Some interesting comments are coming out from an airline industry conference that was held in Washington, D.C. last week about the "New American's" post merger logo.
US Airways CEO, and soon to be head of the merged companies told the Wall Street Journal, "It may make sense (to keep it)," when asked if they would keep the new branding and livery that was announced earlier this year with big fanfare. Parker also said that he had, "previously avoided direct comment on whether it would keep the new branding."
One would think that since the new design and logo were rolled out so close to the merger that it would have been discussed as a part of the talks to reach an agreement. I wonder how much re branding AA has already done and if a redesign of the new website, logos and livery would be worth the extra cost in the end. It seems like Mr. Parker isn't quite sold on everything that has been announced with his "New American" airline.
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Showing posts with label Merger. Show all posts
Showing posts with label Merger. Show all posts
Tuesday, April 2, 2013
Thursday, February 14, 2013
It's Official: AA and US Airways Merging! Fancy New Website Launched
As was reported last night AA and US Airways are merging and the official announcement was made this morning.
They have launched a new informational website: The New American Is Arriving to provide information about the merger and give customers information on the new look and what it means for routes, loyalty programs and service. For now the loyalty programs will remain separate and will work like they have so far and more announcements will be made later and it looks like the combined airline will be a part of the oneworld alliance as predicted.
More as it comes in!
UPDATE: Here is the new commercial for the two merging airlines which is narrated by Mad Men actor Jon Hamm who was the narrator for the commercials announcing the new American Airlines livery. So I will just go ahead and assume that AA/US have Sterling, Cooper, Draper and Price as their ad agency. ;)
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They have launched a new informational website: The New American Is Arriving to provide information about the merger and give customers information on the new look and what it means for routes, loyalty programs and service. For now the loyalty programs will remain separate and will work like they have so far and more announcements will be made later and it looks like the combined airline will be a part of the oneworld alliance as predicted.
More as it comes in!
UPDATE: Here is the new commercial for the two merging airlines which is narrated by Mad Men actor Jon Hamm who was the narrator for the commercials announcing the new American Airlines livery. So I will just go ahead and assume that AA/US have Sterling, Cooper, Draper and Price as their ad agency. ;)
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Wednesday, February 13, 2013
UPDATED: American Airlines (AMR) and US Airways Boards Reportedly Agree on Terms of Merger
UPDATE: The Wall Street Journal is reporting that both AMR and US Airways boards have approved the terms of the merger and the announcement is scheduled for tomorrow morning. As expected AMR's creditors would hold 72% of the new airline while US Airways the rest.
Well it looks like the day might be here....Bloomberg News is reporting that the American Airlines and US Airways have come to an agreement on merger terms and the measure is going to the American Airlines (AMR) board for approval and will go to the US Airways board later today with a possible announcement tomorrow, according to a source close to the talks.
The source says that, as we previously thought, the new airline will be based in Fort Worth, Texas and US Airways CEO Doug Parker will become the CEO of the new airline and American CEO Tom Horton will stay on as a non-executive board member
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Monday, February 11, 2013
Why I (Respectfully) Disagree That A AA/US Merger is All Bad For Frequent Flyers
UPDATE: @Jamucsb (Who you should give a follow if you don't!) reports that he is currently on a US flight and the Flight Attendants indicated that the miles earned on that flight will be good on American Airlines once the merger is complete.
As the details of a merger between American Airlines and US Airways continue to emerge and the boards for the respective companies work out the exact timing to vote on the deal, which is still expected this week, there is much speculation about what the new airline will look like and what it means for travelers.
As I was reading my usual Google Reader set of articles I came across this article by Million Mile Secrets on how bad the merger would be for the frequent flyer. While I agree with some of the points that Daraius makes and do believe that this will be a great thing for airline investors I don't agree that it will necessarily mean worse service or a huge increase in airline prices because of reduced competition.
Over the past decade we have seen tons of airline consolidation and as a whole, yes we have seen airline prices go up. But a recent study found that from 2004 to 2011 when four mergers took place that airline prices increased, but not to the high levels that the airline industry officials feared. The fact that consumers, for the most part, still choose an airline based on what price is the cheapest means that airlines can't go full speed ahead with massive fare hikes, even with consolidation in effect. They still have to compete with each other and they still attack each other on a regular basis...we all see this every week when we price watch.
What makes me even more skeptical is the routes that AA and US currently fly. In a USA Today article from last week they quoted US Airways' Chairman and CEO Doug Parker in a speech from July pointing out that the route maps for AA and US are very different and they are not competing with each other that much. "Our networks are extremely complementary," said Parker, "There is very little overlap and thus no need to scale back the service that either airline currently offers."
So what a new AA/US merger means is easier access to each of the hubs for the others. The USA Today article points out that the top airports for American, Dallas/Ft. Worth, O'Hare, Miami, Los Angeles and LaGuardia are very different from the top airports for US Airways which are Charlotte, Phoenix, Philadelphia, Washington National and Boston Logan. There is no overlap here and it will make it easier for fliers to connect to more direct routes or routing that involves a more direct connection via a different hub.
I don't think that this merger is all doom and gloom for the frequent flyer. The elements for needed competition are still there and to be honest this is going to push the other airlines who ARE competing on these routes to undercut the new airline as they get their feet under them so I don't agree with the total premise that it will mean higher fares and studies back me up on this point. Now what the airline looks like on the loyalty perspective is a different thing all together but you have to think that AA did such a great job pulling elites from other airlines over and restoring faith of their elites after the bankrupsy that they don't want to go through that again and will work hard to make sure their elites feel they are a part of the process and bring US elites into the fold.
This whole story is developing as we speak, and it's going to be an interesting week. But I think it's a little speculative and early to completely throw the baby out with the bathwater when it comes to reduced services and drastic new high airline prices.
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As the details of a merger between American Airlines and US Airways continue to emerge and the boards for the respective companies work out the exact timing to vote on the deal, which is still expected this week, there is much speculation about what the new airline will look like and what it means for travelers.
As I was reading my usual Google Reader set of articles I came across this article by Million Mile Secrets on how bad the merger would be for the frequent flyer. While I agree with some of the points that Daraius makes and do believe that this will be a great thing for airline investors I don't agree that it will necessarily mean worse service or a huge increase in airline prices because of reduced competition.
Over the past decade we have seen tons of airline consolidation and as a whole, yes we have seen airline prices go up. But a recent study found that from 2004 to 2011 when four mergers took place that airline prices increased, but not to the high levels that the airline industry officials feared. The fact that consumers, for the most part, still choose an airline based on what price is the cheapest means that airlines can't go full speed ahead with massive fare hikes, even with consolidation in effect. They still have to compete with each other and they still attack each other on a regular basis...we all see this every week when we price watch.
What makes me even more skeptical is the routes that AA and US currently fly. In a USA Today article from last week they quoted US Airways' Chairman and CEO Doug Parker in a speech from July pointing out that the route maps for AA and US are very different and they are not competing with each other that much. "Our networks are extremely complementary," said Parker, "There is very little overlap and thus no need to scale back the service that either airline currently offers."
So what a new AA/US merger means is easier access to each of the hubs for the others. The USA Today article points out that the top airports for American, Dallas/Ft. Worth, O'Hare, Miami, Los Angeles and LaGuardia are very different from the top airports for US Airways which are Charlotte, Phoenix, Philadelphia, Washington National and Boston Logan. There is no overlap here and it will make it easier for fliers to connect to more direct routes or routing that involves a more direct connection via a different hub.
I don't think that this merger is all doom and gloom for the frequent flyer. The elements for needed competition are still there and to be honest this is going to push the other airlines who ARE competing on these routes to undercut the new airline as they get their feet under them so I don't agree with the total premise that it will mean higher fares and studies back me up on this point. Now what the airline looks like on the loyalty perspective is a different thing all together but you have to think that AA did such a great job pulling elites from other airlines over and restoring faith of their elites after the bankrupsy that they don't want to go through that again and will work hard to make sure their elites feel they are a part of the process and bring US elites into the fold.
This whole story is developing as we speak, and it's going to be an interesting week. But I think it's a little speculative and early to completely throw the baby out with the bathwater when it comes to reduced services and drastic new high airline prices.
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Wednesday, February 6, 2013
AMR (American Airlines) - US Airways Near Merger
There is fast breaking news out of the airline merger world this afternoon. The Wall Street Journal is reporting that the merger between AMR (American Airlines) and US Airways is nearing its final stages according to those familiar with the discussions.
The rumors of the deal speculate that the stock transfer of ownership would take AMR out of Chapter 11 Bankruptcy and AMR's creditors would own around 72% of the airline while US Airways stock holders would own around 28% of the new airline.
On the leadership side the current outline is that US Airways CEO Doug Parker would come on as the new CEO of the new airline and AMR Chief Executive Tom Horton would stay on as a non-executive board chairman for a bit.
The Wall Street Journal report says that the new airline will likely retain the American name and stay based in Fort Worth, Texas.
The speculation puts the timing of the merger in the next week or so....we will have to see!
The rumors of the deal speculate that the stock transfer of ownership would take AMR out of Chapter 11 Bankruptcy and AMR's creditors would own around 72% of the airline while US Airways stock holders would own around 28% of the new airline.
On the leadership side the current outline is that US Airways CEO Doug Parker would come on as the new CEO of the new airline and AMR Chief Executive Tom Horton would stay on as a non-executive board chairman for a bit.
The Wall Street Journal report says that the new airline will likely retain the American name and stay based in Fort Worth, Texas.
The speculation puts the timing of the merger in the next week or so....we will have to see!
Wednesday, January 30, 2013
Reuters Report: US Air/American Airlines Merger Could Come in the Next Two Weeks
A Reuters exclusive says that the US Air and American Airlines merger could be coming in the next two weeks according to individuals that are familiar with the discussions. As expected neither organization confirmed the report, but it seems like this one may be well on its way in the next few weeks. Should be interesting to watch how it plays out and if the merger holds together or if American's Board decides they should keep to their plan to get AMR out of bankruptcy.
Monday, January 21, 2013
#newAmerican and What It Means for the Merger With US Airways
As you most likely know American Airlines unveiled their new look last week what was lost in the shuffle was a bit of merger talk in the opening video from Tom Horton, Chairman and CEO of American Airlines.
As Horton is introducing the new features that will be introduced through all of AA's aircraft, including a new livery, logo, full lie-flat seats and in-flight entertainment at every seat he also made a few hints to the future of the airline.
"As we complete our evaluation on if a merger could build our strengths," says Horton, "We remain steadfast in each step we take on our journey to modernize our airline."
He later continues
"We know there are still decisions that need to be made about our future, but today marks our next step to modernize..."
I really found these admissions interesting as back in July American's leadership was doing everything they could to brush off talk of a merger with U.S. Airways. But over the last few months I have heard more and more talk of the merger moving towards an announcement. In fact, last week when I was visiting the U.S. Airways Club in Phoenix the couple in front of me checking-in asked the agent at the desk if she thought they would merge and she responded that the rumors they were hearing was that it would be going through and that it was only a matter of time before the announcement was made. Now, I don't know how scientific that is, but it's an interesting thing to hear from the staff on the ground.
But the other interesting thing to ponder if the merger were to happen is what the new airline would really look like.
With a new fleet, the newest in the industry as they always like to mention, coming on line over the next few years, a new livery and a new logo I believe that they will be pushing to bring the U.S. Airways brand under their wing (no pun intended) instead of the other way around.
This would open the door to American staying in the oneworld alliance and avoiding a fight with the Star Alliance of having both American and United in the same alliance. It would also open up great routes for oneworld and bring even more offerings for U.S. Airways customers.
The question for the frequent flyers of both airlines is what the new loyalty program will look like and what benefits they will include that each group loves about their program.
What do you think? What does a merger between AA and US Airways mean for you as a frequent flyer? Are you dreading it...looking forward to it?
As Horton is introducing the new features that will be introduced through all of AA's aircraft, including a new livery, logo, full lie-flat seats and in-flight entertainment at every seat he also made a few hints to the future of the airline.
"As we complete our evaluation on if a merger could build our strengths," says Horton, "We remain steadfast in each step we take on our journey to modernize our airline."
He later continues
"We know there are still decisions that need to be made about our future, but today marks our next step to modernize..."
I really found these admissions interesting as back in July American's leadership was doing everything they could to brush off talk of a merger with U.S. Airways. But over the last few months I have heard more and more talk of the merger moving towards an announcement. In fact, last week when I was visiting the U.S. Airways Club in Phoenix the couple in front of me checking-in asked the agent at the desk if she thought they would merge and she responded that the rumors they were hearing was that it would be going through and that it was only a matter of time before the announcement was made. Now, I don't know how scientific that is, but it's an interesting thing to hear from the staff on the ground.
But the other interesting thing to ponder if the merger were to happen is what the new airline would really look like.
With a new fleet, the newest in the industry as they always like to mention, coming on line over the next few years, a new livery and a new logo I believe that they will be pushing to bring the U.S. Airways brand under their wing (no pun intended) instead of the other way around.
This would open the door to American staying in the oneworld alliance and avoiding a fight with the Star Alliance of having both American and United in the same alliance. It would also open up great routes for oneworld and bring even more offerings for U.S. Airways customers.
The question for the frequent flyers of both airlines is what the new loyalty program will look like and what benefits they will include that each group loves about their program.
What do you think? What does a merger between AA and US Airways mean for you as a frequent flyer? Are you dreading it...looking forward to it?
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