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Old Dec 26, 2018 | 2:58 am
  #531  
PotomacApproach
All eyes on you!
10 Years on Site
 
Join Date: Oct 2011
Location: SJC/SFO
Programs: 2026 Free Agent
Posts: 657
Originally Posted by eponymous_coward
I wasn’t going to point it out because, well, they did (finally) start making profits and did (finally) pay their VCs back, Plus they didn’t try to be everything to everyone. They weren’t the raging success B6 is but they weren’t a failure.
Loved VX service, but they nearly went bankrupt in 2013, and had to restructure their debt in order to go public, and in turn pay off early debt and equity investors. Earlier debt investors converted some of their debt into stock warrants, so VX didn't have to pay them back, but very much needed a liquid stock to pay those debtors off. They also had to restructure their aircraft leases on top of that.

VX broke the model of B6, AS, and WN, which was to built hubs/focus cities in places like JFK, BOS, OAK, MDW, SEA, ANC, etc where you gain high market share at the airport and by having monopolies or duopolies on most routes. VX never developed that at SFO, and AS can now subsidize SFO operations from profitable SEA, PDX, ANC hubs which VX obviously couldn't do. AS also has a far more competitive FF program.

But I'm still curious to see what AS does at SFO because it's not like the airline to fly so many routes where it has low market share.
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