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Dana Blankenhorn

 
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  • How Will AMR Use The Power Of Bankruptcy? [View article]
    I think you're right. Although I live in a hub city, Atlanta, the hub-and-spoke mechanism is what's broken here. Better for people to fly from Raleigh to Nashville direct than from Raleigh to Atlanta to Nashville. And if you have a flexible fleet -- lots of smaller planes and not just big ones -- then you can do a back-and-forth run like that economically.

    But consider. You can probably do that run 6 times a day with one plane. Even if it's one of the smaller Brazilian models that are so popular these days, you're still looking at a seating capacity of several hundred to make that route close to profitable.

    I think that plane technology, however, is fast enabling that kind of route structure, and Southwest is proof it works.
    Dec 2, 2011. 10:07 AM | Likes Like |Link to Comment
  • How Will AMR Use The Power Of Bankruptcy? [View article]
    You're ignoring the point I made. Southwest makes money. Southwest pays union wages.

    This idea that you have to stiff the employees in order to profit is, I believe, a canard.
    Dec 2, 2011. 08:23 AM | Likes Like |Link to Comment
  • How Will AMR Use The Power Of Bankruptcy? [View article]
    I don't know how big a haircut, if any, bondholders might be in for. AMR has a lot of cash, and this simply seems like a way to steal the workers' pensions and salary, while keeping management intact.

    My point is not a political one. It's a practical business point. AMR needs to deal with its route structure, which leaves planes on the ground for many hours at a time, at immense cost, while Southwest has those same planes in the air. As others have noted, Southwest pays union wages.
    Dec 1, 2011. 09:18 PM | Likes Like |Link to Comment
  • How Will AMR Use The Power Of Bankruptcy? [View article]
    I feel victimized myself, as I live in Atlanta and, at the time of the Eastern collapse, they ran half our airport. I hope that at least you laughed at the Simpsons bit. http://bit.ly/swnSIT
    Nov 30, 2011. 08:53 AM | Likes Like |Link to Comment
  • How Will AMR Use The Power Of Bankruptcy? [View article]
    Southwest had a very bad quarter last time out, and a loss two quarters ago, but usually they do make a profit. They charge less and don't have bag or change fees.

    It's Southwest's relative efficiency that AMR can't match. This is a product of the route structure, which allows LUV planes to spend a half-hour or so between flights while AMR planes spend up to 3 hours.

    Check it out yourself some time.
    Nov 29, 2011. 07:19 PM | Likes Like |Link to Comment
  • How Will AMR Use The Power Of Bankruptcy? [View article]
    I agree with you. My point is this is part of a deflationary spiral. It's worse than the inflation of the 1970s.
    Nov 29, 2011. 07:17 PM | Likes Like |Link to Comment
  • How Will AMR Use The Power Of Bankruptcy? [View article]
    Exactly my point. Screwing employees, or even denying them the right to organize through bankruptcy, may make some wingnuts happy. But it won't solve AMR's problems, which are far more structural in nature.
    Nov 29, 2011. 05:48 PM | Likes Like |Link to Comment
  • How Will AMR Use The Power Of Bankruptcy? [View article]
    bail
    Nov 29, 2011. 04:52 PM | Likes Like |Link to Comment
  • How Will AMR Use The Power Of Bankruptcy? [View article]
    I like 'em fine on Southwest. AMR is not going under because people aren't flying. They're going under because people aren't flying American Air, at a price high enough for American Air to earn a profit. Yet American Air doesn't have the lowest prices, and gutting the workers isn't going to change that.

    So what do you do? You change your route structure.
    Nov 29, 2011. 03:15 PM | Likes Like |Link to Comment
  • How Will AMR Use The Power Of Bankruptcy? [View article]
    An excellent point. Southwest kicks American's butt despite having unions. Unions are being made a scapegoat for a failed business model. Gutting them is thus only a short-term solution.
    Nov 29, 2011. 01:46 PM | Likes Like |Link to Comment
  • How Will AMR Use The Power Of Bankruptcy? [View article]
    I think you missed the point. Gutting the unions, stiffing the workers, isn't a long term solution to this company's problems.

    What's happening to unions generally is evidence of something completely different. Deflation in the general economy.
    Nov 29, 2011. 01:26 PM | Likes Like |Link to Comment
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