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Meet America's Largest, Brand New Airline
Until last night, United which combined with Continental in 2010, was the nation's largest airline (surpassing Delta which had merged with Northwest some two years earlier). This morning this changed when the previously disclosed merger between US Airways and bankrupt American Airlines, was formally announced. The resulting airline, with some 26% of the market share is now the nation's largest legacy carrier, bigger than United at 19.3%, Delta with 19.2%, and discounted Southwest with 18.2%. Below are some of the key highlights of this brand new airline behemoth. And just like that, taxpayers now eagerly await the bailout of United South-American Deltawest Airlines in 2-3 years: the first Too Big To Take Off airline.
Airlines at a snapshot:
Broken down by passengers and fleets:
The combined pro forma hub structure:
Pilot labor costs compared between the various airlines:
There is limited overlap in LCC-AMR routes:
And the combined LCC-AMR fleet which will have over 1000 planes at day 1.
Finally, for those who enjoy learning through cartoons, here is the WSJ charting the evolution of the US airline space, and how we ended up with the Big 4.
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This is tieing two stones together and expecting them to float
It's always funny to watch something like ma bell or standard oil. Some big monopoly that gets broken up to bring capitalistic competition to industries being brought right back to where it started.
Airlines have been on the new normal plan long before that became an auto industry thing.
American Airlines meets the same fate as United Airlines (the airline formerly known as Continental).
The good old days of flying commercial are long passed.
The Terrorists have won.
That list is wrong.
Where are Braniff, PanAm, Eastern, TWA, and other major airlines?
Zombie Airlines wants PLLLLLLLAAAAAAAAAAAANNNNNNNEEEEEEESSSSSSSSSSS!!!
So... exactly how far below book value is this pig?
for the sake of efficiency, it's time to merge *all* the airlines.
together with the manufacturers of airplanes.
and the suppliers of their fuel.
and the providers of their security.
and the municipalities that host their landing sites.
the result would be an efficient, vertically-integrated public/private partnership. and, of course, would be the envy of the world.
Yeah, more airline mergers, like more bank mergers - to help the customers!
NOT!!!!
The airlines can merge all they like, they cannot solve the fuel cost 'problem' that is relentlessly pushing all jet airlines into bankruptcy.
Fuel is not the single greatest cost factor for airlines, supplanting labor costs. Problem? Airlines cannot 'negotiate' with fossil fuel depletion. They either cut flights ... or flights are cut involuntarily: 'conservation by other means'.
'sputter ... cough-cough ... sput,sput ... sput ...'
Can we stop the charade now?
Just merge all the airlines together. Call the new entity "National Defense Airlines". Put the military in charge. Fire all the airlines personnel. Fire the TSA. Have armed Marines man the checkpoints. Have them patrol the planes fully armed with bomb sniffing dogs. Put the endless subsidies in the Defense departments budget. Paint the planes with camouflage. And serve MREs on the plane. At $10 a pop.
We could call it "Chapter Eleven Airways"
http://tinyurl.com/aoxgmpq
The terrorists we intentionally created as a legitimate excuse to impose these new measures?
Yes, yes we can.
"The Terrorists have won."
You are referring to the in-flight "Service" of all the US carriers?
Next comes deregulation? Rinse, repeat.....
Airline customers, brace yourselves for another round of reductions in number of flights offered, and fare increases.
Let this debacle be called what it is - End of Empire Air - Fly the Fascist Skies!
TBTF airlines, financed by TBTF banks, protected by TBTF government.
* reaches for barf bag in seat pocket *
Don't worry, it gets worse. Who knows what deals are being made with various entities running the airports as the smaller ones are trying to become Too Big To Fail by planning for major expansion of their facilities (via grants from Uncle Sugar). Never mind the fact that this only takes business away from existing airports in nearby larger cities. Nope, all they know is the "If we build it, they will come." mantra.
The secret is that the smaller commuter planes are going extinct, as they are not cost effective. So, you either start finding a reason to grow an airport to 100 seat planes, or prepare to wind down operations in a few years. As these are mostly government entities, I'm sure we can all guess what their choice will be.
If the fares are high enough, the smaller commuter planes are plenty cost effective. I've been seeing these small planes increasingly used on routes between major hubs. Something that was unheard of a few years ago.
But think of all the jobs they'll save!
Fuck while we're at it lets destroy a few airbuses and pass the bill onto the customer to stimulate the economy since we'll have to pay highly skilled workers to fix it!
Brilliant!
What amazes me is how many flights are full depsite the 100% increase in prices these last five years.....
BTW, how many Dreamliners did they buy?
Carter's airline deregulation has achieved the desired result,an oligopoly.Be prepared for the sheer joy of forking out more money for that coach class seat.
The thing I saw was charging for seats like stadium seats. Each seat has a different price depending on its popularity.
Come on, let's get some chemtrail moonbats out for a bit.
There is some truth to chemtrails. Seems like they are mainly used as a weather modification tool.
http://www.worldaffairsbrief.com/keytopics/Chemtrails.shtml
Just shaking the tree for the sport of it! lol. On a limited basis, it is plausible as weather modification. But, on a world-wide basis...
Like anything else, let people imaginations run wild and they will.
What should alarm people is that food production via expanding technology is reaching an upper bounds limit and Malthusian theories are about to get revisited.
Riddle: What fucking happens when you combine two huge fucking buckets of hot shit together?
A: You get a fucking airline merger, that requires 3 times the fucking middle class bailout money in a few years.
Fuck you airline industry and your fucking govt master obama.
I count 6 "fucks"...excellent job. You get a bonus for the "hot shit". Keep up the good mothefucking hot shit ass fucktastic donkey bastard bitchass posting my friend.
You said "ass". Not supposed to say swears.
If only Bernanke could print at the rate Longsoup drops a f-bomb... we'd have been out of this recession by now!
F flying and TSA/DHS. I no longer want to get groped by TSA goons or get my prostate irradiated. If I wanted to expose my prostate to radiation - I would put it in the microwave.
PS: F TV and F Hollywood.
You've obviously never had the TSA 'Rusty Trombone'. Quite a pleasure!
Can we just add Pan-Am and Eastern to the name and call it-
"Pan American Eastern Airways"?
Should be a lovely Albatross!
The only thing better than this will be when Hooters merges with Virgin called
"Virgin Hooters"
Fly the horny skies!
Cum join our mile-high club!
It expects to have $40 billion in annual revenue, now America's biggest airline. So how much is Bernanke pumping into the economy? Gotta be atleast $40 billion EVERY friggin month.
WELCOME TO THE TO BIG TO FAIL CLUB!!!
Come fly the TSA! Totally Superfluous Airlines! Love it. Totally meaningless.
Way to go, boys! Keep consolidating the industry until you reach a point where we have only 2 or 3 carriers, and they are deemed "too large to fail", and allowing any one of them to go bankrupt for the 91st time would be a "national security risk." Uncle Sugar will step in with his big bag of minty green fiatscoes and put the wind back under your wings.
I predict Ben Bernanke will be the next owner of United Airlines. And then I predict Barack will go on national tee vee and proclaim "Air Travel is back on the rise!!!! The economy is getting better!!!!"
now if only they could get the dreamliner to take off on the New Tesla car battery, said to be as good as gold!
There are some doubtful thomases on that issue.
The new airline promises more leg and headroom, as they are installing wooden benches on all aircraft.
I'm stealing that!
kthxbye
Feel free...
By stacking the sheep like cordwood, they can get even more leg and headroom.
The visual of that was funny as hell! :-D
TBTF Air. inc
We be flying all up in here...
Crap, now my airfare ticket prices will increase. Why didn't I get reservations earlier?
Now that Imention it, ever since Obamacare passed, the private insurance companies (United Health Care/Golden rule) raised the rates on my wife and daughter 49.7 %.
Now what's next? Oh yeah more taxes.
Do they serve pancakes?
Too big to fail is now too big to fly...
Those pilot wages; are those hourly or yearly in thousands?
Hourly. Generally from brake release to brakes set or flight time only.
All 2012 revenue for all the big airlines doesn't even match 1 month of what Bernanke shits out! Unfuckingbelievable
The real question is, why is anyone still flying?
Because steamship, bus and train service is even worse. Soon the roads will be in such poor condition and auto operation will be so expensive that the farthest you will be able to travel will be to the local mini-mart.
Welcome to 21st Century America. They hate us for our freedom.
TBTF
Absolutely...
For those in the world who do not see what is happening yet, there is a race to become a part of that elite club, "Too Big To Fail"... In this day and age it has already been shown that there is safety in numbers... The bigger the better...
a pilot of a bankrupt company will be making $300 and hour taking home almost $50k per month!?
The new paint scheme makes the planes look like a can of Pepsi with wings on it.
The new American Airlines paint job … yay or nay? - Flying With Fish
To be named "US American"
http://www.youtube.com/watch?v=lj3iNxZ8Dww
You do realize that when fares inevitibly rise that our gubmint will have to subsidize all but the soon to be extinct middle class. Amnesty International Airlines!
Blah blah blah.
Great article. I hate AA.. the employees seem to hate their job and hence their company. Miami airport is the worst I avoid AA and Maimi like the plague.
M&A rumor: This newly merged airline is also in merger talks with Carnival cruise lines!
Aeroflop.
Airlines don't know it yet but just as email has made the Post Office irrelevant online meeting software like Skype and GoToMeeting are well on the way to making business air travel irrelevant. And since the economy is in the process of killing the idea of flying somewhere to take a vacation for all but the 1%, that market is going to go away as people learn to enjoy the wonders that lie within a day's drive.
Air travel is an anachronism - these companies may be considered too big to fail by a government that is too big to govern, but they are not too big to become irrelevant. Remember - it was the big dinosaurs that died off. The little bitty ones evolved into - us.
Rendition flights bithcez..
More .gov contract money to print.
Don't all quasi fascist banana republics have just one national airline?
We are almost there! Let's merge them all, name it after the dictator and call it:
Obama Hot Air or Dodo Air