Thread: USAPA Questions
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Old 04-22-2008 | 10:06 PM
  #49  
cactusmike
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Joined: May 2005
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From: B777/CA retired
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Yes, the 570 case is not applicable to the Nicolau award as a precedent for overturning the award. That is per the lawyers.

We will see on the applicability of agency fees to our situation. We will do what our lawyers suggest. We are not stupid and unlike the East we have no intentions of burning our bridges, we just won't participate in USAPA.

I will not comment on the inanity of some posters who believe AWA was doomed to fail. At the time of the merger we were doing very well and we were in no danger of doing anything other than grow and upgrade our people. We had firm deliveries that had routes set in place for them to fly. We have competed head to head with SWA for years because we really complemented each other, we did not really go head to head. We had the long haul market out of PHX and LAS with some short haul stuff because that's what the market would bear. SWA also had some long haul flights out of PHX but again, those were either niche markets or there was a demand for capacity. By having SWA in place PHX became a fortress hub against any other hub and spoke carriers coming in.

Now we have the East and our costs have gone up a lot more than the revenue has kept pace. We are in a worse position because we have a high cost market back East, an aging, surly workforce that will not make the changes needed to compete today, and a management that just wants their golden parachute to inflate one more time. We have only one shot out of this and that is to either split the operation and sell off in pieces or merge with another airline to dilute the pollution that has crept out from the East.
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