US Airways seen buying American

[USA320Pilot]

US Airways seen buying American

Click here to read the story.

 

[LD3]

And this is news worthy?????

 

[necigrad]

"US Airways merged with America West Airlines in 2005 as a way to gain pricing power."

Uhhh... I thought it was because we were both screwed if we didn't.

 

[Dog Wonder]

A story from an airline expert titled US Air is a clear sign of expertise talking.

 

[USA320Pilot]

AMR bankruptcy sparks American-US Airways merger speculation

Click here to read the story.

 

[USA320Pilot]

What if US Airways and American Airlines Merged?

Click here to read the story.

 

[Harry Callahan]

OMG he's all over the place 🙄

 

[redheadtempe33]

"US Airways merged with America West Airlines in 2005 as a way to gain pricing power."

Uhhh... I thought it was because we were both screwed if we didn't.

That pretty much sums it up. Both were decent airlines with fundemental flaws that the merger ... kind of fixed. US with high revenue but even higher costs and HP with low revenue and low costs.

Though, American will contract even more through the bankruptcy process. It will be hard for them to compete with UA and DL who have much larger scale.

Yes, there are smaller airlines that do well like AS but they are much less focused on the hub and spoke model. Large airlines (like DL, UA, and to a lesser extent US) need the feed to fill their international flights (where the real money is).

AA (as it is now), is running five hubs but with half of the passengers of their rivals. UA has seven (and yes, I am not counting CLE and DEN is nothing to write home about) and yet they have twice the market share. It is going to happen IMHO.

 

[Dog Wonder]

OMG he's all over the place

He is everywhere.

And nowhere.

 

[FWAAA]

Though, American will contract even more through the bankruptcy process. It will be hard for them to compete with UA and DL who have much larger scale.

Yet, somehow, a combined US-AA will be better able to do what AA alone cannot do, like stem the loss of revenue in NYC, CHI and LAX (where DL and UA/CO are harming AA in a big way)? US just gave away most of its LGA slot portfolio in exchange for a much smaller number of DCA slots.

What does US have that AA currently lacks? What's left of the NE Shuttle. By definition, that isn't designed to feed international flights.

US has a large presence at DCA. Doesn't do much to help AA counter UA/CO's large international operation at IAD.

US has very little presence at ORD or LAX. US brings no assistance to fighting DL's international domination at JFK. US doesn't strengthen AA's domination at MIA.

US has a large hub at CLT and owns most of the international flights at PHL. Which of those helps capture revenue away from DL? Which of those helps capture revenue away from UA/CO?

Yes, there are smaller airlines that do well like AS but they are much less focused on the hub and spoke model. Large airlines (like DL, UA, and to a lesser extent US) need the feed to fill their international flights (where the real money is).

AA (as it is now), is running five hubs but with half of the passengers of their rivals. UA has seven (and yes, I am not counting CLE and DEN is nothing to write home about) and yet they have twice the market share. It is going to happen IMHO.

LAX really isn't a "hub" for any airline - no airline runs banks of connecting domestic flights - LAX is an O&D airport and a huge international gateway. The big three (UA, DL and AA) all run lots of flights to feed the international schedules and lots of domestic O&D (like the transcons). Same with JFK. It's not a domesti connecting hub for AA or DL. Like LAX, it features lots of O&D and lots of international flights that need feed, but no banks of connecting flights like found in a typical inland hub. MIA? Just like LAX and JFK. Lots of international flights plus flights to feed those. ORD and DFW are true domestic connecting hubs plus plenty of Europe, Asia and S America flights.

Phoenix? O&D plus domestic connections and no US flights to Asia, S America or Europe. CLT? Domestic connections, Europe, very little S America and no Asia. PHL? Some domestic connections, Europe and no S America and no Asia.

I just don't see where the combined US-AA is going to be a more formidable competitor against UA or DL than the current AA. Doesn't mean that Parker won't try to take over AA, just that the resulting combo won't be any better able to compete against UA or DL than AA without the PHX, CLT or PHL hubs or the DCA slots or the NE Shuttle.

 

[WorldTraveler]

Yet, somehow, a combined US-AA will be better able to do what AA alone cannot do, like stem the loss of revenue in NYC, CHI and LAX (where DL and UA/CO are harming AA in a big way)? US just gave away most of its LGA slot portfolio in exchange for a much smaller number of DCA slots.

What does US have that AA currently lacks? What's left of the NE Shuttle. By definition, that isn't designed to feed international flights.

US has a large presence at DCA. Doesn't do much to help AA counter UA/CO's large international operation at IAD.

US has very little presence at ORD or LAX. US brings no assistance to fighting DL's international domination at JFK. US doesn't strengthen AA's domination at MIA.

US has a large hub at CLT and owns most of the international flights at PHL. Which of those helps capture revenue away from DL? Which of those helps capture revenue away from UA/CO?



LAX really isn't a "hub" for any airline - no airline runs banks of connecting domestic flights - LAX is an O&D airport and a huge international gateway. The big three (UA, DL and AA) all run lots of flights to feed the international schedules and lots of domestic O&D (like the transcons). Same with JFK. It's not a domesti connecting hub for AA or DL. Like LAX, it features lots of O&D and lots of international flights that need feed, but no banks of connecting flights like found in a typical inland hub. MIA? Just like LAX and JFK. Lots of international flights plus flights to feed those. ORD and DFW are true domestic connecting hubs plus plenty of Europe, Asia and S America flights.

Phoenix? O&D plus domestic connections and no US flights to Asia, S America or Europe. CLT? Domestic connections, Europe, very little S America and no Asia. PHL? Some domestic connections, Europe and no S America and no Asia.

I just don't see where the combined US-AA is going to be a more formidable competitor against UA or DL than the current AA. Doesn't mean that Parker won't try to take over AA, just that the resulting combo won't be any better able to compete against UA or DL than AA without the PHX, CLT or PHL hubs or the DCA slots or the NE Shuttle.

your points are valid and I and anyone w/ a brain can see that... but the "other side" will continue with their message because their future is completely dependent on NOT being found to be the airline "left out" or "left over".
As for the notion that US might end up in oneworld - as some have suggested - doing so only increases the likelihood that US could find even a niche role in the industry... AA and its partners have to consider that reality.

 

[LD3]

OMG he's all over the place 🙄

WTF!!! Does he really fly an airplane? How does he have so much time to type Click here?

 

[Keroseneuser]

your points are valid and I and anyone w/ a brain can see that... but the "other side" will continue with their message because their future is completely dependent on NOT being found to be the airline "left out" or "left over".
As for the notion that US might end up in oneworld - as some have suggested - doing so only increases the likelihood that US could find even a niche role in the industry... AA and its partners have to consider that reality.

The thing is. All that you spoke of really does not matter. The question to ask is.......Can the CEO's and shareholders make gobs of money if the two airlines merge? If the answer is yes, you will see the merger happen. It is about money in the pocket for those who make the decisions anymore. Nothing else.

 

[nycbusdriver]

OMG he's all over the place 🙄

He probably bids trips with maximum A321 time...for the inflight WiFi.

 

[NYCDelta]

The thing is. All that you spoke of really does not matter. The question to ask is.......Can the CEO's and shareholders make gobs of money if the two airlines merge? If the answer is yes, you will see the merger happen. It is about money in the pocket for those who make the decisions anymore. Nothing else.

You are absolutely correct. Although I too do not think this merger is in the best interests for either airline, and I don't believe they complement each other well, if they do merge it will be to make a very few people very wealthy. Welcome to America.