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Originally Posted by nene
(Post 3718228)
Is it time to get your houses in order yet?
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The Q3 loss by both NK and B6, regardless of the reason supports the argument for consolidation/acquisition and mergers. The DOJ would have a leg to stand on if both companies were turning record profits, distributing dividends, and buying back shares. But that is simply not the case...these companies operate on razor thin margins. The airline industry since deregulation has lived and died though various consolidations over time, it is now a part of the natural business cycle. If you try to look through the lens of Judge Young (a Reagan appointed conservative), this is about Business's competing to survive and make a profit, not about some Administration's agenda to offer low fares to the entire population at a corporate loss. Companies can offer low fares all day, but if they don't turn a profit, it's Chapter 11 or Chapter 7 time. It just doesn't make sense to block this merger for some government agenda, if so, then bring back regulation.
Airlines are public companies that operate for a profit for it's shareholders, investors and employee's. This is no longer a regulated industry, therefore, IMHO Judge Young will see this for what it really is: It's about two corporations doing what they do to survive and be profitable, while offering a quality, low fare product to the consumer that can compete with the BIG 4. My .02 cents. |
Originally Posted by Clear Right
(Post 3718282)
The Q3 loss by both NK and B6, regardless of the reason supports the argument for consolidation/acquisition and mergers. The DOJ would have a leg to stand on if both companies were turning record profits, distributing dividends, and buying back shares. But that is simply not the case...these companies operate on razor thin margins. The airline industry since deregulation has lived and died though various consolidations over time, it is now a part of the natural business cycle. If you try to look through the lens of Judge Young (a Reagan appointed conservative), this is about Business's competing to survive and make a profit, not about some Administration's agenda to offer low fares to the entire population at a corporate loss. Companies can offer low fares all day, but if they don't turn a profit, it's Chapter 11 or Chapter 7 time. It just doesn't make sense to block this merger for some government agenda, if so, then bring back regulation.
Airlines are public companies that operate for a profit for it's shareholders, investors and employee's. This is no longer a regulated industry, therefore, IMHO Judge Young will see this for what it really is: It's about two corporations doing what they do to survive and be profitable, while offering a quality, low fare product to the consumer that can compete with the BIG 4. My .02 cents. |
Originally Posted by Clear Right
(Post 3718282)
The Q3 loss by both NK and B6, regardless of the reason supports the argument for consolidation/acquisition and mergers. The DOJ would have a leg to stand on if both companies were turning record profits, distributing dividends, and buying back shares. But that is simply not the case...these companies operate on razor thin margins. The airline industry since deregulation has lived and died though various consolidations over time, it is now a part of the natural business cycle. If you try to look through the lens of Judge Young (a Reagan appointed conservative), this is about Business's competing to survive and make a profit, not about some Administration's agenda to offer low fares to the entire population at a corporate loss. Companies can offer low fares all day, but if they don't turn a profit, it's Chapter 11 or Chapter 7 time. It just doesn't make sense to block this merger for some government agenda, if so, then bring back regulation.
Airlines are public companies that operate for a profit for it's shareholders, investors and employee's. This is no longer a regulated industry, therefore, IMHO Judge Young will see this for what it really is: It's about two corporations doing what they do to survive and be profitable, while offering a quality, low fare product to the consumer that can compete with the BIG 4. My .02 cents. |
Originally Posted by Clear Right
(Post 3718282)
The Q3 loss by both NK and B6, regardless of the reason supports the argument for consolidation/acquisition and mergers. The DOJ would have a leg to stand on if both companies were turning record profits, distributing dividends, and buying back shares. But that is simply not the case...these companies operate on razor thin margins. The airline industry since deregulation has lived and died though various consolidations over time, it is now a part of the natural business cycle. If you try to look through the lens of Judge Young (a Reagan appointed conservative), this is about Business's competing to survive and make a profit, not about some Administration's agenda to offer low fares to the entire population at a corporate loss. Companies can offer low fares all day, but if they don't turn a profit, it's Chapter 11 or Chapter 7 time. It just doesn't make sense to block this merger for some government agenda, if so, then bring back regulation.
Airlines are public companies that operate for a profit for it's shareholders, investors and employee's. This is no longer a regulated industry, therefore, IMHO Judge Young will see this for what it really is: It's about two corporations doing what they do to survive and be profitable, while offering a quality, low fare product to the consumer that can compete with the BIG 4. My .02 cents. |
If the government is so obsessed with low ticket prices why don’t they buy blocks of seats on every flight operated in the US and resell them for $29 like any other Expedia type site would do?
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Originally Posted by Flyby1206
(Post 3718302)
If the government is so obsessed with low ticket prices why don’t they buy blocks of seats on every flight operated in the US and resell them for $29 like any other Expedia type site would do?
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Originally Posted by CincoDeMayo
(Post 3718295)
Well said. And I agree with your thoughts on Judge Young; he is way too experienced to be swayed by the false narrative that a company will need to go out of business in order to provide cheaper airfare.
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Originally Posted by CincoDeMayo
(Post 3718267)
Send you mom over to clean it, troll.
Every time someone "foresees doom and gloom" in this industry, people usually post long treatises on why pilots should "get their house in order". My joke was to respond to the poster who said both companies were F'd if the merger doesn't get approved, when no one really knows, if they are F'd if the merger does go through..... |
Originally Posted by Flyby1206
(Post 3718302)
If the government is so obsessed with low ticket prices why don’t they buy blocks of seats on every flight operated in the US and resell them for $29 like any other Expedia type site would do?
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