crownvic
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US Airways And Their Int'l Fleet

Wed Nov 29, 2006 2:57 pm

Can someone tell me why an airline like US Airways can make a outrageous bid for Delta, but cannot afford to add A330 or 767 equipment to bolster their international fleet? Here is an airline that operates their international operation with nearly no margin for error. Every a/c is accounted for and if there is a hiccup, it's a headache for them.

I watch airlines from all over the world including poor third world nations picking up aircraft of the same caliber with little or no trouble, yet US seems to avoid doing this. What is their thinking?
 
vega
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RE: US Airways And Their Int'l Fleet

Wed Nov 29, 2006 3:02 pm

Well if they planned for some time to merge with DL or ?, then why should they spend $ buying/leasing new wide body aircraft?
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USAirways737
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RE: US Airways And Their Int'l Fleet

Wed Nov 29, 2006 3:04 pm

Deciding not to buy or lease extra aircraft is entirely different than not being able to afford them. Why should an airline (esp. US with their being in the midst of a merger) pay for extra aircraft that aren't being utilized? They clearly have done some sort of cost-benefit analysis and figured out that the costs of rebooking passengers isn't as much as buying/leasing extra aircraft. Trust Parker, so far so good...(but hoping he'll give up on the DL merger)

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flydreamliner
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RE: US Airways And Their Int'l Fleet

Wed Nov 29, 2006 5:19 pm

Actually,

They have a number of A330-200s ordered which are scheduled for delivery in a couple years.... and what, 20 A350s ordered for whenever they actually design and start building those too.

It makes no sense to buy second hand or lease when they have more longhaul equipment ordered .... they cannot wait for the A332s to arrive, but their best option is just to sit tight until then.

Quoting USAirways737 (Reply 2):
Trust Parker, so far so good...(but hoping he'll give up on the DL merger)

He won't give up.... your best bet is that the creditors will just pass on his offer... and citibank isn't about to give him MORE money to go buy Delta with... Parker tossed one hell of a hail mary, and if it pans out for him, he gets control of what would become the world's largest airline for pennies on the dollar when three years ago he was the CEO a marginal low cost carrier.....

That said, he hasn't fully worked out the HP/US merger.... so my guess is he tossed DL in the mix, it would probably get ugly.... he would also have to deal with regulators.

PS, the labor and fleet issues he would run into in "new delta" would be a big enough headache to send most execs into early retirement. You try working 3 different airlines for seniority, pay, pension, benefits, and labor guidelines... which hubs get shorted, how to set up mx, which fleets of aircraft work out of where? Hubs in JFK, PHL, CVG, CLT, and ATL? you know one or two of those easily are gone. LAS, PHX, and SLC? My guess is at least one of those goes away too. Then they leave the entire midwest more or less to UA and NW to dominate (and AA in the southern portion of the nation's center) and they would still have no Asian routes.

That said, the scariest merger of them all would be the UA/NW..... they would be the largest airline out of NRT, would be the largest carrier across the pacific by a good margin, and they would have a solid foothold into Europe between UA's growing european network and NW's close partnership with AF/KL. That and they would own a large portion of the midwest....
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steeler83
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RE: US Airways And Their Int'l Fleet

Thu Nov 30, 2006 9:29 am

I am starting to loose interest in the USDL merger, and in fact, I don't like it as much now. If this thing goes through, it will likely spark other mergers, like the ones mentioned above, leading to a considerable consolidation of the airline industry. Consolidation is supposed to offer "lower fares?" If they wind up merging with a compeditor, they will then be able to charge pax whatever the heck they please. It's called monopoly... Then the big thing in the next presidency in the 2012 election should that happen will be the need for another trust-buster. Are there any descendents of Theodore Roosevelt out there?
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whappeh
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RE: US Airways And Their Int'l Fleet

Thu Nov 30, 2006 12:52 pm

Delta literally has no Asian routes? I thought they did Tokyo?
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AirframeAS
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RE: US Airways And Their Int'l Fleet

Thu Nov 30, 2006 12:58 pm

Quoting USAirways737 (Reply 2):
Trust Parker, so far so good...(but hoping he'll give up on the DL merger)

He isnt going to give up, this is a FACT. I dont trust Parker anymore, my views about him have turned around big-time in the last month.

Quoting FlyDreamliner (Reply 3):
Parker tossed one hell of a hail mary, and if it pans out for him, he gets control of what would become the world's largest airline for pennies on the dollar when three years ago he was the CEO a marginal low cost carrier.....

If he loses, he is betting his career on the line, which is foolish, IMO.

Quoting FlyDreamliner (Reply 3):
he would also have to deal with regulators.

Oh, he will sooner if not later.
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centrair
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RE: US Airways And Their Int'l Fleet

Thu Nov 30, 2006 1:20 pm

Quoting Whappeh (Reply 5):
Delta literally has no Asian routes? I thought they did Tokyo?

They have ATL-NRT and soon ATL-ICN with DL metal.

DL is in the same boat as AA and CO for Asia. With no 5th freedom rights, they have to choose their routes very carefully.

If US and DL were to merge, then they would have tons of planes for trans-atlantic. They would still not have enough A/C to really accomplish efficient Asian routes. Some of DL's planes (767 and 777) and the A332 can do Transpac but they would need to build up LAX big time.

Without merger, US will need the A350 or equivalent AC to expand deeper into Europe or to Asia. Though the A332s can make trans-pac, they would be limited on destinations. Can the A332 do PHX-Japan easily? It has range but what about high and hot? What aobut LAS? The A332 cannot to East Coast to Asia, can it?

[Edited 2006-11-30 05:21:46]
Yes...I am not a KIX fan. Let's Japanese Aviation!
 
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kc135topboom
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RE: US Airways And Their Int'l Fleet

Thu Nov 30, 2006 1:21 pm

Quoting Steeler83 (Reply 4):
It's called monopoly...

That is why the US DOJ is looking very closely at this merger proposal. There are lots of anti-trust questions about it.
 
AirframeAS
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RE: US Airways And Their Int'l Fleet

Thu Nov 30, 2006 1:27 pm

Quoting KC135TopBoom (Reply 8):
That is why the US DOJ is looking very closely at this merger proposal.

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Quoting KC135TopBoom (Reply 8):
There are lots of anti-trust questions about it.

Too many questions...thats whats going to kill the merger.
A Safe Flight Begins With Quality Maintenance On The Ground.