Originally Posted by
BritInNJ
I'd like to throw in my few cents.
If you look at the fleets of UA and AA they are a poor match for CO. Unless you have the time, man power, market to start disposing of hundreds of aircraft.
CO have followed a policey of Boeing aircraft, very limited variations. When the 737-300 & 500 s are finally put down there will be even less variation in the fleet.
What in the heck was the point of that for all these years only to throw that out the window.
Well, AA has 772s, 763s and 752s available for longhaul duty (where the $$$ are). Sure, the engines might not be the same as CO's models, but the fleet sizes are large enough to create economies of scale. For domestic, CO/AA would likely ditch the AB6s, perhaps the same for the AA 762s, definitely keep the 738s, and try to figure out how to phase out the Mad-Dog fleet ASAP, without destroying too much domestic capacity.
A good solution to the Mad-Dog issue would be a reworked pilot contract by the combined entity allowing regionals to use E90/70 & CR9 equipment in lieu of operating mainline equipment as small as MD-80s. What's used as bait to gain such concessions are the prospects of increased international flying, and more widebodies post-merger (bigger paychecks as you gain seniority, and better prospects of getting those bigger paychecks).
The inefficiencies created in the short term by disparate fleets would be more than overcome in the long-term by greater clout/pricing power deriving from the merger and increased market share, and more resources for expanding internationally. AF/KL have shown that a streamlined fleet are not necessarily essential to running a profitable airline. Being huge creates its own efficiencies (as oxymoronic as that sounds)
In sum, kudos to CO for doing all it could over the past decade to curb costs and place itself in a position to be in the driver's seat for the next round of industry consolidation. The Elephant in the room is now DL/NW. If their merger goes through, then everyone else on the playing field is at a serious disadvantage. Measured organic growth, as CO has pursued for the past decade, will not be sufficient to catch up and play on a level playing field with the DLNW behemoth. It would be like a never ending Yankees/Devil Rays series, with CO playing the part of the hapless D-Rays.
If UA didn't exist, I would be gung-ho for CO/AA. However, UA does exist, and is well-nigh crippled with all sorts of issues that place CO in a position to dictate terms in the event of a merger. Negotiating from a position of strength in such matters is always a good thing. I don't see CO having that same level of clout in an AA/CO tie-up. In sum, the Viking raids have already begun, and it's high time the longships started landing along Lakeshore Drive...