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January 28, 2013

Monday Midday Must-Reads

It's the all American-US Airways edition.

As merger speculation ramps up between the two carriers, with a decision possibly in the next two weeks, here's what the media is buzzing about. (And of course, check out the story, the Star-Telegram ran on Sunday that was in a previous blog post here on Sky Talk)

-Reuters reported on Friday that a deal is close as negotiations continue. Citing several sources, the news agency said progress has been made towards a deal and an alternative plan for AMR to exit bankruptcy as a stand-alone company appear less likely.

-The Detroit Free Press speculates on what a merger would mean for the city of Detroit.

-And Terry Maxon at the Dallas Morning News (subscription required) examined how American fared with its previous mergers and surmises that the carrier had little to show for its Reno Air and TWA combinations.

-Andrea Ahles


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casual observer

The Detroit Free Press piece is most interesting as this city really has no skin in the game, but has witnessed a major airline merger up close with DL/NW. Cincinnati and Memphis have become shells of their pre-merger selves. Cleveland is well on the way after the UA/CO merger, not to mention all of the post-merger growing pains at the new carrier.

It is only logical to expect the same at a few US hubs, namely Phoenix, Philly, and Charlotte. If anything, AA has been smart about the location of its focus cities and has itself strategically spread throughout the country.

No wonder AAers signed off on Parker's plan so emphatically. The cuts will most likely center around the US mainstays while the AA hubs stay in tact. What a great way to stoke workplace/employee relations - clearly one of Parker's areas of expertise!

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