Re: Industry Changes

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DL's was its own choice. UA couldn't do it because of the Ch. 11.
CO and NW, especially NW is not too different than the LCCs in terms of the
service. Try to get a meal in NW, or free headsets even free alcohol on COs
flight, even on international flights.

One thing UA and AA are doing is to distinguish themselves as the airline of
choice for business people. Both AA and UA are adding service on board. The
F class meals are fantastic on UA. Yeah yeah, I know, if you want to get a
meal, go and buy it at McDs at the restaurant. BUT, there is this type of
customer who spends least amount of time, who doesn't have the ability to
pack before the flight. I commuted 6 months every week 24 each way with no
prospect of having a bite except in the plane. On top of that when I put a
50-60 hours work week in 3-4 days , I want to be able to upgrade to a better
seat , better service... So, I stick with UA, which takes care of me.

If I want to go places, I have a choice of destinations that no LCC can
provide me. Period!

CO and NW have been bleeding money for last 2-3 quarters, UA and AA returned
profits, even though they were small. (In UAs case, more on the operating
profits, due to some restructuring charges)

As I stated before in this forum, the oil prices are killing the airlines
and I totally agree with your approach of Bush/oil connection.

BAHA
Fan of the days when oil was $19/barrel.. that would be 2-3 years ago

-----Original Message-----
From: The Airline List [mailto:AIRLINE@xxxxxxxxxxxxxxxxx] On Behalf Of Clay
Wardlow
Sent: Wednesday, September 22, 2004 12:44 PM
To: AIRLINE@xxxxxxxxxxxxxxxxx
Subject: Re: Industry Changes

You say "Legacy carriers will prevail," yet only 2 out of the 5 stay
around? Doesn't sound like that's a victory to me... but that's just
semantics.

Also, last time I checked neither CO nor NW were in Chapter 11. I admit
though, I don't have an inside into those airlines as I do to a few
others.

Well one thing the LCCs have been able to do that UA, for example,
hasn't is to buy fuel at a discounted rate. Fuel costs are the reason
things are so bad for the industry (and who's our President? Hummm). I
can't remember the actual term it's called but WN secured a price of
something like 80% below retail price of fuel. To do that, you have to
buy it cash-up-front. B6 was able to do it for close to that as well. AA
was able to do it for a MUCH lower %, UA and DL were not able to do it.

Clay - SEA

-----Original Message-----
From: Bahadir Acuner [mailto:bahadiracuner@xxxxxxxxx]=20
Sent: Wednesday, September 22, 2004 11:05 AM
Subject: Re: Industry Changes

Playing the arm chair airline CEO Clay? :) <j/k>
There is a lot of talk about the airlines "changing" these days. Well,
whoever is saying that "LCC domestically and legacies international" is
a
fool. A lot of people fly IAD-FRA, JFK-LHR etc. but a lot more are
flying
DEN-ORD-LHR or SAN-LAX-FRA, etc. etc.

Legacy carriers will prevail , granted some will not survive. I can see
AA
and UA surviving. CO/NW/DL is the collection of three ugly sisters
trying to
get married to a hunk :)

The fact of the matter is, most of the international carriers have lower
cost structures compared to their US counterparts. What makes the US
carriers to win is the fact that I can fly UA/AA/CO/NW/DL on domestic
routes
AND on International routes.

Yes, people flying once a year will go with the cheapest ticket and will
still fly with legacy carrier's lower fare buckets, but as long as I can
fly
United out of SEA , even with connections, I am enjoying perks that I
wouldn't be able to paying $$$$ for it..

There are some false assumptions about the industry of general public
that
is actually dead wrong. The fact that LCCs will survive and legacies
will go
away is one of them..

BAHA
Fan of United  Business.

-----Original Message-----
From: The Airline List [mailto:AIRLINE@xxxxxxxxxxxxxxxxx] On Behalf Of
Clay
Wardlow
Sent: Wednesday, September 22, 2004 10:51 AM
To: AIRLINE@xxxxxxxxxxxxxxxxx
Subject: Industry Changes

While our servers are down, I've been day dreaming of airlines (of
course). One article posted here and one a friend sent to me (I'll send
later) kinda got me thinking.

=3D20

I wonder if we are headed to a time when the legacy carriers (AA, UA,
DL, etc) are going to only/mostly fill the international market and the
LCCs will fill the domestic market.

=3D20

Only time you'd fly AA is to LHR for example...=3D20

=3D20

Then you'd fly F9 between DFW-DEN, or WN between LAS and STL...=3D20

=3D20

Clay - SEA

=3D20

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