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Originally Posted by AAClubGeek
Originally Posted by GadgetFreak
(Post 20235801)
I suspect you're right about about the DoJ. But I think US is looking to expand the buttom feeding. They have cut back before and I would expect them to do so again to focus on non-competitive hubs and use the AA network to feed into that.
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Originally Posted by ckendall
(Post 20236015)
DOJ and not FTC investigate airline mergers. Delta did not have to do anything, UA had to give some stuff at EWR to WN,
Delta NW http://www.justice.gov/atr/public/pr...008/238849.htm UA CO http://www.justice.gov/opa/pr/2010/A...10-at-974.html |
Originally Posted by Stripy
(Post 20234695)
(I'm aware that Malaysian will offer a SIN service via KUL but I was hoping for a direct flight).
As I posted before, I don't think anybody thinks that AA can sit back and rest on its current Asian presence - it must expand to the far east. But that will likely be more flights to ICN, Tokyo, mainland China, perhaps TPE and probably HKG sometime in the future. And for AA-US-Oneworld passengers headed to the very distant cities of KUL, BKK, SIN, etc, connections are in their future. |
Originally Posted by csanati
(Post 20233624)
Hey guys - who do you think the big winners and losers are for the merger???
ex - winner: 1) Doug Parker - finally wins a deal; Now CEO of combined airline, etc - loser: 2) PHL - being so close to JFK it will undoubtedly see a major reduction in capacity Biggest winner would clearly be the labor unions. Biggest loser would be the passengers, particularly frequent flyers. |
to the person who thought building back a hub in PIT was in the cards, you have to realize if the new merged airline needed additional capacity somewhere it has many airports to choose from that would LOVE to have a hub come back. Columbus, Memphis, Cincinnati as well as Pittsburgh. Bottom line is it's not going to happen. The cost per enplanement was too high in PIT and there are airports that have a lower cost to the airline if a new hub was ever needed. Dream on.
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Originally Posted by GadgetFreak
(Post 20236203)
Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 6_1 like Mac OS X) AppleWebKit/536.26 (KHTML, like Gecko) Version/6.0 Mobile/10B143 Safari/8536.25)
If so why didn't he run the old airline that way? This sounds a bit like " I'm sure after we're married they will be a totally different person." |
I know that most of the posts on this board are against the merger, but if done right this merger can work out well for passengers and frequent flyers.
1. Prices - For the most part, this should stay flat. AA/US will still be competing against Delta and United for almost all major routes, which should keep prices in check. 2. Flight map - Regardless of the merger, AA was going to start adding routes. A merger with US should add new direct flights, and higher flight frequency (this may not last, but the early stages shouldn't see too many flight cuts). AA will probably focus on more profitable international routes and leverage the oneworld alliance to fill those planes. 3. Frequent flyer program - This gets tricky, as US Air's Dividend Miles as a stand alone ff program is subpar (IMHO) to AAdvantage. The AAdvantage program is a gold mine for AA, and the profit from the sale of AA miles to businesses is something that needs to remain after this merger. There are so many different ways to consolidate the programs that I can't even begin to speculate about the ramifications. History indicates that elites may be in for some pain when the programs are finally merged. |
Originally Posted by sts603
(Post 20236442)
Because US's route structure, hubs, customer base, and revenue stream called for something different - a point that Doug Parker has clearly articulated.
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Originally Posted by sts603
(Post 20236442)
Because US's route structure, hubs, customer base, and revenue stream called for something different - a point that Doug Parker has clearly articulated.
If anything, Doug will reduce the low yield US routes (and accompanying bottom feeding) and strengthen the high yield routes that AA has. AA has been doing very well fighting the 2 big guys for high yield passengers despite being at a competitive disadvantage because of weakness on the coasts. With the stronger combined network AA has to potential to do very well stealing a lot of high yield passengers from UA and DL, but not if they have a crap product. |
Originally Posted by Carolinian
(Post 20236294)
Biggest winner would clearly be the labor unions.
Biggest loser would be the passengers, particularly frequent flyers. |
Originally Posted by Carolinian
(Post 20236246)
The European Commission has just rejected for the second time RyanAir's proposed takeover of Aer Lingus. Hopefully they will be pro-consumer enough to also reject the US takeover of AA.
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Originally Posted by uxb
(Post 20236693)
. I can see a possible loss of slots at LHR, MAD, BCN and maybe CDG. That's about it.
US operates a grand total of one daily flight to Heathrow. It will have two daily starting next month, but the second flight uses an AA/BA slot. |
Originally Posted by Carolinian
(Post 20236246)
The European Commission has just rejected for the second time RyanAir's proposed takeover of Aer Lingus. Hopefully they will be pro-consumer enough to also reject the US takeover of AA.
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Originally Posted by ckendall
(Post 20236015)
DOJ and not FTC investigate airline mergers. Delta did not have to do anything, UA had to give some stuff at EWR to WN,
Delta NW http://www.justice.gov/atr/public/pr...008/238849.htm UA CO http://www.justice.gov/opa/pr/2010/A...10-at-974.html If these two documents are any indicator, this merger should easily get through the DoJ... At the time of their merger: DL/NW "Delta, based in Atlanta, is the third largest airline in the United States. In 2007, it collected $19.1 billion in revenue for carrying 73 million passengers more than 126 billion miles. Delta and its domestic regional affiliates offer service to more than 300 destinations in 58 countries. Northwest, based in Minneapolis, is the fifth largest airline in the United States. Last year, it carried approximately 53 million passengers 72 billion miles for total revenues of $12.5 billion. Northwest serves 239 destinations in 21 countries in North America, Asia and Europe." UA/CO "United Airlines, based in Chicago, is the third largest carrier in the United States by revenue. In 2009, it collected $16.3 billion in revenue carrying approximately 80 million passengers. United and its regional affiliates offer service to more than 230 destinations in the United States and 30 other countries throughout the world. Continental Airlines, based in Houston, is the fourth largest carrier in the United States by revenue. In 2009, it collected $12.6 billion in revenue carrying approximately 67 million passengers. Continental and its regional affiliates offer service to 265 destinations in the United States and over 50 other countries throughout the world. Southwest Airlines, based in Dallas, is the sixth largest carrier in the United States by revenue. In 2009, it collected $10.4 billion in revenue carrying approximately 86 million passengers. Southwest serves 69 cities in the United States." (Southwest included because they are the company that UACO transferred 'takeoff and landing rights' aka slots to.) "The transfer of slots and other assets at Newark to Southwest, a low cost carrier that currently has only limited service in the New York metropolitan area and no Newark service, resolves the department’s principal competition concerns and will likely significantly benefit consumers on overlap routes as well as on many other routes. " |
The unions? That could be interesting, given how Parker has not been able to resolve Pilot and FA issues with the "East-West" divides in seven years, and now adding AA (and some TW) employees is going to fix it? So far, I've heard words and offers, but if it's not engraved in stone (or board endorsed contractual agreements) I am not a believer they're actually automatic winners in a US - AA reverse takeover.
Originally Posted by Carolinian
(Post 20236294)
Biggest winner would clearly be the labor unions.
Biggest loser would be the passengers, particularly frequent flyers. |
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