This would be a good match for AA, they bring 291 newer a/c and 138 new a/c orders that are 737's and a320's, and a good western and east coast presence, with a happy work force. Why go with USairways that has labor problems and not much to offer outside of the east coast. Jetblue brings JFK and Alaska brings the west.
AA - Jetblue - Alaska Airlines
- Thread starter Duke787
- Start date
Sounds like a great combo but who's to say JetBlue or Akaska wants to get together with AA ?AA might be to JetBlue and Alaska what US is to AA . I think they have no interest . But yes , I agree as far as synergies , routes and lack of overlap . It can work . Hey , I can think out of the box too lol !
jetBlue would bring a lot of BOS and JFK market share, along with some loyal customers. Alaska would provide a good N/S presence up and down the West Coast.
Only problem is that both airlines are fairly low-wage and pretty solidly low-cost, meaning that their costs would climb a lot if combined with AA.
Similar to the problem with US, another very low-wage airline (although not quite so low-cost).
Even if AA implements the 1113 term sheets, its wages (except the mechanics, Bob) will still be far ahead of US' wages, particularly the pilots and FAs. AA is seeking to reduce its labor costs, but even if successful, it isn't going to become a low-wage or low-cost airliine.
Only problem is that both airlines are fairly low-wage and pretty solidly low-cost, meaning that their costs would climb a lot if combined with AA.
Similar to the problem with US, another very low-wage airline (although not quite so low-cost).
Even if AA implements the 1113 term sheets, its wages (except the mechanics, Bob) will still be far ahead of US' wages, particularly the pilots and FAs. AA is seeking to reduce its labor costs, but even if successful, it isn't going to become a low-wage or low-cost airliine.
AA can't make Alaska or JetBlue work as part of the AA system. All that would happen is that AA would destroy two more good airlines, and further screw up the industry.
As far as operations Alaska with its up and down the west coast and Jet Blue with its up and down the east coast bring more to the table than USAIR. It helps with the Oneworld partners as well. The coasts are where the people are, so thats where the money is as well. People who want to go north-south dont want to go to DFW in between.
Agree 100% Bob. USAir would not contribute to AA, jetBlue and Alaska are great airlines. I take jetBlue to places AA doesn't fly and take the Alaska non-stop to SEA
Josh
yvrusfa
Advanced
There is one BIG reason why that idea doesn't work financially. That being the fact that by acquiring Jet Blue and merging with AA at their cost structure (even with the proposed BK cuts) removes the ability to make the combination profitable. Additional slots and presence at JFK, really doesn't solve AA's issues with hub locations in the east. Second, Alaska would have to want to be acquired (which they don't/won't) and with their stock trading north of $65 a share, no one can afford to buy them out in a hostile transaction or otherwise.
It's US or nothing. If it's nothing and decision to continue to pursue a 20% increase in ASM's and organic growth post BK, then down that path danger and likely failure of both AA and the airline industry profits as a whole lie. :blink: I doubt the other carriers can or will allow that scenario to occur.
h34r:Unfortunately, I couldn't agree more. After a decades-long respected and reputable existence, the sorry fact is that the best years of American Airlines are behind her. In the last ten years or so, everything that AA has touched has turned to sh*t instead of gold. I don't hold much hope for American Airlines as a stand-alone airline. And if AA were to merge with Alaska or JetBlue, yes, it would destroy those two airlines. Alaska and JetBlue have their niche and are doing quite well without outside intervention, much like Southwest.
Low wage? I don't know about the other work groups at Alaska and Jet Blue, but the aircraft mechanics at both Alaska & JB make over $6.00ph more than AA's AMTs.
Alaska is the second highest paid mechanics for pass airline, falling right behind the Southwest mechanics. No clue what the JB mechs get paid.
787nightmare
Veteran
- Aug 28, 2010
- 722
- 153
Word from an AMFA rep in SEA is a top out of $38/chg at end of there contract-and they recently ratified a deal. They also have a clause in the contract that assures the compensation is revisited should they fall below #2 in pay. Which, the way things are going, they'll be looking at pay again before amendment time.
Similar threads
