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RE: DC Air?

Wed May 24, 2000 11:10 pm

I dont mean it the way it may sound. Mr. Robert Johnson is a very bright and talented individual but i am wondering if they put him head of the new "DCAIR"
to make it easier for the anit-trust regulators to approve this deal. Since he is african american and would probably be the first african american CEO of an airline in the USA maybe the Dept. of Justice would look more kindly upon this operation. Just a thought.
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RE: DC Air?

Wed May 24, 2000 11:33 pm

Yes, they did indicate on the news here in DC that his minority status will help get the Clinton administration to approve this deal. Good for Mr. Johnson, he is on the board of directors at US Airways and is a very smart man....... he should do well with this.
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RE: DC Air?

Wed May 24, 2000 11:39 pm

US-UAL are playing this just the way they shoud... they are highlighting the fact that they have very little overlap, and they're divesting a successful operation as a sacrificial lamb and an olive brance to the DOJ.

UAL is guaranteed ongoing rev's from DCA due to the service to PHL/PIT/CLT/ORD/etc, and even more from the wet lease arrangement at DC Air!

This is a good deal... this will be a great airline... and DC Air is a great idea - another megastartup with an established market and a solid customer base.
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RE: DC Air?

Thu May 25, 2000 12:41 am

MSNBC's latest on the DC Air creation:

"It wasn’t clear Tuesday exactly what Mr. Johnson would purchase, although it is thought he will buy PSA Airlines, a wholly owned US Air commuter subsidiary, and lease Boeing 737-200s from United."


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RE: DC Air?

Thu May 25, 2000 2:46 am

Of course, it would be most appropriate if DCAir takes over US Airways remaining DC-9s and Uniteds DC-10s  
nobody has ever died from hard work, but why take the risk?

RE: DC Air?

Thu May 25, 2000 4:00 am

This looks like a sham. United wouldn't even want these routes out of DCA. All of the high rev and yield routes are going to United. The most profitable part of operating out of DCA is the Shuttle operations and the feed to PIT, PHL, & CLT which United is going to keep. That leaves such prosperous destination like Louisville, Hartford, Providence, & Manchester (starting to sound like a Southwest Airlines Ad). DC Air will probably end up being a "Son of Metrojet" with 737-200's and regional props competing in low yield markets.

It's also going to be interesting to see how the US Airways Express carriers like Mesa are going to be affected by this.

Just my frustrated opinion as I see my favorite airline selling out.

JB in DC

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