The End for US Airways?

US Airways just announced that it is contemplating selling off its East Coast
shuttle service and one of its hubs. We've seen this before (Eastern, Pan Am,
TWA). I guess this is the beginning of the end for another "major".

"GeneJYao" <genejyao@> wrote in message
news:20040109004807.09478.00002272@mb-m17....
> US Airways just announced that it is contemplating selling off its East
Coast
> shuttle service and one of its hubs. We've seen this before (Eastern, Pan
Am,
> TWA). I guess this is the beginning of the end for another "major".

This would appear to mean that the death spiral has official begun.

In article <20040109004807.09478.00002272@mb-m17.>,
genejyao@ (GeneJYao) wrote:

> US Airways just announced that it is contemplating selling off its East Coast
> shuttle service and one of its hubs. We've seen this before (Eastern, Pan Am,
> TWA). I guess this is the beginning of the end for another "major".

Only time will tell. Speculation like this is pointless.

GeneJYao wrote:
> US Airways just announced that it is contemplating selling off its East Coast
> shuttle service and one of its hubs. We've seen this before (Eastern, Pan Am,
> TWA). I guess this is the beginning of the end for another "major".

There was a story in the news a few days ago about US Air renewing its gate
contracts at Pittsburg, but only taking a small fraction of the number of
gates it had in the past.

nobody wrote:

>There was a story in the news a few days ago about US Air renewing its gate
>contracts at Pittsburg, but only taking a small fraction of the number of
>gates it had in the past.

Yup. They're only signing on for long-term leases for 10 gates at PIT (down
from 50). By the way, some news sources say that Virgin USA is in talks with
another carrier to buy major assets from that carrier. This just came out
today (a day after US Airways' yard sale announcement). Curious...

GeneJYao wrote:
> Yup. They're only signing on for long-term leases for 10 gates at PIT (down
> from 50). By the way, some news sources say that Virgin USA is in talks with
> another carrier to buy major assets from that carrier. This just came out
> today (a day after US Airways' yard sale announcement). Curious...

And even with all this, US Airways unions are still refusing concessions.

Southwest just announced all sorts of sports sponsorships in Philadelphia.

US Air sent a news release today advising all its staff that it has no leaway
and cannot afford to lose any cash and that if its bankrupcy rescue plan
requires that its cash reserves stay above 900 million. They are now at 1.3
billion, but US air is entering the though winter season, as well as preparing
for onslaught of Southwest.

Certaintly looks like the stage has been set for US Air to liquidate itself,
Virgin buying the leftovers.

Because of ownership rules, my bet would be on a joint venture between Virgin
and Jetblue with US Air employees rehired as new staff with no inherited rights/benefits.

nobody <nobody@nobody.com> wrote in message news:<3FFF268D.CA7EA68E@nobody.com>...
> GeneJYao wrote:
> > US Airways just announced that it is contemplating selling off its East Coast
> > shuttle service and one of its hubs. We've seen this before (Eastern, Pan Am,
> > TWA). I guess this is the beginning of the end for another "major".
>
> There was a story in the news a few days ago about US Air renewing its gate
> contracts at Pittsburg, but only taking a small fraction of the number of
> gates it had in the past.

JF, I'm impressed. You've just composed an entire message that is
actually related to air travel. Well done!

nobody <nobody@nobody.com> wrote in message

> GeneJYao wrote:
> > Yup. They're only signing on for long-term leases for 10 gates at PIT (down
> > from 50). By the way, some news sources say that Virgin USA is in talks with
> > another carrier to buy major assets from that carrier. This just came out
> > today (a day after US Airways' yard sale announcement). Curious...
>
> US Air sent a news release today advising all its staff that it has no leaway
> and cannot afford to lose any cash and that if its bankrupcy rescue plan
> requires that its cash reserves stay above 900 million. They are now at 1.3
> billion, but US air is entering the though winter season, as well as preparing
> for onslaught of Southwest.
>
> Certaintly looks like the stage has been set for US Air to liquidate itself,
> Virgin buying the leftovers.
>
> Because of ownership rules, my bet would be on a joint venture between Virgin
> and Jetblue with US Air employees rehired as new staff with no inherited rights/benefits.

US Airways as pieces:

US Air Shuttle. This is a profitable business and sellable to any
major carrier.

DCA hub. A major asset. By far the dominant carrier in an
ultra-profitable business traveler location.

Philadelphia. Ok, its a big city, but so? Southwest is taking it
over.

Pittsburgh. Stuck with a too big airport. Not a hub city.

Charlotte. Not either.

The Dallas Morning News yesterday (Friday) says that American will probably
bid for their shuttle (slots only) if US decides to sell. But US isn't
saying if the Shuttle operation is profitable yet.


"GeneJYao" <genejyao@> wrote in message
news:20040109004807.09478.00002272@mb-m17....
> US Airways just announced that it is contemplating selling off its East
Coast
> shuttle service and one of its hubs. We've seen this before (Eastern, Pan
Am,
> TWA). I guess this is the beginning of the end for another "major".

Lou Minatti wrote:

> nobody <nobody@nobody.com> wrote in message
news:<3FFF268D.CA7EA68E@nobody.com>...
> > GeneJYao wrote:
> > > US Airways just announced that it is contemplating selling off its
East Coast
> > > shuttle service and one of its hubs. We've seen this before (Eastern,
Pan Am,
> > > TWA). I guess this is the beginning of the end for another "major".
> >
> > There was a story in the news a few days ago about US Air renewing its
gate
> > contracts at Pittsburg, but only taking a small fraction of the number
of
> > gates it had in the past.
>
> JF, I'm impressed. You've just composed an entire message that is
> actually related to air travel. Well done!


*LOL*

--
Best
Greg