The AA/US Merger Is Finalized!

So if you’ve been a frequent flyer of either American or US Airways, you probably just got notice that the merger between the two giants, making the largest airline in the world.  But it’s only done on paper; there are going to be years before anything really substantial happens.

The letter emailed out today says that the biggest change will be that US Airways will join oneworld Alliance on March 31st, 2014.  I knew that was going to be the case, but it’s still good to see it in writing.  Otherwise you’d have two of the three largest US airlines in the Star Alliance network – which wouldn’t be good.  And finally we’re going to see a beefed up answer to Skyteam and Star Alliance with the newly formed AA/US merger and oneworld Alliance.  Other than that, there shouldn’t be too many visible differences for a couple of years.  It took a couple of years for TWA to be fully absorbed by American, so I foresee the same thing happening with US Airways and American.

And now the real speculation begins.

So there’s always been scuttlebutt about the fate of Phoenix.  I think that, like Northwest’s Memphis hub, it will slowly become a focus city, with more flights funneled through DFW.  Whenever I’ve talked to people who work for America West (because AW/US still haven’t integrated crews, etc, even after all these years), they’ve acknowledged that the Phoenix hub doesn’t make a lot of money.  So honestly, I think there will be lesser emphasis on Phoenix, and more on DFW.  That means good things for carriers like Alaska and Southwest, both of which have expanded in the Phoenix market.

Speaking of Alaska Airlines, I’m wondering how this is going to affect them,  especially with the way they are maintaining their ‘frenemy’ relationship with Delta.  Delta is taking aim at Alaska, expanding in their primary Portland and Seattle markets, with Alaska taking aim at Salt Lake City.  Right now in markets where Alaska has a smaller presence, they contract with Delta to do a lot of their groundwork (checkin, luggage handling, boarding, etc.).  But say this merger with American and US Airways goes well, and Alaska – hedging their bets – keeps strategic partners with both Delta and the new American?  Maybe Alaska will move gates in Dallas /Ft. Worth and Atlanta and have American do the work that Delta is doing now?  And with the big expansion in SLC, I can foresee Alaska hiring their own employees in Utah instead of outsourcing to Delta; they’re going from 4 flights a day (2 incoming, 2 outgoing) all the way up to 18 flights a day (9 incoming, 9 outgoing) starting in June 2014.  With that much time to prepare, and with flights coming & going from 7am to 10:45pm, I bet those will be AS employees, and not DL.

Finally, are we done with merger mania?  Or is there any more consolidation to come?  The only thing I could possibly see myself is Alaska taking over Hawaiian – and making a commanding lead in Hawaiian flights (retiring the Hawaiian brand state-side and operating only Alaska 737s between the mainland & Hawaii), while letting a Hawaiian Air subsidiary concentrate on flights between Asia and Hawaii.  And we’ve still yet to find out the fate of beleaguered Frontier Airlines; have they been sold yet?  And what about once-darling jetBlue?  They’d better compliment a carrier like Alaska, but if jetBlue and Frontier somehow combined, that might let Frontier bow out of the super-dominated Denver market and focus more on less hub & spoke, giving jetBlue a better route network.  Or maybe even jetBlue marrying Virgin; might make getting Virgin out of the red a little easier.

So here’s to US Airways and American, and hoping the merger gets off on the right foot.  And I’m raising my glass to all the other speculators out there as well, who probably have their own ideas about what to expect next in the wild & crazy world of commercial passenger aviation.

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About this electronics stuff…

Okay, so first it was Delta and jetBlue that got the okay to go gate-to-gate with electronic gadgets.  Then it was American.  I had a question from a friend on this new policy, because he flew Delta mainline, where they announced the new policy, and then flew a Delta Connection flight, where the flight attendant nearly came unglued when he wouldn’t put his iPhone away during taxi out to the runway.

Try as they might, airlines aren’t telling their customers the distinction between “mainline” flights and those that are subcontracted.  Indeed, my friend’s Delta Connection flight was on ExpressJet, though it was branded a Delta Connection flight.

Earlier this week I got an email from US Airways saying that they were rolling out gate-to-gate electronic use – but they were actually freaking helpful!  They said that the new policy applied only to mainline US Airways flights, and that the policy didn’t yet apply to US Airways Express flights; that would come at a later date.  And just now, I got an email from Alaska Airlines saying that starting Saturday passengers on mainline flights would be able to use electronics, with sister carrier Horizon coming up soon, as well as subcontractor SkyWest, pending FAA approval.

From what I can tell, US Airways and Alaska Airlines are the only ones to roll out this new policy correctly.

So congrats you guys!  Travel is just about to get a little more interesting.

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Filed under “WHAT IN THE HELL?”

So skimming the headlines today, there’s the normal stuff about the oil spill in the Gulf, some cool stuff about Emirates taking their total number of A380s up to 90, and the rest of the stuff.  Then I got to this headline:

As capacity falls, people find more joy in flying

My first reaction was, “What the hell?”, followed by a quick, “No way!”.  You see, the reason I say this is – well – maybe I see the snarky side of air travel in general, because I travel all the time.  Look at Facebook postings; when Alaska Airlines posted a comment on Facebook about upcoming meal changes (nicer meals, better options, etc), a good number of the respondents said something to the effect of, “I’m already paying too much.  I should get a free meal!”, etc, etc.  And of course images of cots in O’Hare, the plastered “DELAYED” signs all over airport flight screens, etc are all fresh in my head.  It just freaks me out that, with all of the capacity cuts and nightmare stories of people trapped on planes overnight, and hell, even the three passengers lately that have fallen asleep on the plane and been left by the crew.  And people are finding joy in flying?

Oh well.  At least congratulations are in order for my favorite, Alaska Airlines, in topping the traditional carrier charts in the survey, and JetBlue for topping the LCC segment!

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