US Airways chairman and CEO says further airline consolidation inevitable
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Seatacus
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phasersonstun2
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- May 1, 2003
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Phoenix
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That reminds me ...
Where has USA320pilot been lately?
Since he lost the LGA election, he seems to have kinda disappeared.
Where has USA320pilot been lately?
Since he lost the LGA election, he seems to have kinda disappeared.
Let it be warm....enough of the cold already. Base in HNL and the pacific rim trips would be just what I need to warm up the barbi...for those salmon.
SpinDoc
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SpinDoc replies:
1. Virgin America buys FlyI - Ready made American Network
2. DL merges with NWA - Strong Europe, Asian Network
3. UA merges with CO - Strong Europe, Asian Network
4. AA/F9/AS - Perfect combo to beat WN at their own game
5. US/HP/AC - Strong North and south America, strong Europe and Asia
delldude
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speedbird86
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- Aug 20, 2002
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I don't find his comments on mergers a big surprise. It's been pretty much the norm for the past 25 years or so. Years ago airlines merged to get bigger or because they couldn't compete. Now airlines merge just to survive. What I did find interesting was his mention of raising fares by reducing capacity. I'm certainly no expert in this, but I would think that reducing capacity would reduce cost and therefore allow one to at least maintain current fare levels. Hasn't the industry has been selling it's product cheaper than it can operate it?
At any rate, am looking forward to sitting back and watching it all unfold. B)
At any rate, am looking forward to sitting back and watching it all unfold. B)
EricLv2Fish
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- Aug 25, 2005
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Speedbird, I think the idea is less seats means less availability of the cheapest seats. If a typical flight is divided up by category of seat pricing...say cheapest, cheaper, average, expensive, most expensive (looking at an industry wide picture) and capacity is reduced it only makes sense that as an industry the cheapest seats are no longer needed to fill the airlplane. Many other factors are involved such as cutthroat competition that makes this a pretty simplistic view, but overall in the grand scheme of things I think that this is what DP is refering to. I'm no expert either, but reducing the amount of the cheapest seats with an increased load factor should increase profitability.
#2, #3 and #4 will not happen. NWA/DL don't mix with a/c types. In fact people say that AA/NWA is a better fit (excpet for the Airbus a/c). UA wll not merge with CO. That's really far fetched! AA/F9/AS, will not happen either. FP has Airbus a/c and AA doesn't want anymore of them (piece of junk). Seniority would be very easy to work since F9 has no unions on the property (excpet maybe the Pilots). AA/AS fit perfect with a/c types. But, AA has already bought 2 west coats carriers (AirCal & Reno) and they burried the routes. So buying/merging with another west coast carrier makes no sense. AA wants to expand Asia and AS doesn't fly across the Pacific Rim! This is what I think will happen:
1. AA/NWA (AA surviving entity)Gives AA the Asia routs that they want.
2. CO/DL (CO surviving entity)Perfect match when it comes to a/c types.
3. UA/F9 (UA surviving entity) This will allow UA to compete against SW in DEN.
4. US/AC (who knows about that one)
Travelpro72
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- Jan 30, 2005
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What if the new US made an offer to scoop up Frontier with their airbus fleet and had a westerly midwest hub? I'm sure they have the cash for it if they thought it would be a benefit. Frontier is gonna have troubles and the future is not looking all that pretty for them. No expert here by any means....just throwing it out there.
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