Majors Question
#1
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Joined APC: Feb 2007
Posts: 94
Majors Question
When you look at the International ops of say CAL & DAL, why or what are the reasons behind UAL & AA not serving more destinations in Europe and the Middle East (India)? Is it true that Int destinations are where the money is operationally right now? How bout a scenerio where AA or CAL drops all but maybe 25% of its domestic flights and buys SWA?? Shift all capacity to Int citites??? Still waiting to see AA make a move to reduce the age of its fleet. 787?? More 777's?
#2
I think AA likes to focus on the Europe hub cities like London, Rome, Paris, etc and then have passengers connect on the oneworld affiliate carriers to continue from there. AA is big on the hub-and-spoke route system and this benefits all oneworld carriers by having these focus cities instead of flying to scattered destinations.
#3
#4
The market capitalization of SWA was, last time I bothered to add the numbers up (back in the very, very, very dark days of $140/bbl), more than DAL, NWA, UAL, and AMR combined.
#5
Everybody has the cash to buy everybody. Has nothing to do with cash. How much financing is someone willing to give them?? Not trying to be a smartass but AA didn't have the "cash" to buy TWA, AW did not have the "cash" to buy US Air. On and on. NW almost pulled off a "buy" on Delta. You never know, SW might loan AA the cash to buy them. This industry is so jacked up.
#7
Keep in mind that one reason oil has plummeted is that the global economic expansion has recently shown some disturbing signs of weakness.
We may get to keep lower oil and fuel prices for a while, but they will come with some consequences.
#8
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Joined APC: Aug 2008
Position: Front
Posts: 28
Yep...
Few people remember how DAL almost lost its butt the first time. They bought some of Pan Am's European routes and Europe had a recession. Durn near put them in Bankruptcy. You never know what the right move is in the long term-best to have a balanced approach and avoid putting all of one's eggs in one basket.
-I doubt many people there now have any clue about that whole saga-and it really wasn't that long ago.
-So nice, they'll do it twice!
-I doubt many people there now have any clue about that whole saga-and it really wasn't that long ago.
-So nice, they'll do it twice!
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