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The UA Forum Thread has a rumor from Planebuzz that the merger will likely involve a holding company being set-up to administer the merging entities (Shades of AF/KL, not surprising), and that the CO brand will be used domestically, whilst the UA brand services international markets. No telling how reliable that site is (perhaps it's just A.nut lite).
Curious strategy, as to just cede the international branding to UA seems a bit odd. In Asia/Australia/S. America, it might make sense to do so, as I imagine UA has higher brand recognition in those areas. I doubt that's the case in places like Mexico and Central America. Every goatherder in Mexico has heard of CO, because a CO Express ERJ likely lands in his fields at least twice a day. Likewise for every backwater market in the UK, and secondary cities across Europe. |
Originally Posted by Pahdz
(Post 9290514)
I hope a CO/UA merger keeps Ch. 9 on all flights :)
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Originally Posted by Anglo Large Clawed Otter
(Post 9291485)
Likewise for every backwater market in the UK, and secondary cities across Europe.
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Originally Posted by supermasterphil
(Post 9293691)
Yeah, brand recognition the other way round: everybody screaming "stay away at all costs" ;)
While I think this is being a bit silly and that CO isn't an airline to be avoided (in J, Y on a 757 is most certainly to be avoided), I'm not sure where the claims that CO has a great brand in Europe come from, at least in my experience. Beyond those that avoid CO, there is an even bigger chunk of people that have never even heard of them. I think, however, that CO might do better in places like OSL or BRS, where they are the only TATL game in town. |
Originally Posted by Anglo Large Clawed Otter
(Post 9291485)
The UA Forum Thread has a rumor from Planebuzz that the merger will likely involve a holding company being set-up to administer the merging entities (Shades of AF/KL, not surprising), and that the CO brand will be used domestically, whilst the UA brand services international markets. No telling how reliable that site is (perhaps it's just A.nut lite).
Curious strategy, as to just cede the international branding to UA seems a bit odd. In Asia/Australia/S. America, it might make sense to do so, as I imagine UA has higher brand recognition in those areas. I doubt that's the case in places like Mexico and Central America. Every goatherder in Mexico has heard of CO, because a CO Express ERJ likely lands in his fields at least twice a day. Likewise for every backwater market in the UK, and secondary cities across Europe. i was thinking... United name, pasted on CO's current planes. CO logo's and brands, but with "united" replacing the "continental" on everything. Id hate to see the globe tail fin disapear. CO did such a great job in its last branding tranisition. after all these years, it still looks great. clean, cut and professional. |
Originally Posted by pbarnette
(Post 9293851)
While I think this is being a bit silly and that CO isn't an airline to be avoided (in J, Y on a 757 is most certainly to be avoided), I'm not sure where the claims that CO has a great brand in Europe come from, at least in my experience. Beyond those that avoid CO, there is an even bigger chunk of people that have never even heard of them. I think, however, that CO might do better in places like OSL or BRS, where they are the only TATL game in town.
I agree with you 100% - I too am amazed by the claims of the strength of the brand. I'm pretty sure if you stopped people in the street in England and asked them which airlines fly to New York you'd find Continental barely gets mentioned, in fact I suspect United would probably score better even though they no longer fly the route. BRS might be different though I lived there for 6 months, and it wasn't a subject everyone was talking about. |
Should UA elites fear a CO takeover?
Originally Posted by channa
(Post 9243490)
If CO Management remains in place, they will most likely standardize the products.
CO is an ops company, they like to run things the way they run things, with little to no deviation from their system. Meanwhile, while UA has its share of issues, they have managed to create a variety of products to cater to different travellers (e.g., E+, p.s., explus, 3-class service including some domestic, etc.). I'd be concerned that if CO Management were running the combined show, they would try to standardize UA in the name of "streamlining," and they would ultimately alienate what is a very loyal customer base. Further, the Elite culture are UA is far more established than it is at CO, meaning the UA Elites expect a bit more coddling than what CO tends to offer. It's all little things that add up (e.g., CO runs the standby list and slaps you in a seat; while UA will usually page Premier Exec and above by name to process them and make sure they're taken care of -- "Sir, I see you had Exit Row aisle before, I can do Exit Row, but it would be a window, or would you prefer an E+ aisle instead?" It may sound silly, but the UA Elites expect a level of attention to detail that I'm afraid CO does not offer. Any change in the Elite mentality, and they risk alienating the customer base because UA Elites will think the new airline doesn't care. Finally, looking at the hubs, CO has much more "powerhouse" hubs. Not that IAH is better than ORD or anything, but looking at where CO operates from, they carry a much larger percentage of the departures. ORD may be home base, but UA onlyhas 1 terminal out of what, 4-5? Sure, it's the biggest terminal, but they don't have even 50% of the departures. Whereas CO in IAH, they essentially own the place. Same with the other hubs -- UA doesn't "own" the airport the way CO does. So they have to be competitive and understand their customers are more of a flight risk (no pun intended :D ). But since CO's customers tend to be more "locked," CO can afford to get away with more than UA could (e.g., 50% EQM, not catering to differentiated markets, etc.), because CO knows full well that many of its customers do not have a choice. So when CO tosses an all-Y RJ on a route, its customers suck it up for the most part. UA's customers could move to AA, hence why they put in explus and maintain things like E+. I'm not sure CO Management understand this, and if they do, I'm not sure they have experience operating in a different competitive environment out of their hubs. If a CO takeover that means that as a 1K (ie, 100,000 elite qualifying miles per year) I can't count on some guaranteed domestic and international upgrades AND don't have access to E+ for domestic flights, I take my 6'2" frame, slightly bad back and purchase of C for international trips elsewhere. (My likely combination would be AA and its OW partners for international travel and B6 for domestic, with AA as a fallback for non-B6 routes, since its domestic upgrade possibilities seem better than CO's.) As we all know, our airline loyalties hinge on our individual travel patterns and preferences, so I'm not claiming to be the typical 1K or typical source of $30-40K per year for UA. But I feel fairly confident that if a CO takeover of UA results in the loss of confirmed (though not unlimited) upgrades and E+ domestically and/or the loss of confirmed (though not unlimited) upgrades for those 1Ks who use them internationally, it will hollow out a good part of the UA high revenue customer base. A good number of those customers will walk. Having said all this, I don't mean to knock CO. The fact that so many here are loyal to the airline, its personnel and its management says a lot. (And I could understand why some here might say, "Good, go elsewhere and leave the limited upgrade opportunities to us!) I'd welcome anyone explaining why UA elites shouldn't fear the loss of the perks I've mentioned and/or why the advantages of CO outweigh these. |
Originally Posted by Anglo Large Clawed Otter
(Post 9291485)
Every goatherder in Mexico has heard of CO, because a CO Express ERJ likely lands in his fields at least twice a day.
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Originally Posted by pbarnette
(Post 9293851)
I'm honestly sort of amazed at the lengths that many people I know in CPH will go to in an attempt to avoid CO. I know a fair share of folks who have had to do business trips to New Jersey, that have resorted to making a connection in either IAD or ARN if SK is sold out ex-EWR, rather than take CO. And they are flying J. And I never thought SK was anything special, myself.
While I think this is being a bit silly and that CO isn't an airline to be avoided (in J, Y on a 757 is most certainly to be avoided), I'm not sure where the claims that CO has a great brand in Europe come from, at least in my experience. Beyond those that avoid CO, there is an even bigger chunk of people that have never even heard of them. I think, however, that CO might do better in places like OSL or BRS, where they are the only TATL game in town. |
Originally Posted by Thunderroad
(Post 9296137)
The fact that so many here are loyal to the airline, its personnel and its management says a lot.
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Originally Posted by bernardd
(Post 9294198)
BRS might be different though I lived there for 6 months, and it wasn't a subject everyone was talking about.
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Originally Posted by Anglo Large Clawed Otter
(Post 9296213)
Well, arguing which sheep are "taken" does tend to monopolize discussion in those parts. ;)
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Just curious regarding all the UA folks threatening to leave a merged carrier en masse if it eradicates domestic E+...exactly which airline will you switch to that offers E+ domestically? B6 may work for a few business travelers, but it won't do much for them if they hope to travel to Asia, Europe, Australia, Oceania or S. America on mileage redemptions, or in premium cabins.
I can understand the dismay at losing E+ domestically. However, at that point, the combined carrier would simply have a domestic Y product virtually indistinguishable from all of its major competitors. |
Originally Posted by Anglo Large Clawed Otter
(Post 9296245)
Just curious regarding all the UA folks threatening to leave a merged carrier en masse if it eradicates domestic E+...exactly which airline will you switch to that offers E+ domestically? B6 may work for a few business travelers, but it won't do much for them if they hope to travel to Asia, Europe, Australia, Oceania or S. America on mileage redemptions, or in premium cabins.
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Originally Posted by rkkwan
(Post 9296293)
These folks would have abandoned UA long ago. They are currently staying ONLY because there's E+.
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