AA and BA to get the OK?
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<_< -------- Well folks, you can see where this one is going! I believe Our-pay is going for a full fledged merger with the Brit's! ------ I know! I know!------ The law "as it stands today" won't allow it, but with "no boarders" Obama in office, that technicality may not be as unsurmountable as may seem! ------ It may take awhile, but hold on to your backsides, I believe they'll try!!!
No chance of a merger with BA. That would require more political capital than Obama has to get the change through Congress, and I don't even think Obama would support the idea to begin with. Absolutely zero chance of this happening this year.
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We've been seeing upgrades in First Class Cabin Cleaning as all blankets and pillows need to be replaced with pre-packaged ones. I'm sure Mr. Walch and company have been on our flights to review our service, and they want to bring AA up to meet their service standards.
" Seamless " means just that, F/C passengers to LHR. MAD out of JFK on AA would expect to receive the same service on MAD IB and LHR BA out of JFK.
AA would require more personnel and buy more vehicles to do this extra work.
AA's answer, eliminate this job function in the next TWU contract.
If the contract is approved AA can outsource this function to another company.
In the bigger picture, why merge, why marry, why buy the cow when all you want is the milk?
Expansion from within or deals like this make more sense in our present economic condition. Conserve cash.
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We've been seeing upgrades in First Class Cabin Cleaning as all blankets and pillows need to be replaced with pre-packaged ones. I'm sure Mr. Walch and company have been on our flights to review our service, and they want to bring AA up to meet their service standards.
" Seamless " means just that, F/C passengers to LHR. MAD out of JFK on AA would expect to receive the same service on MAD IB and LHR BA out of JFK.
AA would require more personnel and buy more vehicles to do this extra work.
AA's answer, eliminate this job function in the next TWU contract.
If the contract is approved AA can outsource this function to another company.
In the bigger picture, why merge, why marry, why buy the cow when all you want is the milk?
Expansion from within or deals like this make more sense in our present economic condition. Conserve cash.
.
Hopeful
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Sounds like a GO...
http://www.businessweek.com/globalbiz/content/may2010/gb20100524_424876.htm?campaign_id=yhoo
Wonder what Branson is doing right about now..................
Branson is probably sacking the hottest babe money can buy.
Meanwhile back at the ranch Mr. Walch ( BA CEO ) is prepping the so-called American director on what BA wants for this thing to succeed. Walch doesn't take a back seat to anyone. BA's unions know him all too well, Americans don't. Hint: He's a tamer version of a Frank Lorenzo, as he's shown at Aer Lingus.
http://www.guardian.co.uk/business/2009/dec/16/british-airways-christmas-strike
So don't believe for a second what the British article writes:
Giving an American such a top role may concern some shareholders already critical that the Iberia merger will make BA a Spanish company with Spain providing the chairman, finance director, and more non-executives.
This is a smoke screen for the US regulators so as to lower concern.
Walsh is very much in charge.
jimntx
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Now, even though I also believe that AA belongs to BA the minute that the foreign ownership restriction is lifted, it's a pretty paranoid jump from fresh blankets in F/C to full merger. The only reason we have the new rule about blankets in F/C is because we eliminated them in coach--much as several other airlines did some time ago. It makes for turning the airplane faster if we don't have to fold blankets, and we can just put fresh ones out. Fresh blankets in F/C every leg costs nothing compared to the cost of keeping that airplane on the ground while blankets get folded instead of in the air where it makes money.
That being said...I worked a flight last week where the F/C passenger took the blanket out of the plastic, unfolded it, and found a huge stain which looked like someone had blown their nose on the blanket. Blankets sealed in plastic, but not clean? "I'm shocked! Shocked, I tell you. Round up the usual suspects." (see footnote) In fact, I'm almost as shocked as finding broken glassware in the F/C catering, but no piece of glass in the insert. (I.e., the glass was already broken when it was put in the insert.)
Footnote: For those of you too young...the quote is the last line of the movie Casablanca, spoken by Claude Rains as the Inspector.
Now, even though I also believe that AA belongs to BA the minute that the foreign ownership restriction is lifted, it's a pretty paranoid jump from fresh blankets in F/C to full merger. The only reason we have the new rule about blankets in F/C is because we eliminated them in coach--much as several other airlines did some time ago. It makes for turning the airplane faster if we don't have to fold blankets, and we can just put fresh ones out. Fresh blankets in F/C every leg costs nothing compared to the cost of keeping that airplane on the ground while blankets get folded instead of in the air where it makes money.
That being said...I worked a flight last week where the F/C passenger took the blanket out of the plastic, unfolded it, and found a huge stain which looked like someone had blown their nose on the blanket. Blankets sealed in plastic, but not clean? "I'm shocked! Shocked, I tell you. Round up the usual suspects." (see footnote) In fact, I'm almost as shocked as finding broken glassware in the F/C catering, but no piece of glass in the insert. (I.e., the glass was already broken when it was put in the insert.)
Footnote: For those of you too young...the quote is the last line of the movie Casablanca, spoken by Claude Rains as the Inspector.
Obviously, you're Junior and don't fly International flights or you would have realized that on all trans -Altantic flights the entire plane is redone in new pre-packaged blanket/ pillows. At a time when AA is trying to increase revenue by selling blankets in main, why are they all of a sudden spending thousands more in extra man hours and increased turn times on certain routes? AA will get what they want on this contract and there will be many TWU jobs lost.
The end result being a contract company doing all this new work,.Then later have all LHR seats sold on BA, less seat inventory, meaning more fare increases to the passengers and more revenue to this new alliance.
(Deleted by Moderator: Personal Attack)
Footnote: Claude the inspector ( Casablanca ) is today's stock broker, you sell, you buy, he still makes money.
MAH4546 has posted several times that under the AA/BA/IB joint business agreement, the more flights AA flies, the more money AA gets from the arrangement. If true, then why would AA no longer fly to LHR?
This arrangement finally gives AA and BA (and IB and the others) the same benefits (antitrust immunity) enjoyed by NW and KLM (and now DL and AF) for 17 years. DL still flies its own metal to AMS and CDG, so I don't understand the paranoid predictions that AA will cede all LHR flying to BA.
eolesen
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The "you get as much as you fly" clause is pretty standard amongst the existing ATI carriers, so they try to maintain parity to keep as much of the revenue pie as they can.
It's pretty simple math to follow -- When KL increased flying, NW increased flying to keep the proration the same. When LH adds a flight, UA adds a flight.
It's also the reason why AA's "growth" in Europe has stagnated outside of the UK... They pulled out of places like MUC and DUS, and are the only US carrier who doesn't serve AMS. It's pretty simple why -- there was/still is no way to compete with all the capacity LH/UA and KL/NW/AF/DL were/still are throwing into the market. Yet there's nothing preventing other carriers from adding capacity to the UK or Spain because neither AA or IB or BA have been able to effectively coordinate or share revenue and passengers...
But I digress....
The articles posted are still speculative and do nothing to confirm that the EU has approved the deals. With the continued melt-down of the Euro, I suspect their attention is elsewhere, and perhaps that might work in AA/BA/IB's favor... or is it favour?....
It's pretty simple math to follow -- When KL increased flying, NW increased flying to keep the proration the same. When LH adds a flight, UA adds a flight.
It's also the reason why AA's "growth" in Europe has stagnated outside of the UK... They pulled out of places like MUC and DUS, and are the only US carrier who doesn't serve AMS. It's pretty simple why -- there was/still is no way to compete with all the capacity LH/UA and KL/NW/AF/DL were/still are throwing into the market. Yet there's nothing preventing other carriers from adding capacity to the UK or Spain because neither AA or IB or BA have been able to effectively coordinate or share revenue and passengers...
But I digress....
The articles posted are still speculative and do nothing to confirm that the EU has approved the deals. With the continued melt-down of the Euro, I suspect their attention is elsewhere, and perhaps that might work in AA/BA/IB's favor... or is it favour?....
jimntx
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Uh, AFAIK we have ALWAYS provided a blanket for every seat on TA flights. Oh, and please tell me that you believe that gathering all the used blankets in the cabin into a laundry bag and putting out a fresh blanket for every seat takes more time and costs more money than hand folding and repositioning 250-300 blankets per airplane. I have a nice bridge to sell you in New York City.
And, there was never any intention to sell blankets on International flights--not competitive. I also don't believe that selling them in coach on domestic flights was intended as an actual source of revenue. The purpose was to get rid of blankets in coach, and make a little money on those who insist on having a blanket--usually those who get on the plane half-naked and expect the cabin temperature to be set to their personal comfort level.
Except for one all-nighter from SFO to DFW I worked earlier this month, I have yet to see anyone buy one of those blankets. Given the $10 coupon included in the package, $8 for a blanket and inflatable pillow is actually a pretty good deal.
Obviously, you do not understand how ATI alliances work, but I won't try to confuse you with facts. See FWAAA and Eolesen's posts above. But, you are convinced that fresh blankets means AA is going to eliminate all LHR flights. One can not argue with that "logic."
????? (Claude Rains is the name of the actor. The character's name in the movie is Captain Renault.)Footnote: Claude the inspector ( Casablanca ) is today's stock broker, you sell, you buy, he still makes money.
If President Bush couldn't do it with a republican congress, President Obama, won't be able to do it.
BA Alliance with American Set for Go-Ahead
After a 14-year wait, British Airways will receive approval to link with its rival American Airlines as early as next month, providing a rare piece of good news for its embattled chief executive, Willie Walsh.
Mr Walsh is banned from discussing details with the U.S. carrier until American regulators formally agree the deal. But 7,500 staff are already being retrained and the alliance's roll-out, planned for August, will be run by an AA executive.
full story here
After a 14-year wait, British Airways will receive approval to link with its rival American Airlines as early as next month, providing a rare piece of good news for its embattled chief executive, Willie Walsh.
Mr Walsh is banned from discussing details with the U.S. carrier until American regulators formally agree the deal. But 7,500 staff are already being retrained and the alliance's roll-out, planned for August, will be run by an AA executive.
full story here
I don't know why so many are assuming that this JBA with BA/IB will lead to fewer flights for AA and AA's employees. That is the complete opposite of the impact nearly-identical deals have had on the flying being done at Delta, Northwest, etc. These joint ventures make the airlines more competitive, increase revenue, and incentivize them to grow - leading to more flights. Why would AA be any different?
That's an old article that for some reason BusinessWeek keeps recycling - not sure what they're doing.
Either way, they're still in a holding pattern and waiting for the DoT and E.U. to make their final rulings (both regulatory agencies made preliminary rulings, of course, that were quite favorable to AA-BA-IB).
That's an old article that for some reason BusinessWeek keeps recycling - not sure what they're doing.
Either way, they're still in a holding pattern and waiting for the DoT and E.U. to make their final rulings (both regulatory agencies made preliminary rulings, of course, that were quite favorable to AA-BA-IB).
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