What happened during the airline consolidation in the US? |

With the file of appeal from Spirit Airlines (NK) and JetBlue Airways (B6) against the
blockage of the proposed merger, questions arise regarding the current state of
airline consolidation in the United States. Historically, three specific acquisitions have shaped the aviation industry in the United States - today, we will look into which factors have led to the biggest American airline mergers.
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0:00 Introduction
0:29 Delta/Northwest Airlines
2:58 United Airlines and Continental Airlines
4:55 American Airlines and US Airways
6:47 The future of consolidation
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Credits:
Script: Feriel Bahloul
Voiceover: Ric Rosenbaum
Video: Benjamin Barbe
Thumbnail: Simone Chellini
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Extra credits: France2, PeriscopeFilm, American Airlines, RyanBomar, PDX Aviation, JDProductions INC., planesguy, FOX31 Denver, JetBlue, Airbus, CNBC Television, Spirit Airlines, avgeektv, Tyler H, nc planespotter, Rudi van Goch - Aviation Videography ,Captain Steven Markovich, United Airlines, SDMullis
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[@Atl404sFinest]

Today’s American is at its core America West, today’s Delta is at its core Northwest, and Today’s United is Continental at its core. Very interesting how the merged airlines carried over the management of the financially weaker airline but got rid of the management of their main brand

[@jmWhyMe]

AW buying US was crap buying crap. AA buying US was crap buying crap squared and then you have what you see now...

[@JDK3728]

AW was a single hub garbage budget carrier and that management team shows today at AA with the disfunction and bloated middle management structure.

[@ronparrish6666]

Don't forget American getting TWA and Air California to start the ball rolling

[@KennaDC]

American was hemorrhaging billions of dollars a day in operating costs when the US Airways merger occurred. America West and then US Airways was not the financially weaker airline here.

[@KennaDC]

@@JDK3728(1) AWA had 3 hubs, so you're off to a bad start. (2) After the US/AA merger, they went with American's management infrastructure and many of American's weaker products. US Airways had 30k employees. AA had 100k. One of those has room for a bloated management structure, and it sure as hell isn't US Airways.

[@CJWJR]

I also remember the days before these mergers when the industry standard was two free checked bags, but not after about 2008.

[@aaronlimitless]

Unfortunately, you are correct luckily, though even with inflation in mind, airfare prices of flights have been relatively stable. It was the demand of airfare set to record highs by 2050 that should only help to stabilize prices, or even help to drive them down as more and more competition enters keyword as more and more competition enters competition is always a good thing.

[@therealstephenticson]

please do a series of US hub airport history - examples being: Miami + NYC, feel like both airports have crazy interesting histories of their routes + airlines that considered them their hubs. Thanks in advance!

[@ALLpurpose85]

Sort of ironic the companies that merged, their names were similar already. United and continental (both global related names), us airways and American Airlines (both USA) and delta and northwest (both had upwards triangle arrows as logos)

[@erik_griswold]

Would be great if videos like these would acknowledge the many mergers that took place before the most recent ones. Why does Delta have a hub at DTW, why does United have a hub at EWR, why does American have significant ops at Phoenix and Philadelphia? All due to previous mergers with companies not mentioned in this video.

[@thechosenone1533]

Its an 8 minute video. There's only so much he can cover.

[@hewhohasnoidentity4377]

​@@thechosenone1533then make it a 15 minute video. Most people interested in aviation topics will pay attention to every word.

[@bigkevinpetrona]

You can research that yourself.

[@ajs11201]

It's essentially in the video. Delta has a hub at DTW because Northwest did.

[@BobbyGeneric145]

He meant why did that hub exist to begin with... Republic. ​@@ajs11201

[@ericjones7769]

Northwest,Continental and U.S Airways all 3 are so so missed 😢 😭 😫 😪 💯💯💯💯💯

[@ajs11201]

That's not universally true. Northwest had a major hub in Detroit, and much of that region hated flying as a result. I know folks who prayed the FAA would just ground Northwest altogether, and their was a chorus of angels singing when Delta bought them out.

[@ericjones7769]

@@ajs11201 Lies Lies Lies 😒

[@ajs11201]

@@ericjones7769 You actually liked Northwest? Wow--that's honestly the first time I've ever heard someone admit that. Well, there's no accounting for some people's tastes.

[@bracedgod4505]

@@ajs11201 only for them to continue using it as a major hub lol

[@user-zn5qg4se6q]

America West Airlines!! Missed

[@mrAhollandjr]

I certainly think the JetBlue abd Spirit merger should happen. Spirit is going to disappear either way whether through the merger or bankruptcy. It's better if the merger happens .

[@joshuaklange]

What about the southwest and AirTran one

[@brawnbenson552]

A few mergers you missed is American buying TWA. America West buying US Airways (essentially America West became American) Southwest merged with Air Tran. BTW all the airline bankruptcies were due to 9/11

[@taxiway207]

Some bankruptcies were partly due to 9/11. For example, TWA and American had already made a merger deal by the time 9/11 happened due to past financial problems. But 9/11 was far from the root cause of these airline bankruptcies.

[@jwil4286]

9/11 and 2008 together. COVID might have caused some more mergers (or bankruptcies [potentially Spirit may go belly up])

[@jameshannahs9010]

@@taxiway207 Very true: TWA has faced a lot of financial difficulties pre-9/11, having filed for bankruptcy in 1992 and 1995. The crash of Flight 800 in 1996 was a black mark, and by 2000, they were looking for a new partner after talks of a merger with America West fell through.

[@user-zn5qg4se6q]

I was a fa with america west. We had a great airline. We bought USair.merger among employees was a nightmare. USAir was angry. AA has issues. But many employees,new destinations, we are happy! Thanks Doug Parker

[@brandono.brooks4872]

AirTran didn't so much merge with Southwest as much as Southwest bought AirTran, mainly to get their Atlanta gates, sold off the former AirTran 717s, kept the 737s, and wiped the AirTran brand off the face of the earth. This is essentially the same thing that happened with Midwest Express once AirTran bought it out. BUT...nothing about ME lives on through Southwest, especially those fresh-baked chocolate chip cookies. MAN I miss those cookies! (And Midwest in general.)

[@banstaman]

Reminder: The DOJ and all governing bodies had no problem with these giant carriers merging... But they were all worried about a monopoly when jetBlue tried buying Spirit.

[@Awsome17203]

I mean JetBlue and Spirit serve different markets. Spirit is ultra low cost where JetBlue is low cost but not the same model as Spirit so the argument is that it takes away the completion in the ultra low cost market cause it’s really only Spirit and Frontier as well as it takes away some peoples access to their only means of air travel

[@savagecub]

That’s because the DOJ is worried about the Trailer Park residents. Who will serve them if JetBlue brings all the spirit airplanes up to a decent standard ?

[@miketech79]

@@Awsome17203 The actual markets are the same physically. It's possible that the customers in those markets are different. But if you look at the cities served by JetBlue and Spirit there are way too many overlapping market areas served.

[@miketech79]

@@savagecub Actually both airlines don't focus on anything else but more wealthy areas of the country if you look at their cities/markets they are pretty limited.

[@savagecub]

@@miketech79 I wonder why they would focus on those areas………..??? Could it be to earn a profit ??? Just a really crazy thought.

[@mistahpahkah5876]

You forgot AirTran(valuejet) and Southwest

[@TemporaryChannelName]

real

[@jblyon2]

I fly on the 717's Southwest dumped as part of that regularly. Delta uses them at 2 airports I commonly fly to/from. If I look up the tail number it's almost always a former AirTran bird.

[@ronparrish6666]

American Airlines planes now painted like Grey Hound buses now

[@miketech79]

LOL, they are actual buses in some areas for short routes now!

[@MatthewSmith-cv7op]

Don’t forget the merger between Virgin America and Alaska.

[@charlesnicholson7539]

It wasn’t that impactful overall.

[@gyulamoldvan]

Spirit is the worse airline right next too frontier airlines so I don't think any would have shed a tear if jetblue and Spirit merged

[@foodlover2236]

As one who is quite illiterate about the intricacies of airline mergers i fail to understand that if an airline is unable to function efficiently , provide the best service and innovation and is financially unhealthy how can it be the dominant partner in a merger with another airline that’s also in the doldrums but expect to now be efficient , innovative etc etc. just doesn’t make sense. Regarding airfares not spiking , have you travelled lately ? There is a charge for everything and less options for the same fare so in essence one is paying more for less. One can go across the globe with far superior service on an international airline than a much shorter distance on a domestic route and get high on pretzels or peanuts. The planes are new and quiet but the services offered are the pits. And don’t tell me the airlines are not making money

[@afrophoenix3111]

It's a valid point that frustrates me as well. There may be similarities with the Boeing/McDonnell Douglas merger 30 years ago. MDD was clearly the smaller, doomed company, but their shrewd, hostile managerial staff (and work culture) took over that of Boeing. One contributing factor may be the corporate financial strategy of MDD, a lot of "penny wise, dollar stupid" tactics that look really good to the investors and stakeholders quarter-by-quarter, but ultimately screw over the company's long term health. See: 787, 737MAX programs. TLDR, more examples of late-stage capitalism destroying what we hold dear. A handful of heartless suits get their golden parachutes at the cost of decades of legacy, communities of excellence, and the working class.

[@zms8092]

I miss Northwest so much. The industry is all crap now. Stale, generic, and all run by bean counters. I’ve been a flight attendant for 25 years and it’s just crazy how different things are now.

[@adamgordon9391]

Was this video written by AI?

[@cwilson000]

TWA jacked over Ozark Airlines with that merger

[@jocelynharris-fx8ho]

I used to subscribe to the print version of 'Airways' magazine and a similar publication, 'Airliners' magazine. This video about the mergers, is not as in-depth as the printed articles used to be. 🥺 Social media is good for some things but nothing beats a good ol' fashioned printed magazine. The articles were more thought out, the research and details were explained better and you didn't have to hear an audible narrator mispronouncing words. If there is no intention of going back to print, at least make the video version of your magazine, as compelling as the kind that I used to rush to the mailbox to get each month

[@marcbarrett6119]

Workers lost their pensions!!!

[@ronparrish6666]

You can go back even farther Continental getting People Express and Air New York

[@flightsimgamerdarth94]

Don't Forget Korean Air and Asiana Airlines

[@schalitz1]

Spirit made absolutely no sense for JetBlue. If I were them I'd go all in on trying to get Hawaiian. They already have a partnership, and I think they'd be a much better parent company than Alaska. They have NO route overlap whatsoever JetBlue operates Continental, European and South American flights, while Hawaiian can give them a door into Asia and Oceania.

[@Abel0228]

JetBlue went after spirit for their planes not route network per se. JetBlue was going to double their size in lax which is critical for their Mint product and they would have acquired a large hub at Vegas/Fort Lauderdale. Also if JetBlue doesn’t grow they’re bound to be bought and merge with another airline. So going after spirit made perfect sense.

[@jwil4286]

“They’d be a much better parent company than Alaska” JetBlue has no idea what it takes to serve remote communities (not to mention that JetBlue can’t win a bidding war against Alaska [see Virgin America]). Alaska and Hawaiian both do. During the Maui wildfires, Hawaiian offered single digit fares for people trying to get back to the mainland. I’d be willing to bet Alaska would do something similar if something catastrophic happened in their namesake state, such as an oil spill in Prudhoe Bay (which I hope never happens). JetBlue? They don’t really care about anywhere that isn’t New York, Boston, LA, San Fran, Florida, or MAYBE Vegas. Also, while you’re right that Hawaiian doesn’t have any route overlap with JetBlue, they also don’t have much network compatibility. The reason Alaska works with Hawaiian is because Alaska has an extensive network feeding passengers to the west coast (and Alaska and Hawaii) while Hawaiian operates somewhat like a Middle Eastern superconnector airline out of Honolulu, including to all of Alaska’s west coast hubs. On a combined network of hundreds of routes, only twelve had both Alaska and Hawaiian flights, and of those, only TWO (Honolulu and Kahului to Portland) were duopolies.

[@schalitz1]

@@jwil4286 Not saying JetBlue cares, but if you think Alaska does you're wacked. Look at what they did to Virgin America. Also their "namesake state," they might as well be Seattle Airlines. The name they bear is a disgrace as they represent Seattle and San Francisco more than they represent Alaska. At least Hawaiian has remained true to their name and haven't forgotten who they are or where they come from. Likewise as you said JetBlue cares a lot about NYC, Boston, and Florida, as that's their roots, again didn't betray them like Seattle Airlines. I'd argue the only "remote" community Hawaiian serves is Pago Pago. Every other city they serve, with the exception of Hilo, has plenty of competition. They do not serve Moloka'i or Lana'i anymore which are the only 2 "remote" islands as every other island has more than 50k. Lastly Alaska is nowhere near a "global airline," and has a very limited international market. If JetBlue were to buy Hawaiian they'd serve every continent except Africa, truly elevating the airline to the major leagues. I don't even think Alaska has a single route to South America, and you expect me to take them seriously? All this is, is a vanity trip for Alaska's CEO.

[@jwil4286]

@@schalitz1 I know that Alaska gobbled up Virgin America. You think JetBlue would have done any different (especially given their plans for Spirit [not to say it would have been bad to do away with Spirit])? If anything, JetBlue would have been worse. I get your point about Alaska being HQ’d in Seattle. The only reason they did that was because they had grown as much as they could in Anchorage (both cities also happened to be the end points of their “milk run,” carrying people and supplies to/from communities in the Alaskan panhandle). When I said JetBlue only cares about the coasts, what I meant was they have next to no presence in any city that isn’t on the coast. Their domestic continental route network isn’t nearly as robust as Alaska’s. So while yeah, they have no overlapping routes, they also have very few overlapping hubs (MAYBE LAX or SFO?).

[@ajs11201]

@@schalitz1 Yeah, I was on an Alaska Airlines flight once, and they were desperately trying to rebook some passengers onto another flight. The problem was the other flight happened to be United's, and Alaska wouldn't cover the costs of moving the ticket to UA. The poor gate agent had to announce to disgruntled passengers that they could fly on a United flight for only $75 more than they already paid. It's amazing she wasn't lynched.

[@crjetpilot]

This was a lazy attempt at a story. Most of it sounded like it came off of corporate releases when they were seeking a merger.

[@irtr36]

Worst mistake ever American sucks compared to US Air.