United CEO Predicts...
 

United CEO Predicts American Will Abandon Chicago Hub, Claims Consumers Will Benefit

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Posts: 5
(@Big Jeff)
Joined: 10 months ago

LOL, “economic gravity is going to eventually win.” That's how I feel about a lot of companies (how is Tesla still alive?). But the market can stay irrational longer than you can stay solvent, to paraphrase another economist.

That said, I think AA strengthens ORD. If they were to be snapped out of existence, it would take UA a long time to fill 50% of the gap, and they would never get to 100%.


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Posts: 124
 DC
(@DC)
Joined: 11 years ago

This is getting exhausting. Kirby is a brilliant leader and has done a great job at United but the obsession with talking about American’s failures is repetitive and frankly annoying.


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(@jetset)
Joined: 5 years ago

Member
Posts: 431

Agreed. Clearly he has a personal grudge because he was exited from American, but he needs to grow up. That is his personal grudge - not anyone else's. We don't care how much he hates AA or wants to beat them. Keep it to yourself and focus more on where you're investing and growing the airline and passenger experience, not how much AA sucks.


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Diamond
(@isaacc)
Joined: 2 months ago

Member
Posts: 147

I agree he has a bone to pick with AA....but agree the focus is now comical....move on and focus on your airline....


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Posts: 431
(@jetset)
Member
Joined: 5 years ago

Also, in terms of the consumer benefit, I watched clips of his interview with Crains and he's not really talking about prices as directly per se.
The way he framed it was that today, American and United have a lot of replicated catchment area flights for ORD (e.g., Milwaukee, Madison, Green Bay, Bloomington, etc.). Because they are both competing in this market, they have to duplicate capacity in those places (and often with smaller planes to maintain economics, which takes up flight slots).

Whereas if AA wasn't a major competitor, United could up-guage those flights, reduce frequencies, and then fly other new routes, and more new international routes, with the newly available flight slots / capacity. Also those regional routes would be on nicer / bigger planes.

Now, I'm not saying I agree with this argument! But I think he's more so saying consumers would benefit from more routes, bigger planes, not that they would benefit from lower prices or schedule flexibility or anything like that...


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(@espresso_frankfurt)
Joined: 6 months ago

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Posts: 69

Yep, exactly. United would save money, and then squeeze out even more in fares. It is quite the opposite of what any thinking consumer would support.


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 Ross
(@Ross)
Joined: 12 years ago

Posts: 560

What is wrong with smaller planes and greater frequency? I'd rather spend an hour with fewer people on a regional jet with 1-2 or 2-2 configuration, than 2-2 or 3-3. Of course, I would rather take the train, but that alternative has left the station. Taxiing to the gate now takes as much time as the flight, But fewer short-hop flights would just open slots for more long-haul and the maneuvering would be just as bad.


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Posts: 12
 Karl
(@Karl)
Joined: 9 years ago

Kirby's arrogance will be his downfall.

And the future looks a heck of a lot brighter for the DFW area than it looks for the Chicagoland area.

I hope AA is starting to gets it act together, and if so the easy wins for Kirby are over.


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3 Replies
 Frog
(@Frog)
Joined: 10 years ago

Posts: 298

Well, AA is far from getting its act together. So there are many more easy wins in store for Kirby.


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 Timo
Diamond
(@timo)
Joined: 5 years ago

Member
Posts: 395

Yes AA is far off but the are starting down a better path. It won't change quickly. DL was in the crapper about 20 years ago and they turned their sh¡ t around. It's not fair to criticize a player for bad choices and then when they make better choices to continue degrading them. UA will win some but not all.


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 GT
(@GT)
Joined: 3 weeks ago

Posts: 1

AA deserves all the criticism they’re getting, and then some…


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Posts: 11
(@Juan No Take a Tripp)
Joined: 8 years ago

Considering what a disaster Newark is, a United O'Hare quasi-monopoly would be even worse. Kirby and United need their wings klipped. I am through flying them.


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Diamond
(@lieflat19)
Joined: 5 years ago

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Posts: 303

Newark would be a disaster no matter which airline is there. The airport is a dump, the city is a dump, the state is a dump...


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Diamond
(@mike-c)
Joined: 5 years ago

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Posts: 352

Tell us what you really think.


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Posts: 303
Diamond
(@lieflat19)
Member
Joined: 5 years ago

We need American Airlines out of the way so Delta and United can lead.


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1 Reply
(@ord_is_my_second_home)
Joined: 4 years ago

Member
Posts: 712

We need Delta out of the way because it's evil and because the rest of US airports can be like O'Hare.


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Posts: 158
(@grichard)
Joined: 8 years ago

"What choice does American really have? [It] needs a hub in the Midwest." Welp, speaking as a St. Louis resident, the schadenfreude here is delicious.


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Diamond
(@1990_)
Joined: 1 month ago

Member
Posts: 821

I still remember connecting at STL with TWA and not enjoying the airport layout, specifically when they’d have a gate-change, and it’d be like, go from D40 to C34, so you’d have to run a mile to catch your flight in-time (for a modern comparison, think Delta at JFK T4, going from B55 to A17, no bus.)


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Posts: 1
(@Frederik)
Joined: 3 weeks ago

As an Expat living in a foreign country, the only other big mid west city alongside Chicago that most people in Britain seem to know of is Detroit. In rural Denmark both Minneapolis and St. Louis are much better known than in the UK, not sure why.


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 RPC
(@RPC)
Joined: 2 years ago

Posts: 14
 Ed
(@Ed)
Joined: 5 years ago

Posts: 105

Minnesota, the Dakotas and Montana have loads of people with Nordic heritage, people who came towards the end of the 19th century. I know because my wife is one although her family moved further west in the 40s to work for Boeing.


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Posts: 1
 Ash
(@Ash)
Joined: 3 weeks ago

We live in SF. United has like 75% market share here. They can price the flights how much ever they want due to lack of competition. Competition is good.


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Posts: 71
(@Florida sunshine)
Joined: 7 years ago

I fly DELTA 99.9 percent of the time domestically and 50/50 international if I’m not flying private.

All stuff aside and maybe I just got very lucky. I have had 2 trips on AA this year and I have to say that I had stellar flight attendants and were very pleasant. Maybe I had 2 offs, but my experiences were very good. I’m mean cabin and food were atrocious, but they staff couldn’t have been nicer and extremely eager to please.

Just have to give them credit…..at least on my flights. Maybe I was lucky enough to be on 4 offs the best segments of the year on AA out of millions of their segments. Some employees do care


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(@BulGa)
Joined: 3 weeks ago

Posts: 1

Lol, yeah, you're flying muh private. Go on, 41E ...


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(@Ricky)
Joined: 4 years ago

Posts: 149

@Florida sunshine, contradiction much? Especially when “cabin and food were atrocious”, however were “the best segments of the year on AA”? Maybe all that private flying has messed up your perception of reality.


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Posts: 76
(@BjornFree)
Joined: 7 years ago

It’s all just supply and demand and the end of the day.

The fact that the US government allows a carrier to monopolize an airport is wrong.


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Posts: 38
(@ron mexico)
Joined: 13 years ago

Don't do it. I live in Atlanta, since Southwest bought AirTran--absolute nightmare


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Posts: 38
(@ron mexico)
Joined: 13 years ago

"I piss in the general direction" of Southwest and enjoy it..lol


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