US Airways seen buying American
- Thread starter USA320Pilot
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Art at ISP
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And last year's profit was roughly equal to the amount collected in nickel and diming customers with ancillary fees...which indicates that the basic business model is still flawed...
IF they continue to make improvements in product and service they could do very well, but history shows us they think they can get away with being penny wise and pound foolish.
My recent experience with a competitive carrier shows the glaring deficiencies in US customer service but thats a topic for another thread...Although to be completely fair I will say that US performed completely as expected in this case...the contrast was in dealing with customer relations afterward.
Happy Holidays to you all....
Whats wrong with a business model that charges the customer as little as possibly for "basic transportation" and then makes it's "profit" on extra services ...... From a consumer stand point thats what I want? If IM flying DCA - TPA with no bags why should I pay the same as a guy checking two fifty pound suitcases? Makes perfect sense. WN uses the old model ..... the guy with no checked bags on WN is paying to much .... he subsiding the guy checking two?
Star Alliance won't "closely cooperate" with US, so tell us again why OneWorld would even want US?
US isn't a part of the immunized joint ventures across the Atlantic, meaning that it doesn't get to coordinate schedules or share profits on TATL flights the way UA/CO does with LH and the other partners. If US is so inconsequential to its own alliance that it doesn't get invited to the antitrust immunity activities, what makes anyone think US brings anything that OneWorld would want?
Some of you guys at AA are so arrogant it's amazing. I didn't want to believe it at first and thought that it was just people hating on AA but God. The post I have read on here by some of you are crazy . <_<
I'm not "at AA."
Care to discuss the fact that US is the only legacy airline that is forced to compete with its own alliance "partners" across the Atlantic? if UA/CO and LH and the other Star Alliance partners won't invite US to the antirust reindeer games, I don't see OneWorld inviting US to participate in the AA/BA/IB ATI joint venture either.
I don't hate US, I just call 'em as I see 'em, and that leads to an inescapable conclusion that US is seriously lacking in attractiveness. Its own alliance partners shun it. US is that ugly fat girl who never gets asked out. I don't blame the front-line employees for that - blame lies in Tempe with your management team.
I thought we got rid of the 727's a long time ago. Can't count the apu because that is just a turbine powered coffee maker.
NYCDelta
Senior
Well, now I'm confused. We have some one here that are saying that DP stresses how important *A is to US. We have others who say that *A doesn't want anything to do with US. Maybe oneworld would want to include US in their JV? We don't know what DP is really thinking, but if he thinks that merging with AA would help US, then maybe trying to get US in oneworld and part of their JV would benefit them? I'm just trying to understand why merging with AA would bring benefits (as some suggest)-but cooperating with AA as a member of oneworld would not see benefits. Wouldn't oneworld benefit from US's strong hubs in PHL,CLT,DCA and even PHX? I'm just asking.
wings396
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- Aug 20, 2002
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At one time, I'm sure US was an asset to Star. The day that CO became a member took a good portion of that away. With the combination of UA/CO, there is little need for what US adds to the overall picture with perhaps the exception of the CLT area traffic.
I would argue that US is still an asset to *A. They are still stronger overall in the NE, SE and even a good chunk of flying in the West. CO only goes as far as IAH and has no SE feed. They also don't operate as large of a NE network. US also has a decent network to Europe that feeds flights in *A hub cities (yes, I know CO also does). And, CLT is nothing to sneeze at. To put it another way, why would *A not want US in it? What harm could they pose any more than another *A member who's not part of a JV?
If US and AA were to merge, if the end-all result is an airline called AA couldn't the deal be structured so that the merged carrier is a larger AA?
I don't think anything can be ruled out, no matter what happens with AA. Barring that, US will be in *A for the foreseeable future.
CLT's domestic traffic is close to 75% connections. The direct passenger boardings/de-boardings (O&D) is the approximate size of PIT. PHL has more than twice that amount of O&D. CLT is only viable as a "jewel" asset if the network it is associated with supplies significant connectivity – essentially replacing US. As a standalone entity, CLT is only slightly more valuable than RDU (Banking versus the Research Triangle). So unless an acquirer re-designs their existing network (a major financial investment), I don't see CLT as something that appealing - other than as just another spoke. Further, if CLT were acquired, into say the AA network, I'd speculate it would retain at most a single European flight. CLT is currently in LALA land with its US international services - even though approximately 80% of that international traffic is fed from elsewhere. It's even possible that the LH MUC flight would falter with an AA merger due to the loss of *A connections on both ends - regardless of CLT metro area business support. And with AA, CLT's current and planned South American routes would very likely disappear in a poof, in favor of MIA.
jimntx
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Art at ISP
Veteran
Yes, EWR is nothing to sneeze at, and has flights to almost everywhere......perhaps the poster was thinking only of JFK and LGA, where UA and CO are a little light.
While I have heard about US making a play for AA ad nauseum, I just don't see how the creditors would go for it. With $4B in cash, I think they will be able to restructure without outside interference, and anyone who knows anything about the airline industry knows that this merger is STILL not complete in every sense of the word. I just don't think they would take on yet more labor strife, and regardless of how Wall Street regards DP and company, I think we all know what just about everyone else thinks about them....
That said, stranger things have happened...it would be a sad day in the airline industry, however the day DP and his crew get their hands on AA....
While I have heard about US making a play for AA ad nauseum, I just don't see how the creditors would go for it. With $4B in cash, I think they will be able to restructure without outside interference, and anyone who knows anything about the airline industry knows that this merger is STILL not complete in every sense of the word. I just don't think they would take on yet more labor strife, and regardless of how Wall Street regards DP and company, I think we all know what just about everyone else thinks about them....
That said, stranger things have happened...it would be a sad day in the airline industry, however the day DP and his crew get their hands on AA....
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