AA bids for USairways Shuttle

 
Old Jan 27, 04, 10:43 am
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AA bids for USairways Shuttle

http://biz.yahoo.com/rc/040127/airlines_usair_1.html
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Old Jan 27, 04, 12:05 pm
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If AA wins the bid, do you think they'll use US's Airbuses?

I was not aware that AA had $3 billion in cash...
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Old Jan 27, 04, 12:25 pm
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by tismfu:
If AA wins the bid, do you think they'll use US's Airbuses?
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I can't imagine that the purchase includes aircraft, especially given the $100-$150 million price tag.
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Old Jan 27, 04, 12:32 pm
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Oops. You're right; that makes sense. You can tell I'm not a business man!

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Old Jan 27, 04, 12:58 pm
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from the 4Q results released last week, AMR does have about $3B in cash including certain bits of it that's restricted.

it does sound like a good deal especially considering when they had tried to bid for it in 1997 for $300 million and failed.

[This message has been edited by jakob (edited Jan 27, 2004).]
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Old Jan 27, 04, 1:04 pm
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OH NO - A plan to cancel retirement of the Fokkers!!
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Old Jan 27, 04, 1:07 pm
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Any reason why the MD-80 or 737-800 wouldn't work on this route? I'm sure AA can't be interested in another aircraft type. There used to be 29 MD-80's in the desert (some are probably back in service now) and I suspect others can be purchased on short notice and appropriately configured. There are no 738's in storage and they may be a bit harder to come by on the market.
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Old Jan 27, 04, 1:18 pm
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Dumb question: when the newsies talk about "The Shuttle", are they really just talking about landing slots and gates at three airports? (BOS, LGA, DCA)

Doesn't AA already fly some of these routes? (I know they do D.C. to New York. Don't know about Boston.) Are we really just talking about AA buying more capacity from US Airways on these routes?

I don't get why the news makes a big deal about "The Shuttle" as if it's some totally different airline. To me, it just sounds like an expanded presence in three markets that AA is already in. (Which, if the routes are profitable, is a good thing - just not something that should make the newsies go crazy.)
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Old Jan 27, 04, 1:52 pm
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One would expect that the deal will go beyond slots and gates. For example, the deal will likely include a non-compete period and possibly joint marketing provisions. AA will want joint marketing provisions that allows it to obtain some value out of the US Shuttle goodwill by locking in the existing US customer base. For example, after the last deal fell through, one could earn AA and US miles on a single Shuttle flight. The The joint marketing might be interesting considering US' relationship with UA.
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Old Jan 27, 04, 1:54 pm
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by pinniped:
I don't get why the news makes a big deal about "The Shuttle" as if it's some totally different airline. To me, it just sounds like an expanded presence in three markets that AA is already in. (Which, if the routes are profitable, is a good thing - just not something that should make the newsies go crazy.)</font>
I think the story is less of a big deal news story as it relates to American than as it relates to USAirways. That USAir is looking to dispose of assets such as the Shuttle operation is a bad sign for its long term survivablity. It is another indication that the U.S. airline business on 1/27/05 is unlikely to include USAirways.

Remember, both Eastern and Pan Am sold-off their Shuttle operations not long before their demise.

As for American, I hope they get it, but would be surprised if it is run much differently than American runs its "shuttle" today. I would expect to continue to see RJ service on these routes, albeit with more frequency. I doubt you'll see AA operate out of the USAir Shuttle terminal at LGA (the former Eastern and Trump Shuttle terminals) or operate USAir's Airbus equipment. For AA, its all about slots and frequency.
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Old Jan 27, 04, 2:04 pm
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AA still has 20 ex-TWA SP80s sitting in the desert. They would probably just use some of those.
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Old Jan 27, 04, 2:12 pm
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by PresRDC:
I think the story is less of a big deal news story as it relates to American than as it relates to USAirways. That USAir is looking to dispose of assets such as the Shuttle operation is a bad sign for its long term survivablity. It is another indication that the U.S. airline business on 1/27/05 is unlikely to include USAirways.

Remember, both Eastern and Pan Am sold-off their Shuttle operations not long before their demise.

As for American, I hope they get it, but would be surprised if it is run much differently than American runs its "shuttle" today. I would expect to continue to see RJ service on these routes, albeit with more frequency. I doubt you'll see AA operate out of the USAir Shuttle terminal at LGA (the former Eastern and Trump Shuttle terminals) or operate USAir's Airbus equipment. For AA, its all about slots and frequency.
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I agree with your assessment of US Airways.

I think my question just boils down to the trivia behind the use of the word "Shuttle". I didn't know that Eastern and Trump(?) had "Shuttles" too.

American operates a bunch of 1-hour flights back-and-forth between MCI and ORD, but nobody calls them the Shuttle. Intriguing. Maybe tonight I will go a-Googling for Trump, Eastern, Shuttle, etc.
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Old Jan 27, 04, 2:37 pm
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This may be a dumb question but the shuttle from DCA only. I mean does US also consider flights from IAD (do they even have them?) to NY or BOS shuttles?
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Old Jan 27, 04, 2:51 pm
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by TrojanHorse:
This may be a dumb question but the shuttle from DCA only. I mean does US also consider flights from IAD (do they even have them?) to NY or BOS shuttles? </font>

US tried running the "Shuttle" from IAD a few years ago. They dropped it after a while.

The "Shuttle" is more than slots, gates, and hourly service. It is a concept of a vastly simplified fare structure and improved (sort of) service. For example, one can walk to the gate with a ticket for one flight and get on another. DL used to market that it will load up an extra flight if there are more passengers than seats and keeps an extra plane or two sitting at the airport for that purpose. Others might describe the concept differently but the old hourly service between STL and ORD was never marketed as a "Shuttle."
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Old Jan 27, 04, 3:05 pm
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by pinniped:
I agree with your assessment of US Airways.

I think my question just boils down to the trivia behind the use of the word "Shuttle". I didn't know that Eastern and Trump(?) had "Shuttles" too.

American operates a bunch of 1-hour flights back-and-forth between MCI and ORD, but nobody calls them the Shuttle. Intriguing. Maybe tonight I will go a-Googling for Trump, Eastern, Shuttle, etc.
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I am no expert on the history of the northeast shuttle, but here is what I know:

Eastern started the shuttle between NY and DC and NY and BOS in the 1960s offering a guaranteed seat, even if they had to roll out a separate plane for one passenger. Eastern originally used Lockheed Electras on the route and eventually used a variety of equipment, including A300s to BOS and 727s to DCA.

Pan Am entered the shuttle business in the 1980s, calling "The Corporate Jet." Pan Am did not fly to LGA at the time and took over the Marine Air Terminal for its shuttle operations using Boeing 727s.

Eastern operated hourly on the hour, Pan Am operated hourly on the half hour.

Eastern purpose built a terminal at LGA for the shuttle. Today, it is part of the USAir terminal (facing the terminal, the far right check-in area and concourse), but at the time, it was free standing and between the Delta/Northwest terminal and the Central terminal (from where Eastern operated its non Shuttle flights).

In the late 80s/early 90s, both Pan Am and Eastern sold their shuttle operations. Pan Am sold to Delta and Eastern sold to Donald Trump, who operated the service for a few years as The Trump Shuttle, using 727s he aquired from Eastern. Donald Trump sold the shuttle operation to USAir in the early to mid 1990s, which operated the shuttle with 727s until they replaced these aircraft with A320s. Delta also operated the shuttle with 727s, until they were replaced with 737-800s.

Shuttle flights included added amenities, such as free alcohol, newspapers/magazines and snacks. Eventually, video programming was offered.

USAir would eventually launch shuttle flights between DCA and BOS. I do not know if Delta ever followed.

Both Delta and USAir have recently downsized shuttle aircraft and amenities.

If you go to airliners.net, you can find some photos of the Trump Shuttle planes.

TrojanHorse, as far as I know, the shuttle designation only applies (applied) to the DCA and BOS flights from LGA. I could be wrong on this, though.

What makes the shuttle unique is the relavtively cheap walk-up fares and the guaranteed seat if you checked-in within 20 minutes of departure.

The shuttles were/are a good place to celeb. watch. I have flown with Maury Povich, "Fergie," and various politicians, including Tip O'Neil and Tom Foley.

Hope this helps!
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