The US Airways route system fits very nicely with the United Airlines system. If this deal goes through, it would turn the airline industry on its head.
More Quotes from Ray Neidl:
I think the street overreacted to fuel costs and Y2K. But this is not to say that estimates won't come down for the first quarter. Fuel prices are even higher now and it's very difficult in short term for carriers to control that cost.Ray Neidl
They can get so much more productivity without a third party acting as an intermediary. The unions will probably get the right to hold a vote, but I think there's a good chance Delta will keep the unions out. Last time there was a vote by mechanics, to my surprise it was overwhelmingly voted down.
Ray Neidl
The odds are still against an approval, ... Are the concessions all 'hard dollars' is the question that the ATSB and analysts are asking.
Ray Neidl
My instinct tells me it'll only cover a small fraction of fuel increases.
Ray Neidl
Airlines can make money on international routes.
Ray Neidl
There's a powerful franchise there. If they can get the right cost structure, the model does not have to be tweaked too much. Hopefully they won't have to sell assets. If you start having to sell strategic assets, you have a slow liquidation the way Pan Am did.
Ray Neidl
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