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Originally Posted by OTZeagle1
(Post 3066309)
We are not looking to become one of the big 4, we are about responsibly growing our brand.
You can probably sustain a niche business model, catering to specific customer demographics (ULCC, biz travel, vacation travel). But the days of niche regional legacies are over, too many 800 pound gorillas ready to eat your lunch. HAL might be the only sustainable example because of their unique geography and brand (assuming they survive this). Eventually AS is going to have to responsibly team up with somebody. They essentially spent $4B to keep JB out of the west coast... how often can they do that sort of move going forward? |
Originally Posted by rickair7777
(Post 3066338)
Eventually AS is going to have to responsibly team up with somebody.
What do you think is the likely horizon for that to happen? Will it be in 5 years when they come to realize that is the best option, or will they be proactive and do it early to take advantage of an airline's weakness? |
Originally Posted by OTZeagle1
(Post 3066309)
I will make this really simple:
Alaska made 8,781,000,000 in 2019 If revenue returns at 70%, that means AS has a 6,147,000,000 dollar pile of money for 2021. The costs to run our full operation are about 7,718,000,000, that means we would be short or lose (1,571,000,000) for the year. That would not work. If we reduce our operating costs by 20%, our expenses will be roughly, 6,174,000,000 70 % 2919 revenue 6,147,000,000 Minus 80% 2019 costs -6,174,000,000 Equals a survivable negative number (27,000,000) We are not Southwest, we do not have Southwest cost structure. We are determined to survive this and take advantage on the backside. We are not looking to become one of the big 4, we are about responsibly growing our brand. Southwest might well be targeting AA, but I wouldn’t be surprised to see them take a good percentage of our Hawaii market share(once Hawaii opens again), In the meantime we’ll be sitting around with hundreds of furloughs and airplanes parked with no way to react quickly enough. |
Originally Posted by rickair7777
(Post 3066338)
AS is too small to get away with that long term.
You can probably sustain a niche business model, catering to specific customer demographics (ULCC, biz travel, vacation travel). But the days of niche regional legacies are over, too many 800 pound gorillas ready to eat your lunch. HAL might be the only sustainable example because of their unique geography and brand (assuming they survive this). Eventually AS is going to have to responsibly team up with somebody. They essentially spent $4B to keep JB out of the west coast... how often can they do that sort of move going forward? |
Originally Posted by flysnoopy76
(Post 3066390)
With all due respect I haven’t seen much meaningful growing of the brand anywhere outside Seattle even before the virus sent things south. It seems there strategy even before all this was to consolidate into Seattle as much as possible and leave some token regional service in California.
Southwest might well be targeting AA, but I wouldn’t be surprised to see them take a good percentage of our Hawaii market share(once Hawaii opens again), In the meantime we’ll be sitting around with hundreds of furloughs and airplanes parked with no way to react quickly enough. |
Originally Posted by Costanza
(Post 3066403)
I think Southwest will take market share in OAK and SAC for sure. Don't think it will cut into the PNW to Hawaii market too much and Alaska will probable do okay in the SJC and SAN to Hawaii market. LA area and SFO hard to guess.
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Originally Posted by OTZeagle1
(Post 3065766)
There are strong rifts in our union, many will not talk to others, save me all the BS and kumbaya, I actually know what is going on.
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Originally Posted by snackysmores
(Post 3066510)
We didn't have much market share in either places anyway compared to SWA. At any given time there might be one AS plane at a gate compared to 10+ SWA
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Originally Posted by OTZeagle1
(Post 3066309)
We are not Southwest, we do not have Southwest cost structure. We are determined to survive this and take advantage on the backside. We are not looking to become one of the big 4, we are about responsibly growing our brand.
“We are determined to survive this and take advantage on the backside.” - How? I’ve heard only one “plan” since I’ve been here. “Most West Coast”, and we packed up that slogan like a cheap suit and retrenched SEA long before the Covid. And, I know I’ve heard that “we don’t like to Telegraph our moves/plans. We keep our cards close to our vest.” Passive aggressive? Ok! But JUST passive? “....we are about responsibly growing our brand.” - to WHOM? The part of PNW market that doesn’t already use us, is unfamiliar with our product? Before Covid, SEA seemed like it was in full on panic mode to save gates from being allocated to Delta. The big four are gonna be quite a bit leaner in the aftermath too. With a serious reduction in International flying. I would think our little gold nugget of PNW and AK flying would look pretty appetizing to one or more carriers to go after and try and recoup some of their Covid loss. I’m not taking a “tone” here at all. I’m just saying that words are empty and if “ifs” and “buts” were candy and nuts we’d ALL have a Merry Christmas.” I dont doubt our ability financially to produce dividends. But, I’ll believe we’re gonna do that through gaining market share when I see it. |
Originally Posted by OTZeagle1
(Post 3065766)
Yes, regularly. “We have to wait, let the whole thing play out”- is the just of the response. I feel that is irresponsible, reckless, and unkind to those affected. Surprisingly, there are strong differences of opinion amongst the union ranks. I would argue all wish for the same outcome but path, poster, and stance varies greatly. Some are intelligent and have common sense, others only guided by anger and bitterness. There are strong rifts in our union, many will not talk to others, save me all the BS and kumbaya, I actually know what is going on.
They are in the business of dealing with facts and the information at hand, not some info that is coming from a union busting management plant. But yet it appears that the union busting management plant will continue to come on here and tout the BS line and get their ego stroked and never be able to stay away. |
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