There's nothing new we know of today on the airline merger front but an AP story we found on another Web site makes some interesting observations, quoting two of the thinkers we also talk to on airline issues and who were quoted in Monday's story. Read what they say here.
And in case you were wondering why all the airline writers seem to only talk to a handful of industry observers, the answer is simple: They're the ones who return our phone calls and are willing to go on the record by name. Experienced writers also happen to know that they know what they're talking about.
Comments (1)
I find it amazing that the only real response the industry has to today's market turmoil is to bring out the old files and hit the "repeat" button. However, US/UA merging may be the only thing left for either carrier to do. UA never really recovered from bankruptcy. US has a better chance with AW than they did before, but it's not perfect either.
Back in 2001, the main concern was the concentration of US/UA flights between PHL, DCA, IAD, and the shuttle. I'm not sure how the new US management would handle that, but the prior group was thinking about selling the shuttle to AA (if they have money for such things). They would have to pick between DCA and IAD, since the Feds won't allow two large operations in the same city. If I were making the decision, I'd be torn: IAD has more options because DCA is too small. However, IAD is a horrible airport. Which one do you sell/close? (prior NW management shut down a significant DCA operation). That allows them to consider saving PHL from the sales/chopping block.
Out west, the situation becomes far more complicated, with significant operations for US at PHX and LAS, plus big UA operations at LAX, SFO, and DEN. I don't think the anti-trust people would allow five hubs out west. The smallest of the bunch is Vegas, and that one may end up being sold (CO? AA? AS?). DEN should be ok because of the distance from PHX. SFO/LAX is too valuable as the Asian gateway.
UA also operates some (not alot) of international flights out of MIA. A good selling point that, if I were new management, I might expand.
So, if I'm Doug Parker, and I actually want to try this merger, I'd offer to ditch Las Vegas and Washington Dulles, and possibly sell the shuttle to American. While I'm ditching Dulles, I'd pull the international flights to PHL (I know, we don't have the room, but I'm a homer and want choices here). But I'm sure that they will have a different plan.
Posted by rich | May 2, 2008 5:50 AM
Posted on May 2, 2008 05:50