Divided we stand, United we fall!

[Dag Johnsen]

Heisann!

Her er et interessant syn fra Air Transport World Innovation Analysis Group (IAG)!


The IAG team does a quick review of the possible merger between United and US Airways and it looks nasty. As the table clearly illustrates United is the industry's weakest link. As stated in the podcast, the bear only has to catch the weakest - but there is more than one carnivore doing the chasing, so nobody is really safe.

http://insidepenton.com/Currentcashburn.pdf

That said, United and US Airways can clearly be bled to death by Southwest. The weakest are up against the strongest and the situation is dire. Merging the two weakest adds not one bit to a more secure future. Indeed, US Airways should reject United's overtures forthwith as the bear will catch United first. US Airways may be able to escape if the industry's fortunes turn within the year. For United, all things remaining the same, the year looks like being lunch.

Dag