Leeham News and Analysis
There's more to real news than a news release.
There's more to real news than a news release.
Leeham News and Analysis
- Boeing unlikely to meet FAA’s 90-day deadline for new safety program April 18, 2024
- Focus on quality not slowing innovation, says GKN April 18, 2024
- Boeing defends 787, 777 against whistleblower charges April 17, 2024
- Dissecting Boeing CEO’s statement next new airplane will cost $50bn April 15, 2024
- Bjorn’s Corner: New engine development. Part 3. Propulsive efficiency April 12, 2024
American bankruptcy may prompt US Airways bid
American Airlines’ bankruptcy filing may at long last prompt a bid by US Airways to make a bid for the carrier.
Doug Parker, CEO of US Airways, has a long history of bidding for Chapter 11 carriers. He was successful when, as America West Airlines, he bid for US Airways. He was unsuccessful as US Airways in bidding for United Airlines and Delta Air Lines. He is on record as saying a bid for American made no sense without a bankruptcy by the Ft. Worth (TX)-based carrier.
We won’t be surprised in the slightest if Parker makes a bid
That would conclude the last chapter in the Legacy Airlines consolidation story.
I am not sure that will be good for the industry. An AA/US merger would create another mega-carrier, like the DL/NW and CO/UA mergers did. While it is true the US and AA systems routings would complament each other, and Us would bring in some mangement skills that AA needs, I doubt the merging of the two labor forces would work. AA’s pilot’s union is a different union than the Us pilot union is, and I just don’t see them playing well with each other. The same goes for AA’s mechanics, ramp workers, stewards (sorry I am old school), gate keepers, unions, etc.
With 3 mega-carriers (the new UA, DL, and AA) the smaller fish airlines like WN, AS, B6, F9 and others will be bracketed in by one or more mega-carriers at almost every airport in the US.
USAir has yet to merger the workforces of the East and West groups and it seems doubtful that will be acheived anytime in the near future. How on earth can they then merge with another entity?