yaariseattle
Topic Author
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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
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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
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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.
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RyanairGuru
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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
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FI642
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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)
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USAirALB
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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.
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BigGSFO
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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
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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.
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LHRFlyer
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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.