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AA - US Merger Agreement / Announcement / DOJ Action Discussion (consolidated)

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AA - US Merger Agreement / Announcement / DOJ Action Discussion (consolidated)

 
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Old Nov 14, 2013, 11:24 am
  #4201  
 
Join Date: Jan 2009
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Originally Posted by fastflyer
I think that the combined company will look at both models, but will favor 3 elite tiers. Because the One World partners use three tiers (ruby, sapphire, emerald) with well-defined benefits, it would be at a minimum confusing to adopt a fourth tier.

The merged AAdvantage program could include the US "high platinum" tier in One World emerald status, but I think the better solution (certainly easier) is to lump all of the 50k-100k flyers in one platinum/ sapphire tier with the richer AA 100% RDM bonus.
- This would make the most sense. AA PLT will still be receiving 100% bonus while US 50K and 75K will be bumped to 100%. I am just curious regarding the size of the DM program when compared with AAdvantage. I assume that AAdvantage is much bigger. Then it would make no sense (at least to me) to change the largest FF program during and immediately after the merger. I think painting AA planes in grey was already rather upsetting to at least some of us....
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Old Nov 14, 2013, 11:32 am
  #4202  
 
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This shouldn't be a surprise, but Bloomberg just quoted the DOJ saying that United/Delta are very unlikely to get any of AMR's divested slots.... because they are looking out for the consumer, right?!
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Old Nov 14, 2013, 12:34 pm
  #4203  
 
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Originally Posted by dcAA
Lounge usage is really the only way OW Emerald is significantly different from *Gold. Unless the the fee AA has to other OW members is very high (vs. the business class lounge access), I think OW emerald is a way to distinguish 75k flyers from 50k flyers without costing much in terms of benefits.
Even then, the difference is less in reality than in practice -- though *G doesn't officially have the "first class lounge" benefits of OW Emerald, in practice *G get access to lounges like LH's Senator lounges that often blur that difference. Additional baggage is also a benefit of *G, and not of OW Sapphire.

More importantly, *G is typically offered at the 50k level, not 75k. I think AA'd be putting themselves at a competitive disadvantage by offering fewer benefits to 75k flyers than UA offers at 50k.

Last edited by dtremit; Nov 14, 2013 at 12:49 pm
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Old Nov 14, 2013, 12:52 pm
  #4204  
 
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Originally Posted by MarkedMan
It's kind of exciting seeing what may come up
Exciting in the same was as waiting to see if the firing squad can hit you?
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Old Nov 14, 2013, 12:55 pm
  #4205  
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Originally Posted by iahphx
United says they have 8 hubs.
UA has 10 total - 9 in the US (including GUM) and 1 at NRT.

DL has 10 as well - 7 in the US and 3 internationally (CDG, AMS, and NRT are listed as hubs)

Last edited by miamigrad; Nov 15, 2013 at 8:09 am Reason: fixed quotation
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Old Nov 14, 2013, 12:57 pm
  #4206  
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Originally Posted by Superguy
Originally Posted by iahphx
United says they have 8 hubs.
UA has 10 total - 9 in the US (including GUM) and 1 at NRT.

DL has 10 as well - 7 in the US and 3 internationally (CDG, AMS, and NRT are listed as hubs)
The difference is that UA has 5th freedom exNRT while DL doesn't have this in AMS/CDG.

Last edited by miamigrad; Nov 15, 2013 at 8:09 am Reason: fixed quotation
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Old Nov 14, 2013, 1:03 pm
  #4207  
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Originally Posted by kingarthur
This shouldn't be a surprise, but Bloomberg just quoted the DOJ saying that United/Delta are very unlikely to get any of AMR's divested slots.... because they are looking out for the consumer, right?!
What the DOJ says and what the DOJ does are two different things.
So far, their actions seem to indicate that they love bending over for the airlines.
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Old Nov 14, 2013, 1:13 pm
  #4208  
 
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AA - US Merger Agreement / Announcement / DOJ Action Discussion (consolidated)

I see no concrete reason to think 75k eqx ("elite qualifying whatevers") will get top status. If anything, I'm thinking EXP will eventually move to 125k and perhaps with fewer SWUs - which I consider THE primary benefit of EXP.

Giving 75k-level flyers top level perks would be a disaster - it is tough enough to get a SWU upgrade to clear as it is, lounges are crowded enough as it is, etc... without further increasing the ranks of top status.
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Old Nov 14, 2013, 1:23 pm
  #4209  
 
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Originally Posted by sombrachinesca
I see no concrete reason to think 75k eqx ("elite qualifying whatevers") will get top status. If anything, I'm thinking EXP will eventually move to 125k and perhaps with fewer SWUs - which I consider THE primary benefit of EXP.

Giving 75k-level flyers top level perks would be a disaster - it is tough enough to get a SWU upgrade to clear as it is, lounges are crowded enough as it is, etc... without further increasing the ranks of top status.
UDU is also quite important, AA currently gives 1 SWU as an elite reward at 75k (vs DL's 4 weaker SWUs), I agree it would be odd to give Emerald benefits for anything less than 100k.
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Old Nov 14, 2013, 2:06 pm
  #4210  
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Originally Posted by GaryD
Just for the record, JL uses essentially five elite tiers: Crystal (ow ruby), Sapphire (ow sapphire), JAL Global Club (ow sapphire), JAL Global Club Premier (ow emerald), and Diamond (ow emerald). And yes, it is confusing.
As an additional Comparison, Qantas has 4 Elite levels - Silver (Ruby), Gold (Sapphire), Platinum (Emerald) & "Platinum One" (Emerald). The last level requires over 2 times the status earn than Platinum.

Originally Posted by dtremit
Even then, the difference is less in reality than in practice -- though *G doesn't officially have the "first class lounge" benefits of OW Emerald, in practice *G get access to lounges like LH's Senator lounges that often blur that difference. Additional baggage is also a benefit of *G, and not of OW Sapphire.

More importantly, *G is typically offered at the 50k level, not 75k. I think AA'd be putting themselves at a competitive disadvantage by offering fewer benefits to 75k flyers than UA offers at 50k.
I don't see getting Emerald at 100k being a competitive disadvantage given that, in *O, basic lounge access is available at the Sapphire level. That's no different really than *A.

Emerald also get additional baggage across the Alliance.
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Old Nov 14, 2013, 2:21 pm
  #4211  
 
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Originally Posted by hillrider
As far as CLT goes, only 25% of HPdbaUS traffic is local, and don't forget that AA's similarly located RDU hub is long gone as a hub, even though there still is an AA LHR flight out of there (for corporate contracts reasons).
I "retired" from that corporation and a few years ago I was chatting with a visiting AA marketing person about the LHR flight. I was told that the RDU-LHR run was the single most profitable route in AA's entire network that year as it had been for many years prior. It will be very interesting to see if that flight is still in place in three years as we migrate to USdbaAA. Personally I hope so...

Last edited by RDUpax; Nov 14, 2013 at 2:23 pm Reason: The usual reason: Grammar
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Old Nov 14, 2013, 2:33 pm
  #4212  
 
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Originally Posted by RDUpax
I "retired" from that corporation and a few years ago I was chatting with a visiting AA marketing person about the LHR flight. I was told that the RDU-LHR run was the single most profitable route in AA's entire network that year as it had been for many years prior. It will be very interesting to see if that flight is still in place in three years as we migrate to USdbaAA. Personally I hope so...
As BA's route structure can attest to, there is a lot of demand for Random US City - LHR/Connection. With AA/BA's ATI, I think the only question is whether the flight is an AA flight or a BA flight.
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Old Nov 14, 2013, 3:58 pm
  #4213  
 
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Originally Posted by Superguy
Originally Posted by iahphx
United says they have 8 hubs.
UA has 10 total - 9 in the US (including GUM) and 1 at NRT.

DL has 10 as well - 7 in the US and 3 internationally (CDG, AMS, and NRT are listed as hubs)

Really depends on how you define "hub".

Is it only a hub when UA says it is?

Is it a hub if there is a pilot or flight attendant base at that airport?

Is it a hub if there are spoke operations from an airport?

It is about as clear as mud.

Last edited by miamigrad; Nov 15, 2013 at 8:10 am Reason: fixed quotation
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Old Nov 14, 2013, 5:05 pm
  #4214  
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Originally Posted by Xero
Profitable is not always enough. Sometimes you shift because of the potential for the resources to be more profitable elsewhere.

Europe has alternatives like trains and higher speed limits.
Originally Posted by Microwave
In addition, many of our centres of finance, culture, sport and business are substantially closer than North America's, especially when looking at the larger economies and more densely populated countries.
Europe also has a bigger population and a bigger GDP of the US.

The result is that Europe has 25.3% of global RPK/RPMs, to North America's (Canada included) 26.5%. In other words, the US market (which probably accounts for 90% of N. America RPK/RPMs) is the exact same size. Source: https://www.iata.org/whatwedo/Docume...Note_Dec12.pdf

Originally Posted by Microwave
Furthermore, low cost carriers are huge in Europe: Ryanair carried more passengers last year than any other European carrier, and they operate a much more point-to-point system rather than hub-and-spoke.
Point-to-point carriers are huge in the US too: the largest domestic airline by traffic is WN, wich, alongside B6, VX, NK, and others is almost exclusively point-to-point (and maybe low cost).
Originally Posted by Always Flyin
Originally Posted by Superguy
United says they have 8 hubs.
Really depends on how you define "hub".

Is it only a hub when UA says it is?

Is it a hub if there is a pilot or flight attendant base at that airport?

Is it a hub if there are spoke operations from an airport?

It is about as clear as mud.
Very true. Excluding offshore GUM and CLE (it's mostly United Express, not United), COdbaUA does run 6 legit hubs on the Continent. That's two less than HPdbaAA inherits.
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Old Nov 14, 2013, 5:08 pm
  #4215  
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Originally Posted by Fanjet
But we were told that there's no way the DoJ would cave! Particularly because of the political pressure. That, and the TX AG pulling out of the suit. We were told this was going to make them more steadfast. What went wrong???
Indeed; you called the moral corruption correctly.

Really sad that not even America defends the free market economy anymore.
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