American Airlines & US Airways Merger...

American Airlines & US Airways Merger - Opposite positions...

There are 5 comments on the JD Supra story from Aug 30, 2013, titled American Airlines & US Airways Merger - Opposite positions.... In it, JD Supra reports that:

Whereas the European Commission has cleared under the EU Merger Regulations the proposed merger between US Airways Group and AMR Corporation, including its main subsidiary American Airlines, on 5 August 2013, the U.S. Department of Justice has now filed an antitrust case to block the merger of American Airlines and US Airways on 13 August 2013.

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Since: Apr 08

Tulsa, OK

#1 Aug 31, 2013
While the DOJ is blocking the AA/UsAir merger the mega carriers are scrambling to form new alliances to essentially dominate the critical and profitable markets. More reason for the DOJ to step aside and let the merger proceed as quickly as possible.
steve

Vinton, VA

#2 Aug 31, 2013
AA is already part of the one world alliance. One less domestic carrier means less competition, merging AA and US is basically for the benefit of US, AA is large enough to compete with UA and DL. I read of no scramble going on, UA part of the star alliance, and DL part of the skyteam group.
The merger of DL and NW resulted in the closing of the Memphis hub and the merger of UA and CO will result in the Cleveland hub going away along with many jobs despite assurances from both airlines that no hubs would be closed. If the AA-US merger goes through, PHX will be downsized, and PHL will probably lose some international flights to JFK. PHL is already at capacity and has no room for growth. CLT might lose some Latin American to MIA. Whats next?, UA and DL. Enough with the mergers already. Let US code share with AA which would result in each carrier entering new markets without diluting service to smaller airports and gaining new business.
UA Guy

Quincy, MA

#3 Sep 1, 2013
They are not going to close and downsize every hub that's just being silly now. Delta downsized one hub and so far UA has kept all its hubs. They didn't downsize Dulles which is a lot closer to Newark than Charlotte to Miami. USAirways is expanding south American service to Charlotte...why because of American. Charlotte is a money making hub and they will not downsize that hub at all
steve

Vinton, VA

#4 Sep 1, 2013
UA Guy wrote:
They are not going to close and downsize every hub that's just being silly now. Delta downsized one hub and so far UA has kept all its hubs. They didn't downsize Dulles which is a lot closer to Newark than Charlotte to Miami. USAirways is expanding south American service to Charlotte...why because of American. Charlotte is a money making hub and they will not downsize that hub at all
I never said they were going to close and downsize every hub did I? There will be cuts to avoid duplication of services, both with airports and labor. There is no way the combined labor forces of the two airlines will remain the same. Two counters will shrink to one counter at many airports presently served by both carriers. Already they have cut many managers and department heads because of redundancy.
Dulles is UA's answer to the DC area and it dwarfs DCA in terms of size and global reach. As far as CLT, it would not make sense to offer service to South America from both MIA and CLT. MIA will win out because of its large O&D Hispanic population and its huge number of flights to both Central and South America, it is also the largest Latin American hub.
The whole idea of the merger is to reduce costs and to do that means lost jobs, hubs closed or downsized.
We will wait to see if the merger goes through, and if so, what the final results will be as to how many slots will be given up to satisfy the DOJ. Even after the merger goes through, it will take several years to iron out which airports will grow, stay the same or lose service and downsize.

Since: May 08

Santee CA

#5 Sep 1, 2013
Most countries have use them or lose them slots.. They can sometimes be used to serve other airports. If the demand is there it's good to keep certain routes as weather back ups. While they may be less profitable day to day, if you are able to reroute several passengers out of bad weather, those losses are made up. Downsizing has taken the opportunity away, a merger brings it back

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