Robert Crandall calls government ignorant

Jul 18, 2008
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http://www.dallasnews.com/business/airline-industry/20130813-former-amr-chief-robert-crandall-calls-government-ignorant-on-aviation.ece

f WriterPublished: 13 August 2013 08:23 PMUpdated: 13 August 2013 10:58 PMRobert Crandall is outraged that the Justice Department is challenging the proposed $12 billion merger between US Airways Group Inc. and American Airlines’ parent company, AMR Corp.“This is another indication that the U.S. government does not know the first thing about the aviation industry,” the retired chairman, president and CEO of AMR said in a telephone interview Tuesday from his home outside Boston. “It’s stunning. It’s absolutely crazy.”Crandall, never one to mince words, said this is the latest in a series of monumental mistakes by the U.S. government, beginning with its decision to let international carriers code-share (market each other’s flights) in the United States.“By so doing, they took away the advantage of U.S. carriers in international markets,” Crandall said.“They made a mistake when they allowed U.S. airlines to send their airplanes overseas for maintenance, thus sacrificing tens of thousands of middle-class maintenance jobs in the U.S.,” he said. “And they made a mistake when they permitted Delta to absorb Northwest and permitted United to merge with Continental because they created monolithic carriers that require monolithic competitors.“Without a merger, neither [American or US Airways] in the very long run can make it — be sure to emphasize in the very long run,” he said.“Ten years down the road, if American and US Air don’t succeed in creating greater mass and more ubiquity, they can’t compete effectively against United and Delta.”
 
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http://www.dallasnews.com/business/airline-industry/20130813-former-amr-chief-robert-crandall-calls-government-ignorant-on-aviation.ece

f WriterPublished: 13 August 2013 08:23 PMUpdated: 13 August 2013 10:58 PMRobert Crandall is outraged that the Justice Department is challenging the proposed $12 billion merger between US Airways Group Inc. and American Airlines’ parent company, AMR Corp.“This is another indication that the U.S. government does not know the first thing about the aviation industry,” the retired chairman, president and CEO of AMR said in a telephone interview Tuesday from his home outside Boston. “It’s stunning. It’s absolutely crazy.”Crandall, never one to mince words, said this is the latest in a series of monumental mistakes by the U.S. government, beginning with its decision to let international carriers code-share (market each other’s flights) in the United States.“By so doing, they took away the advantage of U.S. carriers in international markets,” Crandall said.“They made a mistake when they allowed U.S. airlines to send their airplanes overseas for maintenance, thus sacrificing tens of thousands of middle-class maintenance jobs in the U.S.,” he said. “And they made a mistake when they permitted Delta to absorb Northwest and permitted United to merge with Continental because they created monolithic carriers that require monolithic competitors.“Without a merger, neither [American or US Airways] in the very long run can make it — be sure to emphasize in the very long run,” he said.“Ten years down the road, if American and US Air don’t succeed in creating greater mass and more ubiquity, they can’t compete effectively against United and Delta.”

As USUAL,..............(uncle) Bobby.......is Right AGAIN !!!!

US certainly isn't/wasn't the 'best choice for AA (Northwest would have been) but AA and US are Now in a position where they Do NEED each other !
(NO Offense aimed at any of the good folks @ US) !!!!
 
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He may very well be called as a witness. Both the DOJ and AA+US will subpoena all sorts of "experts" to bolster each party's case.
 
“Without a merger, neither [American or US Airways] in the very long run can make it — be sure to emphasize in the very long run,” he said.“Ten years down the road, if American and US Air don’t succeed in creating greater mass and more ubiquity, they can’t compete effectively,,,,,,

"''Ten years down the road", with the average age being 55 for mechanics at the two carriers we will all be gone before AA and US are and anyone who has more than 10 years left isn't planning on staying at either of these bottom of the industry payers anyway.


SWA and even Airtran were small but managed to pay better than AA or US.

Kill the merger. The more these people tell me how I need this the more I'm convinced otherwise. Yea, like one little sentence about outsourced maintenance is going to make me believe he cares about us.
 
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bob ive read on www.justplanenews.com thru the links theyve had and a lot of the industry analysts all say that in the long run aa and us cant compete against the big boys of dl ua and wn but i do have to wonder how much of that is related to the east coast flying vs west coast flying etc
 
bob ive read on www.justplanenews.com thru the links theyve had and a lot of the industry analysts all say that in the long run aa and us cant compete against the big boys of dl ua and wn but i do have to wonder how much of that is related to the east coast flying vs west coast flying etc
I'm a little skeptical of what anal-ists have to say. WN is small and turns a profit every year. They may not be in the running to win the competition but who cares? turn a profit every year, get good pay and benefits and let the other clowns win the race to the bottom.

All these experts are really concerned about is opportunities for quick wealth generation.
 
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Sometimes these forums read so negative that we should just announce this and get it over with.

"There is no such thing as Gravity, the whole World Sucks, and that is what keeps us attached to it."
 
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This AA BK is just bizarre. IMHO, worse than the UA BK.
There is a lot of negativity here and this forum may go the way of the UA forum has.
Just getting you asses kicked at every turn is tiring.
Whenever I miss aviation, I come to this forum and am reminded how fortunate I am to have left on my own terms.
Good Luck Guys N'Gals!
Take Care,
B) xUT
 
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Not the first time Crandall has called the government stupid.

You #### academic eggheads! You don't know ####. You can't deregulate this industry. You're going to wreck it. You don't know a goddamn thing!

— Robert L. Crandall, CEO American Airlines, addressing a Senate lawyer prior to airline deregulation, 1977.
 
Deregulation will be the greatest thing to happen to the airlines since the jet engine.
— Richard Ferris, CEO United Airlines, 1976.

United has little to fear from numerous small competitors. We should be able to compete effectively by advertising our size, dependability, and experience, and by matching or beating their promotional tactics. . . . In a free environment, we would be able to flex our marketing muscles a bit and should not fear the treat of being nibbled to death by little operators.
— Richard Ferris, CEO United Airlines, 1976.

http://www.skygod.co...es/airline.html

Guess how that worked out... :p
 

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