Originally Posted by
TOGA LK
I could not agree more. I think AA will merge with JBLU and expand AS code share, UAL will buy AS and subsequently bring DL and AA west coast hub feed to a stand still. AA is still the 800# gorilla; lower costs, high yield hubs, lower debt and now a more efficient fleet. They will be competition you simply cannot look away from. I would not want to work for AMR nor do I look forward to their exit strategy.
Not sure I see UAL and AS, nor that AMR will have the lowest costs, but they do have a strong brand and network. AMR alliances in Europe and the Pacific are associated with fairly strong brands (BA and JAL). So they have LHR and HND dialed in.
It's going to be 3 powerhouse networks, and without an alliance in Japan, and with AF/KLM vs LH or BA, we're going to have to differentiate ourselves in terms of great service. Ergo, we'll have to invest in the employees with more than lip-service. Good news is, we've done it before. We also have a head-start, a rapidly improving balance sheet, and the better CEO.
Which brings me back to agreeing with you about a LCC that is weak, and exposed. Let UAL get them out of Star, let the hope of a merger die, and they have little to offer, except DCA, and more importantly, an involuntary capacity cut. Seems like AMR would be silly to pick them over JB.