AA and Usairways?
06-29-2009 | 09:26 AM
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AA and Usairways?
Just when things could not get any more weird... 
More than two years after withdrawing a bid to take over a then-bankrupt Delta Air Lines, US Airways CEO Doug Parker is once again calling for accelerated consolidation in the airline industry, this time with American Airlines, The Deal reports. Parker, who was actually employed by American from 1986-1991 before serving as Vice President of Northwest Airlines between 1991 and 1995, has been an outspoken proponent of consolidation since 2004, when he engineered the takeover of a sickly US Airways by his own America West Airlines.
A merger between the two airlines makes sense, Parker says, due to the relatively small market share of the merged Northwest-Delta entity (25%) and the room it leaves for competition. Additionally, given the speculation Continental's entry into the United-founded Star Alliance has brought about in the wake of merger speculation rumors in 2008, American remains as the only party not yet spoken for, having abstained from consolidation since its 2001 merger with St. Louis-based TWA. US Airways attemped to merge with United in 2000, but the two withdrew their plans when faced with resistance from the Department of Justice.
As far as any American-US Airways union is concerned, a combined carrier would overlap little, offering American expanded presence in the Southeast with US Airways' Charlotte hub, the Southwest with its Phoenix hub, and the opportunity to consolidate operations between its New York-JFK hub and US Airways' Philadelphia hub, which serve as each respective carrier's chief international gateways.
US Airways is currently the weakest domestic legacy carrier in terms of international movements. While American leads to Europe in terms of passengers carried, Delta and Continental best it in terms of destinations served, while both Delta and United are largely superior to Asia and the South Pacific, Delta bolstered by the aforementioned Northwest merger, during which it inherited Northwest's hub at Tokyo Narita International Airport . Neither carrier offers international service from Austin-Bergstrom International Airport . US Airways offers service to Phoenix and Charlotte , while American's second place ranking in terms of flights and passengers carrier was recently dwindled by its decision to ax its daily flight to San Jose, known affectionately as the "nerd bird" route.
American is the only US legacy carrier not to have filed for bankruptcy this decade, while US Airways filed for protection twice prior to its acquisition by America West. The financial health of both carriers is the subject of intense debate, mainly as a result of labor issues with each, which could act to prevent a merger on their own. At this time, it is not known whether Parker's comments were the result of any meeting between the two or simply wishful thinking. Stay tuned to the Austin International Travel Examiner for more information as it becomes available.
More than two years after withdrawing a bid to take over a then-bankrupt Delta Air Lines, US Airways CEO Doug Parker is once again calling for accelerated consolidation in the airline industry, this time with American Airlines, The Deal reports. Parker, who was actually employed by American from 1986-1991 before serving as Vice President of Northwest Airlines between 1991 and 1995, has been an outspoken proponent of consolidation since 2004, when he engineered the takeover of a sickly US Airways by his own America West Airlines.
A merger between the two airlines makes sense, Parker says, due to the relatively small market share of the merged Northwest-Delta entity (25%) and the room it leaves for competition. Additionally, given the speculation Continental's entry into the United-founded Star Alliance has brought about in the wake of merger speculation rumors in 2008, American remains as the only party not yet spoken for, having abstained from consolidation since its 2001 merger with St. Louis-based TWA. US Airways attemped to merge with United in 2000, but the two withdrew their plans when faced with resistance from the Department of Justice.
As far as any American-US Airways union is concerned, a combined carrier would overlap little, offering American expanded presence in the Southeast with US Airways' Charlotte hub, the Southwest with its Phoenix hub, and the opportunity to consolidate operations between its New York-JFK hub and US Airways' Philadelphia hub, which serve as each respective carrier's chief international gateways.
US Airways is currently the weakest domestic legacy carrier in terms of international movements. While American leads to Europe in terms of passengers carried, Delta and Continental best it in terms of destinations served, while both Delta and United are largely superior to Asia and the South Pacific, Delta bolstered by the aforementioned Northwest merger, during which it inherited Northwest's hub at Tokyo Narita International Airport . Neither carrier offers international service from Austin-Bergstrom International Airport . US Airways offers service to Phoenix and Charlotte , while American's second place ranking in terms of flights and passengers carrier was recently dwindled by its decision to ax its daily flight to San Jose, known affectionately as the "nerd bird" route.
American is the only US legacy carrier not to have filed for bankruptcy this decade, while US Airways filed for protection twice prior to its acquisition by America West. The financial health of both carriers is the subject of intense debate, mainly as a result of labor issues with each, which could act to prevent a merger on their own. At this time, it is not known whether Parker's comments were the result of any meeting between the two or simply wishful thinking. Stay tuned to the Austin International Travel Examiner for more information as it becomes available.
06-29-2009 | 09:30 AM
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Gets Weekends Off
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Oppss Sorry, didn't see the other post from Toilet Duck.
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