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Is This BizJet a Good Idea?

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Source: Archived Content

Date: Jun 19, 2001

As if the proposed US Airways merger is about to die (or probably already dead as many media sources are reporting) it seems there's already a new kid on the block to analyze: BizJet.

There's an interesting article in today's CBS Marketwatch about BizJet entitled: UAL Should Stick to Scheduled Flying.  It makes some very worthy points:

  • The fractional-jet ownership plan is a segment of the airline industry. But it's such a small piece, and a potentially divisive one for a major airline to jump into, that many observers are wondering why the beleaguered airline is going there.
  • It only will further muddy the already murky waters at UAL, which include labor and service issues, its year-old effort to acquire US Airways Group and an income statement that won't have any this year.
  • UAL's doing it in the midst of an airline recession that's mired in uncertainty over whether the hefty UAL/US Airways deal gets done.

So again, this brings us back to the question: Is this a good idea or not?  United, in their press release on April 26th, had said, "Many corporations and individuals view these products as a necessary supplement to traditional commercial airline service in today's global, high- paced business environment. "  That also, is a good point.

In JSN words, commercial air travel is like riding a bus and simply not for the laptop/cell phone-carrying business traveler anymore.

What do you think?

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