USAir&RAH Doug Parker Speaks Highly of RAH
 

Wow, this industry is in for unprecedented difficulty.

This is from Aug. 09

They didn't know what to say back then, I'd take this lightly, and if he says anything new, then judge on that.

He did NOT speak highly of RAH's new business model...he said they do a good job as a feeder.

Between DP and the other guy they stated the obvious: RAH is a good regional but they are going out on a limb.

Is there anything that smells as bad in this industry as an endorsement form Parker?

A recommendaton from Lorenza probably is worse, or a warm introduction from Icahn, but that's about it.

I have to agree with RickAir, I didn't hear an endorsement. All he really said was, "We can't do anything about it." The only real endorsement was that he thought Bryan was a good executive.

I'm not sure which one is Doug, (I'm guessing the guy with the microphone) but in so many words he basically said, "We hope that Republic doesn't ____ this up like so many other regionals that want to be mainline carriers."

That makes sense, US is very exposed to Republic so if they closed up shop that would really screw up operations for them. It's probably the same reason why Parker is supporting JO right now, he doesn't want to deal with Mesa closing up shop rapidly. I don't know what Parker's or any of these other CEOs' true feelings are towards RAH but I doubt any of them will publicly say they are mad. That just makes them look weak and out maneuvered and these guys all have big egos. None of them want to admit they got outplayed by Bedford if they are truly upset.

We'll know everyone's true opinions about RAH when the contracts come up for renewal.

Actually Doug didnt say much. He looked clueless and uninformed. The only thing he stated is that RAH could not compete with USAIr routes.. I think he is wrong because currently RAH (F9, MIDWEST) is flying out of DENVER and competing with UAL. Remember RAH flies for UAL as a FEEDER too.

WOW! This is getting confusing..

TYG

Each contract with their respective Major is most likely different. UsAir may have a clause which says they can NOT compete on UsAir routes, while their agreement with UAL does not contain said clause.

I'm not familar with the terms, just tossing the possibility out there.

He said that RAH couldn't compete out US Airways hubs. I don't think Parker cares what RAH does in DEN or if he does there is nothing he can do about it. Doesn't RAH control a bunch of US assets as well like slots or something? If they do that is a strong bargaining chip that Bedford controls.

Apparently UA can't do anything about RAH or they too are simply too exposed to RAH to do anything about it at this point in time. I think it is unrealistic for UA to drop Shuttle because who could replace them in short order?

If the RAH contracts aren't renewed by the legacy partners then we'll know how they truly feel about Bedford.

The non-compete clauses with the various majors almost certainly apply only to specific operating certs...with RP, CH, SA, F9, and MK the reverend probably has more than enough certs to shuffle his flying around to avoid triggering contractual no-compete issues.

I doubt the no compete clauses apply to RAH.