A Few Thoughts on AA-US to Date

While I don’t spend much time on American Airlines or US Airways anymore, my recent flight excepted, I am following developments in the merger with great interest for a variety of reasons. First, I’m an AvGeek with a tremendous interest in what’s happening in the airline industry. Second, while I don’t profess to be an industrial engineer or organizational consultant, the logistics of putting together two large airline operations simply fascinates me.

So far, I like what I see. While it seemed pretty clear to me that this was going to happen, the new American managers have formalized their commitment to keeping the larger airline’s Sabre system for passenger services. No airline’s technology strikes me as cutting edge, but keeping the tried and true Sabre system should go a long way in easing the transition to one platform when the time comes. Further, both carriers are now extensively code-sharing. Last time I checked, they were down to just a few international routes where local rules were preventing them from doing so, and this may have been resolved by now.

An alignment of meal services is forthcoming, and there’s quite a bit of speculation surrounding this topic. My sense is that whatever happens will be an improvement for US Airways customers, but perhaps a mild trimming around the edges for current AA aficionados. I think one could safely say that current AA meal windows/quality exceed that of most, if not all, domestic carriers so there could be some room for trimming here. There’s a pretty interesting thread on the topic at FT.

On the downside, much of the AA fleet will be getting some more seats installed. That said, the proposals I saw were not out of line with other mainline carriers. Nonetheless, this will be an interesting watch item. Of course, there are still many unanswered questions surrounding the frequent flyer program, when will account balances be merged, potential revenue requirements, etc. Contrary to conventional wisdom, I don’t think it is a given that the new AAdvantage moves to a four tier elite system. It’s entirely possible they institute a minimum revenue requirement, but not guaranteed. It doesn’t get a lot of play by the experts, but AAdvantage already rewards big spenders over big mileage balances through a little something called an Elite Qualifying Point. Will it matter in the end? Who knows?

When it’s all said and done, good ideas will not mean anything without good execution. I’m hopeful. Are you? What are your top worries/concerns/hopes/desires for the merger?

-MJ, February 24, 2014

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4 comments
  1. As a US Air elite living in an AA city (STL) I find that the AA planes with the main cabin extra are great. I would hate to lose that but I assume we will.

    I do like the new Admiral club rules that will prevent Amex users access. I know you hate me if your one of those Amex users but it seems like a good business move for AA / Citi.
    The biggest downside to me will be the increase in elites at AA hubs. There are already a ton of AA elites in those cities and now you will add another 10-20-30% or whatever to make it even harder to upgrade. Long term it will be OK though.

  2. Hi, MJ,

    I’ve been a Gold or Platinum elite on American for almost 20 years. I really thought that American was one one of the better flying experiences as a domestic airline. As an elite, right now, I’m not optimistic with what I see. I had hoped that the new management would come in, unite and revitalize the workforce. I’d hoped that they would merge the best aspects of both airlines from a customer perspective. So far, it looks like US Air’s management plans to shoot for the lower standards of both.

    Removing seats from the aircraft. My best guess is that means fewer or zero seats in Main Cabin Extra. Those seats were like a minor upgrade in coach and as someone who is tall and always travels with a laptop, I really appreciate the extra room. At Gold, and often now Platinum, upgrades to the front of the plane are harder to come by than in previous years.

    The timing of removing complimentary Amex Platinum Card access to the Admirals Clubs was not fortuitous. Although I’m sure this has been in the works for a while, the timing of the announcement — within days of closing the merger — makes it looks like reducing the benefits of the airlines’ elite flyers was one of the first tasks at hand.

    With the work that had gone on before at American, there was an opportunity here for the US Air team to come in, start fresh, and really build on “something special in the air.” I hope I’m wrong, but right now, with the direction I see Mr. parker et al taking the airline, I’m not optimistic and I’m afraid that fairly soon AA will be just another US airline.

    =M=

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