Originally Posted by
Anglo Large Clawed Otter
Granted, if CO does begin to noticeably lag behind the competition, perhaps this could become a net positive (by CO making it easier to upgrade into BF, or by selling R fares year-round). However, such moves just wouldn't seem to be the style of CO management. I fear they won't make any such moves until the market forces their hand (or 787 rollout, whichever is sooner), by which time they may have lost valuable customers and/or corporate contracts.
Where's rkkwan with the 764/777 heavy maintenance schedule when you need him? If CO neither increases upgrade/R availability nor redeploys a greatly-improved BF product prior to 787 rollout, methinks the next two years could be rocky in terms of premium-yields for CO. No one in their right mind would pay D/J for TATL CO BF (CO's bread & butter) if they have the choice of new UA (recall, 767-300s get revamped first), DL 777-200 with new lie-flat VS-style seats (with lie-flat also expected for 767-300s at some point in the near future), BA, VS, BD (soon to have SA-style lie-flat), AC, or EOS. That's quite a spectrum of true-flat J seats to choose from on TATL routes. If I were purchasing J tickets, unless CO was just gazillions of times more convenient than any competitor, I would have a serious think about who got my $$$ (as I could choose true-flat on so many airlines, on any of the alliances).
Agreed on all. So far, though, the Kellner management style has been characterized by prudence and stasis. While they have certainly been willing to acquire new a/c, no new products have been rolled out under Kellner's watch.
It's made them look good on Wall Street but one might be concerned that today's short-term profit has come at the expense of the long-term vitality of the company.
Now their hand is (or will be shortly) forced. I am curious to see how they respond.
I think this response will tell us a lot about what Kellner imagines for CAL's long-term prospects (whether as an independent firm or merged with another carrier).