Fight for NY skies

700UW

Corn Field
Nov 11, 2003
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The growth would mostly come from the addition of US Airways' hourly shuttle service linking La Guardia to Boston and Washington. American would offer 30% of the seats departing La Guardia, second only to the 42% controlled by Delta Air Lines Inc., DAL +0.65%according to schedule data from Innovata LLC.

"This puts American in the big leagues for airlines in New York," says industry consultant Henry Harteveldt of Hudson Crossing. American is "now going to be a very credible No. 2 competitor to Delta." The merger still requires antitrust approval. A hearing on the plan is scheduled for Wednesday before the U.S. Bankruptcy Court judge overseeing AMR's case.


http://online.wsj.com/article/SB10001424127887323639604578368422069830096.html?mod=dist_smartbrief
 
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WorldTraveler

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You missed the part that AA will still be #3 at JFK as well as overall in NYC and the statement that no one is going to give ground to AA/US or that AA/US combined slot total or seat share will trail DL at both LGA and JFK.
There's a piece in there about the DL/VS deal being targeted toward AA's top int'l market in NYC.

Given that LGA and JFK are the two preferred airports for short and long-haul traffic in NYC, then AA's growth at LGA and JFK if they succeed at growing beyond their combined share is more likely to come at the expense of carriers further down the pecking order - UA and B6. In a divided market, increased power at the top almost always comes at the expense of smaller players, not the largest.

The great thing about the airline industry is that it spits out huge amount of data that is not otherwise available in other industries. There should be no problem figuring out whatever happens.

Finally, let's not forget that AA/US is still at least six months away from gaining government approval, let alone to the position where it can gain revenue synergies or begin coordinated planning.

You might want to wait a tad longer before you declare victory.
 
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Aug 20, 2002
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You missed the part that AA will still be #3 at JFK as well as overall in NYC and the statement that no one is going to give ground to AA/US or that AA/US combined slot total or seat share will trail DL at both LGA and JFK.
There's a piece in there about the DL/VS deal being targeted toward AA's top int'l market in NYC.

Given that LGA and JFK are the two preferred airports for short and long-haul traffic in NYC, then AA's growth at LGA and JFK if they succeed at growing beyond their combined share is more likely to come at the expense of carriers further down the pecking order - UA and B6. In a divided market, increased power at the top almost always comes at the expense of smaller players, not the largest.

The great thing about the airline industry is that it spits out huge amount of data that is not otherwise available in other industries. There should be no problem figuring out whatever happens.

Finally, let's not forget that AA/US is still at least six months away from gaining government approval, let alone to the position where it can gain revenue synergies or begin coordinated planning.

You might want to wait a tad longer before you declare victory.

The FEDS approved it TODAY...WT.
NOT what you wanted to hear, I'm SURE !
 
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OP
700UW

700UW

Corn Field
Nov 11, 2003
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Where did I declare victory?

DL is #1 at LGA and B6 is # at JFK, the expert stated his opinion with facts to supplement it and said AA/US will give DL a run for its money at LGA.

hook.jpg


NH,

You mean the bankruptcy judge, the DOT/DOJ hasnt approved the merger.
 
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WorldTraveler

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Indeed, BK approval is a totally separate process than DOJ and DOT approval. There is no reason to think any of the approvals will be denied; the only real question is potential divestitures which would be at DCA at the most - of any significant consequence.

As for the article, it made no comments about how any of the four players in NYC might move as a result of the merger or not. The article notes that the competitive situation in NYC is intense and will remain so. Thus, any conclusion that "watchout" to any airline is speculative at best and an inaccurate interpretation of the article.
The article clearly noted strengths other carriers have in NYC but you only chose to include the ones that indicate that AA will increase its competitive position at LGA, the only NYC airport where the merger will have a significant impact. The words "run for the money" aren't used in the article.

It is also true that all of the dynamics that have shaped NYC will still be there the day after the DOJ approvals the merger and a year after and a decade after, unless any of the carriers significantly changes their financial positioning or network strategies.

Again, based on current schedules, AA is still #3 in NYC as a whole and at JFK while being #2 at LGA, unchanged from the present.
 
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Aug 20, 2002
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Indeed, BK approval is a totally separate process than DOJ and DOT approval. There is no reason to think any of the approvals will be denied; the only real question is potential divestitures which would be at DCA at the most - of any significant consequence.

As for the article, it made no comments about how any of the four players in NYC might move as a result of the merger or not. The article notes that the competitive situation in NYC is intense and will remain so. Thus, any conclusion that "watchout" to any airline is speculative at best and an inaccurate interpretation of the article.
The article clearly noted strengths other carriers have in NYC but you only chose to include the ones that indicate that AA will increase its competitive position at LGA, the only NYC airport where the merger will have a significant impact. The words "run for the money" aren't used in the article.

It is also true that all of the dynamics that have shaped NYC will still be there the day after the DOJ approvals the merger and a year after and a decade after, unless any of the carriers significantly changes their financial positioning or network strategies.

Again, based on current schedules, AA is still #3 in NYC as a whole and at JFK while being #2 at LGA, unchanged from the present.


OOOPS, My BAD...WT.
Thanx for the update (to ME) 700UW !
 
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700UW

700UW

Corn Field
Nov 11, 2003
37,637
19,488
NC
http://www.aviationweek.com/Article.aspx?id=/article-xml/avd_03_27_2013_p05-02-562735.xml
 

WorldTraveler

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Dec 5, 2003
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B6 may reduce maintenance costs but that still doesn't mean they can begin to generate domestic revenue on par w/ the network carriers. Their exec acknowledged in the article you cited that they don't appeal to the same set of clients.
 
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