Bucking Bar

The Wall Street Journal reports that JAL might get split up. If so, this is obviously a play to get into that transaction.

Strategically, the NWA merger was supposed to make us #1 in Asia. It turned out that United's still a powerhouse, but we thought we could beat them in the long run.

With JAL in play, American could be United's replacement competition, or at least a tough competitor in their own right with United.

My tunnel vision tactical analysis (swag) is that it is very risky to throw Billions of Dollars at 10% interest into a company that is losing Billions to save the "benefits" of a NWA merger. Asia is a terrifically competitive market with LCC and Premium airlines that would be tough to beat from US soil. For one, we have to deal with the Department of Homeland Security and the travel restrictions they impose on non US Citizens. Then there is the issue of cheap foreign labor and government subsidies.

Yes, there is growth in Asia, but if we can't profitably fly from ATL to DAB or VPS, what makes us think Asia is such a profit center for us? There is a reason JAL's losing Billions.

Until we have a 100 to 150 seat aircraft plan that involves us keeping the revenues we take in by flying the airplane ourselves, I think Sailingfun is correct.

Maybe we're just going to make American over pay for a version of what we got for free in a stock swap.

In related news, listen to the Flight Ops 411 where they talk about, "flying beyond Tokyo." That podcast provides perspective on the Japanese market.

freightguy

'Cheap foreign labor' in Asia...yes, Japan...hell no! They are one of the most highly paid (if not the highest) work forces in the world. Have you seen what a JAL pilot makes?

Now if you talk about India, Thailand, China etc....it is very difficult to compete with their overall labor expenses. But Japan is a whole different story. Having flown through our NRT hub a lot, I can see great potential for our company there. For one, they have a very high O&D market....it is the bigggest city in the world...and also one of the richest. Japanese are one of the most travelled people in the world. You see them everywhere in the US on vacation....from Anchorage to Miami! And Japanese vacationers are not your typical back-packers. They are business class travellers. And don't forget the real business travellers from Japan....from their huge manufacturing industry.

I am happy to see DAL being aggressive in defending the NRT hub. I think our current management is doing a great job on being pro-active.

beer

I have been trying for some greenslips for a year. Got one the other night and then it NO-OP'd. Then got 23K'd another 2 day GS. I got 31.5 hrs of pay for a 2 day!!!!! Cha-Ching!!!!!!

RockyBoy

Yep, the gettin is good this week. Got a short 2 day trip that paid me 23 hours this week.

acl65pilot

Yep, there is a lot going on. I am sure we will the reason for this money sometime in Oct. Maybe two announcements. Not sure we can deal with three

newKnow

Good announcements as in like we will need more pilots? Or, good announcements as in like our passengers will love it?

firstmob

delted old news sorry

johnso29

I'm thinking aircraft orders for MAINLINE. Fingers CROSSED!!!

beer

Off topic for a minute...

We are having a baby due on Nov 13. Does Delta do anything like buy your trip? I know they do it for a funeral but child birth? Anyone care to chime in. I will take the time off but I'd like to protect the $$$ also.

80ktsClamp

Would that fall under FMLA?

DL will buy off the trip if you tatoo a widget on their forehead.