MERGER MANIA CONTINUES (MERGED TOPICS)

[nicky guy]

I'm going to "opine" here, and look forward to other(s) opinions.

All this talk about US Air demise (if they don't Merge or get Acquired) makes me Laugh !
Granted, the US situation is very unique.
Honestly, I feel that NONE of the few remaining airlines Want US, and more Honestly, IMHO it doesn't make a difference to US.
Here's why;
1. PHL
2. CLT
3. DCA
4. BOS/LGA/DCA Shuttle


If you're a unionized employee in those stations only, you'll have a job for a long time !
The amount of O+D traffic into and out of PHL and DCA is enormous, and that alone will keep US around for a long time. Now factor in the decent over-the-atlantic-traffic from PHL, and US becomes even more stronger against failure. Add in the Caribbean N/S's from PHL and CLT, it makes them (further) stronger.

With WN's BIG move with Air Tran in ATL, I see WN having a easier time going after DL, than "trying" to nickle and dime US in PHL, and Never going into DCA.

Many of US's FF's(may) wish they could dump US in PHL, But simply can't because they're most likely LOADED with FF miles, so they Keep flying, AND keep getting MORE miles.

Bottom line.....US is in a very unique position, and IMHO, virtually "to Big to Fail".

And lets not forget the marketing agreements with UAL etc.

???

 

[BoeingBoy]

Most of what you said could have been said in the summer of 2002 (the FL/WN merger being the big exception). Two bankruptcies later (the second of which US survived by the thinnest of margins) US has the same problem as back then - high costs in an increasingly lower cost industry.

Jim

 

[NYGiantsFan90]

Who is US Air? That name hasnt been used since 1996!

 

[nicky guy]

Most of what you said could have been said in the summer of 2002 (the FL/WN merger being the big exception). Two bankruptcies later (the second of which US survived by the thinnest of margins) US has the same problem as back then - high costs in an increasingly lower cost industry.

Jim

Correct.

But who if anyone puts US out of business/takes over PHL ?

 

[USFlyer]

I still think at some point US will merge with either Republic (combining with Frontier/Midwest) or AA. There is some talk that UA may take another run once it digests CO over the next few years, but I'm skeptical on this given the amount of divestitures that would likely be required.

I see US remaining on its own, though, for at least the next five years, barring any other significant upheaval in the industry.

 

[NYGiantsFan90]

UA isnt going to digest CO, it might be UA in name but its CO's Executives running the company, CO has been very successful, I believe you will see more of CO's policies enacted than UA, UA hasnt been on a good course since exiting Chapter 11.

 

[BoeingBoy]

Correct.

But who if anyone puts US out of business/takes over PHL ?

Who says it has to be one carrier - did one company put the buggy whip makers out of business or was it a change in the personal transportation industry from horses to cars?

Also, who says that any one carrier has to take over PHL. People in PHL who wanted/needed to fly did so before US had a hub there and will undoubtedly do so if the US hub disappeared. There's a nice hub on either side of PHL so those as well as the other carriers could pick up the slack. Just look at PIT - while enplaned passengers is significantly lower since the pull-down of the US hub because of the big drop in connecting traffic, O&D traffic is up and that's with only one hub within driving distance. Why do you think PHL would be any different?

Jim

 

[Richard]

There is a place to discuss UA/CO--please do it there.

THIS topic is about US and a potential dance partner...and you all know UA and CO are off the table now.

 

[psw737]

Who says it has to be one carrier - did one company put the buggy whip makers out of business or was it a change in the personal transportation industry from horses to cars?

Also, who says that any one carrier has to take over PHL. People in PHL who wanted/needed to fly did so before US had a hub there and will undoubtedly do so if the US hub disappeared. There's a nice hub on either side of PHL so those as well as the other carriers could pick up the slack. Just look at PIT - while enplaned passengers is significantly lower since the pull-down of the US hub because of the big drop in connecting traffic, O&D traffic is up and that's with only one hub within driving distance. Why do you think PHL would be any different?

Jim

Comparing phl to pit is like comparing apples to oranges. Philly is like the 4th or 5th largest city/metro area in the country last time i checked. this is what makes it different. to be honest, there is quite a bit of growth potential for US in PHL, both domestically and intl. The company just need to get out of this status quo mentality.

 

[FWAAA]

Comparing phl to pit is like comparing apples to oranges. Philly is like the 4th or 5th largest city/metro area in the country last time i checked. this is what makes it different. to be honest, there is quite a bit of growth potential for US in PHL, both domestically and intl. The company just need to get out of this status quo mentality.

While Philly is the fifth largest metro area in the US by population, BoeingBoy has previously pointed out that PHL is far below fifth place in O&D. People in Philly fly out of PHL less than the people in many other major cities. Perhaps because it's so close to alternate airports or Amtrak or perhaps because the city really isn't a major hub of business activity (at least not when one considers its population).

And room for growth? Maybe you're right, but the PHL airport is sort of constrained - at least until the long-range building plans are complete.

 

[SS255]

Until US is fully merged, I cannot see any one airline wanting to do the horizontal tango with them. I can perhaps see US being split apart into East and West, and being siphoned off to two different airlines or alliances.

On the other hand, why does US even have to merge with anybody? I don't want to see the brand disappear, and I don't want to see you folks worried about your jobs. I would prefer for US to concentrate on providing (and marketing) excellent customer service, and eventually develop the kind of loyal following which carriers like B6 and WN enjoy. Despite all of the past events which led to a negative perception of the brand, most people have very short memories. This can work in US's favor.

 

[JayBrian]

While Philly is the fifth largest metro area in the US by population, BoeingBoy has previously pointed out that PHL is far below fifth place in O&D. People in Philly fly out of PHL less than the people in many other major cities. Perhaps because it's so close to alternate airports or Amtrak or perhaps because the city really isn't a major hub of business activity (at least not when one considers its population).

And room for growth? Maybe you're right, but the PHL airport is sort of constrained - at least until the long-range building plans are complete.

From a somewhat related article "Philadelphia is (depending on how you count) the nation's 4th-largest market, but the airport ranks only 18th among U.S. fields for passenger traffic."

http://www.philly.com/philly/blogs/inq-phillydeals/Wall_St_lends_Philly_airport_167M_worries_about_USAir_dependence.html

 

[BoeingBoy]

Comparing phl to pit is like comparing apples to oranges.

The only comparison I was attempting to make, and even that only in response to the "Who would take over PHL" question, is that PHL O&D traffic would survive the disappearance of the US hub just like PIT O&D traffic survived. I didn't say it, but PHL O&D would probably survive better than PIT O&D has given the facts others have stated and the close proximity of two airline hubs.

Jim

 

[Run Like Hell]

I'm going to "opine" here, and look forward to other(s) opinions.

All this talk about US Air demise (if they don't Merge or get Acquired) makes me Laugh !
Granted, the US situation is very unique.
Honestly, I feel that NONE of the few remaining airlines Want US, and more Honestly, IMHO it doesn't make a difference to US.
Here's why;
1. PHL
2. CLT
3. DCA
4. BOS/LGA/DCA Shuttle


If you're a unionized employee in those stations only, you'll have a job for a long time !
The amount of O+D traffic into and out of PHL and DCA is enormous, and that alone will keep US around for a long time. Now factor in the decent over-the-atlantic-traffic from PHL, and US becomes even more stronger against failure. Add in the Caribbean N/S's from PHL and CLT, it makes them (further) stronger.

With WN's BIG move with Air Tran in ATL, I see WN having a easier time going after DL, than "trying" to nickle and dime US in PHL, and Never going into DCA.

Many of US's FF's(may) wish they could dump US in PHL, But simply can't because they're most likely LOADED with FF miles, so they Keep flying, AND keep getting MORE miles.

Bottom line.....US is in a very unique position, and IMHO, virtually "to Big to Fail".

And lets not forget the marketing agreements with UAL etc.

???

You forgot the PIT and BWI "fortress" hubs


Noone is too big to fail, and we are certainly NOT "too big"

 

[nicky guy]

If ever there was a niche carrier...................US @ PHL appears to be it.