Quote:
Originally Posted by NYCAAer
The management team at CO is wise to stay out of this merger mania. I remain skeptical of the DL-NW merger being successful. Merging won't make fuel costs go down, which is the single biggest issue threatening the survival of airlines today.
I was thrilled to hear this news being an employee of AA. I feared a UA-CO combo would coerce AA into a merger with US Airways, since they'd be the only game in town. We don't need any more blows to our morale at American after the disaster that was the TWA buyout. Seven years later and that error still stings.
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I Wouldn't Be So Bold About That. The BIGGEST Advantadge Of A Merger Is Eliminating Redundant Competitive Flights That Carry Say 40-50-Or 60% Or Even 70% Capacity.
Optimizing Flights To 90-97% (As Air Canada Did) Will Give The New Airline PROFITS.
Of Course There Are Other Cost Cutting Benefits Too. Reduced Costs Due To Fewer Employees Per Aircraft, Lower Maintenance & Streamlining Of Aircraft Types For Better Fleet Commonality. A Larger Airline Has Stronger Purchasing & Negotiating Powers Too For A Few Examples.
Air Canada's Business Model Has Netted Them Better Than 300M Quarterly Profits CONSISTANTLY Since Their Restructuring.