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Comments on Siegels departure?



 
 
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  #1  
Old April 20th, 2004, 10:18 PM
Jim Anderson
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Default Comments on Siegels departure?

I think it's the only thing that will save US.

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  #2  
Old April 21st, 2004, 01:32 AM
Jeff Hacker
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Default Comments on Siegels departure?

US needs much more than Siegel's departure. They need (IMHO):

1. To differentiate themselves from their low fare competition. They don't
offer enough of a difference from AirTran, JetBlue, Southwest or America
West as they now operate. Selling food on board doesn't by itself cut it.
2. They need to find a partner other than Star Alliance. They have a major
gap in the Western United States, and it is much more than any gap United
has in the East. That means that US needs United much more than United
needs US. And both UA and US are sickies.
3. Their three remaining hubs are too close together - Pittsburgh,
Philadelphia, and Charlotte. They need to look beyond these hubs, and,
also, build on a point to point network, with possible use of Reagan
National Airport and NYC LaGuardia for more connections where they have
strength. Perhaps they should look at nonstops in current monopoly or near
monopoly markets where they can leverage their strong position in the
Northeast - markets like DCA/LGA-IAH/DFW where they can compete against the
likes of American and Continental.
4. They need to make a strong effort to rebuild their employees' morale.
Right now they are losing it.

Just my 2 cents' worth.

Jeff in Dallas
"Jim Anderson" wrote in message
...
I think it's the only thing that will save US.

Comments?




  #3  
Old April 21st, 2004, 03:22 AM
Jim Anderson
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Default Comments on Siegels departure?

Good points...

"Jeff Hacker" wrote in message
.. .
US needs much more than Siegel's departure. They need (IMHO):

1. To differentiate themselves from their low fare competition. They

don't
offer enough of a difference from AirTran, JetBlue, Southwest or America
West as they now operate. Selling food on board doesn't by itself cut it.


This is the toughest 'cause of the cost. They've diluted Dividend Miles by
granting unlimited upgrades to all levels. I'm thinking about jumping ship
just 'cause of that. But I understand upgrades are tough on all the majors
at the elite levels because of decreased capacity.

2. They need to find a partner other than Star Alliance. They have a

major
gap in the Western United States, and it is much more than any gap United
has in the East. That means that US needs United much more than United
needs US. And both UA and US are sickies.


Delta? Too much in the east already. CO? A bit better. Do the NW/CO
thing?

3. Their three remaining hubs are too close together - Pittsburgh,
Philadelphia, and Charlotte. They need to look beyond these hubs, and,
also, build on a point to point network, with possible use of Reagan
National Airport and NYC LaGuardia for more connections where they have
strength. Perhaps they should look at nonstops in current monopoly or

near
monopoly markets where they can leverage their strong position in the
Northeast - markets like DCA/LGA-IAH/DFW where they can compete against

the
likes of American and Continental.



MidAtlantic is launching out of PIT but rumor has it will have a base in PHL
by the end of the year. I'd like to seem them drop PIT altogether. From
there, LGA is rough because of the inherient delays. Almost as bad as ORD.
Reagan is a little more doable. Maybe keep CLT and PHL, making PHL the
international gateway and funnelling everything else through CLT. Pretty
far south to do that. BNA? What's Northwest got going there these days.
Hell, IND is expanding. They did base there once and it was a small hub for
them.


4. They need to make a strong effort to rebuild their employees' morale.


Seigels departure addresses this specifically. They were tired of threats.
They've given up alot. Maybe they still need to give a bit more but the
company was never going to give an inch under Seigel.


 




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