Airlines: November 2007 Archives

A story floated out on the other side of the Atlantic yesterday while the US was enjoying its Thanksgiving dinner that has serious implications for both major aircraft manufacturers. Air France/KLM, soaring after it announced a doubling of its profit, is soliciting bids from Airbus and Boeing for up to 100 new widebody long range aircraft. The number alone is staggering. The order would be worth around $20 billion. KLM will use the replacements on its 747 Combis and MD-11s and AF needs to replace its 777-200s.

No joke.

The new vice-president for passenger services at American Airlines is Chuck Imhof.

Delta, United discuss combining operations

Associated Press

ATLANTA - UAL Corp.'s United Airlines and Delta Air Lines Inc. have been discussing a combination between the nation's second- and third-largest carriers that would keep the United name and the corporate headquarters in Chicago, The Associated Press has learned.

Two hundred aircraft orders here, 82 here, 188 there and plenty of others elsewhere. However, a merger between United and Delta could be the trump card of the week. There was not a single order by a North American commercial operator (correct me if I'm wrong) at the Dubai Air Show - this would be a massive shift in the US market.

I'm going to take a little time to digest the news because I spent the day traveling and I am still trying to convince my body to be asleep when it's supposed to be and awake when it's supposed to be. However, there are a few big questions that immediately come to mind about any merger.

What would the resulting fleets look like?

Overlap:
777-200 (different engines)
767-200/300ER (different engines)
757 (Same engines - PW)
CRJ200
CRJ700

United
747-400
B737-300/500
A319
A320

Delta
767–400ER
737–700 (on order)
737–800
MD–88
MD–90
777–200LR (on order)

What would codeshare/FF alliances look like? Would Delta leave Skyteam for Star Alliance? Would they join forces?

Delta - Skyteam - Partnering with AeroMexico, Aeroflot, Air France, KLM, Continental, Alitalia, CSA, Northwest, Korean, Air Europa, Copa, Kenya Airways

United - Star Alliance - Air Canada, Air New Zealand, ANA, Asiana, Austrian, BMI, LOT, Lufthansa, SAS, Singapore, South African, Spanair, Swiss, TAP, Thai and US Airways.

Is this any good for travelers?
Yes - Expanded routes mean more accessible networks and schedules.
No - Less competition means higher fares - especially in regional markets.

What happens to regional carriers?

What questions come to your mind?