Today's news

United slims down -- What is the news if not another shrink? Here's today big shrink news - The latest layoffs involve nearly 15% of United's 6,518 pilots. The carrier has said it plans to cut its staff by 1,400 to 1,600 as it aims to reduce domestic capacity by 14% in the fourth quarter.

So, as the airline "slims down" how will it ever grow again? With each layoff, and each plane that gets parked, three US airlines are almost certainly going to grow; Southwest, AirTran and jetBlue. Provided their money holds out, perhaps Virgin will also grow.

United is clearly going to hold on to its overseas routes. But with ever more limited feed opportunities, how will these work? Can United sustain with only limited feed and local O&D? For example the Dulles operation depends a lot on feed. As does Chicago. Same for SFO. The picture looks gloomy.

In other news --

Service vacuum will be mostly filled

Tanker - rebid and flyoff

Tom Enders worries about Airbus' reputation

This is Etihad's year

How it used to be - PanAm 1958

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