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Originally Posted by FlyingKat
(Post 1517280)
Parker isn't going to toss anything that he doesn't absolutely have to. One of the reasons the Airways/United merger fell apart was over DOJ demands on DCA slots and the creation of DC Air. What the government demanded made the merger financially unviable. What DOJ demands may get to the point Parker and co decide it would be better for the company to fight in court.
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So Oscar, you never answered me. Should SW and JB take the routes with the slots?
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Originally Posted by R57 relay
(Post 1517292)
Uh, I'm not sure about that, do you have some numbers to back it up?
DCA has been very profitable, but I don't think it was ever near 50% of revenue. Last time I heard Parker talk about hub profitability he said that CLT was first, but DCA had the best margin. But to the larger point, you don't get very far in business by giving away your most lucrative markets to the competition. Anybody who thinks Parker is going to walk away from these slots without a tough fight is smoking crack. These slots are very valuable and I would be surprised if Parker is willing to give more than a small amount to keep DOJ happy. If the DOJ wants a large amount, Parker may just decide to see them in court. |
Originally Posted by FlyingKat
(Post 1517304)
I'm talking about the time before Parker arrived around 2001.
But to the larger point, you don't get very far in business by giving away your most lucrative markets to the competition. Anybody who thinks Parker is going to walk away from these slots without a tough fight is smoking crack. These slots are very valuable and I would be surprised if Parker is willing to give more than a small amount to keep DOJ happy. If the DOJ wants a large amount, Parker may just decide to see them in court. You are correct that the slots are valuable, but many of them are operated by regional jets. Keeping the market tight is probably the biggest advantage to them. How profitable and how many the new AA can give up-only Parker and his team know. I think they can actually give enough for the merger to make sense. |
Originally Posted by R57 relay
(Post 1517322)
I know what you were talking about and I was there. US Airways was a much bigger operation in 2001 than it is now. PIT was still a major hub, we operated many point to point routes, and Metrojet. DCA was important, but not near 50% of revenue.
You are correct that the slots are valuable, but many of them are operated by regional jets. Keeping the market tight is probably the biggest advantage to them. How profitable and how many the new AA can give up-only Parker and his team know. I think they can actually give enough for the merger to make sense. The 50% figure came from some Airways management people I knew at the time. Surprised me as well but they were in a place to know. |
Don't have a link but tweets saying settlement has been reached. Stocks through the roof.
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Originally Posted by R57 relay
(Post 1517294)
So Oscar, you never answered me. Should SW and JB take the routes with the slots?
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R57,
RJ's operating slot controlled routes...... NYET! |
Come on Oscar. I thought SW was for the little guy. Not so much.
Looks like some of the slots are going to remain in smaller markets. Sorry. I hope VA gets the DAL gates. Or Spirit. No Allegiant. |
Originally Posted by R57 relay
(Post 1518573)
Come on Oscar. I thought SW was for the little guy. Not so much.
Looks like some of the slots are going to remain in smaller markets. Sorry. I hope VA gets the DAL gates. Or Spirit. No Allegiant. The Oscar |
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