EU to Clear AA-US Merger
- Thread starter Hope777
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Dont call me Shirley
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I wish the article gave more details on the PHL and LHR slots. A commenter on another site took it to mean that the PHL-LHR route will be given up; that is not my interpretation.
That is certainly how it reads. Since both BA and US fly that route and since BA-AA have a JV, the JV collectively post-merger would have had a monopoly on that route. However, I don't recall LHR slots being specific to certain airport pairs, per se. So, I'm not sure 1) what happens if no one else wants to fly the route (thus leaving BA with a monopoly) and 2) what happens if post-merger AA transfers a flight from another airport to continue serving PHL-LHR. I'm also not sure what happens if, say, Virgin Atlantic starts flying the route. Would post-merger AA then be able to use one of its remaining slots to resume flying PHL-LHR?
There's little need for three "One World" flights at day between PHL and LHR. I really hope BA keeps it and the A330 is deployed to another city. Maybe a second PHL-MAD would be in order to feed "One World" at the huge Iberia hub.
On a personal note, it will be WONDERFUL to not be relegated to the absolute furthest gates at LHR and MAD. I really think the gates we use at LHR are so far away that they are actually located in Scotland. And those in MAD in Portugal.
Three cheers for One World!
Doubtful that Virgin Atlantic will pick up PHL-LHR. They have no feed in PHL, except Delta's smallish (by comparison) presence. That's why Air France stopped sending their widebodies to PHL and let Delta send a 757 (if they still even do that.)
WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
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AA/US will not lose LHR-PHL but they will have to give up one slot somewhere to accommodate the EU's requirements that a competitor be allowed to start PHL-LHR.
There is no assurance that any other competitor will accept the offer. When AA and BA received conditional approval for their JV, up to 4 flights/day had to be divested in order for the JV to gain approval. DL quickly picked up BOS and MIA but then later dropped MIA. US recently added CLT-LHR noting, IIRC, using the slot that is designated for MIA with a single flight number MIA-CLT-LHR.
Given that there are effectively only two competitors from the US-LHR now, it will be either UA or DL-VS, assuming DL-VS win approval for their JV; DL has already gained approval for the 49% ownership of VS.
DL's 757s are getting lie flat seats so they could use them but so far all DL flights to LHR have been either 763ERs or 764s.
UA has the same fleet choices so from a fleet standpoint the choice could go either way, if anything happens at all.
Bigger than the EU is what the US gov't will require and AA-US mgmt. are reportedly in discussions with the DOJ and DOT, indicating that there will be some conditions attached to the merger.
Hopefully, those discussions will advance quickly and the merger can be approved and the next phase for AA and US can begin.
There is no assurance that any other competitor will accept the offer. When AA and BA received conditional approval for their JV, up to 4 flights/day had to be divested in order for the JV to gain approval. DL quickly picked up BOS and MIA but then later dropped MIA. US recently added CLT-LHR noting, IIRC, using the slot that is designated for MIA with a single flight number MIA-CLT-LHR.
Given that there are effectively only two competitors from the US-LHR now, it will be either UA or DL-VS, assuming DL-VS win approval for their JV; DL has already gained approval for the 49% ownership of VS.
DL's 757s are getting lie flat seats so they could use them but so far all DL flights to LHR have been either 763ERs or 764s.
UA has the same fleet choices so from a fleet standpoint the choice could go either way, if anything happens at all.
Bigger than the EU is what the US gov't will require and AA-US mgmt. are reportedly in discussions with the DOJ and DOT, indicating that there will be some conditions attached to the merger.
Hopefully, those discussions will advance quickly and the merger can be approved and the next phase for AA and US can begin.
I agree with WW. AA will not reduce LHR-PHL, but will provide another slot pair to a competing carrier (possibly RDU-LHR). IMO, PHL-LHR with BA/US will increase, not decrease. BA has operated this route with 2 flights/day for many years with essentially 100% O&D (Zero feed) and BA is well known for quickly chopping even marginally profitable routes. Assuming the new AA continues to use PHL as a major connecting hub, the feed to/out of LHR (and onward destinations) should result in additional BA - AA PHL-LHR flights - not less. This should be fairly evident if there is indeed a plan (as rumored) to make PHL a 777 Base.
ContUNITEus
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- May 4, 2011
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There goes the Philly base...
This is the first indicator that PHL is OUT after the merger... This will be one station, just like PHX, that will be axed in the long term.
Mark my words on this...
It doesn't even make sense that the EU is picking on US/PHL, when there's so much more to pick on, and as BA flies most flights and AA doesn't fly any. Not sure what they're getting at, considering that it is just codeshare/JV with BA. But if that is reason enough, oh well... PHL didn't make sense being right next to JFK, I suppose.
This is the first indicator that PHL is OUT after the merger... This will be one station, just like PHX, that will be axed in the long term.
Mark my words on this...
It doesn't even make sense that the EU is picking on US/PHL, when there's so much more to pick on, and as BA flies most flights and AA doesn't fly any. Not sure what they're getting at, considering that it is just codeshare/JV with BA. But if that is reason enough, oh well... PHL didn't make sense being right next to JFK, I suppose.
Bill Brasky
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- May 15, 2008
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Consider it marked. It took me a while to get to it, I had to stop laughing at your post first.
Phoenix
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robbedagain
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no way phl wont get axed as they have the o&d market phl will most likely see an increase of flights particularly in the intl area phx will be the one to lose some flights down grade to a focus city but mgmt wont give it away
Correct. Kirby addressed exactly that point several months ago regarding JFK and PHL. Very different markets with very different marketing and operational considerations. He basically said that JFK is in no way interchangeable with PHL, and both will remain essentially unchanged because there is huge profit in that difference.
Dont call me Shirley
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