Thank you!

 

So..... in 2 days, DAL and AAL have dropped $5/share. The only reason I can see is that the geniuses over at UAL have decided to do the only thing they could do to destroy the profitability of the industry and that is to start adding capacity.

For the investors out there, is there a buying opportunity... yet? Or is this the race to the bottom that we have all been anticipating?

 

You have been around long enough to know we are not overloaded with C.R. Smiths, C.E. Woolmans and Pat Pattersons. That parachute sure is dazzling.

 

Yeah but this isn't really about parachutes I don't think. On a cursory look, UAL appears to be somewhat of a dumpster fire with the influx of LCCs into their hubs. (One of my FAs and other pilots are from DEN and they say the terminals there are a who's who of other airlines)

A couple of years ago Hauenstein talked to the LCPs and was scratching his head over what UAL was doing in DEN. He said back then that that hub was structured all wrong. I guess maybe he was right.

But regardless, and I haven't gotten deep into the details yet on this, but UAL has apparently put out pretty ugly guidance going forward. This seems to be an act of desperation (not really the word I want to use) that UAL has announced i significant increase in capacity. Idiotic.

I have been reading the comments on some of the financial sites this morning about this and it seems most of those folks believe DAL is being unfairly punished for this lunacy, but it is that rising tide thing I guess.

So I guess the question begs is, is UAL in any significant trouble here or is this just a blip? I would have wagered that AAL with that crushing debt would be the first to revisit financial woes, but maybe UAL is going to be the one.

And one more thing to think about. There are 3 US major carriers, and 3 ME carriers (loaded with cash). The next dance?

I'd love to hear some opinions on this.

 

United is the Kim Jong Un of airlines. 6 months from now they will roll out a cost cutting program and capacity cuts designed to: “Something Wall St. Loves To Hear”. Coincides nicely with opening negotiations with the ALPA clown and pony show. Stock goes up, bonuses all around, good for another year. Surely you’ve been in this business long enough to see what’s coming?

 

I would be asking myself, “Where is UAL adding this capacity?” Are they going to add capacity on routes that Frontier, Southwest, and Spirit currently fly or are adding? If so, combatting ULCC growth in one or more of their hubs could pay dividends down the road. Otherwise, if they are just adding routes or seats on currently profitable routes, without any ancillary benefit like hindering ULCC growth, then it could be bad for them going forward.

 

Reserve question:
If you show “full” for the month, does the first day of the next month act like you are coming off an xday? (1000am earliest shortcall etc.)
Tanx

 

Switched to an HSA this year. If you have an HSA, does your FSA become a "limited purpose" FSA account? In other words, the FSA can only be used for Dental and vision? Can't find a definitive answer on the myuhc website.

 

Pretty sure it does NOT act like that.

 

Anyone know if there are any incentives for us as employees to sign up for a skymiles Card? Which card is the best? Thanks.