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Davide Pavone  

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  • Is Delta Staring Down A Money Pit With Its Refinery Deal? [View article]
    According to a Bank of Canada discussion paper, fundamental factors are behind increasing oil prices:
    May 25, 2012. 06:22 PM | Likes Like |Link to Comment
  • Southwest May Be Best In Class But No Reason To Own Airline Shares [View article]
    The AirTran codeshare is not expected until 2013; I would avoid Southwest until then.
    Apr 12, 2012. 06:51 PM | Likes Like |Link to Comment
  • Southwest 50% Undervalued With Delta-US Airways Takeover Talk [View article]
    "I see it possibly merging with US Airway [sic] to gain scale and unlock revenue and cost synergies."

    I would argue that Delta's network would not complement that of US Airways. Moreover, the DOJ would eliminate any potential network synergies.

    "It is rumored that US Airways is currently discussing with creditors about the proposed merger."

    Bear in mind that Parker has said that merging is "no longer a strategic imperative."

    Finally, do not overlook the negative consequences of government policy:
    Mar 29, 2012. 11:14 PM | Likes Like |Link to Comment
  • Transportation Roundup: 1 Strong Buy, 2 Buys [View article]
    In their February 27th Hot Flash, the Boyd Group International notes that United will replace Southwest in the Sarasota-Chicago market. They write that it is "the first time that a legacy carrier has entered a substantial market abandoned by an LCC." Frontier's entrance into terminated AirTran markets also calls Southwest's competitiveness into question.
    Mar 20, 2012. 04:38 PM | Likes Like |Link to Comment
  • Will AMR's Chapter 11 Ground Its Competitors? [View article]
    Oliver Wyman recently released their airline economic analysis for 2012:
    Mar 8, 2012. 11:23 AM | Likes Like |Link to Comment
  • Why Did This Large-Cap Airliner Get Demoted To Small-Cap Status? [View article]
    US Airways stands to benefit from Southwest's changes to AirTran's ATL operations:
    Jan 17, 2012. 06:14 PM | Likes Like |Link to Comment
  • Best Airline Stocks: Delta, United, Or US Airways? [View article]
    What about ALK? WestJet is another airline worth considering.
    Nov 8, 2011. 04:49 PM | Likes Like |Link to Comment
  • Southwest-AirTran Merger Will Fuel Long-Term Value Creation [View article]
    The Boyd Group International's commentary is a highly recommended read:
    Oct 5, 2011. 03:01 PM | Likes Like |Link to Comment
  • Major Airlines Struggle While American Airlines Faces Possible Bankruptcy [View article]
    The debt-to-equity ratio overlooks off-balance sheet financing. Operating leases and purchase commitments should be added to total debt.
    Oct 5, 2011. 02:46 PM | Likes Like |Link to Comment
  • Airlines Ready For Take-Off? [View article]
    Don't overlook the possibility of higher fees and surcharges:
    Oct 2, 2011. 12:00 PM | Likes Like |Link to Comment
  • AMR's Big Order to Pressure Cash Flow, Boeing in Precarious Position [View article]
    The Boyd Group International believes the C-Series might benefit from Boeing's plight:

    Jul 5, 2011. 09:31 PM | Likes Like |Link to Comment
  • Aging Fleets: Which Airline Has the Highest Costs? [View article]
    Oliver Wyman conducted an economic analysis of major U.S. air carriers for the Raymond James Global Airline Conference:

    Although the report is dated, exhibits 10, 13, and 18 (pages 12, 15, and 19, respectively) are worth noting.
    Jul 5, 2011. 09:21 PM | Likes Like |Link to Comment
  • How Major Airlines Stacked Up in Key Categories for 2010 [View article]
    According to Oliver Wyman, we should expect to see "narrowing CASM gap between the value carriers and the network carriers, and solid growth in RASM for both kinds of carriers, strongly driven by capacity discipline":
    Apr 6, 2011. 11:02 PM | Likes Like |Link to Comment
  • Will Turbulence Divert Future Flight for Airlines Stocks? [View article]
    Do not forget the money pit that is the present-day ATC system. The Boyd Group estimates that ATC-related delays cost the industry around $10 billion a year:

    Dec 16, 2010. 12:48 PM | Likes Like |Link to Comment
  • Is American Airlines a Value Opportunity? [View article]
    AA has a strong domestic presence and low non-labor costs:
    Oct 28, 2010. 06:04 PM | Likes Like |Link to Comment