Jeff Smisek UNITED CEO - US Airways merger would be good for industry

[tom barry]

By jesus Eric, you sure don't need me to stick up for you, cause you do that quite well for yourself.
In my view Jeff Smisek is Not smarter than you when it comes to AMR !
(Note: dont let anything I say positive about you, go to that Scandinavian noggin of your's)

For the record, I was (at last check) FOR the US/AA merger.(having changed from my original Anti-US position)

WELL, as of this moment in time, AND NEVER again changing again, I'm cautiously optimistic that AA going it alone is the best way to go. OF COURSE getting APA to a 51/49% or better, For it, is the keystone/lynchpin !!!!!!!!!!

As for the weak/worthless TWU, and the somewhat stronger APFA, it really doesn't matter because with the "majority numbers" being in DFW/TUL respectively, HDQ could get a "51/49" any day of the week !

AA has (so far) an unbroken string of "Falling into a pile of cow Shite, and always emerging with a NEW SUIT on".
I'd like to think that Horton has a wopper of a secret deal for E-jets, or C-Jets on the back burner to unleash once he gets the OK from APA. Virtually overnight, AA could return to it's $$ success of the Crandall 90's by flying virtually everywhere while feeding South America and Europe(with BA) and Asia(with JAL)

And for shiits and giggles, I'd love to see AA grab a half dozen 777-200LR's for ORD-SYD, ( trip range 9232 Mi/A/C max with full Pax load 9395 Mi./A/C equipted with available extra fuel tanks) while QF continues the DFW-SYD run.

For the record, UAL (currently) doesn't have the metal for ORD-SYD.

But as usual (in this game)...Time will tell !

Tick.....Tick...Tick !

 

[Overspeed]

Airline execs have been hollering for decades there's too much capacity in this industry. And they're exactly right.

All one has to do is compare Europe or Middle Eastern carriers to Americas and see what he's talking about.
Less competition=higher fares(stability)

Ok, now that you're finished laughing....where am I wrong?

The problem is that the standards for entry in to the industry are low. Capacity is removed an new airlines spring up. How else did AirTran, Allegiant, and JetBlue spring up while TWA and Pan Am died a slow death? Don't look now but here comes a new airline...

http://www.foxnews.com/travel/2012/02/14/peoples-express-may-fly-again/

 

[787nightmare]

The problem is that the standards for entry in to the industry are low. Capacity is removed an new airlines spring up. How else did AirTran, Allegiant, and JetBlue spring up while TWA and Pan Am died a slow death? Don't look now but here comes a new airline...

http://www.foxnews.com/travel/2012/02/14/peoples-express-may-fly-again/

First off, I'm shocked that you'd read a FoxNews article...
Yeah maybe, but Spirit and Allegiant are niche market carriers(& charters)basically steering clear of the big boys turf. IMO, B6, FL(FL of course being ValuJet in another life)got to where they are/were because of shrewd management and sloooow growth. Seems like most airline failures are from debt-hindering the carrier for necessary expansion to stay alive+larger stronger carriers will just OUTbleed the start up.

 

[xUT]

Airline execs have been hollering for decades there's too much capacity in this industry. And they're exactly right.

All one has to do is compare Europe or Middle Eastern carriers to Americas and see what he's talking about.
Less competition=higher fares(stability)

Ok, now that you're finished laughing....where am I wrong?

Didn't say you were wrong, I just don't agree.
Just think.
Do you 'really' believe that after the CO/UA merger that UA cares about loosing star partner after getting CO into star?

A merger of AA/US would reduce capacity, for sure.
Of course, Labor will pay for it as we digress to 3rd world wages and benefits.
B) xUT
PS: Less Competition <> labor compensation.

 

[eolesen]

UT, you're absolutely right -- now that CO is in the fold, US probably extracts far more benefits and value from being in Star than they provide in return.

 

[TWU informer]

UT, you're absolutely right -- now that CO is in the fold, US probably extracts far more benefits and value from being in Star than they provide in return.

And the only reason Boeing and Kansas officials support the AA stand alone plan is what? Same resons, different peeps and agendas.
Can you say Aircraft Orders, Interest on Financing, and Employment/Taxes?

 

[eolesen]

That's what happens when your company goes bankrupt, Dave. Everyone is out to protect what's theirs.

 

[usa1]

Didn't UAL and US attempt a merger of their own?

http://www.gpo.gov/fdsys/pkg/CHRG-106shrg73290/pdf/CHRG-106shrg73290.pdf

If it had happened it would have probably kept UA out of BK?

 

[Lloyd Grey]

Ask yourself why Smisek thinks it is a good idea, Dave.....

Is it because Smisek cares about AA's employees? Or is it because he knows that having AA's unions in turmoil buys him time to deal with his unions?

Is it because Smisek wants AA to have a better revenue mix? Or because he knows it has the potential to be so bad that UA and DL will win even more customers than they already have?

Smisek knows that capacity will have to come out of the combined entity, and that's good for UA and DL, too. Especially if AA is in disarray trying to figure out how to deal with all the integration issues.


Again, when the competition says a merger would be good, it's not because they're looking out for you.

"I agree sir"...

 

[etops1]

I wonder what Richard Anderson thinks .

 

[TWU informer]

That's what happens when your company goes bankrupt, Dave. Everyone is out to protect what's theirs.

That is also what causes the Bankruptcy to begin with. Eric

 

[eolesen]

Smisek is brilliant

Apparently, Jeff is beyond brilliant. UA's proxy statements are out. UA tripled his compensation to $14.7M including stock awards.

http://airlineforums.com/topic/53279-united-triples-ceo-pay/

 

[787nightmare]

Didn't say you were wrong, I just don't agree.
Just think.
Do you 'really' believe that after the CO/UA merger that UA cares about loosing star partner after getting CO into star?

A merger of AA/US would reduce capacity, for sure.
Of course, Labor will pay for it as we digress to 3rd world wages and benefits.
B) xUT
PS: Less Competition <> labor compensation.

Ok, reckon so....see it from another angle.
But I believe you'll make money-if your carriers make money. All top paying carriers are profitable.

 

[787nightmare]

I wonder what Richard Anderson thinks .

He's probably enjoying the hell outta the show...

 

[southwind]

Forgive me if I respect a CEO of an Airline's opinion more than some paid stooge that used to work for AA.

It is not like he has a perspective on the issues that you cannot even dream of having.

Is it also not like he has a history in the industry that makes you like a wannbe expert that couldn't wash his jock strap.

How convenient to respect management's opinion when it fits your agenda...............apparently you don't respect AA's managements opinion right now !