Not every country can afford to prop up their airline industry after it makes bad decisions. That is

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It is pretty likely that American Airlines and US Air will announce plans to merge very soon.  In reality, Doug Parker, the current US Air CEO, will be CEO of the new American Airlines (which will be run a lot like the current US Air).
In my opinion, the merger is bad news for most folks who pay cash for airline tickets has the long-term potential to ultimately be bad news for folks who collect and redeem airline miles for tickets.  But the merger is great news if you re an airline investor or if you run another US airline!
The American Airlines and US Air merger isn t by itself bad news for consumers.  But it represents further concentration of the US airline industry.  And further city of los angeles parking violations concentration and fewer airlines means less competition and higher ticket prices.
I personally would much rather have more airlines, frequently competing city of los angeles parking violations with each other, making city of los angeles parking violations bad business decisions (fare wars and unprofitable routes, etc.) and going bankrupt (after subsidizing my travel with their bad decisions!), than to have fewer airlines operating more efficiently.  There are always billionaires and governments eager to help out failing airlines!
And I see the merger as just another small step towards the day when US frequent flyer programs will not be as generous as frequent flyer programs in the rest of the world.  American exceptionalism is declining, and with fewer US Airlines there will be less need to have attractive frequent flyer programs to attract consumers.  Why would a savvy airline manager want his or her frequent flyer program to be best-in-class when the consumer doesn t really have a choice of a better frequent flyer program city of los angeles parking violations and airline to fly on?
So I expect the merged American Airlines to cut back on the generosity of their frequent flyer program, introduce new fees, and make it harder to extract benefits.  I m not saying that it will be impossible to extract benefits from the merged American Airlines just less lucrative than before.
Parker s vision of a lower cost airline providing a lower quality of service is much more likely to succeed than American Airlines current strategy of branding itself as an airline with superior service and hoping that consumers pay a premium to fly on American Airlines.
I don t look forward to the lower levels of service and cutbacks that are inevitable on the merged American Airlines.  But I see Doug Parker s strategy as a much better strategy than the current city of los angeles parking violations strategy of American city of los angeles parking violations Airlines CEO Tom Horton.  Horton s strategy is to re-brand the airline as one providing superior service and hope that consumers pay a premium price to fly American Airlines.
city of los angeles parking violations If you read many miles and points blogs, city of los angeles parking violations you sometimes see a simplistic city of los angeles parking violations theme emerge:  Southwest, Ryan Air, Spirit = Bad.  American Airlines (insert current airline provided over-generous benefits) = Good.
But Southwest, Ryan Air, and Spirit city of los angeles parking violations Airlines are very profitable and have made air travel possible better for lots of folks.  Yes, they don t have first class and make money on extra fees, but they are much better run than American Airlines. As an investor, I d prefer owning stock in Southwest, Ryan Air, or Spirit than, say, American Airlines.
For better or worse, Americans are willing to outsource (read = give up) their service and manufacturing city of los angeles parking violations jobs to other countries, just so that they can get lower prices on the goods and services they consume.
It is completely unrealistic to expect that corporate budgeting offices and the average US consumer will pay MORE for an American Airlines flight, just because they give you a better quality Pajama in first class or because they serve fancier food!
Re-branding an airline (or any product) takes time, effort, city of los angeles parking violations and money.  It doesn t happen in a few months, city of los angeles parking violations but takes years to build the trust and goodwill which are the hallmarks of good brands.  American Airlines ranked as the 8th worst company in the US last year!
You can t re-brand a company with such a bad reputation by offering better pyjamas in First Class, city of los angeles parking violations a better paint job on their plane, or a new amenity kit (like American Airlines city of los angeles parking violations has tried to do)!  You need lots of time and money to actually train your employees city of los angeles parking violations and overcome the years of negativity surrounding your brand.
And this is why American Airlines current strategy under CEO Tom Horton is going to fail:  Almost no one wants to pay higher prices in the US for marginally better airline service and building a brand takes lots of time and lots of money, neither of which American Airlines has.
Doug Parker at the helm of the new American Airlines is good news for American Airlines and the rest of the US airline industry.  But I don t see it as good news for folks who pay cash for airline tickets or for the continued generosity of US airline frequent flyer programs.
city of los angeles parking violations To be clear, I don t expect a sudden claw back of benefits, but it will happen gradually and over many years.  And don t see any reason to stop collecting American Airlines, US Air, or other frequent flyer miles and points either!
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I personally would much rather have more airlines, frequently competing city of los angeles parking violations with each other, making bad business decisions (fare wars and unprofitable routes, etc.) and going bankrupt (after subsidizing my travel with their bad decisions!), than to have fewer airlines operating more efficiently. There are always billionaires and governments eager to help out failing airlines!
Not every country can afford to prop up their airline industry after it makes bad decisions. That is why you have had airline collapses. Do you know the quickest way to become a millionaire? Be a billionaire and buy an airline.
I don't look forward to the lower levels of service and cutbacks that are inevitable on the merged American Airlines. But I see Doug Parker's strategy as a much better strategy than the current strategy of American Airlines city of los angeles parking violations CEO Tim Horton. Horton's strategy is to "re-brand" the airline as one providing superior service and hope that consumers pay a premium price to fly American Airlines.
How do you know there will be lower levels of service and cutbacks? AE is adding first class to many of its birds, and I believe AA s focus on service is what has gotten it through bankruptcy thus far.
Let s make no mistake about it, American s problems are led by the fact, that prior to AA entering BK this time, it had never been in BK. USAIR on the other hand has been in BK twice in the last decade. AA ultimately had labor costs that were to high to be really profitable, which is really why this whole BK started. The purpose of BK was to cut labor costs and try and bust some of the unions.
Re-branding an airline (or any product) takes time, effort, and money. It doesn't happen in a few months, but takes years to build the trust and goodwill which are the hallmarks of good brands. American Airlines ranked as the 8th worst company in the US last year!
You didn t mention that United was 5th best. Maybe because Chase is the majority of your affiliate income, and you wouldn t want to piss them, and their marketing partner United off. Yet, it is ok to spin AA as a hated company by consumers oh wait, that s right. city of los angeles parking violations Citicards and their marketing affiliate AA do not offer as lucrative affiliate income on some of their cards.
This is like tail wagging the dog. If you bash AA and Citi, you get kudo s from Chase. Then once you do, you try to fly on airlines that have been bailed out by other governments and hedge funds, and travel on those airlines city of los angeles parking violations for big travel and small money
Darius, You are right on .American is where it is because of its employee s arrogant attitude and disdain towards it s customers. I first heard the term Sky N_zi s over 30 years ago, and it has rung true, time and again. They also screwed the employees and customers of Reno Air, TWA and Air California city of los angeles parking violations Karma is a bi_ch, American. And W isn t in office to help ya all.
Industry consolidation is ultimately devastating for the consumer. The casino city of los angeles parking violations industry is the ultimate example. During the expansion phase in the 90s, it offered wonderful opportunities for consumers (and also for employees, including minorities and women, who got opportunities that didn t previously exist for them). The giveaways were amazing and far overshadow anything the airlines have ever given away. Then the gov t allowed these monopolies, and the next thing you know most of the Vegas strip is basically owned by two super corporation and the stupid people just sit by and let it happen. More than that. The stupid people pay $50 for a buffet that should be free to a gambler and stand in line for the privilege. They pay idiot resort fees for sweet eff-all! The rich giveaways have vanished. And is the casino industry better off? The well-advertised troubles in the Nevada economy can answer that question for you. Efficiency is terrible both for consumers and employees. Consumers lose their affordable fun and employees lose their houses.
Now the same thing is happening to the airlines. Ultimate result of this efficiency is that many consumers (especially older ones) will no longer be able to afford to fly and many airline employees will no longer be able to afford to live indoors because they ll be out of a job! I ve seen this movie and I just don t understand why the courts don t put a stop to industry consolidation and near-monopolies.
This is pretty much bad for everybody. Trust me, you are not going to see a better return on your IRA j