US Airways president Scott Kirby does not have loose lips.
When asked about consolidation in the airline industry, he acknowledged that he can't violate the non-disclosure agreement the carrier has signed with American Airlines' parent company, AMR Corp.
But he reiterated US Airways' management long-standing view that consolidation has been good for the airline industry.
"There is probably one big consolidation left," Kirby said at the Boyd Group International Aviation Summit on Monday. And he would not comment further on whether or not his carrier would be involved in that one last consolidation.
Kirby declined to comment on how long the non-disclosure agreement will last, only acknowledging that American has publicly said it plans to make a decision on a merger or stand-alone plan by the end of the year.
"There is no publicly imposed timeline," Kirby said, declining to say if progress has been made in merger talks with American.
During his Q&A session, Kirby talked about possible international expansion plans with new flights to Sao Paulo and Europe, including one or two flights to Europe out of its Phoenix hub. He also added that plans to expand to Asia are on hold until 2017 when it receives the Airbus A350 which has a longer range.
He also discussed ancillary revenue as his carrier and others are charging passengers for checked bags, preferred seats and early boarding on the aircraft.
"I think of if you’re starting the airline from scratch what would you do? I think we can migrate to that world," Kirby said. "You wouldn’t give away free food, free drinks, free bags. You would also charge more for the best seats just like every sports venue, every theater. Everyone charges more for better seats in the house...we have so much history in the airline industry that constrains our thinking."
He added that eventually, every seat on an aircraft has a price attached it, "I certainly see it as possible."
I'm sure Doug Parker's mini me was salivating at the thought of the merger. I wonder if he had the crazy eyes while he was on the podium hinting at it?
Posted by: airlinerealist | September 17, 2012 at 05:43 PM
Right, like back when people didn't full-on HATE airlines and flying.
"...we have so much history in the airline industry that constrains our thinking."
Posted by: LongTimeObserver | September 18, 2012 at 06:39 AM
With this kind of comment coming out of an executive's mouth is the reason why US Airways just doesn't deserve the flying public's business. The "consolidation" mentality being good for the industry" is their excuse to bleed the customer for every single dime for every service associated with flying. By decreasing the compitition by allowing airline consolidation just does that...and breeds these kinds of god-awful executives.
These services he mentions use to be part of the ticket price as part of the customer service experience and providing excellent service from the ground crews all the way up to the flight crews. It was important to beat the compeitition by being the best and giving the customer a great experience when flying their airline. This "best in class" culture made employees proud of their service and the job they provided. That's what competiton provides...excellent service for an competitive ticket price. After all, all airlines provide a service from point A to point B. The difference is the customer's experience on that flight and how comfortable and pleasant they can make that journey for that customer to garner repeat business. That's what compeitition is all about.
Consolidation of the airline industry eventually will create higher prices for the customer in all areas as the monopoly takes place. Heck, they eventually make you pay to use the toilet on the plane. I would expect the government to prevent consolidation of AA and US Airways for the very reason Kirby preports...bleeding the flying public for every service provided. Next thing you know, we will have to pay for the quality of oxygen they provide on the airlplane, and use of toilet service.
These executives that don't give a damn about providing good customer service to all passengers and treating customers differently on that flight according to how much money they pay for these services is nothing short of appalling. These execs belong in the unemployment line as they are in the wrong seats driving in the wrong direction.
Thank god for Southwest who for 34 years still provide the customer with affordable ticket prices for an absolute great, comfortable, safe flying experience going from Point A to Point B, and still maintaining a great employee/employer culture.
Teddy Xidas, former 25-year, US Airways flight Attendant,
Former US Airways union Flight Attendant President
Posted by: Teddy | September 18, 2012 at 10:28 AM