American Needs US Air Merger: Analyst

[usa1]

Despite its obvious reluctance, American(AMR) needs a merger with US Airways(LCC) so that it can compete effectively in the transatlantic market, says a veteran airline analyst.

LINK

 

[AAviator]

LINK

Former industry executive disagrees.
http://startelegram.typepad.com/sky_talk/2010/05/former-american-ceo-crandall-says-american-doesnt-need-to-merge-with-anyone.html

 

[VAflyGal]

Who cares?
Analysts, "experts" - they're all a bunch of morons that don't know any more than we do.
Nobody has a crystal ball here.

*yawn*

 

[IberiaMAL]

I think US would be smart to stay away from American.


If American can't make Chicago, Miami, New York, and Dallas work... Then they will not at all be able to make PHL/CLT/DCA/PHX work...



US is going to turn a profit this year... All American would do is weigh US down..

 

[777 fixer]

Funny how that analyst forgot one very important detail.

 

[IberiaMAL]

Funny how that analyst forgot one very important detail.

And DCA...

 

[zethya]

I think the key point of the article, ignoring the AA merger suggestion, is just how valuable PHL is as an international gateway and major contributor to US Airway's bottom line. Tempe rarely lauds PHL anymore for its value and instead seems to be concentrating on CLT - for some mysterious reason. The real "crown jewel" of this airline is PHL - in the past, present and forseeable future. If US had the same consistent quality of general services and aircraft on all of it's international routes out of PHL as it does on LHR and TLV and possibly 1 or 2 others, IMO, CO, AA and UA would be chasing it (US) for global international passengers, instead of visa versa.

 

[PBI2FLL]

I wouldn't exactly consider PHL the "crown jewel". 😛 Let's just say it's a major profit center for US Airways and a huge O & D market and we'll leave it at that. 😉

 

[zethya]

I wouldn't exactly consider PHL the "crown jewel". 😛 Let's just say it's a major profit center for US Airways and a huge O & D market and we'll leave it at that. 😉

Really? What other Hub in the US system has both the long haul international and domestic O&D that PHL has - certainly not CLT, certainly not PHX. What contributes more to profitability than O&D? Is CLT or PHX a larger profit center than PHL - unlikely. CLT makes money primarily because its airport fees are subsidized and approach Zero. If the "crown jewel" isn't the airport that produces the most revenue and profit - what is a "Crown Jewel" ? CLT's history is that it has difficulty making most long haul, year round flights successful unless their subsidized or go to LGW or *HQ at FRA - and PHX - well US is afraid to even attempt FRA after LH exited some years ago. If they really wanted to fly PHX-FRA, they could likely do it easily with a 332HGW.

 

[ebwgs]

I wouldn't exactly consider PHL the "crown jewel". 😛 Let's just say it's a major profit center for US Airways and a huge O & D market and we'll leave it at that. 😉

Then what is US's Crown Jewel?

 

[VAflyGal]

Then what is US's Crown Jewel?

The horrid labor contracts of the pilots and the flight attendants.

Thank you. Thank you.

 

[SparrowHawk]

The horrid labor contracts of the pilots and the flight attendants.

Thank you. Thank you.

Just remember this is from an "Analyst"!! The first four letters in the word "Analyst" sum it up nicely

 

[nycbusdriver]

I think US would be smart to stay away from American.

I think American would be smarter to stay away from LCC.

 

[VAflyGal]

I think American would be smarter to stay away from LCC.

More slotted spoons and labor wars.
I hope their flight attendants go on strike like the 96% voted and the government can stay out of it.
I'd like to see us get our acts together and build something.

 

[AstroLounge]

I wouldn't exactly consider PHL the "crown jewel". 😛 Let's just say it's a major profit center for US Airways and a huge O & D market and we'll leave it at that. 😉

PHL the "Crown Jewel"? If that is the case maybe the reference to US as the "ugly girl" IS approriate afterall. PHL may be profitable and have great O&D numbers but PHL will ALWAYS be PHL........not a desirable City to live (to most of us), a horrible airport on most accounts and the list goes on. ALL the hubs contribute but referring to PHL as a "Crown Jewel" is sorta like giving the school tramp the title of Prom Queen (and a Crown) just because she had sex with every member of the Senior Class. US has a lot of value but pitting one hub against another is senseless and really tarnishes any value of the Company as a whole.