yaariseattle
Topic Author
Posts: 3
Joined: Thu Dec 24, 2009 11:04 pm

Impact On BA If AA/US Merger

Tue Sep 04, 2012 11:11 pm

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?
 
deltaflyertoo
Posts: 1479
Joined: Tue Nov 14, 2000 3:18 pm

RE: Impact On BA If AA/US Merger

Tue Sep 04, 2012 11:25 pm

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.
 
PHX787
Posts: 7881
Joined: Thu Mar 15, 2012 7:46 pm

RE: Impact On BA If AA/US Merger

Wed Sep 05, 2012 12:38 am

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.
Follow me on twitter: www.twitter.com/phx787
 
RyanairGuru
Posts: 6554
Joined: Wed Nov 01, 2006 3:59 am

RE: Impact On BA If AA/US Merger

Wed Sep 05, 2012 3:14 am

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
Worked Hard, Flew Right
 
FI642
Posts: 992
Joined: Sat Mar 12, 2005 9:48 am

RE: Impact On BA If AA/US Merger

Wed Sep 05, 2012 3:17 am

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)
737MAX, Cool Planes for the Worlds Coolest Airline.
 
USAirALB
Posts: 1671
Joined: Tue Sep 11, 2007 4:46 am

RE: Impact On BA If AA/US Merger

Wed Sep 05, 2012 4:33 am

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.
E135/E140/E145/E70/E75/E90/CR2/CR7/CR9/717/732/733/734/735/73G/738/739/752/753/762/772/77W/319/320/321/333/343
 
BigGSFO
Posts: 2219
Joined: Sun Jun 12, 2005 5:27 am

RE: Impact On BA If AA/US Merger

Wed Sep 05, 2012 2:27 pm

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.
 
avek00
Posts: 3168
Joined: Mon Oct 25, 2004 5:56 am

RE: Impact On BA If AA/US Merger

Wed Sep 05, 2012 2:51 pm

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.
Live life to the fullest.
 
LHRFlyer
Posts: 729
Joined: Sun Apr 11, 2010 12:50 pm

RE: Impact On BA If AA/US Merger

Wed Sep 05, 2012 3:41 pm

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.

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos