ZMAN777 said:
In the big scheme of things you're right. However the trick will be how AA acquires access to Asia. Over time (read YEARS!) they could gain access to China assumming a fairly even distribution of new route authority. However this will pale in comparison to the access other carriers (UAL/NWA) currently have and will continue to gain.
As I've noted on another board, I believe AA will be patiently waiting to see how NWA does with its restructuring. If/when they lower their cost structure and rid themselves of much debt, I'd expect AA to make some move to acquire them, rid themselves of much domestic overlap, and make full use of their access to Asia. How AA deals with the current NWA hubs at MSP and DTW will be a bit problematic given their #2 position at ORD. While they may cringe at the thought of leaving ORD to their arch-rival, another option would be to further attack UAL by surrounding ORD with other connecting options. But I digress.
Farfetched? Hardly. Certainly not what a lot at NWA would like to hear and probably a lot at AA given the track record with AA's acquisition of TWA. But look at the broader picture. If AA does not gain this access to Asia it'll be a long time before they could ever fill out their route plan, maybe never. In the meantime it's certainly possible that UAL could make a move to merge/acquire with the likes of DAL/CAL with the former option being a serious force to be reckoned with globally.
If you add up the current market share of a combined UAL/DAL it's strikingly similar to what the same combined market share a AA/NWA would be. A bigger threat would be for AA to do nothing and allow DAL/NWA to combine and then see UAL/CAL combine....effectively being left on the sideline without any significant access to Asia while the other two combined carriers leap-frog them in size and route structure. This is serious. You don't want to the one left without a chair when the music stops!!
I also don't think it's any cooincidence that AA is hording cash. Botom line is AA is well positioned to make moves in the industry that will make for far-reaching and long-lasting changes in the global airline industry.
Just my thoughts.
Cheers,
Z B)
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ZMAN777,
Because my ABSOLUTE airline fantasy/fantacy(SP?) is for AA to pick up NW, I can't comment without sounding biased .
BUT, the facts do speak for themselves, and EVERY scenario that you laid out makes GREAT sense.( I KNOW, I KNOW, I KNOW, all about the fleet/hub UN-commonality) !!!!
Crandall said over and over and over again, that the biggest mistake he EVER made was NOT grabbing Asia, off of Pan Am, AND if given the chance, "He'd" NOT make that mistake again. WELL, AA's got "little Crandall" in HDQ now.
(I won't BORE everyone with the story of "UNCLE BOBBY" hand selecting Arpey, right out of Business school.)
I think there is a LOT to do with AA "hoarding $$$$ Cash", NW (somewhat surprisingly) going into BK, and consolidation virtually "a done deal" (now) !
No Legacy's got any "scratch", except AA, so in a sense, nobody's buyin' NOBODY !!
Given the fact that there are only 5 true legacies, and we're NOT talking domestic here, in this game of musical chairs, the "numbers" say, 5 divided by 2, does NOT go "evenly", meaning SOMEONE is going to get left OUT.
(I'm certainly NOT talking US/HP here). With the ZILLION's of problems facing what's left of the legacy's today, to get "left out" is a "Death Sentence" !!
FORGET Europe, It's ALL ABOUT ASIA, especially CHINA. I CAN NOT stress that enough !!!!!!!! (Besides, AA's got the ol' friend BA, hangin' around in London.
If it is going to be AA/NW, and NW "respectfully" goes off into the sunset as the great carrier it WAS, then MSP becomes a non issue. The HUGE decision becomes ORD or DTW !! (MEM and IND are HISTORY)
IMHO, the "winner" becomes "ORD". A company HAS TO STICK with It's STRENGHT !!!. ORD is certainly not as attractive as DTW midfield, but ORD could handle the Excess, (minus the OVERLAP), AND if there was "EXcessive overlap, I'd "crank up" ST LOUIS !!!!
A/C
Definitely keep the: 747/400's (I don't think there are a whole lot of them)
: 757/ALL
Initially, you'd have to keep ALL the A-320's(no 319's, dc-9's or dc-10's), mabey boeing would do a swap down the road with the 320's for many more 737/800's.
And finally the A330's. !! Think about how Loooong we've been trying to get rid of the A-300's, YET they "keep on pushin', AND "HAULING.
I'm sure we could find a usefull niche for the A330 !!!( and I don't believe there are a whole lot of that fine airplane) !!
ZMAN700, It could work, AND your right, AA would/could NEVER have a second bite at the "ASIAN APPLE", like this one !!!
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NH/BB's