Thread: AOL update
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Old 03-18-2013 | 05:33 AM
  #547  
R57 relay
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Joined: Nov 2011
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From: A320 Capt
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[/QUOTE=Wiskey Driver;1373927]Ok and what was it from this document you provided that you wanted me to see???


[/QUOTE]

I think these three statements are enough to counter the theory that AWA was a super carrier that saved US out of charity:

“Developments in 2004
During 2004, extremely high jet fuel prices and excess capacity throughout the domestic air system began to negatively impact the low cost segment of the airline industry. As a result, several low cost carriers that had previously operated profitably, including AWA, experienced declining earnings. AWA reported a net loss of $85.3 million for 2004.”



“Our principal competitor, Southwest Airlines, and certain other low cost carriers have lower operating cost structures than we do. In addition, the consolidation of existing carriers, the entry of additional carriers including new low cost carriers, the creation of low fare airline divisions by several major airlines and the revision of traditional pricing structures by our competitors in many of our markets (as well as increased services by established carriers) has resulted in increased pressure on our pricing.”

“In spite of our diligent work to contain our costs, we believe revenues will continue to reflect the excess capacity that exists across the domestic system and fuel prices will remain at, or exceed, record highs. Given these conditions, we anticipate significant losses for full year 2005.
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