Southwest Airlines discovered dozens of human heads being shipped by someone at their Little Rock, Arkansas operation and seized them.  Southwest contacted local authorities, including the county coroner who are investigating.  The heads were being shipped to a local firm in the DFW area.  You can read the MSNBC.Com story HERE. 

I can only imagine the reaction of the cargo handlers when they discovered what was in the package(s).

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AA CEO Gerard Arpey has been getting somewhat loud in his refusal to acknowledge that there may be value in a merger between AA and US Airways.   His argument is that once you have scale, adding scale doesn’t bring much to the table.  Further, he doesn’t think that US Airways brings AA much considering the hubs that AA is focusing on (Dallas, Chicago, NYC, Los Angeles).  You can read more HERE.

Arpey was responding to analysts who pointed out that AA bought TWA to maintain its dominance when United was going to merge with US Airways and why wouldn’t AA want that now. 

The thing is, no, it doesn’t fit within their current 4 hub/cornerstone strategy.  However, that strategy isn’t showing much potential in returning AA to profit either.  AA is the only legacy airline not projected to earn a profit for this year.  I’ve said it in previous posts and I’ll say it once more.  AA and its executive team doesn’t know how to do merger and doesn’t know how to integrate another airline and, more importantly, doesn’t want a merger because it will, most likely spell the end of some of their careers at AA. 

I don’t think Doug Parker would lead such a merger but suddenly he looks like a decent successor to Arpey, doesn’t he?  Particularly if Arpey wasn’t leading a merger very well.  Consider that US Airways, by far the weakest of legacy airlines, is going to earn a profit this year and they’re doing it despite labor issues and their 2nd tier hub system.  That’s remarkable.  American’s team could learn a few things from US Airways, I suspect. 

There is a message here from analysts.  That message is: “Do something.  Perform.  Show us the money.  You don’t have an unlimited amount of time to perform.”  

It is significant that analysts are now putting the heat on and show no inclination to let up on American.  To the contrary, they’re now openly questioning the potential for success in Arpey’s strategy for the airline going forward.

Filed under: Airline News by ajax
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