Wanted to get peoples thoughts on the following issues surrounding the shuttle operation particularly in the event of US liquidation:

Possibility of another airline taking over the shuttle operation as a distinct operating unit-many have suggested that another airline would cherry pick this operation and take it over, however I have heard that it is not profitable (at least with U's cost structure).

Impact of Delta's new terminal at Boston Would this allow Delta to expand service and absorb capacity from U. or upgrade service from Boston when the terminal opens. It seemed that DL retreated from the market when they left Terminal A (assigned the newer planes elsewhere and reduced service to DCA)

Sale of the shuttle as an operating unit or just the gates/routes. Some time back U reconfigured the shuttle equipment to integrate the planes into the standard mainline fleet configuration. While I welcome the ability to travel in first, I always interpreted this move as allowing U greater flexibility in disposing of the shuttle operation by decoupling specific planes from the shuttle routes.

Comparison with DL/AA operations. I for one believe that U has a vastly superior product (planes, staff, gates, schedule) particularly out of Boston. I have flown both DL (737 was old and noisy, no assigned seats) and AA. (didn't care too much for AA's RJ).

Dividend miles in the event of another carrier picking up the shuttle. Were another carrier to pick up the shuttle without the rest of US assets, would they pick up part or all of the dividend miles program, indeed is there any precedence for mileage programs been split up by market or customer flying pattern.

I for one hope U survives, and wish the staff the best, I have been treated much better by U staff as a US1 that DL ever managed when I was a PM, like the U product (warts and all) and the ability to fly internationally. ^

They've tested the market for the shuttle. Nobody has made an offer. That might be because they think they can wait and pick it up cheaper later or it might be that they don't believe US is serious about selling it (management actually made some inane comments about "testing the market" or some such inspiring words at the time...)

It is said to be losing money and has been for quite some time.

I see no reason why they couldn't split a portion of DM off. I think something like that may have happened when Pan Am was selling stuff off. Others may know for sure. Selling the Shuttle without a means to capture the customers (which equates to their DM accounts) seems pointless to me. Why fly empty planes back and forth?

Selling it as a whole operating seems unlikely -- the labor angle is messy and there is a lot of contractual stuff involved. Any acquiring airline also probably has furloughed staff that would howl pretty loudly. But who knows? Maybe something can be arranged.

I fly DCA-BOS with some regularity. Let me be the first to confirm that U's product is VASTLY superior to DL's and AA's. The big jets do make a big difference, the terminal facilities are nowhere close (that will change with the new Terminal A of course). I love the fact that I get bonus miles whenever a U Shuttle flight is delayed (during the big snow storms this came in handy) and the capacity is such that there is frequent bumping to an earlier flight if you arrive at the last minute. AA's RJ operation is particulary inferior because much of the time you are forced to park far away from the terminal and take a bus in. I've had to wait for that bus a few times...it makes the trip longer and makes it FEEL even worse.

Comair is not as bad. Independence CRJs to IAD are much better though. But USS is easily the best and I'd be sad to see it go.

It is said to be losing money and has been for quite some time.
....
Selling it as a whole operating seems unlikely -- the labor angle is messy and there is a lot of contractual stuff involved.

The Shuttle operation has been a cash cow in the past. I now use the DL shuttle because I prefer the traditional shuttle-style services (unassigned seating, board up to 3 minutes before departure). However, if US is losing money on the Shuttle, that is gross incompetence.

In any case, whoever runs this operation has the potential for good profits. I do not recall now why the Donald got out of the business, when he sold it to US Airways. But IIRC both Eastern and PanAm considered the Shuttle operations as jewels in the crown.

Also, both current operations went through sales in the past 20 years. I believe that the DL and US Shuttle operations are separately managed, in terms of payroll and benefits, vis-a-vis the mainline operations.

Yes, it used to be a cash cow and was even referred to as a "crown jewel".

It is currently said to be losing money. Probably because of the death of the fabled business traveler. There are far fewer people willing to routinely drop exhorbinant amounts of money on outrageous walk-up fares.

The TSA experience isn't helping things either -- ease of use has been dramatically impacted by the "security" circus.

I don't know if they are managing it seperately or not. I can see how and why they might be but I don't know if they actually are. Making the planes the same as mainline planes suggests to me that they have integrated the operations.

Yes, it used to be a cash cow and was even referred to as a "crown jewel".

It is currently said to be losing money. Probably because of the death of the fabled business traveler. There are far fewer people willing to routinely drop exhorbinant amounts of money on outrageous walk-up fares.

The TSA experience isn't helping things either -- ease of use has been dramatically impacted by the "security" circus.

I don't know if they are managing it seperately or not. I can see how and why they might be but I don't know if they actually are. Making the planes the same as mainline planes suggests to me that they have integrated the operations.

Perhaps the emergence of the Acela in the past few years is part of the problem...that is, the problem for US and not Amtrak.

I'm on the US shuttle about once a month. And I too would say it is FAR superior to the DL shuttle (DL doesn't even fly the DCA-BOS route nonstop) and I just don't really like AA's RJs. Plus, I don't think I've ever missed an upgrade on my Shuttle flights, and that's coming from a US3 often with companions (granted, normally I fly on Fridays and Sundays which are never busy times). But I don't know how it's not a profitable unit. At least in 2003, for most of my flight times, I ended up paying about $300 for the 399 mile flight up to BOS. US has to be making money if people like me were paying that much. Plus, I love US's facility in BOS- it's nice and new and very spacious. ^

I wouldnt be surprised if it were losing money. Yes, the full fare tickets are expensive, but government (and there are a fair number of those) and some corporate discounts are much cheaper. Plus, dont forget they fly those things every hour. 5 PM may be packed but when I was on the 9PM last Friday there were maybe 20 people. Not long after Sept 11 when they restarted service I was on a flight with 6 of us total on board. I suspect the combination of the ridiculous security restrictions (not being able to go to the bathroom) and Acela has taken a huge hit out of the shuttle. Also the cutbacks in service show through, especially when one looks at the train in comparison. If it werent for the fact that I am trying to qualify for CP, 1K and AA Plat I wouldnt even think of flying on the shuttle given the train service between NY and WAS. I would guess that the majority of my collegues at work who travel pretty frequently between NY and WAS have gone to half or more Acela versus 100% flying in the past. Yea, it might take a little longer but it is much more civilized and you can readily work, make calls what have you on the train.

In terms of peoples DM accounts I dont think it would matter. I think I an exception to most people in the amount of attention I pay to FF miles. Most people if they are taking a shuttle go to the airport, if they get there close to the hour they go US, close to the half hour they go Delta. I dont think someone picking up DM would have much impact in it.

This is not good news at all!
I do maintain commuter marriage and I fly back and forth between DCA and LGA every other week! I hate to fly on DL 737 and AA... I like US' Airbus and ability to put my mile to UA! :(

I will stand on the suggestion of several of us that the Acela/increased security has put a major hurt on shuttle profitability. But that is the past. As far as the future, if it makes you feel any better when it gets right down to it none of us really have the faintest idea as to what is going to happen.

Amtrak & Acela have made my life so much easier! I'm racking up the Amtrak points - left right and center.

I have three cardiology offices - one in NY, one in BOS, and one in DCA. I use to take the Delta shuttle every second day, in between the different cities. Not anymore! I just take the five minute cab ride down to Penn Station, hop on the train in my nice big comfy Business class seat (which I got for $92) and I'm one happy MD. Or dare I pay an extra $50 I get an even bigger first class seat, with access to Acela Lounge.

Forget the airport, and the TSA agents. Sure I miss the DL points but who needs them I got plenty of them, and I'm thinking about taking a trip out West with my Amtrak points ;) :D

JohnMD with that many points you would be a preferred on Amtrak so you could use the lounge even on a non-first class ticket. Not that if I had 3 cardiology offices I wouldnt pay the $50 (tax deductable?) ;)