RA-

very gradual economic recovery. We've found bottom, and are now on the slow increasing side of a long "U."

discount carriers (no longer refer to them as low cost) are pulling down more than us unlike after 9/11.

EU is the weakeast economy,
LA/SA/Africa better.
Domestic is profitable.


-we are looking for ASM increasing
- fuel we expect to be no lower than it is now and biasing higher.
-just under 6 billion in cash


AF/KL/DL cannot be replicated by any other US carrier- LH screwed united with the jetblue incestment. we get a tremendous amount of market distrubution through this deal and thus a huge amount of cash. It exposes us to much more of the world than otherwise (as was seen in the JV TA)
We need the EU to consolidate to 3 carriers to really be strong.

AK/DL- 10 year alliance- we exclusively fly their international traffic.

LGA will be building to 300 flights a day... "build hub"

We need an alliance and Japan and definitely China similar to AF. This is probably 10-15 years down the road for China.

We need to find a sustainable model in deregulation, which has been elusive.



as far as SOC/integration:

Res system cutover in january- this is going to be a big deal. can't screw up like usair did.
single dispatch system/awabs will come in april.
all wavy gravy and red tails will be painted by the end of 2010.


expecting plenty of CRAF flying which is always lucritive.


2010- the last half of 2009 we expect capacity to be as such. planning to be down around 3% from the first half of 2009 (nothing new...)

we are carrying around 1000 extra pilots- avoided layoff at some expense. If we laid pilots off, we would have been in no position to grow which is exactly what they do not want.

We need to know that we can grow around 3-5% a year. with the current fleet we have, we can do that with increased utilization. We need to generate cash to get rid of debt, and will not take on debt to buy new jets if at all possible. having a large cash position allows us to pay down debt maturities. We are the only carrier that is not selling equities to raise cash- huge deal!

We plan on overflying NRT more- minimal O&D traffic there. Reiterated DTW as the primary asia hub.

We will be very judicious on any a/c order.
We have 150 widebodies which is great for our operation...

investing 1B into the fleet- putting "winglets on every airplane that can get them"
All aircraft 737 and larger will have IFE in every seat.

Taking out the back galley in the 88s to give them 150 seats.
A319 needs to pick up seats- approx 8 more can easily be done.
NW752 approx the same increase.


.... more to come