US Airways Said to Develop AMR Merger Plan to
02-09-2012, 08:31 AM
#21
SDQ Base Chief
Joined APC: Mar 2006
Position: 320 CA
Posts: 5,588
Originally Posted by PeezDog
Just a thought, don't even know it this could be done. IF USair merged with American, would that not benifit both of them immensely? They would own the east coast. NY, Philly, Charlotte, DCA, MIA, and lots of routes to Europe through Philly. The west coast, LAX, PHX, DFW, ORD. Sounds pretty good to me business wise. Strengthen their presence in Europe and still maintain a hold on the Caribbean. Plus improving their domestic route structure. As far as the East/West mess at Usair, and just thinking what would make business sense, just do away with the west side of usair? Now there's only two groups two merge. I know that's ****ty, but if they could do it, I wouldn't put it past them. No offense to the west guys...
02-09-2012, 08:48 AM
#22
Gets Weekends Off
Joined APC: Nov 2011
Position: A320 Capt
Posts: 5,293
Originally Posted by samballs
Parker should give up on mergers. Failed, so far with the US/AW merger. Got laughed at trying to aquire DL, and the same will happen here.
Face it. A lot of money people, for some reason, like Doug Parker.
Last edited by R57 relay; 02-10-2012 at 06:45 AM.
02-09-2012, 01:52 PM
#23
Gets Weekends Off
Joined APC: Mar 2011
Position: A319/20/21 FO
Posts: 292
1. R57 is right. US Airways is presently profitable, and Doug Parker is widely viewed by the market community as the savviest CEO in the industry. Setting aside the fact that worker bees don't like the bosses in this business, Parker has made a profitable airline out of a pretty big mess of two carriers pre-merger. That's no small thing.
2. I continue to dispute the "AA doesn't need US" narrative. AA's cornerstone plan involves concentrating on five markets (NYC, DFW, ORD, MIA, and LAX). That's fine, except that AA isn't even the number one carrier in three of them ... they're a distant third in New York, a distant second in LA, and second in Chicago. Top it off with the fact that AA is losing money - by all reports quite a bit of it - in Los Angeles, and I think you can see the problems.
US, on the other hand, is using a similar cornerstone plan (though the fact is that US started doing it long before AA did) with more success ... the number one carrier, by a long shot, in all four markets - PHL, DCA, CLT, PHX - and strongly profitable in all four as well. PHL generates revenue on a scale AA can only dream of at JFK, because in addition to O&D demand for international flights, the scale of the hub generates scads of additional connecting revenue.
There would be plenty of questions about how to best rationalize the network, and no shortage of problems integrating the systems and workforces, but I would argue that it is AA that actually needs US more than US needs AA. That said, I suspect the combined group would be more than the sum of the two parts in terms of revenue generating capability and long-term profitability.
2. I continue to dispute the "AA doesn't need US" narrative. AA's cornerstone plan involves concentrating on five markets (NYC, DFW, ORD, MIA, and LAX). That's fine, except that AA isn't even the number one carrier in three of them ... they're a distant third in New York, a distant second in LA, and second in Chicago. Top it off with the fact that AA is losing money - by all reports quite a bit of it - in Los Angeles, and I think you can see the problems.
US, on the other hand, is using a similar cornerstone plan (though the fact is that US started doing it long before AA did) with more success ... the number one carrier, by a long shot, in all four markets - PHL, DCA, CLT, PHX - and strongly profitable in all four as well. PHL generates revenue on a scale AA can only dream of at JFK, because in addition to O&D demand for international flights, the scale of the hub generates scads of additional connecting revenue.
There would be plenty of questions about how to best rationalize the network, and no shortage of problems integrating the systems and workforces, but I would argue that it is AA that actually needs US more than US needs AA. That said, I suspect the combined group would be more than the sum of the two parts in terms of revenue generating capability and long-term profitability.
02-09-2012, 03:03 PM
#24
Banned
Joined APC: Jun 2008
Posts: 8,350
One could make a strong argument that if U's labor costs were comparable to DAL's or UAL's, they'd be much more marginal in their financial performance. Parker's just been lucky at exploiting his pilot situation that props up the financials.
A merger with U would't propel the combined entity that much in either Chicago or LA and Internationally, the benefits would be tepid at best.
A merger with U would't propel the combined entity that much in either Chicago or LA and Internationally, the benefits would be tepid at best.
02-09-2012, 07:01 PM
#25
Gets Weekends Off
Joined APC: Nov 2011
Position: A320 Capt
Posts: 5,293
Originally Posted by eaglefly
One could make a strong argument that if U's labor costs were comparable to DAL's or UAL's, they'd be much more marginal in their financial performance. Parker's just been lucky at exploiting his pilot situation that props up the financials.
A merger with U would't propel the combined entity that much in either Chicago or LA and Internationally, the benefits would be tepid at best.
A merger with U would't propel the combined entity that much in either Chicago or LA and Internationally, the benefits would be tepid at best.
02-09-2012, 07:59 PM
#26
Back on TDY
Joined APC: Apr 2008
Position: 747-400 Captain
Posts: 12,487
Originally Posted by PeezDog
Just a thought, don't even know it this could be done. IF USair merged with American, would that not benifit both of them immensely? They would own the east coast. NY, Philly, Charlotte, DCA, MIA, and lots of routes to Europe through Philly. The west coast, LAX, PHX, DFW, ORD. Sounds pretty good to me business wise. Strengthen their presence in Europe and still maintain a hold on the Caribbean. Plus improving their domestic route structure. As far as the East/West mess at Usair, and just thinking what would make business sense, just do away with the west side of usair? Now there's only two groups two merge. I know that's ****ty, but if they could do it, I wouldn't put it past them. No offense to the west guys...
If a Cactiboss falls in the woods and nobody is around to hear it, does it make a sound?
Carl
02-10-2012, 06:11 AM
#27
Gets Weekends Off
Joined APC: Nov 2006
Position: Bigg Bird!!
Posts: 599
Originally Posted by eaglefly
One could make a strong argument that if U's labor costs were comparable to DAL's or UAL's, they'd be much more marginal in their financial performance. Parker's just been lucky at exploiting his pilot situation that props up the financials.
A merger with U would't propel the combined entity that much in either Chicago or LA and Internationally, the benefits would be tepid at best.
A merger with U would't propel the combined entity that much in either Chicago or LA and Internationally, the benefits would be tepid at best.
All Doug has done is window-dress this house for a sale!!
On the CHEAP I might add!!
02-10-2012, 06:47 AM
#28
Gets Weekends Off
Joined APC: Nov 2011
Position: A320 Capt
Posts: 5,293
Originally Posted by Carl Spackler
Oh man.
If a Cactiboss falls in the woods and nobody is around to hear it, does it make a sound?
Carl
If a Cactiboss falls in the woods and nobody is around to hear it, does it make a sound?
Carl
Remember, he has to educate OAL guys that he says can't think for themselves.
02-10-2012, 07:28 AM
#29
Banned
Joined APC: Jun 2008
Posts: 8,350
Originally Posted by LittleBoyBlew
True but, one has to realize that Doug and Co. have no intentions or "long term plans" for US. The last 4 ceos, including Doug, have done nothing but trim the airline for a MERGER..
All Doug has done is window-dress this house for a sale!!
On the CHEAP I might add!!
All Doug has done is window-dress this house for a sale!!
On the CHEAP I might add!!
02-10-2012, 04:09 PM
#30
Banned
Joined APC: Apr 2008
Posts: 3,240
Originally Posted by PeezDog
just do away with the west side of usair? Now there's only two groups two merge. I know that's ****ty, but if they could do it, I wouldn't put it past them. No offense to the west guys...
Thread
Thread Starter
Forum
Replies
Last Post
Frisky Pilot
Regional
20
01-01-2022 05:02 PM
