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Today's news

By IAG | June 24th, 2008 | Posted in airtran, Aviation News, jetblue, southwest, United Airlines, virgin america | No Comments

United slims down — What is the news if not another shrink? Here's today big shrink news – The latest layoffs involve nearly 15% of United's 6,518 pilots. The carrier has said it plans to cut its staff by 1,400 to 1,600 as it aims to reduce domestic capacity by 14% in the fourth quarter.

So, as the airline "slims down" how will it ever grow again? With each layoff, and each plane that gets parked, three US airlines are almost certainly going to grow; Southwest, AirTran and jetBlue. Provided their money holds out, perhaps Virgin will also grow.

United is clearly going to hold on to its overseas routes. But with ever more limited feed opportunities, how will these work? Can United sustain with only limited feed and local O&D? For example the Dulles operation depends a lot on feed. As does Chicago. Same for SFO. The picture looks gloomy.

In other news —

  • Service vacuum will be mostly filled
  • Tanker – rebid and flyoff
  • Tom Enders worries about Airbus' reputation
  • This is Etihad's year
  • How it used to be – PanAm 1958

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    • AirTran and Midwest – getting closer

    By IAG | January 30th, 2007 | Posted in airlines, airtran, aviation, midwest | No Comments

    AirTran Chairman Joe Leonard says AirTran executives have spoken "numerous times" to Midwest Air's 20 largest shareholders, who together control around half of the company's stock. Leonard believes most of those shareholders are inclined to accept AirTran's offer of $13.25 a share.

    February 8 is the closing date on the offer. When the offer expires, AirTran is required by law to disclose how many shares have been tendered to the company. AirTran also has the option of extending the offer. Even if short of a majority of the shares, AirTran might secure enough shareholder support to force Midwest Air's board to negotiate a sale of the company. The current offer of $13.25 is higher than the initial $11.25.

    It looks to us like AirTran smells victory. Joe Leonard must have a good idea by now of how much support he has. Investors in Midwest must have had the story explained to them and we think even the hardiest investor must see that airlines function best when they have growth opportunities and lower costs. AirTran offers more than a stand alone plan does. Consolidation is coming to this industry.

    AirTran and Midwest – getting closer

    By IAG | January 30th, 2007 | Posted in airlines, airtran, aviation, midwest | 1 Comment

    AirTran Chairman Joe Leonard says AirTran executives have spoken "numerous times" to Midwest Air's 20 largest shareholders, who together control around half of the company's stock. Leonard believes most of those shareholders are inclined to accept AirTran's offer of $13.25 a share.

    February 8 is the closing date on the offer. When the offer expires, AirTran is required by law to disclose how many shares have been tendered to the company. AirTran also has the option of extending the offer. Even if short of a majority of the shares, AirTran might secure enough shareholder support to force Midwest Air's board to negotiate a sale of the company. The current offer of $13.25 is higher than the initial $11.25.

    It looks to us like AirTran smells victory. Joe Leonard must have a good idea by now of how much support he has. Investors in Midwest must have had the story explained to them and we think even the hardiest investor must see that airlines function best when they have growth opportunities and lower costs. AirTran offers more than a stand alone plan does. Consolidation is coming to this industry.