USAirways Merger Rumors Resurfacing...
#91
Join Date: Mar 2006
Location: Hotlanta.
Programs: I've gone underground!
Posts: 4,601
No major went after frontier for two reasons... UA and WN. DEN can't sustain 2 large airlines and no one really wants to compete with UA. WN is coming in now and this is really hampering anyone's ability to cherrypick the good markets away from UA.
As said earlier, there are only a couple places that can support multiple airlines hubbing. ATL, ORD, SFO/OAK, IAD/DCA/BWI and NYC. Outside of DFW, offhand I can't think of a major US city that also has a lot of corporate presence that could support a second airline's hub.
As said earlier, there are only a couple places that can support multiple airlines hubbing. ATL, ORD, SFO/OAK, IAD/DCA/BWI and NYC. Outside of DFW, offhand I can't think of a major US city that also has a lot of corporate presence that could support a second airline's hub.
#92
Join Date: Mar 2006
Location: Hotlanta.
Programs: I've gone underground!
Posts: 4,601
WN does have hubs... it's that they've been real good at not calling them hubs! But if any other airline ran: BWI, MDW, or LAS, they'd call them hubs. And any other airline would call OAK, PHX, LUV, TPA, MCO, and MCI focus cities. They've just been real discreet about it.
#93
Join Date: Jun 2000
Location: RDU
Programs: AA LTP, Bonvoy Titanium; AA CK before I retired
Posts: 1,597
The AA RDU hub was a start-from-scratch operation, as was SJC and BNA. Not long after opening RDU, AA did acquire Air Virginia (a commuter operator) and fold it into American Eagle, but that was a very minor chapter in the RDU story. Eventually AA unloaded RDU onto Midway #2, which was arm's length from AA. Midway #2 later failed on its own, restarted as Midway #3 with no ties to AA at all, then died for good. AA then covered some of the RDU hub routes with American Eagle, and that remains true today.
#94
Join Date: Jun 2000
Location: RDU
Programs: AA LTP, Bonvoy Titanium; AA CK before I retired
Posts: 1,597
The PI hub in CLT was patterned after DL/EA at ATL... many more gates than AA at RDU, more rushes, and a much broader set of destinations. O/D traffic at CLT isn't significantly higher than RDU; the difference is that PI built a heck of a customer base over a wide territory. For the most part, both ex-AL and ex-AW management at US has had the sense to leave well enough alone at CLT.
#95
Suspended
Join Date: Dec 2005
Posts: 9,916
The AA RDU hub was a start-from-scratch operation, as was SJC and BNA. Not long after opening RDU, AA did acquire Air Virginia (a commuter operator) and fold it into American Eagle, but that was a very minor chapter in the RDU story. Eventually AA unloaded RDU onto Midway #2, which was arm's length from AA. Midway #2 later failed on its own, restarted as Midway #3 with no ties to AA at all, then died for good. AA then covered some of the RDU hub routes with American Eagle, and that remains true today.
#96
Join Date: Apr 2008
Location: Austin, TX
Programs: AA GLD .25MM, CO, UA, US, DL, HH, SPG (all cardboard)
Posts: 1,951
So would we be looking at an AA hub at CLT and a flight to LHR from RDU 160 miles away? Or would we start seeing CLT-RDU service as positioning flights...
#97
Join Date: Aug 2009
Location: BNA and TPA
Programs: AA-EXP, UA, WN, DL- zilch by choice, IHG-Diamond, Marriott-Gold, Hilton Gold,
Posts: 566
I doubt it. By the mid-1990s it was clear that WN was moving into the east -- and especially Florida -- in a very big way. AA's RDU hub was designed specifically to move people between the northeast and Florida. AA didn't have the aircraft to increase economic efficiency by doubling the number of northbound and southbound banks at RDU; and even if they did, WN would have blown AA away. Game over.
The PI hub in CLT was patterned after DL/EA at ATL... many more gates than AA at RDU, more rushes, and a much broader set of destinations. O/D traffic at CLT isn't significantly higher than RDU; the difference is that PI built a heck of a customer base over a wide territory. For the most part, both ex-AL and ex-AW management at US has had the sense to leave well enough alone at CLT.
The PI hub in CLT was patterned after DL/EA at ATL... many more gates than AA at RDU, more rushes, and a much broader set of destinations. O/D traffic at CLT isn't significantly higher than RDU; the difference is that PI built a heck of a customer base over a wide territory. For the most part, both ex-AL and ex-AW management at US has had the sense to leave well enough alone at CLT.
#98
Join Date: Aug 2009
Location: BNA and TPA
Programs: AA-EXP, UA, WN, DL- zilch by choice, IHG-Diamond, Marriott-Gold, Hilton Gold,
Posts: 566
Doesn't the Research Triangle, or its corporate tentants, make it worth AA's while to keep the RDU-LHR flight? Without that "support", given the size of the metro area (with no connecting feed) and with sevice already out of CLT to LON, there would not be enough demand for daily 777 flights from RDU-LHR.
#99
Join Date: Aug 2003
Location: Washington, DC
Programs: AA GLD (1MM), DL GLD, Marriott Plat, RCL D+, X Elite
Posts: 3,229
My opinion, and nothing but my opinion. AA is not looking to merge with US. AA might be interested in plucking some US assets out of bankruptcy if US wound up there. AA managers have their hands full managing union expectations and trying to survive the collapse in premium revenue travel. I don't see how a merger with US helps them accomplish any of that.
I do wonder if there could be some interest in having US move to Oneworld. I'm kinda thinking out loud on that one. I don't know if that's desirable or even possible at this point. I can't help but think that US might be exploring its opportunities now that CO has moved to Star and is obviously the favored child as opposed to US.
All that said, the thought of a Charlotte hub for AA brings joy to my heart. Whether or not that would be profitable for AA is for people smarter than me to figure out.
I do wonder if there could be some interest in having US move to Oneworld. I'm kinda thinking out loud on that one. I don't know if that's desirable or even possible at this point. I can't help but think that US might be exploring its opportunities now that CO has moved to Star and is obviously the favored child as opposed to US.
All that said, the thought of a Charlotte hub for AA brings joy to my heart. Whether or not that would be profitable for AA is for people smarter than me to figure out.
#100
Join Date: Apr 2008
Location: Austin, TX
Programs: AA GLD .25MM, CO, UA, US, DL, HH, SPG (all cardboard)
Posts: 1,951
Doesn't the Research Triangle, or its corporate tentants, make it worth AA's while to keep the RDU-LHR flight? Without that "support", given the size of the metro area (with no connecting feed) and with sevice already out of CLT to LON, there would not be enough demand for daily 777 flights from RDU-LHR.
#101
FlyerTalk Evangelist
Join Date: Jul 2001
Location: Phoenix, AZ
Programs: HH Gold, AA Gold
Posts: 10,458
Having worked for AA at the time, RDU and BNA were all started "from scratch" hubs. SJC emerged from the merger with AirCal. These hubs were originally designed to be smaller hubs at a time when that seemed to make more economic sense (than today). From an inflation-adjusted standpoint, fares were much higher in the late-80's than they are today.
SJC was designed primarily to handle traffic up and down the West Coast, after the merger with AirCal. Unfortunately, this was poorly thought out from the beginning. If AA had bothered to carefully examine the West Coast market, they would realize that passengers wanted point-to-point service (either nonstop or 1-stop). Also, SEA and PDX are the only major cities "north" of SJC -- so a hub really didn't make a lot of sense.
RDU was designed to carry traffic from the Northeast to the Southeast with 3 connecting banks in each direction. This may have been another bad call, since passengers tend to prefer direct flights from the NE to Florida.
BNA was designed to carry traffic from the Southwest (south and west of BNA) to the Northeast (north and east of BNA) as well as traffic from the Northwest (north and west of BNA) to the Southeast (south and east of BNA). BNA probably had the most potential, but many of these connections could also be handled through DFW or ORD. Also, the runway expansion at DFW allowed AA to greatly expand at DFW, where there were operational efficiencies.
SJC was designed primarily to handle traffic up and down the West Coast, after the merger with AirCal. Unfortunately, this was poorly thought out from the beginning. If AA had bothered to carefully examine the West Coast market, they would realize that passengers wanted point-to-point service (either nonstop or 1-stop). Also, SEA and PDX are the only major cities "north" of SJC -- so a hub really didn't make a lot of sense.
RDU was designed to carry traffic from the Northeast to the Southeast with 3 connecting banks in each direction. This may have been another bad call, since passengers tend to prefer direct flights from the NE to Florida.
BNA was designed to carry traffic from the Southwest (south and west of BNA) to the Northeast (north and east of BNA) as well as traffic from the Northwest (north and west of BNA) to the Southeast (south and east of BNA). BNA probably had the most potential, but many of these connections could also be handled through DFW or ORD. Also, the runway expansion at DFW allowed AA to greatly expand at DFW, where there were operational efficiencies.
#102
Suspended
Join Date: Dec 2005
Posts: 9,916
BNA was designed to carry traffic from the Southwest (south and west of BNA) to the Northeast (north and east of BNA) as well as traffic from the Northwest (north and west of BNA) to the Southeast (south and east of BNA). BNA probably had the most potential, but many of these connections could also be handled through DFW or ORD. Also, the runway expansion at DFW allowed AA to greatly expand at DFW, where there were operational efficiencies.
Also, AA under Crandall was always know for its rigorous analysis of various options. Was there much division as to whether these hub launches were good ideas? It certainly sounds like there were some strong reasons not to have launched them. Not sure if you were in a position to know, but again, would be interesting to hear the perspective from somebody who was there.
#103
Join Date: Apr 2004
Posts: 5,630
Can u name a few assets that U.S. has that anyone would be interested in getting from Bankrupcy?
It is not planes, people, mechanics, repair contracts, executives, managers, airport space, gates, FF program.
Maybe a few DCA or LGA slots.
Anything else?
Last edited by zman; Nov 21, 2009 at 3:31 pm
#104
Join Date: Jun 2004
Location: Anchorage, AK
Programs: Lifetime AS 1MM & MVPG, AS MVPG100K, AA, DL, HH-G
Posts: 8,251
#105
Join Date: Nov 2006
Programs: AA EXP, 1 MM, AC, HH Diamond, Marriott Silver, Hertz 5*
Posts: 4,010
I can't think of anything. IMO, the only one fueling rumor speculation is Doug Parker--and it's wishful thinking on his part.