What's Next for US?

[gaucho99]

All of those AA could start from anywhere at at any time with out the bother of buying another carrier and all its debt.

They could start all those new cities but would have to purchase more aircraft or drop other routes to free up available equipment. They would then be saturating the market with more seats, lowering yields and likely find themselves with more unprofitable flying. It makes more sense to merge with a carrier already flying the routes....that way, you don't buy more planes, you get the routes without adding capacity and yields do not plunge. I would be surprised if AA-US don't at least start discussions of a merger soon.

 

[JFK Fleet Service]

As employees we'll know about it when they announce it,as is so often the case.

No one heard a peep about TWA until the Washington Post broke the story on a Sunday night.

 

[floatingon9]

They can and they are. AA is not building a hub operation there, they will continue to offer service to high yeild markets from there.


All of those AA could start from anywhere at at any time with out the bother of buying another carrier and all its debt.

Interesting how AA sat on the side lanes through all those mergers. If that were true you would have seen AA trying to find a more compatable partner rather than sit it out waiting to see who no one else wanted.

Mikey,

A good friend on mine works for the PA in NY. AA can't expand anymore at JFK. The only way they can is if they buy or merge with someone. No, AA can't start any of those routes from anyplace as you claim. Until AA gets their you know what together, they fade fast. Be glad you got out of here when you did. The you know what is about to hit the fan and its going to be ugly!

 

[AirbusA310]

I think it is going to be a matter of time before US leaves star... Just like CO left Skyteam after the DL/NW nerger was anouced US will leave after the CO/UA merger... than again if it was me I would leave asap just on the principle of it...having a fellow partner airline calling you the uggly girl is just not the right thing do do...even if it is the case .lol

 

[robbedagain]

I too believe its just a matter of time before US does leave Star. I also believe US will do just fine but downt he road they may be the ones either being the acquirer or the acquired. But time will tell.

 

[roabilly]

How's about taking care of the east/west issue and getting down to business with running a good airline!

Unfortunately, in today’s business environment... it’s not about running an Airline or any other Company for that matter... it’s about the quick deal... take the money and peel!

Fasten your seat belts...there’s weather ahead!

 

[Travelpro72]

Here is what this little amrchair CEO would do:

1. Merge with Jetblue
2. Give Star the finger
3. Join OneWorld and codeshare in JFK with AA and the others

To me Jetblue seems logical being the fleet types would match, some overlap could be cut while deploying the a/c elsewhere. I may be wrong here but to have a great "international" footprint shouldn't a carrier have a solid and large domestic feed? Ring a bell? 😉

 

[700UW]

A B6 merger would never float with the fed, too much concentration in LGA, JFK and BOS, would have to divest major portions.

 

[wings396]

Here is what this little amrchair CEO would do:

1. Merge with Jetblue
2. Give Star the finger
3. Join OneWorld and codeshare in JFK with AA and the others

To me Jetblue seems logical being the fleet types would match, some overlap could be cut while deploying the a/c elsewhere. I may be wrong here but to have a great "international" footprint shouldn't a carrier have a solid and large domestic feed? Ring a bell? 😉

While B6 is a good airline, I don't see it bringing anything to the table that US needs. A strictly domestic network with a primary focus in the NE, is basically what US already had at one point. We have nothing to feed at JFK, so why purchase an operation in order to feed AA's flts. Let AA buy B6 given that it will benefit them much more than US. The US system is lacking what UA or AA have with their Int'l systems. Other than a merger with one of those two, US may as well stand alone. At one point, I figured that NW would have also been a good fit for US, but that along with UA isn't going to take place. It's pretty much AA or nothng at this point.

 

[ebwgs]

A good buddy suggested this to me the other day and it sounded interesting. How about taking a stab at Hawaiian? They are starting to grow into Asia from HNL and are taking on new A330-200s.

http://www.hawaiianair.com/Aboutus/Pages/routemap.aspx

 

[back2CLT]

A B6 merger would never float with the fed, too much concentration in LGA, JFK and BOS, would have to divest major portions.

What? I'm pretty certain, they would be smaller at the combined LGA/JFK than DL, though it would probably be close. BOS would definitely be the largest as jetBlue is already the largest, but a decent portion of those routes are duplicate that could be eliminated.

Ideally, BOS becomes the international/Europe reliever airport to PHL and CLT routes are to South America, and routes that can be supported by local demand, and connecting traffic originating in the south.

BOS flights to CDG, Hearthrow, TLV, FCO, FRA, and Dublin all make sense if they stay in Star. The trouble at BOS is getting MassPORT to help get customs at C, given the futile efforts at getting them at A.

JFK could be code-share on any partner airlines and would not need US to fly international. JFK is obviously already profitable for jetBlue, US's move would be more to control the flow of passengers, than to expand internationally from there. (funneling them onto a code-share partners and getting 1 leg is better than UA or DL getting both legs.)

Again, even if they have to divest some routes, the opportunity to be #1 at BOS, PHL, DCA, CLT, and #3 in the NY and Florida-as-a-whole markets should be a compelling reason to do the deal. The only hole on the east coast is Atlanta. I think its very underestimated the power of that link-up.

Let's face it, they have a high-cost model, no matter what they call themselves, and if they can't get costs down further, there is no reason to fly western routes except for the high-yield routes and glamour routes. The PHX hub can no longer be profitable given the current corporate CASM.

 

[star power]

HA would be a good partner for the Pacific and like you said the want to build in Asia.

B6 also with their buses,just have to work thru the LGA and JFK problems with the DOT and FAA

F9 would work also, just have to work it thru BB at RAH.
and throught in NK.

with a US/HA/B6/F9/NK a joint operation ATI, US could become the fourth largest carrier alliance behind AA and US could build up international operations and WB aircraft and not have to merge with anyone and be a stand a lone carrier.

 

[Kittyhawk]

A good buddy suggested this to me the other day and it sounded interesting. How about taking a stab at Hawaiian? They are starting to grow into Asia from HNL and are taking on new A330-200s.

http://www.hawaiianair.com/Aboutus/Pages/routemap.aspx

My humble view. AA merger would be a supreme headache. US appears, at least for now, to have returned to profitablity. A half billion dollar loss over at AA would bring us right back down again. Maybe once they clean there own house, maybe then we can talk. In the mean time, if we must persue a merger, I think Hawaiian would give us the presence in the far East that we have been looking for, that AA does not have.

If the slot transaction happens with DL, that may open up NYC for us to persue a Merger with B6. They have a perfect fleet match with US already. And puts back in the strong BOS and NYC market that we have all but abbandoned.

As far as an Alliance partner, stick with Star. Yes, US did feel a sting from the CO/UA merger, but sticking with them will only strengthen our bottom line.

So my view is:

- Merge Hawiian
- Merge JetBlue
- Stay with Star
- Pursue and grow Asia, South America and More European.

That should put US right as rain.

 

[back2CLT]

The other advantage to B6 is their new/compatiable fleet with US. I don't know about engines, but at least the US pilots could slide into B6 planes. Given the elimination of many overlapping routes, US could retire many of their older planes, which is good for the passenger, and good for expenses.

Unfortunately they are going to have to buy more wide-bodies, but with improved earnings, I would think they could resume taking deliveries close to original schedule.

I also contend that LH would contribute cash to the deal and want to keep the new carrier in STAR, given the massive feed potential from high-yield east coast/business traveler cities.

 

[wings396]

Once again, US merging with any of these "rinky-dink" carriers isn't going to put them where they need/want to be. It's like K-Mart buying a chain of local 5 &10's to level their playing field with Walmart. All of the airlines mentioned are good, but they are all smaller domestic localized carriers. They would add something to the US network, but not what we need to be on the level of DL or the new UA. Other than B6 having Airbus equipment that US can buy anyway, they offer nothing to US at all. As I said before, AA is the only merger partner left for US if they want to combine and play ball with the other two "Big Boys" in town. Not saying that AA wants to do this, but they along with US are about the only two left that can merge if either wants to move up their market share.