Drerx7 From United States of America, joined Jun 2000, 4962 posts, RR: 8 Reply 1, posted (8 years 6 months 3 weeks 5 days 22 hours ago) and read 4485 times:
So I assume with this merger--the existing route structure will remain intact--with additional routes coming online late? For example--I could expect to see the new US Airways flying from IAH to PHX, LAS, CLT, PIT, PHL, and DCA?
OPNLguy From , joined Dec 1969, posts, RR: Reply 3, posted (8 years 6 months 3 weeks 5 days 22 hours ago) and read 4466 times:
According to one of the PIT papers, it could also slide...
"The announcement, while expected this afternoon, could also slide a day or two, according to US Airways Chairman David Bronner, who told Bloomberg News that the agreement may come at the end of this week or early next week."
Potomac From United States of America, joined Jul 2003, 713 posts, RR: 0 Reply 8, posted (8 years 6 months 3 weeks 5 days 21 hours ago) and read 4304 times:
back to drerx7's question - i think very little original components for both airlines will remain 'intact'. route/hub restructuring; fleet simplification; maintenance, reservations, etc. consolidation...these all seem to be automatic if any savings and efficiencies are to be realized. and there undoubtedly will be associated job cuts.
Matt D From United States of America, joined Nov 1999, 9502 posts, RR: 50 Reply 11, posted (8 years 6 months 3 weeks 5 days 21 hours ago) and read 4190 times:
The problem is not too many airlines or overcapacity. The planes are all flying full or nearly full. The problems are 1) the airlines underpricing their fares to get business and the public demanding too much for too little and 2) management and employees who are working in a 2005 cutthroat environment with a 1965 mentality ("that's not my job", "we'll just screw the employees and customers", "full pay till the last day", "But I've got more seniority", etc.)
Every one of those mentalities needs to be thrown out the window. And the airlines start charging fares high enough to cover their operations.
Quoting AS739X (Reply 9): Alaska-American, not going to happen! We are not merging with a major and AA isn't buying us!
I agree. While I do think that if AA were to merge with another airline, it would be AS, and if AS were to merge with another airline, it would be AA, but I doubt that either really has an appetite right now for a merger.
These two companies have arguably come farther since 9/11 in restructuring their operations and remodeling their business to aim for sustained profitability. Both have come so far and I think that the management teams of both AA and AS are far too focused on fixing their own problems without having to worry about industry consolidation.
Potomac From United States of America, joined Jul 2003, 713 posts, RR: 0 Reply 14, posted (8 years 6 months 3 weeks 5 days 21 hours ago) and read 4097 times:
spot on, mattd. you hear about these record high load factors - what difference does it make if the seats are being sold at dirt cheap levels?
it's a simplistic view, but i think there is a large component of the flying public now that would still pay $200 for a flight - even if a competitor was offering one for $160 - especially if the $200 fare came on a carrier that the customer preferred for whatever reason. sure, you are always going to have the customers who go with "lowest price", but i don't think that is or needs to be the prevailing driver.
if US/HP goes thru, i'd think the focus we need to be on a route structure and overall product that is competitive with other carriers - especially the LCCs - on its own merits, without the emphasis being on matching the low fares.
Bridogger6 From United States of America, joined Apr 2005, 710 posts, RR: 11 Reply 15, posted (8 years 6 months 3 weeks 5 days 20 hours ago) and read 4005 times:
Quoting Matt D (Reply 11): The problem is not too many airlines or overcapacity. The planes are all flying full or nearly full.
This is not even close to true... fly non-rev a lot on any airlines and you know it's easy to find flights that aren't full all the time. Sure, some airlines may be experiencing record load factors, but certainly not all of them. There IS indeed a problem with overcapacity.
Stirling From Italy, joined Jun 2004, 3943 posts, RR: 26 Reply 21, posted (8 years 6 months 3 weeks 5 days 20 hours ago) and read 3799 times:
It's not necessarily an issue of over-capacity.
The new HP/US, if anything, will give the new entity more "Pricing-Power" in the marketplace. Increased market share means better chances of fare-increases "sticking".
Planes can fly full all day and all night, but if the fares don't cover the costs, it ain't gonna work. Plain and simple.
The US Airline Network is operating under a plague of low-fares with little or no relevance to the actual value of the service. (And at the same time, people in hub-dominated markets are being gouged without mercy.)
It's an un-fair system at the moment....something's gotta give.
This is but only the first step.
There will be more.....but please.....leave Alaska/Horizon alone.
The first thing I wonder about, if history teaches us nothing, will this be another East coast (Midwest) airline, taking over another West coast (Mountainwest) airline; only to see the Western USA network erode into nothing....?
Republic<>Hughes Air West
And to an extent Delta<>Western, although, Delta has done the best job of the lot in maintaining the most of their acquired West markets.
I respect Southwest Airlines (a lot), but do we really want to see 300-400 flights a day out of Phoenix? And Las Vegas...?
Possible scenario if US Airways has not yet learned from past transgressions.
Byrdluvs747 From United States of America, joined Jul 2004, 2265 posts, RR: 1 Reply 22, posted (8 years 6 months 3 weeks 5 days 19 hours ago) and read 3742 times:
HP and HA
Quoting Stirling (Reply 21): The first thing I wonder about, if history teaches us nothing, will this be another East coast (Midwest) airline, taking over another West coast (Mountainwest) airline; only to see the Western USA network erode into nothing....?
Given the size of HP's western ops, I seriously doubt it will be eroded, especially considering that HP is running the show.
The 747: The hands who designed it were guided by god.