Auf Wiedersehen STR (Stuttgart).
#4
Join Date: Feb 2008
Programs: 6 year GS, now 2MM Jeff-ugee, *wood LTPlt, SkyPeso PLT
Posts: 6,526
Given all the MB traffic, its interesting they can't fill a 757 once a day.
But we all know that United will be able to compete with sub-par product and service because, well it has such a great network!
#7
FlyerTalk Evangelist
Join Date: Apr 2008
Location: LGA/JFK/EWR
Programs: UA 1K1.75MM, Hyatt Globalist, abandoned Marriott LTT (RIP SPG), Hertz PC
Posts: 21,166
#8
A FlyerTalk Posting Legend
Join Date: Apr 2004
Location: GVA (Greater Vancouver Area)
Programs: DREAD Gold; UA 1.035MM; Bonvoy Au-197; PCC Elite+; CCC Elite+; MSC C-12; CWC Au-197; WoH Dis
Posts: 52,121
#10
Join Date: Jan 2005
Location: New York, NY
Programs: UA, AA, DL, Hertz, Avis, National, Hyatt, Hilton, SPG, Marriott
Posts: 9,443
This winter is not shaping up to be very good to the airline business. Demand appears to be weakening, fuel prices are back in the rise and the geopolitical climate is becoming more unsettled.
I expect additional route pruning. UA wasn't in expansion mode for this latest upswing, and they certainly won't be starting now as the pendulum begins to go the other way. Aggressive 763ER retirements are the next, easiest target.
I expect additional route pruning. UA wasn't in expansion mode for this latest upswing, and they certainly won't be starting now as the pendulum begins to go the other way. Aggressive 763ER retirements are the next, easiest target.
#11
Join Date: Feb 2008
Programs: 6 year GS, now 2MM Jeff-ugee, *wood LTPlt, SkyPeso PLT
Posts: 6,526
This winter is not shaping up to be very good to the airline business. Demand appears to be weakening, fuel prices are back in the rise and the geopolitical climate is becoming more unsettled.
I expect additional route pruning. UA wasn't in expansion mode for this latest upswing, and they certainly won't be starting now as the pendulum begins to go the other way. Aggressive 763ER retirements are the next, easiest target.
I expect additional route pruning. UA wasn't in expansion mode for this latest upswing, and they certainly won't be starting now as the pendulum begins to go the other way. Aggressive 763ER retirements are the next, easiest target.
Delta and AAL are doing well (ok, very well), but they are gaining passengers from United which compensate for any losses they may have to Chinese and ME carriers.
p.s. I also expect 763ER retirements. A smart management team would use the 763ERs for hub-to-hub lift (they are paid for, don't need the number of turns, go for reliablity), and then use the A319/A320s running side by side between hubs to upgage routes with RJs, but this is not a smart management team.
#12
Join Date: Jan 2005
Location: New York, NY
Programs: UA, AA, DL, Hertz, Avis, National, Hyatt, Hilton, SPG, Marriott
Posts: 9,443
I think it is not shaping up so good for United, which is losing high value frequent fliers, and chose to hack away at its domestic network (more RJs, crappy F product with downgrades, TODs) and Mileage program at the time when domestic lift was providing the best yield improvements for a focus on putting capacity overseas.
Delta and AAL are doing well (ok, very well), but they are gaining passengers from United which compensate for any losses they may have to Chinese and ME carriers.
Delta and AAL are doing well (ok, very well), but they are gaining passengers from United which compensate for any losses they may have to Chinese and ME carriers.
p.s. I also expect 763ER retirements. A smart management team would use the 763ERs for hub-to-hub lift (they are paid for, don't need the number of turns, go for reliablity), and then use the A319/A320s running side by side between hubs to upgage routes with RJs, but this is not a smart management team.
Running those airplanes on short hauls between hubs will increase wear and likely reduce reliability. I don't think there's any evidence that this is a "smart" management strategy. Stick to the financial analysis ...
#13
Ambassador: Alaska Airlines
Join Date: Nov 2008
Location: BWI
Posts: 7,390
As recently as this week Delta came out with a comparatively disappointing traffic result, and Lufthansa is projecting softening international demand. United is not unique in its exposure to these to the exogenous factors facing the entire industry (to say nothing of its self-inflicted internal problems).
UA shrinks and their PRASM has been flat when it should go up [less capacity, weed out low fare and increase PRASM with higher % of higher fare passengers is their mo] so that is not good.
#14
FlyerTalk Evangelist
Join Date: Jan 2009
Location: London & Sonoma CA
Programs: UA 1K, MM *G for life, BAEC Gold
Posts: 10,220
DL is still in the green and they are holding their year-end projections. 4.5% increase in PRASM with some increase in capacity [as long as capacity % is below PRASM %] while keeping CASM below 1% is impressive.
UA shrinks and their PRASM has been flat when it should go up [less capacity, weed out low fare and increase PRASM with higher % of higher fare passengers is their mo] so that is not good.
UA shrinks and their PRASM has been flat when it should go up [less capacity, weed out low fare and increase PRASM with higher % of higher fare passengers is their mo] so that is not good.
#15
Join Date: May 2009
Location: SIN (with a bit of ZRH sprinkled in)
Posts: 9,449
I guess STR is a victim to missing feeder traffic from LH? As LH (Europe) only flies to/from their hubs (FRA/MUC) anymore, other feeders (also for fellow *A) have been cut off or moved to 4U (Germanwings) which no one sane would book (due to heavy incompatibilities)