Horton to Chicago Tribune: Open to Merger After Restructuring, ORD will Grow

Discussion in 'American Airlines | AAdvantage' started by DestinationDavid, Mar 16, 2012.  |  Print Topic

  1. DestinationDavid
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    LINK.

    "We're not opposed to consolidation in the industry, and I wouldn't rule it out for American as things develop," Horton told the Tribune editorial board Thursday. But the timing is not right, he said.
    "I think it would be tremendously unwise to get distracted with talk of combination inside a restructuring," he said.

    As it reorganizes, American will likely undertake some "refinements" and "trimming" to its flight schedule atO'Hare International Airportthe next few months, but cutbacks will be "very modest" because airline officials consider the airport one of its hubs for expansion, Horton said. "The plan here will be growth, not to shrink," he said.
     
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  2. kyunbit
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    kyunbit Silver Member

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    So we are probably seeing a AA-US merger in the not so distant future?
     
  3. DestinationDavid
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    I still think that's a bit of a leap, personally. I'd need a few more signs from the powers before I said it was likely/in the works.
     
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  4. hashj01

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    The media makes the cultures at US and AA seem rather toxic without each other. Might get worse if combined. Pure speculation of course.
     
  5. Art234
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    Combining US and AA at this point in time would be like combining atomic water from a nuclear plant accident with sulfuric acid....two toxic cultures combined would not render each other neutral.

    While some say it is inevitable, I agree the time is not right at this point. In any case while I am less familiar with AA issues, It wold be prudent to insist that if they DID combine at some point, that Doug Parker and Scott Kirby NOT be in charge. They are way over their heads ruining one airline, why give them another one to poison? I know some defend them, that they run a profitable airline, and this may be the case on paper, but spreadsheet management does not work in the long term, and these short term gains will be wiped out if and when labor parity is achieved. Plus, they are known to view both customers and employees as liabilities rather than assets, and that will eventually come back to bite them (in a way it is, with almost 7 years of pilot bickering on integration and no relief in sight).

    Then again, with someone like Gordon Bethune at the helm, such a combination if done right could turn out to be a real powerhouse. DL and UA did recognize the value of employees and customers in the combination process, and while the jury is still out on UA, DL has come out pretty well.....
     
  6. mowogo
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    mowogo Gold Member

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    As crazy as it sounds, I think a merger might actually help the labor problems. From the AA side, getting rid of the existing management would only be seen as a benefit in relations. For US, a merger would allow them to marginalize the US East pilots who are actively trying to destroy management. Since Parker is one of Crandall's desciples, he might actually bring some good to the airline, and not try to gut AA like he did US (though he did make US viable in an extremely competitive section of the country).
     
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  7. LETTERBOY
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    LETTERBOY Gold Member

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    As much as I would prefer that US & AA remain separate, I think you make some good points here.
     
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  8. Art234
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    No one doubts that your points have some merit. I just remain skeptical that it will ever happen, for a number of reasons.

    Parker did not make US viable, he earned profits by leading the way on ancillary fees, which is admittedly the industry norm now, although it is wrong to a degree. US actually takes it a step further, charging what should be their most valuable customers for choice seats, and for a while even soft drinks. They have yet to recover a degree of premium traffic enjoyed by the competitors.
    Also paying the industry's lowest wages to pilots gives US a false sense of fiscal health..it just isn't in Parker's interest to resolve that, and I don't think a combination will necessarily marginalize the East group, but will keep US the ugly girl at the dance.

    If Parker's ego ever gets out of the way, perhaps a combo with AA might be possible in the future, but any combination leaving him in charge will be doomed out of the gate.

    Just my opinion....
     

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