JAMAKE1
Veteran
Aer Lingus...
AA LOOKING FOR FULL MERGER WITH BA
- Thread starter Hopeful
- Start date
Aer Lingus...
WorldTraveler
Corn Field
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I would not at all assume that 1. US airlines cannot remain independent US companies based on their financial performance and 2. that ownership laws will change and 3. that even if the ownership laws change that it would be advantageous for foreign airlines to own US airlines.
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The biggest hindrance to mergers in the US industry is the same hindrance in cross-border mergers among airlines - labor contracts.... foreign airlines would very likely face much higher labor costs for their US subsidiaries if they owned US airlines AND foreign unions would potential gain a stronger presence in the US industry.
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Further, there are much higher growing regions in the world where it makes sense for strong foreign airlines to invest than in the US where growth is slow and challenges to revenue generation are much higher.
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The most likely scenario is for foreign airlines to continue to grow their presence in the US via alliances and joint ventures on int'l routes and the domestic passengers that connect to/from them... leaving the 60% or so of US int'l revenues out of the hands of foreign carriers.
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Going after the 60% that is not at all associated with int'l travel will result in far more complications and costs than it is likely worth.
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Finally, there is no assurance that foreign airlines could do any better in extracting revenues or reducing costs than can their US network peers who are battle hardened as a result of 30 plus years of brutal competition - the likes of which no large foreign airline has any comparable experience.
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The biggest hindrance to mergers in the US industry is the same hindrance in cross-border mergers among airlines - labor contracts.... foreign airlines would very likely face much higher labor costs for their US subsidiaries if they owned US airlines AND foreign unions would potential gain a stronger presence in the US industry.
.
Further, there are much higher growing regions in the world where it makes sense for strong foreign airlines to invest than in the US where growth is slow and challenges to revenue generation are much higher.
.
The most likely scenario is for foreign airlines to continue to grow their presence in the US via alliances and joint ventures on int'l routes and the domestic passengers that connect to/from them... leaving the 60% or so of US int'l revenues out of the hands of foreign carriers.
.
Going after the 60% that is not at all associated with int'l travel will result in far more complications and costs than it is likely worth.
.
Finally, there is no assurance that foreign airlines could do any better in extracting revenues or reducing costs than can their US network peers who are battle hardened as a result of 30 plus years of brutal competition - the likes of which no large foreign airline has any comparable experience.
eolesen
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If true, what's the big deal? You guys all hate the current AMR management, BA has a great product and just posted a profit, while AF/KL and LH both just posted losses.
It's not like they could crew domestic flights with UK citizens... and I seriously doubt the BA unions have any desire to fly anything more than what they already do.
It's not like they could crew domestic flights with UK citizens... and I seriously doubt the BA unions have any desire to fly anything more than what they already do.
Frank Szabo
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chris perry
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I worked BA trips here in DFW....This would be certain death of AA, the Crews hate us and likewise no thanks...This would certainly cause labor unrest their pay is far higher than ours.... Their crews are far more aarrogant than ours,they only tolerate us because they want to fly home.They just want signature and fuel in logbook.....
jimntx
Veteran
Absolutely! That was then. This is now.
Besides, foreign ownership of Virgin America is a totally different subject that foreign ownership of AMR. Please try to stay on topic.
The FAA is more of the same, bigger and bigger government.
A BA takeover is a Win-Win for Congress, foreign investments ( not tax money ) and jobs ( that would otherwise be lost to a collapse of a major airline, AMR, through reorganization).
