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US/DL Slot Swap Approved

Old 10-11-2011, 02:33 PM
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Default US/DL Slot Swap Approved

Bloomberg is reporting this afternoon that the government has issued final approval of the US/DL slot swap transaction. No word as yet from either carrier on details or timeline of implementation.
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Old 10-11-2011, 02:59 PM
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This is the death nail for AA in LGA I think
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Old 10-11-2011, 03:20 PM
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Delta to Grow at LaGuardia as U.S. Backs Flight-Slot Trade With US Airways- Bloomberg
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Old 10-11-2011, 04:01 PM
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Originally Posted by andy171773 View Post
This is the death nail for AA in LGA I think
Maybe but how is that bad for AA? They will remain strong in JFK and this could start a very interesting fight for JB between SWA who will likely want and can afford them and AA who will need them.

Although SWA can always run up the price, let AA get JB then squeal to the government and demand mass quantities of slot charity for free. Ditto for VA if that happens too.

Anyway hopefully this is net growth for Delta Air Lines, especially mainline, and not just some capacity reshuffle or DCI outsourcepallooza.

I wonder how much we will end up competing with ourselves since we will still have to have a substantial domestic presence out of JFK no matter what. The failed model of the past where Delta thought people love to fly into LGA and self cab and recheck in JFK won't cut it against AA or even a stand alone JB that code shares with every flag carrier on earth and it won't even cut it with a single airport system at EWR for UCAL.
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Old 10-11-2011, 07:29 PM
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Originally Posted by gloopy View Post
I wonder how much we will end up competing with ourselves since we will still have to have a substantial domestic presence out of JFK no matter what. The failed model of the past where Delta thought people love to fly into LGA and self cab and recheck in JFK won't cut it against AA or even a stand alone JB that code shares with every flag carrier on earth and it won't even cut it with a single airport system at EWR for UCAL.
It is being planned as a domestic only hub so I don't think we are really planning on connecting passengers using LGA to go international. As nice as it would be to have all our stuff at JFK, the local O&D domestic passengers would much prefer LGA over JFK. I think we can build a very profitable domestic only hub at LGA with this local traffic and let JFK be run as an international hub like it currently is. Alot of the AA and B6 local traffic from JFK will come to LGA as well as alot of the local UCAL traffic from EWR if we can treat the customers right. There should be no reason to go to JFK or EWR if you are flying domestically East of the Mississippi and now we will control almost 50% of that market which could be huge for us.
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Old 10-11-2011, 07:55 PM
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Originally Posted by gloopy View Post
Maybe but how is that bad for AA? They will remain strong in JFK and this could start a very interesting fight for JB between SWA who will likely want and can afford them and AA who will need them.

Although SWA can always run up the price, let AA get JB then squeal to the government and demand mass quantities of slot charity for free. Ditto for VA if that happens too.

Anyway hopefully this is net growth for Delta Air Lines, especially mainline, and not just some capacity reshuffle or DCI outsourcepallooza.

I wonder how much we will end up competing with ourselves since we will still have to have a substantial domestic presence out of JFK no matter what. The failed model of the past where Delta thought people love to fly into LGA and self cab and recheck in JFK won't cut it against AA or even a stand alone JB that code shares with every flag carrier on earth and it won't even cut it with a single airport system at EWR for UCAL.
i just don't see either AA or SWA buying JetBlue anytime soon. SWA has hands full and a few years to complete the AirTran merger. AA is on the verge of BK and JetBlue has one of the best cash positions in the industry with over 6.5 Billion in assets, about 3 billion of debt and close to 1.2 Billion in unrestricted cash. Yes AA would love to buy B6, but too expensive. Ever consider B6 buying AA when they declare CH11. Just Kidding.

JetBlue has over 10 Interline Partnerships with foreign carriers, they are the largest Domestic Carrier in JFK and soon to be in BOS, if not already. Have you looked at their route map lately. Largest carrier in Puerto Rico and with something like 25-30% international in the carribean. Just don't think anybody can afford them right now, although everybody would love to buy them to get rid of one of the best products (competition) currently airborne. I would be more worried about a B6 and VA merger, they both have great products.

Last edited by Clear Right; 10-11-2011 at 08:07 PM.
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Old 10-11-2011, 08:01 PM
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Originally Posted by RockyBoy View Post
It is being planned as a domestic only hub so I don't think we are really planning on connecting passengers using LGA to go international. As nice as it would be to have all our stuff at JFK, the local O&D domestic passengers would much prefer LGA over JFK. I think we can build a very profitable domestic only hub at LGA with this local traffic and let JFK be run as an international hub like it currently is. Alot of the AA and B6 local traffic from JFK will come to LGA as well as alot of the local UCAL traffic from EWR if we can treat the customers right. There should be no reason to go to JFK or EWR if you are flying domestically East of the Mississippi and now we will control almost 50% of that market which could be huge for us.

Yep,

I bet Alaska is already putting out the hiring notices.

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Old 10-11-2011, 08:14 PM
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Originally Posted by Clear Right View Post
i just don't see either AA or SWA buying JetBlue anytime soon. SWA has hands full and a few years to complete the AirTran merger. AA is on the verge of BK and JetBlue has one of the best cash positions in the industry with over 6.5 Billion in assets, about 3 billion of debt and close to 1.2 Billion in unrestricted cash. Yes AA would love to buy B6, but too expensive.
I think a tie up...and which one buys which one doesn't really matter...with AA is likely for many reasons. AA needs to grow in JFK to compete with DL and UCAL in EWR. SWA is the biggest domestic airline on earth and they barely fly to the biggest domestic market on earth. I both cases, a buyout/merger/acquisition/fragmentation/etc of JB is the ONLY way to get a large position in the extremely valueable JFK market that is serioulsy limiting via slots and facilities.

For AA or SWA, JB, in whole or in part, is vital because there is no other way for either to get what they need.
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Old 10-11-2011, 08:26 PM
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Originally Posted by gloopy View Post
For AA or SWA, JB, in whole or in part, is vital because there is no other way for either to get what they need.
Your gonna have to explain that one too me. B6 is a highly successful company and very profitable. Don't think they are interested in a fragmentation or a merger. Are you contending a hostile takeover, not likely. JetBlue is no AirTran, don't see the Board of Directors selling unless huge premium on stock price, which would cost either airline AA or SWA almost half their cash reserves with big debt payments and aircraft orders on the horizon. Just not financially smart for either player at this time.
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Old 10-11-2011, 08:44 PM
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SWA? Merger/buyout of JetBlue??? Seriously?
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