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US Airways ends merger talks with United
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NYCguy
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Glenn Tilton (UAL CEO) says that it's about "capacity discipline", i.e. there are too many planes flying around, and consolidation is vital for the future of the industry.
UA has also been involved in merger talks with CO in the last couple of weeks. They had (according to the NY Times) reached a number of agreements, including keeping the United Airlines identity for the new company and retaining the corporate HQ in Chicago, but talks stalled over the stock-swap ratio for the deal.
On a side-note, UAL Corp is moving it's HQ from a campus near ORD to the Willis (Sears) Tower. The view will be better...
I know the dynamics are different in the US compared to the relatively simple Australian market, but it doesn't take much to work out there are too many planes flying around and the inefficiencies that creates. When there's 50 or 70 seat RJs flying between two massive cities the size of Chicago and New York, you know something is really wrong. Even AA's 136 seat MD80's which are a workhorse of this route seem undersized compared to what one would think would be efficient. No wonder ATC and slots are such an issue it's just insane! Can you imagine QF flying a 50 or 70 seat aircraft routinely between MEL and SYD!
Even SW fly the smaller family of 737's - 300s, 500s and 700s. 137 seats. When we are talking about 180 seat 320s in this part of the world, it just seems plain (plane?) inefficient to have so many small aircraft flying around a country of >300mill people.
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