Thursday, February 14, 2013

US Airways & American Airlines Merger Thoughts

I originally though US Airways was talking about buying American Airlines to thwart AA's restructuring process then pull out last minute and create a very weak AA. I was very excited to see this fun way to cripple a competitor in action.  US suggested better terms than AA to unions and creditors throughout the process.  Then at the last minute US signed the dotted line and overpaid for an expensive operation.  Not quite as I expected.  But what does this mean to frequent flyers?
These Jets Will Need New Paint Soon
US Airways will be folded into American Airlines and the new airline will be a oneworld (still better than Skyteam) member.  This is bad news for me because I am a loyal Star Alliance flyer and soon (but not sure when) will not be able to fly US for cheap EQMs.  The merger will take a while to happen, so I'll sill get EQMs for my US flight in April.
Star Alliance Quote
Once the merger is completed, CLT and PHX will probably lose out to DFW and MIA (even though MIA is stupidly expensive and out of the way) for hub traffic, PHL should be fine.  Dividend Miles will be transferred 1:1 to AAdvantage Miles and the AAdvantage award chart will be devalued slightly.  The US award chart, with it's cheap around the world awards, will vanish.  I also won't fly the new airline if a United option exists, so none of this will bother me and I'm not interested in the on board experience.
American Jet at CLT

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