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Re: dayneyus post# 6778

Thursday, 11/26/2009 1:53:07 PM

Thursday, November 26, 2009 1:53:07 PM

Post# of 105598
Your son asks a very good question. I am a manager for another airline on the west coast, and have been following Baltia for some time. Why wouldn't another U.S. carrier already be flying between the U.S. and Europe's 4th largest city, St. Petersburg? I have also asked myself the same question, and suggest the following reasons why this non-stop route has not been served by another carrier:

1) The first U.S. airlines to fly to Moscow, American and Delta, had very difficult experiences in starting up - it took a lot longer and cost a lot more money than they expected. A free market economy was slow to arrive in Russia for many reasons, not the least of which is corruption. This experience was painful, and not one they want to repeat. FEDEX had such a frustrating time, that they pulled out of Moscow after a year.

2) U.S. air carriers are spread too thin with bigger challenges domestically, to try and deal with a new route into a market that has previously proved difficult for them, given the business & cultural differences.

Baltia clearly has closer ties to this region than other U.S. carriers, and should do well by specializing in its cultural uniqueness.

Another interesting question - Why didn't IBM get into the PC market decades ago? The answer - no answer. They missed the opportunity while focusing their attention on other business.

Remember - the only airlines that can provide non-stop service between the U.S. and St. Petersburg, are Russian and U.S. carriers. Baltia is the only carrier with approval at this time, and no other U.S. carrier will get the approval (non are in the wings at this time) unless Baltia fails to start. And, it is unlikely that Russia will approve another U.S. carrier until a Russian carrier flies it - and that competition is one that Baltia should welcome, as there are only two Russian carriers capable of doing it - and they would be little competition if Baltia provides good service. Consequently, Baltia has a good opportunity to dominate in the U.S.-St. Petersburg traffic long before any significant competition shows.

It is a unique opportunity, and I applaud them for grinding through the process to get where they are today -

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