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US/AA merger- MASTER DISCUSSION THREAD/incl 'when will US leave STAR'

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Old Nov 12, 2013, 2:24 pm
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Note:

There is an existing thread in the AA forum that may be useful to US and AA Flyertalkers:
US-AA Merger: Just the Facts thread

As facts become posted, that should be the place to look.

Merger discussion, speculation, and other questions can be directed here, or the similar thread in the AA forum:
MERGER: US and AA 9 Dec 2013 and implications for AA flyers (new)

AA - US Merger Agreement / Announcement / DOJ Action Discussion (consolidated, and now closed to new posts)
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US/AA merger- MASTER DISCUSSION THREAD/incl 'when will US leave STAR'

 
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Old Nov 14, 2013, 9:21 am
  #2161  
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Originally Posted by GTITAN
Possibly, but the new American would need to use MIA differently. MIA is not used for Southeastern connections by the current American. Would have to fundamentally change how AA does business. Mr. Parker might do that, but doubtful. YMMV

Safe Travels
It's not a binary either/or proposition. Every airline merger has resulted in some changes to the various airline hubs. CLT will not be shut down to the level of STL, RDU, PIT, DAY or MEM. But let's face reality: For example, since many of the passengers on the US flights from Brazil to CLT are actually connecting to MCO, those flights are a very inefficient connection. Not unlike BOS to RIC which would be a terribly inefficient connection at MIA.

If North Carolina was the optimum gateway to Latin America, then I suspect that AA would have kept the RDU hub instead of building the MIA hub to Latin America. CLT got as big as it is in part because those are the cards that US was dealt and did not discard.

CLT can remain a fairly big hub even if it does not retain its current slate of international flights. CLT excels at domestic connections up and down the east coast, and that role isn't diminished if some of the international flights are moved to gateways where higher average fares can be obtained.

Another looming issue is that US still flies 40 aging Dash 8s with no replacements in sight. More than half of the US regional fleet (including wholly-owned and outsourced) are 50 seat RJs or Dash 8s. On October 1, CLT had 613 daily US flights, 273 mainline and 340 express:

http://www.usairways.com/pv_obj_cach.../factsheet.pdf

As 50 seat (and smaller) planes are phased out, some of the smaller spokes may not retain their current air service, and thus the number of flights at CLT may shrink. Eventually, if a town can't support some 76-seaters, it may not have air service.
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Old Nov 14, 2013, 9:27 am
  #2162  
 
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Originally Posted by FWAAA
It's not a binary either/or proposition. Every airline merger has resulted in some changes to the various airline hubs. CLT will not be shut down to the level of STL, RDU, PIT, DAY or MEM. But let's face reality: For example, since many of the passengers on the US flights from Brazil to CLT are actually connecting to MCO, those flights are a very inefficient connection. Not unlike BOS to RIC which would be a terribly inefficient connection at MIA.

If North Carolina was the optimum gateway to Latin America, then I suspect that AA would have kept the RDU hub instead of building the MIA hub to Latin America. CLT got as big as it is in part because those are the cards that US was dealt and did not discard.

CLT can remain a fairly big hub even if it does not retain its current slate of international flights. CLT excels at domestic connections up and down the east coast, and that role isn't diminished if some of the international flights are moved to gateways where higher average fares can be obtained.

Another looming issue is that US still flies 40 aging Dash 8s with no replacements in sight. More than half of the US regional fleet (including wholly-owned and outsourced) are 50 seat RJs or Dash 8s. On October 1, CLT had 613 daily US flights, 273 mainline and 340 express:

http://www.usairways.com/pv_obj_cach.../factsheet.pdf

As 50 seat (and smaller) planes are phased out, some of the smaller spokes may not retain their current air service, and thus the number of flights at CLT may shrink. Eventually, if a town can't support some 76-seaters, it may not have air service.
Agree with your point entirely FWAA, merely saying that I don't think MIA will replace for what CLT does domestically. Do I expect the Latin American flights to continue at CLT, doubt it. Do I think CLT will keep some transatlantic flights I do might keep a some Carribean flights too. Merely suggesting that CLT was not (as of yet) going the way of PIT, and if it were to, it is not because of MIA. YMMV
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Old Nov 14, 2013, 9:29 am
  #2163  
 
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Originally Posted by pitflyer
Ah, the fliers of Charlotte, drinking the same koolaid as the flyers of Pittsburgh did about a decade ago. Miami is where the flights will go in the new 'American'.. and Charlotte will be a shadow of its former self. Doesn't matter that CLT is a great hub airport for connections (it is).. but so was PIT and PHL just made more sense for O&D and other business reasons. CLT and MIA are basically the same situation, IMHO.

I've not flown USAirways in years so I'm hoping this will rescue 50k miles left (out of over 1 million earned as a former Chairman's Preferred)
CLT and PIT are different in a number of key ways though:

- Costs are far less per passenger/per plane
- Less duplication with DCA/PHL/ORD/LGA/JFK vs PIT
- Growing metro in the middle of the growing SE US
- One of two main hubs in the busy SE, far less backtracking needed from MIA to most anywhere in the SE
- Airport management that seems to be better at helping US grow at CLT without extreme increases in cost

What would you have replace the 700+ flights daily at CLT? While a great portal to the Caribbean and much of South America, MIA isn't it for connections to the SE US originating in the US. ORD and DFW may replace some of the transcon connecting traffic, but not in a way that means CLT loses many hundreds of flights unless the new AA wants to cede the SE to Delta.
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Old Nov 14, 2013, 9:47 am
  #2164  
 
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CLT and MIA are not duplicate hubs. MIA works well as a gateway to Caribbean and most of Central and South America. CLT works well as a Southeastern hub. Some of CLT's Latin America and Caribbean flights will probably move to MIA, but CLT is a much better location for serving the southeast. CLT also has the banking industry and a growing local population. I expect only a small reduction at CLT.
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Old Nov 14, 2013, 10:03 am
  #2165  
 
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Originally Posted by austin_res
CLT and MIA are not duplicate hubs. MIA works well as a gateway to Caribbean and most of Central and South America. CLT works well as a Southeastern hub. Some of CLT's Latin America and Caribbean flights will probably move to MIA, but CLT is a much better location for serving the southeast. CLT also has the banking industry and a growing local population. I expect only a small reduction at CLT.
Agreed. CLT will probably lose its Latin America flights and its TA flights to places like FCO, DUB, MAD and BCN. It should be able to retain LHR, CDG, FRA. If a MUC flight is profitable, AA or OW partner may add it, if and when LH drops the route. It will probably keep some popular Caribbean destinations as well.

CLT will remain a strong domestic connecting hub for the Southeast.

Last edited by 6P&E; Nov 14, 2013 at 10:08 am
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Old Nov 14, 2013, 10:17 am
  #2166  
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Originally Posted by tt120
There was an interview recently this week with the CEO of LH in USA today were he basically said that if the US-AA merger happens the CLT - MUC flight would likely go away because its profitability is pretty much based on US feeding it traffic.
Germany is an unusual situation. There's often no need for a hub at both ends of a TATL flight; witness all the BA flights from London to USA cities that are not AA hubs and thus get no feed on this end (SFO, BWI, IAH, DEN, etc). They survive on the huge O&D to/from London and the big BA hub to points beyond London. I would have guessed that with plenty of German businesses in North Carolina, LH could make flights work, but perhaps there just isn't enough O&D.

I see new AA keeping some flights to Germany despite US leaving Star for Oneworld. There will be more than enough feed on this end (from many points in the USA) plus some connections on Air Berlin in Germany. Premerger AA had scaled back flights to Germany due to its high costs and the Star Alliance domination of Germany. From old AA's perspective, traffic to Germany could connect at LHR or MAD.
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Old Nov 14, 2013, 10:27 am
  #2167  
 
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You touch on an important point. For some reason FF, at least, tend to accept connecting in PHL/CLT but shun connecting in a European hub like LHR/MAD.

Just look at the number of people making connections on both sides of the Atlantic or in PHX & PHL/CLT. Would they be that reticent about connecting in DFW and LHR? ORD and MAD?

Jim
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Old Nov 14, 2013, 11:24 am
  #2168  
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Originally Posted by pitflyer
Ah, the fliers of Charlotte, drinking the same koolaid as the flyers of Pittsburgh did about a decade ago. Miami is where the flights will go in the new 'American'.. and Charlotte will be a shadow of its former self. Doesn't matter that CLT is a great hub airport for connections (it is).. but so was PIT and PHL just made more sense for O&D and other business reasons. CLT and MIA are basically the same situation, IMHO.
Rubbish.

You do know that CLT is one of the most profitable hubs in the USA, right?

http://muckrack.com/tedreednc/status...82422701182977

With AA/US's now much larger network, it will be even more profitable.

PIT, on the other hand, wasn't profitable. I mean, just compare the geography and you'll see why. There are only 2 southern hubs in the USA.


Originally Posted by PhillyFreedom
Many of us who are trying to figure out when US will leave *A have focused on the USA Today article quoting US Airways President Scott Kirby as saying, "the transition from Star to oneworld will begin during the first quarter of 2014." Everyone seems to assume that means the changeover will happen in January. Am I the only person who is struck by the word "begin" instead of saying the changeover will occur? My assumption is that even though US and AA may have continued work on the changeover, all of the other *A and OW airlines have postponed work on the changeover until the merger has been cleared and will need more time to get their computer systems ready for the move. Any thoughts?
Kirby said earlier this week that Jan. 7 will be the day the two airlines "become one" for customers, including frequent flyer reciprocity (whatever that actually means). How long customers can earn Star mileage remains to be seen. I suspect it will be after Jan. 7, but we don't really know yet.
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Old Nov 14, 2013, 11:46 am
  #2169  
 
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Originally Posted by iahphx
Rubbish.

You do know that CLT is one of the most profitable hubs in the USA, right?

http://muckrack.com/tedreednc/status...82422701182977

With AA/US's now much larger network, it will be even more profitable.

PIT, on the other hand, wasn't profitable. I mean, just compare the geography and you'll see why. There are only 2 southern hubs in the USA.
While I agree with your overall point, it's worth noting that one of the reasons CLT is so profitable today is that US' labor costs are low. Those costs will increase significantly after the merger -- which may change the economics of some routes through CLT. I don't think that will endanger CLT in the large scale, but it may not be quite as large.
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Old Nov 14, 2013, 11:51 am
  #2170  
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Originally Posted by BoeingBoy
You touch on an important point. For some reason FF, at least, tend to accept connecting in PHL/CLT but shun connecting in a European hub like LHR/MAD.

Just look at the number of people making connections on both sides of the Atlantic or in PHX & PHL/CLT. Would they be that reticent about connecting in DFW and LHR? ORD and MAD?

Jim
They do that for a good reason - in terms of xfer convenience, PHX/CLT >>>> MAD > LHR. DFW is not terribly convenient, but AA terminal is at least . . . well . . . pretty. Whereas, there is NOTHING pretty about LHR.
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Old Nov 14, 2013, 12:02 pm
  #2171  
 
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Originally Posted by burlax
They do that for a good reason - in terms of xfer convenience, PHX/CLT >>>> MAD > LHR. DFW is not terribly convenient, but AA terminal is at least . . . well . . . pretty. Whereas, there is NOTHING pretty about LHR.
DFW has the SkyTrain past security that makes transfers between terminals pretty simple. Compare that to the madness at LHR? Forget it.
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Old Nov 14, 2013, 1:24 pm
  #2172  
 
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Originally Posted by burlax
. . .Whereas, there is NOTHING pretty about LHR.
LHR is the bane of a lot of frequent fliers existence.
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Old Nov 14, 2013, 1:55 pm
  #2173  
 
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Originally Posted by ShaneMcConnell
LHR is the bane of a lot of frequent fliers existence.
The English apparently don't know how to make an airport whose terminals are physically connected to each other. MAN is the same way.
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Old Nov 14, 2013, 2:03 pm
  #2174  
 
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Originally Posted by burlax
They do that for a good reason - in terms of xfer convenience, PHX/CLT >>>> MAD > LHR. DFW is not terribly convenient, but AA terminal is at least . . . well . . . pretty. Whereas, there is NOTHING pretty about LHR.
While it's certainly true that changing planes at a smaller hub is more hassle free compared to big hubs, as long as you don't have to change terminals at big airports much of the stress goes away. I remember when PI started flying to LGW - a massive airport compared to what I was used to and I wasn't connecting. But just getting/returning a rental car was a pain in the neck - go to the rental counter 2 terminals away because the one in the arriving terminal wasn't open at that hour.

Compared to that some 20+ years ago, DFW is a walk in the park. It may not be the best located for most US FF - having to go southwest to ultimately fly past PHL on the way to LHR - but it's in a convenient location for a good chunk of the U.S. Every hub has some problem - walking from the end of E to the end of B in CLT is something of a pain, likewise from F to Awest in PHL (and wait till the Express terminal is moved for expansion). DFW is no worse than most and better than some. Same goes for LHR if there's capacity for all the flights to be in one terminal. Heck, I'd put ORD at the worse end unless AA/BA/etc have room for international flights at the normal terminals. Schlepping to the international terminal from the domestic terminal can be a pain.

Jim
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Old Nov 14, 2013, 3:46 pm
  #2175  
 
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I know this is not a consideration for most, but I'd appreciate any speculation on potential upcoming changes for Richmond?
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