And God forbid if US Airways diverted revenue from Delta... what would that mean??? A paycut for Leo Mullin and his poor underpaid pilots?? Jim Fan of realistic, fair salaries, across the board On Sun, 30 Jun 2002, Roger & Amanda La France wrote: > Aviation Daily: Delta's Mullin Prepares Defense For Potential US Air > Code Share > > By Steve Lott/Aviation Daily > > 01-Jul-2002 7:58 AM U.S. EDT > > > > > Delta CEO Leo Mullin is prepared to launch an aggressive marketing > attack against US Airways if it reaches a code-share deal with another > major airline this summer, and he vowed that Delta would sign its own > alliance to compete. > > In an interview last week, Mullin told The DAILY that Delta is clearly > the "target" airline of a US Airways alliance deal, and he fears that > Delta would see "revenue diversion" if US Airways partners with a larger > airline, such as United. A code-share deal "doesn't increase the revenue > pie," he said, but instead allows for those partner airlines to "get a > bigger piece of that pie." > > If US Airways partners with United, Continental or Northwest, Mullin is > prepared to form his own alliance with another domestic carrier and take > quick marketing actions in the areas of pricing and product development > to prevent US Airways and its potential code-share partner to bleed > revenue from Delta. "I will not allow revenue diversion to be > accomplished by the code share," he said. > > Even though Delta has the clear upper hand over US Airways along the > East Coast, they are still bitter rivals on many routes to Florida and > on the Northeast shuttle routes. A code-share deal with a major airline > with a larger network, however, could have a significant impact on > Delta's revenue recovery. > > Ready To Use An 'Armada' > > Normally mild mannered, Mullin expressed great passion for protecting > Delta's network and pledged to use carrier's "armada" of products and > subsidiaries to compete with a new US Airways alliance and the existing > low-fare carriers, such as Southwest and AirTran. Because US Airways > seems have taken longer than expected to sign an alliance with another > carrier, Mullin is in a wait-and-see mode. However, he said he does stay > in touch with "all parties" and is considering "a number of options" if > and when US Airways signs a deal. > > Ironically, US Airways for many years has been "the least attractive > girl at the airline prom," said JP Morgan analyst Jamie Baker. "Yet, > suddenly, suitors are lining up, flowers in hand." > > Of all the potential partners, he said a US Airways alliance with United > or Continental would be "materially more beneficial to US Airways' East > Coast network than to the suitor's network." He noted that the "apparent > eagerness" exhibited by Continental and United stems from the fact that > "the alternative -- sitting back and doing nothing -- is far more > dangerous." > > For Continental, in particular, it is better to "dance with the lonesome > prom partner in her current form than find out down the road what a few > years at the gym and a facelift can yield." Similarly, given United's > prior attempt to purchase US Airways, it has the "requisite analysis > that can be easily dusted off as it pursues US Airways," which may give > it the lead over Continental, Baker said. > > Regardless of which carrier US Airways picks as a partner, Mullin said > he is just as concerned now as he was during the period last year when > US Airways and United were attempting to merge. "Delta is still the > target," he said. >