Re: Begining of the end or just a bluff?

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UAL identified quite some time ago the desire to have a stake in US
Air, and the US Air Shuttle; which of course fell through.

Considering the moderate progress on UAL's financial situation under
bankruptcy protection, (and the fact AA/DL/NW are not in a similar
position), UAL may be able to find someone to lend them the money.

But what are you buying? It's not like buying international routes
where there are in many cases limited by capacity AND pricing, it's US
domestic unregulated travel (albeit with nice slots at LGA and DCA.)

US Air selling the shuttle would be like Pan-Am selling off it's
lucrative international routes, a last gasp.

Matthew

On Jan 8, 2004, at 5:58 AM, David W. Levine wrote:

> At 08:09 AM 1/8/2004, you wrote:
>> http://biz.yahoo.com/rf/040108/aero_usairways_1.html
>>
>> You must be in a really bad position to consider selling your hubs or
>> LGA slots.
>>
>> BAHA
>> Fan of change
> Yeah, especially given the rather short list of people in a position
> to buy
> the shuttle operation.
>
> UAL is probably in no position to do so, CO could, but is focused at
> the
> wrong airport, DL has no need, NWA probably can't
> afford it, and doesn't have the east coast position.... AMR, probably
> would
> love it. I expect they could figure out how
> to do it, but they aren't exactly rolling in cash. JetBlue? Tempting I
> expect. Who else has a big enough presence in
> the NY metro area to justify buying it? Or perhaps, who wants a bigger
> presence in the market?
>
> The hubs? PHL is a somewhat tainted asset, with WN setting up camp.
> Charolotte? Probably the best remaining asset, although a USAir
> reduced to
> PHL and PIT is pretty sad. And PIT? Well, they just decided to only
> re-lease 10 gates long term, so just what are
> you selling?
>
> I don't think that Logan is all that constrained for gates, is it?
>
> - David

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