Originally Posted by
sfozrhfco
I think this is the key. They were blinded by Golden California and may well end up losing the grip they had in the PNW where they were the unquestioned leader. The DL linkup with WestJet will hurt along with the loss of other partnerships and claiming success when they can barely operate a reduced schedule is just being in denial. Now they are even cutting mainline and new ads from California in the summer. BOS-SFO is reduced to 3 flights a day which is the weakest schedule out there. Denver is down to 2 flights a day in summer. MSP is down to 1. They need to bulk up SEA transcons to fight Mint as well. They are really getting bombarded from all sides. Can't wait to hear their update on the next earnings call to see if they have started to think through a strategy and are able to clearly articulate it.
Yea, AAG will be on the hot seat(or should be) from the analysts. Consider: Canada's population and market potential is equal to California. Canada has 5 major international gateways. WJ and Delta serve all 5 WJ has announced a doubling of their fleet to 180 aircraft by 2020. This includes 20 new B-787's for service to Asia and Europe from their 4 Canadian hubs(YVR,YYC,YEG,YYZ,). Delta will have the option of routing traffic through them as well, instead of their increasing overcrowded U S gateways. Lets not forget, that WJ CEO Greg Saretsky was EVP at AAG before his departure for WJ. He has intimate knowledge of his competitor. Saretsky's move with Delta is not been noticed in the U S yet, but 3-5 years from now it'll be a major positive for Delta and a major negative for AAG.