Buying VX...
06-15-2020 | 10:31 AM
#22
Banned
Joined: May 2015
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Alaska’s attempt to aggressively take on Southwest in California a couple of years ago was about as dumb of a management decision as they come . There was no way WN was going to let that happen and the results, along with their bad purchase decision of VX, will put them in a world of hurt with California and Hawaii when COVID comes to an end.
06-15-2020 | 12:03 PM
#23
Gets Weekends Off
Joined: Jul 2006
Posts: 270
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From: Soon to be Ex Dash-Trash
Alaska’s attempt to aggressively take on Southwest in California a couple of years ago was about as dumb of a management decision as they come . There was no way WN was going to let that happen and the results, along with their bad purchase decision of VX, will put them in a world of hurt with California and Hawaii when COVID comes to an end.
06-15-2020 | 12:09 PM
#24
Prime Minister/Moderator
Joined: Jan 2006
Posts: 44,874
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From: Engines Turn or People Swim
If they find themselves in a long-term "shrink to success" model, ceding to SW in CA and who knows who in the PNW, then the management team will have get out of their PNW shell. Or the board will find someone who will, probably someone who already has an airline and has a bigger picture outlook.
But COVID might actually afford an opportunity, if the big three are flailing badly enough.
But COVID might actually afford an opportunity, if the big three are flailing badly enough.
06-15-2020 | 12:20 PM
#26
Gets Weekends Off
Joined: Apr 2007
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If they find themselves in a long-term "shrink to success" model, ceding to SW in CA and who knows who in the PNW, then the management team will have get out of their PNW shell. Or the board will find someone who will, probably someone who already has an airline and has a bigger picture outlook.
But COVID might actually afford an opportunity, if the big three are flailing badly enough.
But COVID might actually afford an opportunity, if the big three are flailing badly enough.
06-15-2020 | 12:27 PM
#27
Prime Minister/Moderator
Joined: Jan 2006
Posts: 44,874
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From: Engines Turn or People Swim
As long as it works. If they get pushed out of CA and have another enemy inside their fortress walls, it will be time to rethink. I doubt the board will go along with retreat to success, it's been tried and has never worked with airlines, and everybody knows that now. B&B are on the board... they might try to stick to their paradigm as long as they aren't getting their lunch eaten but at some point they're not stupid by any means. If confronted with an existential threat, I'm sure they'll do something.
06-15-2020 | 04:09 PM
#29
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Joined: Apr 2018
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As long as it works. If they get pushed out of CA and have another enemy inside their fortress walls, it will be time to rethink. I doubt the board will go along with retreat to success, it's been tried and has never worked with airlines, and everybody knows that now. B&B are on the board... they might try to stick to their paradigm as long as they aren't getting their lunch eaten but at some point they're not stupid by any means. If confronted with an existential threat, I'm sure they'll do something.
I'm sure they would have preferred not to have bought VX when they did, for the price they did, but the ramifications of JB or another carrier doing so, was just a little too close for comfort.
06-15-2020 | 09:12 PM
#30
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Joined: Jan 2017
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I hated the VX acquisition from day one and wish it never would have taken place. Having said that...they should have resurrected the Jet America name. Pretty sure Alaska still owns the rights to the name. It encompasses the whole country (instead of just one state) and would have been a nice nod to Virgin America (and a middle finger to Sir Richard).
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