if you look at their size in terms of revenue pre-COVID, they were 1/5 big 3. Their cash burn is definitely less than 1/5 of big 3. So they are doing well. Maybe better than any other airline out there. AS has much less international exposure, so most of their network hasn’t been as dramatically im...
Jump to postSeriously, where does everyone think the money to fund a merger will come from? Integrating IT and res systems, standardizing fleets and product offerings, this stuff is all extremely expensive people. And that's on top of all the debt that all the airlines will be carrying for a while.
Jump to postSome random notes from earning call. > Probably toughest period in the companies history > No doubt will be smaller company come Oct 1st. From day one of the crisis has been transparent and direct in communication with staff > Expect "jagged" recovery > Demand stalled at end of June/early...
Jump to postFor a second I thought it said "Reno Air" and I had to do a double take.
Jump to postklm617 wrote:catiii wrote:klm617 wrote:Aren't AS and B6 on the same team now ?
No. They aren't.
Call me naïve but I think these three are working together towards a common goal so in my estimation they are all on the same team at this point. But what do I know.
Well this is quite the coup. I'd love to have been a fly on the wall when they were negotiating codeshare revenue splits. I have an inkling it was very favorable to B6. Agreed on the earlier point re: JFK vs PHL. When international travel does come back in appreciable numbers, it'll be interesting t...
Jump to postI almost forgot how bloody long it takes for the government to publish this data.
Jump to postMaybe airlines should consider having a rainy day fund for things like this? Or some type of insurance for downfalls? I do think this downturn will see the survivors having action plans in the future for a similar situation. The problem then becomes the airline has all this money just sitting aroun...
Jump to postI doubt AA would want a bunch of used, leased Airbus frames that they wouldn't even be able to fill in the current environment.
Jump to postWhen something is highly successful, you don’t change it. So lots of churn is usually a sign that something is floundering and needs to be fixed. In an industry where the dynamics are constantly shifting, it's insane to view change as a sign of weakness. One of the primary purposes of metal-neutral...
Jump to postThe JV partners share revenue and losses. So it can't just work for one side. And typically, DL likes to push marginal routes to the partners with lower costs to improve the economics of the flight. Which is good for both partners. One could argue that by tying planes and slots to the JV the partne...
Jump to postFunny take from Crankyflier “This is stupid,” Snyder told TPG on Thursday. “It’s smart that they’re finally leaving Long Beach. However, instead they’ve decided to go into one of the most competitive airports in the world on routes where they’ll really add little value and I don’t see how this work...
Jump to postn9801f wrote:When something is highly successful, you don’t change it.
So lots of churn is usually a sign that something is floundering and needs to be fixed.
I wonder how Jetblue will fair there. LAX is highly competitive. IMO they should've just sucked it up and outbid AS for VX. SFO is a better fit for them. To be fair, AS had the deeper pockets and the better credit. If there was at least a shred of truth in what AS management said about the value of...
Jump to postIf so, what is the proof that the JV was working well for them? If anything, SRB not selling stake to AF/KL after all the equity swap hoopla never struck the right tone... After having a JV exclusively with DL for a few years, VS then worked with DL to be added to the much larger DL-AF-KL JV. If th...
Jump to postIt can also be argued VS was on the road to recovery, bolstered mostly by the gained efficiencies from their DL - AFKL JV for transatlantic traffic. They were estimating to turn a profit in 2021 before the corona-virus. https://www.reuters.com/article/us-virgin-atlantic-results/virgin-atlantic-targ...
Jump to postbut no one has actually offered a reason why LA or AM or VS, assuming they come out the other end of this would have any reason to walk away from JVs that, by all accounts, work well enough. The reason these carriers are easy to flip is that Delta wasn't a great network fit for them to begin with a...
Jump to postYeah, you are right - the JVs work so well that almost every single one of those JV partners are not able to make profits even in the best of times. Certainly more than they would without access to DL code, feed, and FF members. And when things were "the best of times", airlines like AM, ...
Jump to postA lot of that will depend on what shape LATAM emerges from bankruptcy. It is highly doubtful that UA considers AV to be an asset anymore - their Peruvian operations (they even had a Brazilian operation, although separate) were the major component that set the apart form Copa’s network. I don’t see ...
Jump to postI can definitely tell you one that is easy to flip - LATAM - they came to DL for the money, they will definitely go wherever there is more money. Why would LATAM be easy to flip? A joint venture with AA was already rejected, so that seems like an unlikely choice for them to return. United is in the...
Jump to postI wonder if AS will have to give up some of their current international alliances like SQ, FI and EK when they join OneWorld. Nope, they won't. And these days, that would put them under anti-trust scrutiny. For example, the Korean Air and Delta JBA included a condition that Delta cannot interfere w...
Jump to postSo theoretically how big can B6 grow to in EWR? I can definitely see possibly UA subleasing their T1 gates to B6 to make a quick penny. (UA has confirmed they have gate and lounge space in T1) I know Kirby's been the most pessimistic person in the US business since this started, but I don't see the...
Jump to postNo matter how theoretically beneficial some sort of tie up might be, there's no getting around how it would heavily cannibalize US airlines' existing European JVs. I don't see how anyone squares that particular circle.
Jump to postElection is in November. Could there be another aid package to the airlines to prevent furloughs in October? As others have mentioned in other threads, with unemployment approaching something like 25% airline furloughs likely won't be that salient of an issue even on the heels of the election. That...
Jump to postTWA772LR wrote:I would love to be a fly on the wall of Frontiers network planning department
Do you have any link on this? New schedule release through January 4, 2021. Full schedule planned by December. Yeah, "On Thursday, the Dallas-based carrier extended its schedule through Jan. 4, 2021. The plans call for about as many flights as it flew at the end of 2019 by the end of this year...
Jump to postI think what we will see coming out if this is Delta pretty much the same size at DTW, SEA, SLC and NYC while MSP and ATL getting reduced 15 to 30%. ATL, MSP and BOS were all connection heavy markets or low yielding transfer points while DTW, SEA, SLC and NYC being more O/D based. What I don't see ...
Jump to postSo for 20+ years some people have been saying a pandemic is coming, so airlines should have been better prepared? Which means they should have sat on 10's of Billions in cash for the last 20+ years for when the "predicted" pandemic hit? Yes, they should have been more prepared, especially...
Jump to postCongrats to WN. Agreed that the short-haul/long-haul split seems pretty arbitrary, especially the 800mi cutoff. I did some double checking on GCM and by JD Power's standards, something like DCA-MIA or BOS-ORD would count as long-haul. It's all subjective of course, but I'd personally put the cutoff ...
Jump to postNo one could have predicted a Global Pandemic. That's exactly why don't say it... I presume that’s also exactly why it is not justifiable that DL made a ‘brilliant’ move investing billions into a loss-making carrier like LA? And here I thought we'd make it to the second page before someone tried tu...
Jump to postNo one could have predicted a Global Pandemic. Complete nonsense!!! I really wish people would stop saying that. Virologists, epidemiologists, biologists, and various research institutions have been predicting this for the past two decades at least. Thr truth is the airlines had poor business conti...
Jump to postIs there a reason why they'd state the severance as '3-6 months at 1/3 pay' instead of just '1-2 months pay'?
Jump to postAA was always a better fit until the Chilean government nixed their JV application. Ultimately, what LA needed was a JV and all of the additional US network and point-of-sale access that would have entailed. And there's no reason to believe just yet that those same competitive issues the Chilean au...
Jump to postInteresting argument, Kavok. Although maybe it’s simpler? Here’s my thought: None of the three airlines (Delta, LATAM, Qatar) wants the 4 A350’s right now. QR dumps them back to LA at lease end. DL sheds its obligation to buy them by paying a $62M break fee. Now LA can probably get rid of them in C...
Jump to postDoes anyone think Southwest will put the squeeze on a weakened Delta in ATL? If the last five years have been any indication, ATL isn't a big priority for them. It would make more sense for them to focus on areas they've already been focusing on: DEN, DAL, Southern California, Hawaii whenever the l...
Jump to postLast thursday was a religious national holiday (Ascension of Christ) that many people used to "bridge" including the weekend. Some perfect quiet time to finally get this deal done. That makes sense. I looked up German holidays before asking the question and saw it, but thought it was too ...
Jump to postmxaxai wrote:GEUltraFan9XGTF wrote:Any update on the Airbus condition today?
Not expecting any decision or even public debate on a holiday weekend.
WN isn't really an LCC because their *costs* are not really *low*. However, thanks to its different business model and operational style, here WN has more liquidity. Result? Possibly, WN can distribute its fleet over a bigger network... fully replacing, say, American Airlines' domestic network. Jus...
Jump to postDoes anyone think Southwest will put the squeeze on a weakened Delta in ATL? If the last five years have been any indication, ATL isn't a big priority for them. It would make more sense for them to focus on areas they've already been focusing on: DEN, DAL, Southern California, Hawaii whenever the l...
Jump to postPlaying devil's advocate, how applicable is the "Southwest Effect" over the next few months? I get that passenger numbers are on their way up, but how much latent traffic is there to actually be stimulated? I can only talk about one route that I fly a lot: Dallas / Chicago Looking at July...
Jump to postPlaying devil's advocate, how applicable is the "Southwest Effect" over the next few months? I get that passenger numbers are on their way up, but how much latent traffic is there to actually be stimulated?
Jump to postIt's not as though Qatar (the airline or the country) has gotten out of this unscathed. I doubt there's much appetite for big ticket purchases anywhere in the Gulf right now. Qatar is actually in a unique situation. Its energy export is more in natural gas than oil. So it is relatively less scathed...
Jump to postHeck, I imagine a US carrier can be purchased with change found in a Qatari sofa cushion at this point. I wish them all well, however they choose to proceed It's not as though Qatar (the airline or the country) has gotten out of this unscathed. I doubt there's much appetite for big ticket purchases...
Jump to postI highly doubt they were given less than a months notice. I believe it’s closer to a furlough with rights to come back according to seniority. Just going off the article. Maybe there was internal communication earlier on to that effect but I'd be surprised if it was communicated to workers beforeha...
Jump to postCripes almighty I feel for these AC workers. I can't imagine how chaotic it would be, laying off half your workforce with less than a month's notice. There may be some differences in terminology between Canada and the US but when the article says layoff, is it a full severance or something closer l...
Jump to postCripes almighty I feel for these AC workers. I can't imagine how chaotic it would be, laying off half your workforce with less than a month's notice. There may be some differences in terminology between Canada and the US but when the article says layoff, is it a full severance or something closer li...
Jump to postAA has already published a September vacancy/displacement. E190-75/76-a330 pilots all being displaced. New positions CLT 737/777 and MIA 787. Whoa!! That appears to deserve its own thread? AA E190, 757, 767, A330 all being retired semi-permanently? Is that correct? It's believable, so I am asking. ...
Jump to postTwo famous quotes from Robert Crandell, former President and Chairman of American Airlines. I've never invested in any airline. I'm an airline manager. I don't invest in airlines. And I always said to the employees of American, 'This is not an appropriate investment. It's a great place to work and ...
Jump to postIs it possible that how Korea dealt with Covid-19 could mean KE will be in a favorable position once traveling becomes normalized again? For what it's worth, with places like Australia/NZ talking about "travel bubbles" between themselves, South Korea could be in a decent place to establis...
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