Unsubstantiated rumor--merger talks in Dallas
- Thread starter Smokin Cubans
- Start date
jimntx
Veteran
We seem to have no problem filling planes in the DC area with people willing to change planes at ORD, MIA, or DFW. And, from those 3 hubs, where in the world is not served by AA and OW that is served exclusively by LCC?
Yo, dude. I have posted this more than once, but LCC employees keep using RDU as "proof" that AA wants a Southeastern hub. RDU exists as it is today for one reason and one reason only--the daily flight to LHR.
The daily flight to LHR exists for one reason and one reason only--a major pharmaceutical company with headquarters in London and a large operation in the RDU area subsidizes that flight to make sure that it continues to exist. The other flights to/from RDU are feeder traffic for that flight. A lot of people have learned the advantages of clearing U.S. Customs and Immigration in RDU vs. JFK, ORD, and DFW.
Yes, they tried 2 or 3 times to establish a hub at BNA. How many years has it been now since the last one closed? 15? 20? I don't know. It was before my time. I know that one time my late wife and I went IAH to BNA to BHM at Christmas on AA. It was neither a pleasant experience, nor repeated.
But, then we used to have a hub at SEA also. Does that mean we are secretly coveting a hub in the Pacific Northwest? Every airline has at least one BNA in its past. If we are going to play that game, what about PIT? How is LAS working out for you? What has happened in the past has no bearing on what will or will not happen in the future in the airline business.
And, besides, I reiterate...why ever would anyone even suggest a merger with any part of AMR except in recounting last night's nightmare? I agree with whoever pointed out that we ain't exactly in the best of financial shape ourselves. All that baloney about the TPG money is just that, baloney. And, we are hocked to the gills anyway. There's not a lot of lenders out there these days willing to take 15-20 year old MD-80s as collateral.
JFK Fleet Service
Veteran
Has anyone considered that maybe US is interested in joining AA in the development of the new passenger service computer system that is supposedly in the pipeline? Worldspan had several partner airlines involved.I remember a few quick keystrokes in PARS and you were on the Northwest side of the system.If your sine had that access of course.
Maybe they are getting in on the ground floor of a new system instead trying to make something not designed by/for them work.
Maybe they are getting in on the ground floor of a new system instead trying to make something not designed by/for them work.
What????? American maintains its presence in Raleigh to capture ~100 connecting passengers??? That's just silly. Given that the flight is subsidized, there really is no reason to provide feed, as the GlaxoSmithKline would pick up the tab. The dispersement of the ~100 passengers not O/D in Raleigh is certainly no justification to maintain a focus city.
Back to the original point of the thread, if this publicized secret meeting with IT (who won't confirm it was IT in nature) took place, I agree with JFK Fleet Services.....co-development of a new software system is far more logical.
BoeingBoy
Veteran
- Joined
- Nov 9, 2003
- Messages
- 16,512
- Reaction score
- 5,865
"Subsidized" doesn't necessarily mean "paid for" and hardly ever does when it's a business or group of businesses doing the subsidizing. Infinitely more likely is the business guaranteeing an average of X seats used per week/month or $X in revenue per week/month. If the business buys fewer tickets or spends less than the guarantee, they pay the difference to AA. If they buy more tickets or spend more, the business pays nothing to AA.
AA would in all likelihood still need to sell seats on the flights to make a profit unless the business was either buying enough seats or spending enough to make the flight profitable. If that were the case, they could just charter the flight and not have to put up with the riff-raff.
Jim
jimntx
Veteran
Oh, there are more than 100 daily passengers. The flight (a 767) is close to full every day for the next 5 days. The important part: F/C is going out full (or within 3 seats of full out of 28 in F/C) every one of those days with revenue passengers. That is why RDU exists. Not from any desire to have a Southeastern hub.
And, you are correct that there is no reason to provide feed, but if people want to buy tickets on the flight, why not give them the opportunity? And, I wouldn't be surprised if some of those passengers drive from CLT to catch it.
wings396
Veteran
- Joined
- Aug 20, 2002
- Messages
- 3,672
- Reaction score
- 1,122
What most seem to overlook here, is that RDU failed in part due to ATL and CLT being in the same region with the same basic connecting cities. Granted that CLT will never be on the same level as ATL, but it does drain some traffic off it regardless.
Poug Darker
Senior
- Joined
- Jul 12, 2006
- Messages
- 276
- Reaction score
- 22
This has been the second meetiing in 'Dallas' between US and *. In January, some union reps were summoned to 'Dallas' to meet with company officials.
[*AAn unknown entity thAAt mAAy or mAAy not have its primAAry plAAce of business in the DAAllAAs-Fort Worth AAreAA.]
[*AAn unknown entity thAAt mAAy or mAAy not have its primAAry plAAce of business in the DAAllAAs-Fort Worth AAreAA.]
BoeingBoy
Veteran
- Joined
- Nov 9, 2003
- Messages
- 16,512
- Reaction score
- 5,865
Something of an oversimplification. While the three largely served the same smaller markets in the southeast, RDU didn't offer as many non-stop flights to out of region markets. The two mini-hub plan worked pretty well in the boom of the 90's, but the economic downturn that started in 2000 started to make the mini-hub concept economically unworkable and the nail was put in the coffin by 911 after which all the legacies were fighting for survival. So RDU and BNA ceased to be even mini-hubs and became largely spokes.
That doesn't mean that RDU couldn't be a full blown hub like CLT. The population is there, the facilities are there and could be expanded pretty easily. The runways are there. Unfortunately, much of the higher-yield business traffic from all those small southeast markets now embraces either the *A or ST. US being acquired by AA and OW could really hurt CLT.
Jim
legacy-to-LCC
Veteran
- Joined
- Feb 20, 2004
- Messages
- 778
- Reaction score
- 2
BNA is doing remarkably well for SWA. call it a hub or not.
BoeingBoy
Veteran
- Joined
- Nov 9, 2003
- Messages
- 16,512
- Reaction score
- 5,865
I should have been more specific, I guess. I meant that they stopped being mini-hubs and became largely spokes for AA, not in general.
Jim
Ah, more accurately, for his management/employee relations. Kind of makes you warm and fuzzy...........doesn't it?
If AA truly wants a SE hub they will go and grab FL! Much less headache labor wise plus FL's NG737s will match nicely with AAs own 737s.
JetBlue would be smart to stay as far as possible from US and it's splintered pilot groups. It is doing ok on it's own or can acquire Spirit if it truly wants to expand via consolidation!
As for US management, they'd be best to learn what other singles know! If they want to enter a relationship (Merger) then they'd better fix their own "baggage", namely their internal labor issues!
Just my $.02, adjusted for inflation!
Dog Wonder
Veteran
He brings a lot to the table.
Similar threads
- Locked
