Scott Kirby pitching UAL merger with American

“……..United may not want all of American - perhaps they want just a few key assets - gates in Chicago, Hub in Miami, Hub in Dallas, for example, and be willing to get rid of some of the less desirable assets.”

And therein lies the major problem amongst several problems with Kirby’s quest.

We see this frequently with mergers and takeovers. Rush in, monetize the good stuff for the personal gain of a handful of executives, then take the “leftovers” and sell it off piecemeal at reduced prices just to get rid of it.

The Jet Blue-Spirit merger never reached V1.

This attempt will never make it off of the taxiway.

And the one major asset that almost always takes a nasty hit is human capital.
As in perform a “Neutron Jack”, i.e., keep the physical assets and make the employees go away.

The battle alone that would arise from trying to merge the seniority lists for both the pilots and flight attendants will require a ringside seat and lots of popcorn.

And the unions won’t remain silent.
Not about personal gain, Kirby is well compensated, it is about his vision - the world’s largest, best airline.

He’s aggressively working on both - and United is already the world's largest.

Again, you’re coming up with reasons it won’t work and those failures of leadership and labor integration were part of the problem with the Continental/United merger. Jeff Smisek cared not one bit for people, and his mishandling of that hurt the company for many years after he was sacked.

Kirby is a different leader.

And I am more than familiar with the unions, in this case.

Again, I think this whole thing unlikely, but I think the act of planning is critical.
 
Is that a desirable state of affairs?
OTOH, its more the alternative offerings of foreign carriers keeping US airlines honest on international fares than it is competition between US carriers on international routes.
I think we have seen success in M&A before …
UA & CO come to mind …
 
We know AA is the worst legacy carrier. There is no discussion about that. Their finances are abysmal, product is abysmal etc.
But this is a horrible idea. If this happens, in 10-20 years we will have to break up these companies as air travel is becoming an oligopoly. Buying a ticket in the US compared to the EU market is like a horror story that no one wanted to see, but we all got sucked in.
Not sure why UAL needs this. They finally caught up with Delta as a product, so not sure why this.
Maybe somehow it is good for UAL or AA (not sure how it can get worse for them) but not for a consumer.

https://finance.yahoo.com/markets/stocks/articles/report-united-ceo-pitched-merger-004625608.html

I never had any bad experience on American Airlines and have traveled on them about 70 flights, both business and personal. Staff seems they like their jobs and planes in good shape, never dirty or anything crazy happen.

American has $30B of debt and made some terrible business decisions over the past 25 years.

Sure United will want to be a vulture and pick through the scraps of meat.
 
United and American aren't merging.

I could see Alaska/Hawaiian merging with JetBlue, that would give us another major carrier that covers a lot of the US and a good amount of international destinations.
 
I never had any bad experience on American Airlines and have traveled on them about 70 flights, both business and personal. Staff seems they like their jobs and planes in good shape, never dirty or anything crazy happen.

American has $30B of debt and made some terrible business decisions over the past 25 years.

Sure United will want to be a vulture and pick through the scraps of meat.
Of all companies, I did fly them the least, and Jet Blue.
I mostly flew Delta when living in the Southeast, but Northwest when I lived in Detroit, and now for a long time United, as they control pretty much Colorado.
My experience with AA is going from absolute horror to positive surprise.
In 2015, I flew to St. Martin with them from Denver to Miami, then to St. Martin. Both times ended up in B737-800. That was the time when they famously shrunk lavatories to fit more seats. I am 6.2, 250lbs, size 13 shoes. That was the most miserable travel experience in an airplane, and I flew in Antonov's in the 90s quite often.

Positive, some 7-8yrs ago I ended up somehow on their A330-300 from Paris to Philadelphia. I think they either did not update their cabin or just that is how it is, but the seats were leatherette, nice ones, wide, enough space for legs, really nice flight.

It is not only a product, but it is also everything with AA. I know they are strong in Latin America, but in Europe, they are a minor player. Network does not make sense, and I think their hubs, except few like MIA, DFW and ORD are a problem.
 
Spirit almost out of business and has very little cash remaining.

Might not last 2 more weeks.
 
We know AA is the worst legacy carrier. There is no discussion about that. Their finances are abysmal, product is abysmal etc.
But this is a horrible idea. If this happens, in 10-20 years we will have to break up these companies as air travel is becoming an oligopoly. Buying a ticket in the US compared to the EU market is like a horror story that no one wanted to see, but we all got sucked in.
Not sure why UAL needs this. They finally caught up with Delta as a product, so not sure why this.
Maybe somehow it is good for UAL or AA (not sure how it can get worse for them) but not for a consumer.

https://finance.yahoo.com/markets/stocks/articles/report-united-ceo-pitched-merger-004625608.html
I've had good luck flying on AA. I'm flying on them to Kentucky in May.
 
I never had any bad experience on American Airlines and have traveled on them about 70 flights, both business and personal. Staff seems they like their jobs and planes in good shape, never dirty or anything crazy happen.

Same here, I live in PHX so my options are AA or Southwest. I've flown hundreds of flights on AA, out of all of them I can only remember 2 where things didn't work out, I got stuck in Sao Paulo and DFW for a night but they put me up. The best part is their mileage program, work pays for work trips so I never have to pay for personal. I flew a goofy itinerary today, ERI>CLT>RDU>PHX for 20k miles in first (they won't sell it but you can use miles), you can't do that on Delta or United.

Hilariously the flight attendant on the ERI to CLT flight on the little E-145 seemed mesmerized I was Executive Platinum. Started to give the exit row spew and said to me "I know you know all of this". Asked what I wanted to drink while on the ground, I asked for water and 4 minutes in the air came running back with a bottle of water. All 3 flights I was on arrived early and service was great.

ypJDXtb.jpeg
 
Same here, I live in PHX so my options are AA or Southwest. I've flown hundreds of flights on AA, out of all of them I can only remember 2 where things didn't work out, I got stuck in Sao Paulo and DFW for a night but they put me up. The best part is their mileage program, work pays for work trips so I never have to pay for personal. I flew a goofy itinerary today, ERI>CLT>RDU>PHX for 20k miles in first (they won't sell it but you can use miles), you can't do that on Delta or United.

Hilariously the flight attendant on the ERI to CLT flight on the little E-145 seemed mesmerized I was Executive Platinum. Started to give the exit row spew and said to me "I know you know all of this". Asked what I wanted to drink while on the ground, I asked for water and 4 minutes in the air came running back with a bottle of water. All 3 flights I was on arrived early and service was great.

ypJDXtb.jpeg
As BBT said - membership has it’s privileges 😷
Global Services has hooked me up after some delays - or I’d have been looking for a hotel …
 
Cornering the market and charging whatever they want is the end game here.

Many roll-ups have been happening since C19 around the world, it's the way things are.
 
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