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Impact On BA If AA/US Merger  
User currently offlineyaariseattle From United States of America, joined Dec 2009, 3 posts, RR: 0
Posted (2 years 2 weeks 4 days 17 hours ago) and read 4046 times:
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I have read a couple of times that US still has some anger at BA for breaking their traffic agreement back in the late 80's early 90's. If AA and US merge, how do you think US will react to BA?

8 replies: All unread, jump to last
 
User currently offlinedeltaflyertoo From United States of America, joined Nov 2000, 1653 posts, RR: 1
Reply 1, posted (2 years 2 weeks 4 days 16 hours ago) and read 4020 times:

US is such a different airline now then what it was in the 90s when that happened. Seeing Parker's hunger for a merger (and he knows very well BA comes w/ the package) I can't imagine that really is a widespread feeling/issue amongst US that would come up in the merger.

Other than that I don't see any other affect on BA other than I could see them starting a 777-200 service from LHR to CLT everyday.


User currently offlinePHX787 From Japan, joined Mar 2012, 7585 posts, RR: 18
Reply 2, posted (2 years 2 weeks 4 days 15 hours ago) and read 3871 times:

Someone said in one of the recent threads that it would be good for the flight to PHX due to the connection opportunities and the O.W. partnership.


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User currently offlineRyanairGuru From Australia, joined Oct 2006, 5586 posts, RR: 5
Reply 3, posted (2 years 2 weeks 4 days 13 hours ago) and read 3655 times:

Quoting yaariseattle (Thread starter):
If AA and US merge, how do you think US will react to BA?

To the contrary, I wouldn't die of shock if when the chips settle we see a combined USAA with IAG holding a 25% stake



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User currently offlineFI642 From Monaco, joined Mar 2005, 1079 posts, RR: 2
Reply 4, posted (2 years 2 weeks 4 days 13 hours ago) and read 3652 times:

Quoting RyanairGuru (Reply 3):
To the contrary, I wouldn't die of shock if when the chips settle we see a combined USAA with IAG holding a 25% stake

This stands a very good chance of happening. Remember the NW/KL deal! (NW went to BA first BTW)



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User currently onlineUSAirALB From United States of America, joined Sep 2007, 3083 posts, RR: 2
Reply 5, posted (2 years 2 weeks 4 days 11 hours ago) and read 3523 times:

For starters, the merger would open up a plethora of cities in the Northeast and Southeast. With the old US/BA alliance, the Southeast was well served, but since the end of the alliance, the Southeast has generally been lacking BA codeshare or OneWorld service. Think cities like ILM, HHH, MYR as well as cities in the Northeast like ALB, PVD, MHT, PWM..

I've seen loads of British tourists in HHH.

And yes, we will probably see a BA 777 to CLT.



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User currently offlineBigGSFO From United States of America, joined Jun 2005, 2926 posts, RR: 6
Reply 6, posted (2 years 2 weeks 4 days 1 hour ago) and read 3120 times:

How will BA react? With open arms. IAG has already indicated they might be interested as an investor. The substantial domestic feed, especially along the east coast, will increase traffic and business contracts. We would probably also see increased traffic to secondary airports in the UK, as well as a boost to Spain on IB.

User currently offlineavek00 From United States of America, joined Oct 2004, 4387 posts, RR: 19
Reply 7, posted (2 years 2 weeks 4 days 1 hour ago) and read 3052 times:

Quoting BigGSFO (Reply 6):
How will BA react? With open arms. IAG has already indicated they might be interested as an investor. The substantial domestic feed, especially along the east coast, will increase traffic and business contracts. We would probably also see increased traffic to secondary airports in the UK, as well as a boost to Spain on IB.

It's not that simple, and that's precisely why IAG has decided to meddle in the AMR bankruptcy. Odds are that at the time BA/IB and AA hammered out the Joint Business Agreement, the European side was probably able to extract far better terms due to AA's then-precarious position. While it's highly unlikely that US would insist upon scrapping the JBA, it's entirely possible that Parker would demand substantial revisions to the arrangement that would potentially compromise IAG's financial interests. Thus, IAG has taken steps to ensure it retains substantial clout in the disposition of AMR.



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User currently offlineLHRFlyer From United Kingdom, joined Apr 2010, 815 posts, RR: 1
Reply 8, posted (2 years 2 weeks 4 days ago) and read 2943 times:

Quoting avek00 (Reply 7):
Odds are that at the time BA/IB and AA hammered out the Joint Business Agreement, the European side was probably able to extract far better terms due to AA's then-precarious position. While it's highly unlikely that US would insist upon scrapping the JBA, it's entirely possible that Parker would demand substantial revisions to the arrangement that would potentially compromise IAG's financial interests.

I don't where you got that idea from. The AA/BA uses an incremental revenue sharing model and I doubt AA/US would insist on its revision on more favourable terms to it.

If AA and US merge, BA will gain more US gateways and connecting traffic opportunities so it can only really be a positive. In fact, BA still gets some onward feed from US Airways at PHX even though they are now in separate alliances.


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