In a new interview, United CEO Scott Kirby says critics misunderstand his proposed merger with American, and that he alone knows the plan. Here's why I disagree.
It would never be approved by regulators. So, who cares? Let's move on.
You are forgetting which administration is in office right now. It is now or never if a merger of the big 3 was to happen. You need to just look at Skydance to get an idea of why FTC won’t do peanuts
If the state receives a hefty paycheck, no AGs are gonna stop mergers. Again look at Skydance and how it has gobbled up everything, including with the Paramount merger which every states sued to stop saying it was bad for America and media landscape but are now quiet after reaching a settlement
I wouldn’t be so sure about that, Lee. If Scott brings a few golden idols to the WH, anything is possible. It worked well for Tim “Apple”.
I still chuckle at the idea that an airline is a lifestyle brand. These "airline brands" are certainly well respected, just as compared to the number of people who think Congress is doing a good job.
Every airline CEO has his right good eye on raising fares ; he has his left bad eye on nickel and diming those who blindly pay ; he has his center weird eye on his bonuses .
My students tell me I should run for President. So, based on Scott Kirby's logic, I think I should.
Kirby’s ego seems to be getting even more out of control these days
Why do so many people give so much oxygen to this guy? He absolutely has done things that have turned United around. And for that he certainly should get credit. But he's not a rockstar. He seems to think he's a celebrity. He's not. He's a talented executive. While drastically improved, United still isn't a great experience. Its premium products, though ok (but admittedly a great selection of wine and champagne internstionally) are still totally middling compared to good foreign carrier premium products. He's smart, but he really needs to pull back. He's exhausting and nobody cares for his opinions.
The lyrics of Coldplay's song "Viva la Vida" come to mind. In ancient Rome, the highest honor paid to a military commander was a multi-day celebration called a "triumph." In the procession at its commencement, behind the commander being honored, a captured slave held the crown of the defeated king. And, the captured slave would whisper a warning to the commander: "all glory is fleeting."
The wheels are clearly falling off UA which I have said for years would happen not because UA didn't present a great opportunity to turn around but because Kirby is so arrogant and conceited that he has to turn a very good success story into something unattainable. We saw internal UA docs years ago that UA would be at a fleet of 1500 mainline aircraft by now and while UA has grown alot, they are still the 4th largest US domestic airline on their own metal. UA thought it could grow well beyond what EWR, ORD and SFO could sustain and the feds stepped in; UA's costs are elevated because of signing up for a bunch of regional capacity and new aircraft they can't use.
and then add in fuel costs - which have always been a threat to the airline industry - and UA pays the highest costs of the big 4, thanks in part to its heavy west coast presence - that so many think makes UA untouchable - and yet DL is rapidly growing its west coast and TPAC systems with refinery subsidies (Exxon just reported record refinery revenues so anyone that has a refinery is making big coin). UA can't stand the thought of giving up old aircraft so flies a chunk of its TPAC system at a fuel inefficiency disadvantage to AA and DL even before factoring in DL's fuel cost advantage and the fact that DL is months away from introducing the only large new generation widebody in the US carrier fleet.
and then we have stories of both the DL and AA merger proposals, both of which are just detached from reality but rooted in Kirby's realization that he can't succeed in a market with other competitors so he wants to eliminate them.
finally, Gary notes that Kirby is dissing credit card profits - which can only mean that negotiations for a better deal are not going well - which we have heard repeatedly would be what allows UA to overtake the rest of the industry in profits, something UA has never been able to do despite flying more capacity.
and then we have him focused on a fictional merger even while at his kid's sports games - and truly thinks that a few people that hate AA service means his merger idea is going anywyere. Let's not forget that B6 and F9 posting decent revenue numbers only delays if not eliminates the notion that UA is going to swoop into JFK
The guy lives in a complete state of detachment from reality.
It's no wonder he is blabbing more and more about wealth takes and everything except UA since his grandiose dreams for UA and the airline industry are not coming to fruition.