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Old Jun 15, 2014, 8:30 pm
  #16  
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Originally Posted by fti
Hmm. With this logic, then DL should get out of the airplane flying business and just sell frequent flyer miles
Maybe. Air Canada obviously decided it couldn't do both jobs well. My guess is that SkyMiles might be improved, as a business, from being divorced a bit from DL the airline business.
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Old Jun 15, 2014, 9:45 pm
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Originally Posted by fti
Hmm. With this logic, then DL should get out of the airplane flying business and just sell frequent flyer miles
You mean selling frequent flyer miles is not the business Delta is in? I seem to recall American Express coughing up $500 million for miles that helped keep Delta in business when they were on the verge of going under...
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Old Jun 15, 2014, 11:03 pm
  #18  
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Originally Posted by tkey75
Not today or tomorrow...


That article is not the first to suggest a merger.
I'm pretty sure an AS/DL merger is a weekly thread on a.net.

There's no way AS management wants a merger, and they have a good argument not to.
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Old Jun 16, 2014, 12:14 am
  #19  
 
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Originally Posted by CALMSP
which makes no sense to me...........so now you have people who know nothing about the business making decisions on cargo. Very strange.
Its Tony....Things just got better for Cargo
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Old Jun 16, 2014, 12:51 am
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Nice article. It says:
He (Tilden of AS) said Alaska will stick to its strategy of low costs, low fares, superior operational performance and good service to passengers.

“I have a lot confidence that over the years ahead, we’ll do these basic things well and come out of this just fine,” Tilden said.


That would be nice, but how is that possible? How do you put out good service and superior performance while keeping both costs and fares low and then still thrive in the face of pressure from Delta? I wonder what AS is really thinking, because it's all just rhetoric on the article and I think it's going to be tough if DL keeps this up.
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Old Jun 16, 2014, 6:02 am
  #21  
 
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Originally Posted by pbarnette
By this logic, DL should get into the retail business. Maybe some McDonald's franchises. At some point, businesses need to focus on what they do well.

FWIW, I am actually working on an analysis on whether to kill a product right now. It generates revenue, but it doesn't mean it is worth supporting the myriad things required to keep the product going.
Considering you're comparing the airline industry to retail with a fast food example, I'd be wary of any other analysis.

Originally Posted by pbarnette
I actually know a lot of people in the cargo and logistics industry.
Good for you. I worked in management for an airline for 7 years. No hearsay here.

Originally Posted by pbarnette
It is a tough business and margins are not that great. I suspect that DL's nominal margins are high due to treating the business as largely marginal, but I'm less convinced they are truly profitable if you fully allocated costs related to running the network. If they are just filler for the passenger side of the business, you might as well have the passenger side of the business selling it.
News Flash: The whole airline business is a marginal business. Cargo margins are often higher than pax margins.
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Old Jun 16, 2014, 7:09 am
  #22  
 
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Originally Posted by HDQDD
I can't believe AA/US or WN/FL were approved. That's removing two lower fare airlines from the mix (FL and US). I fail to see how that's *not* bad for the traveling public.
They had to get bigger to compete with Delta/NW. I suppose you think that it was sufficient that just Delta/NW should have been allowed to merge and enjoy a competitive advantage?

Last edited by hazelrah; Jun 16, 2014 at 7:17 am
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Old Jun 16, 2014, 7:11 am
  #23  
 
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Originally Posted by readywhenyouare
Yes, it would be such a great idea to lose another competitor. Especially a good airline like Alaska. I pray the day never happens unless it is Alaska's management leading the new airline.
Yes, consider the sad tale of Midwest airlines. That ended well for MKE right?

http://crankyflier.com/2012/06/07/th...ssed-to-delta/
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Old Jun 16, 2014, 8:44 am
  #24  
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I'm waiting for DL to start up SEA-BOS... wonder if thats a possibility since only AS has that direct route right now.
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Old Jun 16, 2014, 9:13 am
  #25  
 
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Interesting story, but is SEA, with TSA and ICE going to do anything about the international facilities at Seattle?
The last time I went through immigration at SEA was in the NW days -- and it was easy and convenient. I flew through last Saturday arriving on DL 198 from ICN at about 12:30 pm. The immigration and customs halls were both messes.
I have GE so breezed past the pretty long lines in immigration (even though everyone now uses kiosks). The customs hall though -- my flight seems to have landed just after LH, Emirates, Hainan, and BA flights, all in very quick succession. All 4 belts were revolving and full when I go to the customs hall and was directed to belt 33 which was backed up with bags from the Hainan flight from PEK. We then got directed to another belt, then a third, and finally back to belt 33 where the bags eventually were delivered.
There are no video displays telling you which belt to go to except for the display on the belt itself (at least not that I could see). And no pa announcements for DL, just some people yelling above the din.
What a mess.
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Old Jun 16, 2014, 9:25 am
  #26  
 
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Is AS in any position to start acquiring smaller airlines and try to grow themselves a bit? In particular, I'm thinking of Sun Country, the small Minneapolis based airline. This would be another way to go after Delta that could be very interesting.
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Old Jun 16, 2014, 9:40 am
  #27  
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Originally Posted by jdrtravel
Is AS in any position to start acquiring smaller airlines and try to grow themselves a bit? In particular, I'm thinking of Sun Country, the small Minneapolis based airline. This would be another way to go after Delta that could be very interesting.
An interesting idea but I'm not sure that Sun Countru brings a lot to the table other than a handful of 737's. I'm in Alaska's corner but trying to take on DL at MSP would be an exercise in futility. They could possibly try and acquire someone like Frontier but I'm not sure how valuable a failing hub at DEN is.

If AS were able to grow their fleet then I would say setting up an east coast hub would possibly work in growing their footprint. There are airports such as PIT where it would be easy to set up a hub.
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Old Jun 16, 2014, 9:43 am
  #28  
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Originally Posted by HDQDD
Considering you're comparing the airline industry to retail with a fast food example, I'd be wary of any other analysis.
Where did I compare the airline industry to retail or fast food? You might want to re-read the statement in question.
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Old Jun 16, 2014, 9:57 am
  #29  
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Originally Posted by rylan
I'm waiting for DL to start up SEA-BOS... wonder if thats a possibility since only AS has that direct route right now.
B6 also flies that route, and AS is adding another daily departure. DL does not need a BOS flight for the SEA minihub because BOS-Asia passengers can connect at DTW.

Originally Posted by mot29
Interesting story, but is SEA, with TSA and ICE going to do anything about the international facilities at Seattle?
The last time I went through immigration at SEA was in the NW days -- and it was easy and convenient. I flew through last Saturday arriving on DL 198 from ICN at about 12:30 pm. The immigration and customs halls were both messes.
Yes, the new facility is scheduled to open in 2018.
http://www.portseattle.org/Business/...Pages/IAF.aspx

I don't know what they are going to do for the next four years. The arrivals facility is tiny and overcrowded, as you describe. GE is indispensable.
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Old Jun 16, 2014, 10:24 am
  #30  
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Originally Posted by mot29
Interesting story, but is SEA, with TSA and ICE going to do anything about the international facilities at Seattle?
The last time I went through immigration at SEA was in the NW days -- and it was easy and convenient. I flew through last Saturday arriving on DL 198 from ICN at about 12:30 pm. The immigration and customs halls were both messes.
Cramped quarters would not be a TSA or ICE problem. They would be a POS (Port of Seattle) problem. A brand new customs and immigration facility is underway and will be completed by 2018 or so. After all, it's not like DL notified POS five years ago that they would be substantially increasing their operations at SEA.
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