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TWA1985
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American's CEO: Airline Is NOT Opposed To A Merger

Thu Mar 15, 2012 10:52 pm

This was just published ... it appears that AA is not as opposed to a merger as previously thought! The article link follows: http://www.chicagotribune.com/busine...ome-point-20120315,0,7935730.story
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CIDFlyer
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Thu Mar 15, 2012 11:07 pm

hmmm, first the internet domain thread about the US/AA websites....and now this. I think its pretty clear something is up, and really it should be. They cant ignore what's happened with DL and UA, and if they want to keep up with those two a merger and refreshening of its product are probably going to be forthcoming. AA's and US's route maps are very complimentary and would plug each others gaps (ie. CLT in the SE for AA, DFW/ORD in the midwest for US). It would also be a strong carrier in the NE with PHL/DCA to challenge UA at EWR and a growing DL at LGA. I realize they already have JFK but that is nowhere near as big as what UA has at EWR. PHL would give them a true NE domestic hub. Out west remains to be seen, but if they do it right they could utilize PHX for intermountain west/west coast domestic connections like DL does at SLC and LAX for international connections (like they do at JFK). LAX is not really ideal for domestic connections, its cramped and crowded and doesnt have a lot lot of amenties that PHX could provide.
 
tonytifao
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Thu Mar 15, 2012 11:15 pm

I just hope it would be AA brand and not US   I think CLT would be great for AA.

Would AA+US be bigger than United?
 
United1
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Thu Mar 15, 2012 11:21 pm

Quoting tonytifao (Reply 2):
Would AA+US be bigger than United?

Slightly I think...at least until AA started dismantling hubs.   
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usdcaguy
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Thu Mar 15, 2012 11:26 pm

Quoting United1 (Reply 3):
at least until AA started dismantling hubs

'Later, Chicago...
 
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Thu Mar 15, 2012 11:33 pm

Quoting United1 (Reply 3):
Slightly I think...at least until AA started dismantling hubs.

No need to duck. That's exactly what would happen. That is of course after the CEO states, "We have no plans to dismantle any hubs...".
 
MAH4546
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Thu Mar 15, 2012 11:55 pm

Quoting usdcaguy (Reply 4):

Quoting United1 (Reply 3):
at least until AA started dismantling hubs

'Later, Chicago...


Hubs would be dismantled. None of them would be AA's current hubs.

Quoting tonytifao (Reply 2):

I just hope it would be AA brand and not US   I think CLT would be great for AA.

Would AA+US be bigger than United?


It would absolutely be the AA brand. The real problem, though, is if US brought their "customer last" philosophy and transposed it onto AADvantage, elite benefits and premium cabin services. That would really suck.
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D L X
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Thu Mar 15, 2012 11:59 pm

Quoting MAH4546 (Reply 6):
It would absolutely be the AA brand. The real problem, though, is if US brought their "customer last" philosophy and transposed it onto AADvantage, elite benefits and premium cabin services. That would really suck.

I'm sorry, but this sounds like someone who doesn't actually fly US.

I know how popular it is to rag on them, but many of us quite enjoy them.
 
Western727
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 12:02 am

Quoting MAH4546 (Reply 6):

I agree - AA would be the surviving name. Now that you assert no AA hubs would be lost, which US hubs would be lost?

PHL
PHX
CLT
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 12:07 am

Quoting D L X (Reply 7):
I'm sorry, but this sounds like someone who doesn't actually fly US.

I know how popular it is to rag on them, but many of us quite enjoy them.

I fly UA code shares operated by US pretty frequently, and apart from Economy Plus seating offered on PMUA, don't find much difference between the two carriers.

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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 12:16 am

I doubt they would dehub PHL given the location. You would still need CLT and I am not sure if AA with US could win more turf at LAX to where PHX would become obsolete.
 
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 12:34 am

Quoting MAH4546 (Reply 6):


Hubs would be dismantled. None of them would be AA's current hubs.

Are you saying US would cut PHL over ORD? Why would they? They're the only game in town.
 
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 12:50 am

PHX could be the only one I see having issues (some of its flows are duplicated amongst DFW/LAX) I think it would be foolish to dismantle any other hubs (CLT/DCA/PHL). CLT would give AA a gateway to the SE to compete against Delta and bring in many new cities. Its also a fortress hub that serves the nations 2nd largest banking center and the area is growing tremndously. As would PHL do for the NE. It would bring alot of markets into the AA network from New England/NY etc where they are weak. DCA would give AA a hub at one of the premier airports in the country that handles alot of premium traffic.
 
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 12:52 am

If Mr. Horton were to say that he is opposed to any merger, he would be shown the door by AA's new owners (i.e. creditors) in no time flat. He is serving at the mercy of the creditor's committee though the b/k judge. If a reasonable number of the creditors were to object to a CEO who is unwilling to entertain ANY and ALL means to minimize the losses to the creditors, they will find someone who is looking out for their own (i.e. the creditors) interest.
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 1:00 am

Quoting usdcaguy (Reply 11):
Quoting MAH4546 (Reply 6):


Hubs would be dismantled. None of them would be AA's current hubs.

Are you saying US would cut PHL over ORD? Why would they? They're the only game in town.

Yup, instead of keeping 3 winners (CLT #1 monopoly, PHL #1, PHX strong #2), he's in favor of keeping LAX (stagnant #2), ORD (#2 under attack from above and below) and NYC (distant #4).
 
deltairlines
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 1:23 am

Quoting mogandoCI (Reply 14):
PHX strong #2)

US is a larger carrier than WN at PHX, in terms of flights and (I am pretty sure of this) passengers carried.

Quoting D L X (Reply 7):

I'm sorry, but this sounds like someone who doesn't actually fly US.

I know how popular it is to rag on them, but many of us quite enjoy them.

AAdvantage is a far more friendly FFP than Dividend Miles if you are a top tier. Stickers can be annoying if you don't fly 100k/yr, but at the top tier ExPlat absolutely blows Chairman's Preferred out of the water - the only place that US wins in my book is that you can upgrade on award tickets as a CP.
 
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 1:36 am

Quoting usdcaguy (Reply 4):
'Later, Chicago...

AA would be unable to compete for east-west traffic with just DFW. What should they do, close ORD and reopen STL?? None of US' hubs could potentially substitute for ORD, either. This isn't a case of a DFW hub being expendable for a restructuring Delta.... it's a matter of survival for AA. With equivalent costs to the other majors, AA can do just fine in Chicago.

Quoting western727 (Reply 8):
ow that you assert no AA hubs would be lost, which US hubs would be lost?

Phoenix might be out in that scenario. Of course, given how WN may struggle to compete in the future with higher costs and no hedges, who knows...

Quoting D L X (Reply 7):
'm sorry, but this sounds like someone who doesn't actually fly US.

I know how popular it is to rag on them, but many of us quite enjoy them.

Agreed. US has really gotten their outfit together in the last five years.... especially from an operational standpoint. Customer service wise- I think the jury is still out.

Quoting MAH4546 (Reply 6):
The real problem, though, is if US brought their "customer last" philosophy and transposed it onto AADvantage, elite benefits and premium cabin services. That would really suck.

I won't rag on US's staff too much because I haven't flown them much- but I agree that dumbing down the Advantage program to the level of the others is a bad idea.
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 1:45 am

Quoting mogandoCI (Reply 14):
Yup, instead of keeping 3 winners (CLT #1 monopoly, PHL #1, PHX strong #2), he's in favor of keeping LAX (stagnant #2), ORD (#2 under attack from above and below) and NYC (distant #4).

At the outset I'm going to say I still don't think AA and US are merging. But it they were to merge, here is my response.

In general, I'd rather be #1 at DFW and MIA, #2 at ORD and LAX and a relatively strong #4 in NYC than #1 in CLT and PHL and a so-so #2 in PHX. When you have a strong brand, strong loyalty and a top position in the major business markets you don't give it up willingly. NYC, CHI, LAX, DFW and MIA are all top business markets. The only four missing from this list are HOU, WAS, SFO and ATL. US is not strong in the markets that account for the most business. AA is. If I'm building a business, a product or an image I'm going with the major business markets that and rebuilding around them. If the other company also has solid assets that contribute positively to the bottom line and don't siphon profits or passengers from the core markets, I will add those assets.

With that in mind, CLT is a net gain: complementary position, solid, profitable and with good banking connections. Also a monopolistic position. Known high reward, no risk, no brainer. PHL can be a solid complementary hub in many respects, although it is the city I am least familiar with. Because of that, I won't say anything other than I have no idea where it would stand. PHX is a weak link, in my opinion. They may be a strong 2, but being a strong 2 in a middle of the road business market doesn't equal a strong operation. I also question how you can say US is a strong 2 at PHX but AA is a #2 "under attack from above and below" at ORD. US is in the same situation: WN is still the boss and Allegiant is growing fast out at AZA, siphoning business away from PHX. I would much rather be #2 at ORD or LAX than #2 at PHX. I don't see that PHX brings many network benefits to the combined airline.

It isn't always about market share, either: you can dominate a hub in GSO but just because you have a virtual monopoly there doesn't mean it is a good business decision or that you'll be making money.

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Flaps
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 1:46 am

I would hope AA would be the survivor of such a travesty although I think that either AS or B6 would be a better fit. I like AA and although I've heard horror stories I've never experienced any problems with them myself. US on the other hand, every flight seems to be a new low. The aircraft are usually nice but the crews and service only seem to get worse and worse. It's the only carrier I studiously avoid and I fly around 20 segments a month so I have to work at it. .
My personal preferences aside, I cant see how a US/AA combination could ever work. The fleets and networks may look pretty on paper but the labor situation would be an absolute nightmare. US still doesn't have their labor house in order from the last merger and AA's labor relations are just as bad. There is no way around that elephant lurking in the room.
 
blink182
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 1:48 am

I realize that US is always in the headlines for merger talks, but couldn't Horton very well refer to AS or B6?
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EricR
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 2:19 am

Regarding the hub situation in the west if AA / US merge, there is no easy solution.

AA has no room to expand at LAX. While they will soon have access to 4 additional gates at TBIT, AA has no where near the capacity at LAX that they would have at PHX, so LAX would always be a small hub for AA with little domestic connectivity.

On the other hand, while PHX has the room to handle 300+ flights and handle much more domestic connectivity than LAX, PHX lacks the international partners that fly to LAX and has a much smaller O&D.

Therefore, unless AA plans on keeping both LAX & PHX, a merger would result in a net decrease out west.

Quoting texan (Reply 17):
I also question how you can say US is a strong 2 at PHX but AA is a #2 "under attack from above and below" at ORD. US is in the same situation: WN is still the boss

US is not a strong number 2 at PHX, they are number 1. As of November, US had a 38% share versus 32% for WN. This excludes regionals. Once you add in regionals, US is around 47%.

Furthermore, WN is not as strong of an airline as it once was. Its costs are high when compared to other majors. In addition, PHX is somewhat redundant for WN now that they have substantially increased flying at DEN and have a large base at LAS. If a combined US/AA put up a battle against WN in PHX, I would not be surprised to see WN reduce flights out of PHX.
 
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 2:19 am

Quoting texan (Reply 17):
In general, I'd rather be #1 at DFW and MIA, #2 at ORD and LAX and a relatively strong #4 in NYC

I never knew how a #4 is still "relatively strong". AA has half the NYC volume of either UA or DL.

If #4 is considered strong, then I guess #2 in ORD must be "winning"
 
MAH4546
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 2:30 am

Quoting mogandoCI (Reply 21):
I never knew how a #4 is still "relatively strong". AA has half the NYC volume of either UA or DL.

It's relatively strong because it has a strong revenue position in the market and still is the leader in Manhattan corporate traffic. I don't even now how AA still does it, but it does.

Quoting usdcaguy (Reply 11):
Are you saying US would cut PHL over ORD? Why would they? They're the only game in town.

I never said PHL would close. I see PHX shutting down slowly over time; PHL would lose focus as AA would become an even stronger number two at LaGuardia and then focus on moving PHL-secondary EU to JFK, where AA continues to hoard prime slots and has plenty of room to grow as its been smart about using slots to the minimum. But no reason to give up PHL otherwise, as the combined airline could dominate the O&D.

The real danger in the merge is two things:

1) US horrendous customer service, elite program and on board product, that I fear US management would attempt to force onto AA.

2) US near total inability to lure premium traffic outside of DCA/PHL/CLT means that it is constantly the low-fare carrier on city pairs up, down and throughout the country. Airline fares would skyrocket in so many markets and the consumer loses.

AA will be merging in 2-3 years, but I continue to assert the partner will be JetBlue, not US Airways. After AA emerges from BK, the cost structure will be there for a feasible merger of its networks.

[Edited 2012-03-15 19:35:16]
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 2:35 am

Quoting MAH4546 (Reply 6):
Hubs would be dismantled. None of them would be AA's current hubs.

AA has the BEST hub structure of any airline in the US, period (DFW, MIA, ORD, LAX and NYC, come on!). Their bankruptcy has nothing to do with poor route management, but rather with high costs.

Once costs have gone down post-chapter 11, if an AA/US merger occurs I dare to say the only US hub standing would be CLT. PHX is weak as it is, PHL is too close to New York and AA would have a ton of extra slots at LGA.
 
AS739BSI
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 2:55 am

Quoting Rafabozzolla (Reply 23):
PHL is too close to New York and AA would have a ton of extra slots at LGA.

Wern't some people saying that about IAD and EWR for the new UA and IAD and EWR are still fortress hubs with more emphasis on EWR? I think PHL and JFK would complement each other. Unless JFK is expanded, DL or AA/US can establish a true hub at JFK. PHL would still be needed and is wanted due to premium traffic and being #1 in PHL.
 
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 3:24 am

Quoting MAH4546 (Reply 22):

1) US horrendous customer service, elite program and on board product, that I fear US management would attempt to force onto AA.

I see you clearly haven't flown US recently...

Their new Envoy product on TATL is incredible (it's the same one that AA decided to copy). The Elite program is superior to DL and UA in many ways. And the customer service is just fine in my experience.

I hope they keep the US name.
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USAirALB
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 3:45 am

I'm so glad people like to rant on about how bad US is! It is so much easier to upgrade to F on US than it is on DL/AA/UA, and I want to keep it that way. The more people who refuse to fly US-the better it is for the preferred.

Quoting D L X (Reply 7):
I'm sorry, but this sounds like someone who doesn't actually fly US.

I know how popular it is to rag on them, but many of us quite enjoy them.

As do I..

Quoting aeroblogger (Reply 25):
And the customer service is just fine in my experience.

Never had a problem with US. I will admit there are some rude people at US, but it's not fair to say that AA doesn't have rude employees as well. I actually had one of my best flights last week flying CLT-BOS in F. The FA serving F came around after the boarding process and personally welcomed us by name, telling she would do our best to serve us. Then once airbone, addressed us again by name as she took our drink orders, and then thanked us personally US.
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D L X
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 3:46 am

Quoting DeltAirlines (Reply 15):
AAdvantage is a far more friendly FFP than Dividend Miles if you are a top tier.

I'm a Chairman on US. I beg to differ.

US CP is purely stated one of the easiest ways to fly, and get upgraded.

Quoting MAH4546 (Reply 22):
1) US horrendous customer service, elite program and on board product, that I fear US management would attempt to force onto AA.

So, you're not going to defend the statement you made earlier, you're just going to double down with it? Credibility=lost.
 
BOStonsox
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 3:58 am

Quoting MAH4546 (Reply 22):
AA will be merging in 2-3 years, but I continue to assert the partner will be JetBlue, not US Airways. After AA emerges from BK, the cost structure will be there for a feasible merger of its networks.

If this does happen, I hope it doesn't until after 2013 when B6 takes over all of Terminal C at BOS. Then BOS would become a good-sized international gateway, and who wouldn't want to see one here?
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deltal1011man
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 4:22 am

Quoting usdcaguy (Reply 11):

Are you saying US would cut PHL over ORD? Why would they? They're the only game in town.

Does anyone look at a map anymore? Heck AA would do this then Delta would cut SLC for ATL. smh.

Quoting mogandoCI (Reply 14):
LAX (stagnant #2),

No room to grow.

Quoting mogandoCI (Reply 14):
NYC (distant #4).

No room to grow.

Quoting Rafabozzolla (Reply 23):

AA has the BEST hub structure of any airline in the US, period (DFW, MIA, ORD, LAX and NYC, come on!). Their bankruptcy has nothing to do with poor route management, but rather with high costs.

Ha, I'm sure you have date to back up this calm?
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MAH4546
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 4:48 am

Quoting D L X (Reply 27):
So, you're not going to defend the statement you made earlier, you're just going to double down with it?

What exactly am I supposed to defend? The fact that US Airways actively sells, and therefore devalues, status to the public? The fact that US Airways refuses to serve meals on flights under 3.5 hours (where areas AA, DL and UA will serve a full meal on 2 hour flights)? The fact that US Airways doesn't even have the decency to use real glassware on all F services? The fact that US Airways configures its planes to have the smallest F cabins among the majors? The fact that US Airways domestic first is most akin to AirTran's business class - a free drink and chips?

Quoting DeltaL1011man (Reply 29):
LAX (stagnant #2),

No room to grow.

What on earth are you talking about? There is plenty of room to grow. Not only does AA underutilize T4 as we speak, it's getting four gates at TBIT next year!

Quoting DeltaL1011man (Reply 29):
NYC (distant #4).

No room to grow.

Wrong again. Not the kind of room to grow it has at LAX, but plenty of terminal and free slots at JFK, while thanks to the 80% rule at LGA, it has about 25-30 unused LGA slots.

Quoting DeltaL1011man (Reply 29):
AA has the BEST hub structure of any airline in the US, period (DFW, MIA, ORD, LAX and NYC, come on!). Their bankruptcy has nothing to do with poor route management, but rather with high costs.

Ha, I'm sure you have date to back up this calm?

MIDT fare data back up his claim. AA has a cost problem, not a revenue problem. It outperforms competitors consistently revenue-wise on competing routes, including majors routes like ORDLGA. But that superior revenue performance means squat when it's costs aren't in line with everybody else.
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PHX787
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 5:30 am

Quoting United1 (Reply 3):
Quoting tonytifao (Reply 2):
Would AA+US be bigger than United?

Slightly I think...at least until AA started dismantling hubs.

Yeah the exact reason why I hate airline mergers -__-

Quoting Rafabozzolla (Reply 23):
PHX is weak as it is,

IIRC, Sky Harbor is the 9th busiest in the country in terms of passengers? Correct me if I'm wrong

Quoting MAH4546 (Reply 22):
I see PHX shutting down slowly over time;

The problem with that is this: 3+ Million, O&D traffic to the resorts, etc, people like me traveling regularly for school and work: I don't see it as economically viable for any airline to shut down PHX as a hub. This place is quite busy as many of you know. I know WN has a decent presence here, but in all seriousness, I don't see US shutting down its hub here if (and I SAY IF!) a merger with AA happens.
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Mcoov
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 5:49 am

Quoting texan (Reply 17):
In general, I'd rather be...relatively strong #4 in NYC than #1 in...PHL...
AA has been faltering at both JFK and LGA since the 1990s, and the issue I see is both the foreign airlines (EK, LH, SX, SQ, etc., who provide superior service than the American ones do), and UA, DL, and B6, the former two having significantly strengthened their positions in NYC since going through their own bankruptcies. I would have AA shift their Northeastern focus from New York to Philadelphia, and either provide frequent feeder service to JFK, or enter a partnership program with Amtrak.

[Edited 2012-03-15 22:51:42]

[Edited 2012-03-15 22:52:41]
 
Concordski
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 5:58 am

If a theoretical merger were to happen, my biggest concern is the frequent flyer program. If the availability for redemption sways toward US then even Delta's Skypesos will be a better alternative. And as much as I dislike Skypesos, I dislike dividend miles even more. For an upcoming trip I have planned in AA international first (not business) to Asia, costs 1/2 of what US Airways wants me to pay for a business class ticket to Europe in miles.

And having flown them a good deal (cheaper cost wins me over sometime), US Airways has a long way to go in their premium cabins. Flying domestically CLT-ALB in first I was served my drink in a plastic cup with no ice. What can I say?

At least my business experiences with Delta between the USA and Japan as well as USA and Australia had good service.

[Edited 2012-03-15 23:05:40]
 
caliboy78
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 6:44 am

I believe if this merger were to happen. Well more like when this merger happen. I see this as the outcome:

PRIMARY HUBS
MIA
DFW
ORD
JFK (primary gateway to Europe)
LAX
CLT
PHL (complementary to JFK)


SECONDARY HUBS OR FOCUS CITIES
PHX
DCA
LGA
BOS

AA will be the surviving brand.
I believe they will use the current AAdvantage mileage system
The fleet will be retrofitted to match AA's including the new propossed extra legroom and the new first/business look.

Just my 2 cents.
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deltal1011man
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 8:34 am

Again, AA doesn't have the room to grow in LAX or JFK, much less the room to fit in PHX and PHL flights. Off peaks JFK slots are out there for a reason, no money to be made with them.
Oh and ORD-LGA is one route, why don't you do a break down on just the ORD hub, UA v AA and tell me who leads?  
Quoting caliboy78 (Reply 34):

And any merger would open any BK contract up for negotiations. No judge to hide behind = biggest labor mess any airline has ever seen. That alone would likely put the company right back into BK.

Quoting PHX787 (Reply 31):
Yeah the exact reason why I hate airline mergers -__-

sucks for PAX but more consolidation needs to happen.

Quoting PHX787 (Reply 31):
I don't see US shutting down its hub here if (and I SAY IF!) a merger with AA happens.

agreed.
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 8:45 am

Quoting DeltaL1011man (Reply 35):
sucks for PAX but more consolidation needs to happen.

If there is too much new entrants will show up to fill the void. Everyone likes to bemoan how many legacies are now gone, but it isn't as though there are not new carriers these days as well, and some of those that are gone had been sick for some time.
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D L X
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 10:39 am

Quoting MAH4546 (Reply 30):
What exactly am I supposed to defend? The fact that US Airways actively sells, and therefore devalues, status to the public? The fact that US Airways refuses to serve meals on flights under 3.5 hours (where areas AA, DL and UA will serve a full meal on 2 hour flights)? The fact that US Airways doesn't even have the decency to use real glassware on all F services? The fact that US Airways configures its planes to have the smallest F cabins among the majors? The fact that US Airways domestic first is most akin to AirTran's business class - a free drink and chips?

Confirmed - you do not fly US because there is lots of misinformation here.
 
RyanairGuru
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 11:06 am

Quoting caliboy78 (Reply 34):
JFK (primary gateway to Europe)
Quoting caliboy78 (Reply 34):
PHL (complementary to JFK)


Those two would probably be the other way around, but the diplomatic language would no doubt suggest that they are equal.

It makes sense to make the Euopean "hub" PHL due to much greater feeder potential, but still have a strong JFK presence to capture high-yielding O&D traffic (in conjunction with BA of course)
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AAIL86
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 12:30 pm

Quoting D L X (Reply 37):
Confirmed - you do not fly US because there is lots of misinformation here.

So are you saying US' domestic F is equal to everyone else?

Quoting Concordski (Reply 33):
For an upcoming trip I have planned in AA international first (not business) to Asia, costs 1/2 of what US Airways wants me to pay for a business class ticket to Europe in miles.

Exactly. Advantage is the best part of the American brand. And as much as many here think the 16F/37J premium cabin configuration AA has on the 772 is a bad one revenue wise - it provides excellent award availability you simply cannot get on the other US majors.

Quoting Mcoov (Reply 32):
I would have AA shift their Northeastern focus from New York to Philadelphia, and either provide frequent feeder service to JFK, or enter a partnership program with Amtrak.

Don't laugh, but as the population density of the US increases along with the price of fuel- rail is going to be an increasingly attractive option.
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STT757
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 12:53 pm

Quoting Rafabozzolla (Reply 23):
AA has the BEST hub structure of any airline in the US, period (DFW, MIA, ORD, LAX and NYC, come on!)

No, that would be UA:

IAH, ORD (#1 carrier), DEN, EWR (#1 in NYC market), IAD, CLE, SFO, LAX, GUM

Quoting MAH4546 (Reply 22):
AA will be merging in 2-3 years, but I continue to assert the partner will be JetBlue, not US Airways. After AA emerges from BK, the cost structure will be there for a feasible merger of its networks.

I think AA would prefer that scenario, and B6 might be open to something, but I don't think they have any other choice than merging with US. A lot of the mergers have been more about removing capacity than anything else, that's what Wall Street wants to see and frankly it's had a positive effect on results thus far. Also I know AA's stated goal is to reduce their costs, which they will, but I don't think they will be anywhere near the level they need to be in order to make absorbing B6's network and cost structure successfully. If AA were to merge with B6 I really think it would be another Air Cal, Reno Air, TWA etc.. where much of what made the airline AA acquired strong would be dismantled due to the inability of AA to operate it profitably.

For instance if AA were to acquire B6 there's no way, no matter how well AA does lower their costs, they would successfully operate the business routes from BOS and JFK with the level of service and gauge of B6.

AA is not flying 7 daily JFK-BUF with ERJ-190s and A320s.
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 1:11 pm

Quoting STT757 (Reply 40):
I know AA's stated goal is to reduce their costs, which they will, but I don't think they will be anywhere near the level they need to be in order to make absorbing B6's network and cost structure successfully. If AA were to merge with B6 I really think it would be another Air Cal, Reno Air, TWA etc.. where much of what made the airline AA acquired strong would be dismantled due to the inability of AA to operate it profitably.

I'm going to add a caveat before I make this comment: I know that this is the only successful instance where this model has worked...

BUT could AMR realistically adopt a similar model to Qantas Group with a two-brand strategy? Just as QF and JQ compliment each other pretty well (with QF going after the high end of town and JQ going for secondary markets and lower-yielding traffic with its substantially lower cost base) could the same work for a prospective AA/B6 tie-up?

Don't flame me, it's just an idea!
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 1:17 pm

Quoting AAIL86 (Reply 39):
So are you saying US' domestic F is equal to everyone else?

I'm saying I enjoy it. I don't fly other airlines very often in first, so I won't judge them. But I do know that the person to whom I was responding showed his ignorance about US's upgrades. No glassware in first? There sure was some on my flight last week.

And comparing meal services, didn't AA invent the bistro bag?

As I and others have said, it's just popular to rag on US. It sounds a whole lot like snobbery.
 
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 1:24 pm

Quoting Rafabozzolla (Reply 23):
AA has the BEST hub structure of any airline in the US, period (DFW, MIA, ORD, LAX and NYC, come on!).

Absolutely not...I would argue its probably the worst next to US... UAL and DL are better.
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mogandoCI
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 1:25 pm

Quoting STT757 (Reply 40):
Quoting Rafabozzolla (Reply 23):
AA has the BEST hub structure of any airline in the US, period (DFW, MIA, ORD, LAX and NYC, come on!)

No, that would be UA:

IAH, ORD (#1 carrier), DEN, EWR (#1 in NYC market), IAD, CLE, SFO, LAX, GUM

Exactly .... AA is only #1 in 2 out of their 5 hub cities. (And they're #1 there because they're the only real game in town).

UA ? #1 in all of them.
 
tommy767
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 1:42 pm

AA will have to merge with somebody. As of now, their business model is dead in the water. BK is the painful but necessary first step towards recovery.

Quoting western727 (Reply 8):

None. All three of US hubs including PHL, PHX, and CLT are profitable. DCA is also a goldmine for them as well.

AA will likely trim down their hubs. I could see JFK becoming mainly O&D based with a primary international focus. I could see some AE destinations bumped up to mainline as well. ORD would sort of regain strength in this merger situation since US has always wanted that midwest presence. DFW and MIA are safe. LAX they would obviously stay strong but not much else.

Quoting MAH4546 (Reply 22):

I could see this merger being completely forced on by US -- with AA having no choice but to say OK.
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TWA1985
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 1:47 pm

Quoting D L X (Reply 27):
Quoting MAH4546 (Reply 22):
1) US horrendous customer service, elite program and on board product, that I fear US management would attempt to force onto AA.

I haven't flown first on US, but I can say, after looking at their website, that their first class meal service lacks. It states that a full meal is served on flights over 3.5 hours. Now compare that to AA, who serves full meals on flights less than two hours (TUL-ORD - Breakfast and ORD-DCA - Dinner). AA's domestic first class product is probably the best in the country and I certainly hope, if the merger were to occur, that AA's first class service standards would remain.

[Edited 2012-03-16 07:20:22]
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tommy767
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 1:51 pm

Quoting TWA1985 (Reply 46):

AA's first class product must stay. Otherwise they risk many Plats and EXPs moving to other airlines.

Then again, I could see Parker pulling a Smisek and having an arrogant sentiment towards everything US and gutting most things AA.
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 1:55 pm

Quoting TOMMY767 (Reply 47):
Then again, I could see Parker pulling a Smisek and having an arrogant sentiment towards everything US and gutting most things AA.

Lol, that must be why he decided to keep E+, Channel 9, the Headquarters in Chicago, the name "United" etc..

Seriously.
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RE: American's CEO: Airline Is NOT Opposed To A Merger

Fri Mar 16, 2012 2:00 pm

Quoting AAIL86 (Reply 39):
Advantage is the best part of the American brand. And as much as many here think the 16F/37J premium cabin configuration AA has on the 772 is a bad one revenue wise - it provides excellent award availability you simply cannot get on the other US majors.

If AA have any sense they will slash F on the international fleet in half going forward, just like UA did on their 777s. They can then offer a much improved product with their new suites, limit upgrades, increase yields etc. Some people wont be happy they dont get F anymore but they will be compensated by a new J product.

As for the merger, I don t think AA unfortunately has much of a choice but to merge with someone so that they can keep up with UA and DL and that IMHO only leave US. I dont see B6 on the horizon anytime soon and to be honest it would be a real shame to see them go.

Any surviving carrier will be known as American. period.