Let Me Sum Up
Why DFW should want American to merge with US Airways. Plus: phallic graphics!
This airline! This one right here! Although I think they need to repaint thoseplanes. Boring!USAirways.com
A merger with US Airways would be the best thing not only for American but alsoNorth Texas.American Airlines
Ben Fountain's book, says someone's Tweet somewhere, is the best book ever aboutIrving.Courtesy of HarperCollins
Everyone in Dallas knows someone who works for American Airlines. I worked for its in-flight magazine off and on for years, and I still write freelance articles for it. My grandfather built airplane engines for AA in Tulsa for nearly three decades. I want whatever is best for the company, which, like most airlines, is struggling.
So, as the bankruptcy/US Airways merger talks continue, a few thoughts on what I think has to happen and why for the company to move forward.
Airlines have lost something like $50 billion in the past dozen years. Unless you’re Southwest Airlines (for whom I also work, through a vendor, on creating in-flight content), it’s almost impossible to go it alone now.
What you saw with Delta merging with Northwest and then United merging with Continental is the industry's attempt to fix the big problems that face airlines: high costs, too much pricing competition, and the usual struggles with running a "high degree of difficulty" business. Running an airline is closer to rocket science than it is running a travel company.
So it’s pretty obvious a merger between US Airways and American makes lots of sense, because US Airways, while a profitable airline, has no “end game.” It can't get bigger without AA, for many reasons. But, says a person who knows a thing or two about a thing or two:
[The merger] runs headfirst into [AA chief] Tom Horton's need to get paid, and Tom gets paid pretty much only one way: get shares of the reorganized AA. Every single decision his team has made in the past year has been aimed at one thing: making sure they get those shares and whatever juicy bonus they'll gin up for getting the airline out of Chapter 11.
And that has put management in the position of arguing against something everyone else knows should happen — and has to happen. As a result, insider-observer person says, “American used to be the most-respected carrier in terms of management talent and strategic thinking. Now it's the least. By a country mile.”
I think and hope the merger will happen, despite some pressure from outside forces. (See Terry Maxon’s post this morning.) Because the creditors don’t give a damn about the internal politics. If they think a reorganized company can get them more cents on the dollar, that’s the way they’ll go. Like the elections, the winning argument is very simple: math.
Bigger is better in terms of pricing, economies of scale, flexibility, appeal to business travelers — the whole megillah. Sure, US Airways HQ loses jobs in Phoenix and Tempe. But screw Arizona. DFW comes out on top in this deal, which needs to happen. And North Texas once again will be home to world’s largest airline.
Elsewhere
Another Bush is running for office. You can’t stop them, people. You can only hope to contain them.
Steve Blow says we’re not lazy despite what Facebook, commenters and letter-writers say. Clearly, he’s part of Agenda 21.
The White Rock Boat House was approved. Speaking of insane commenter allegations …
The Texas Supreme Court okays do-it-yourself divorce for low-income couples. Oh, great, now you approve it.
Tim Rogers says local author Ben Fountain got screwed in the National Book Award announcements last night.
That A&M receiver who ran an out route and never came back? They found him.
Retweets
Giggle, from Channel 8’s weatherman.
Dale was just telling me that he bought a pair of jeans today. He says it's the first pair he's ever owned! I asked if they're skinny jeans!
— Pete Delkus (@wfaaweather) November 15, 2012
Lodowick Allison is a great writer and thinker, so you should read this column. I just wish he had a local blog or magazine or something to write about Dallas issues.
My dad, @wickallison, on the GOP and fairness: theamericanconservative.com/the-real-gop-f… #proud
— Gillea Allison (@GilleaA) November 15, 2012
Always up for subtle phallic Startlegram infographics. Well, not "up" in this case.
That's the smuttiest thing ever RT @joeheim: The FW Star Telegram provides an unsubtle visual for the Petraeus scandal. bit.ly/T3yIX9
— Jack Shafer (@jackshafer) November 14, 2012