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Zimmerman Advertising founder Jordan Zimmerman and AirfareWatchdog.com’s George Hobica on how the potential merger between American Airlines and US ...
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New report thanks anybody flying giant American Airlines -- US Airways are expected to -- as soon as Wednesday.
The eleven billion dollar deal some travelers -- big cringing.
Imagining -- skyrocketing oil service takes a nose -- Will be McCain.
Parents -- -- were about to be introduced to the ultimate flying experience is George public up from airfare watchdog.
On the Jordan -- founder and CEO and chairman of Zimmerman advertising thanks to both of you for joining us George let me start -- -- Will this make our experience better or worse.
Actually -- I think it's gonna be -- the airlines have been in a race to the bottom for decades now service has deteriorated I'm presuming I'm -- that a stronger airline industry in the United States will lead to better service I don't think fares are gonna go up out.
Hi.
Jordan you agree with that I mean that you don't of course immediately people think well they -- then there's less competition.
So prices go up but maybe and they have more pricing power -- make.
Afford to provide better service.
A list of -- birds don't fly.
And -- you know in creating its merger with creating a fatter bird right think about it.
I mean local let's go back to demerger in the merger about continent -- -- with united and -- look at what's happened.
They're rated fifteenth at a fifteenth in operations.
And operational support operations in general and let's go even deeper.
Think about what the consumers are saying they feel like they're being gouged people like you've been overpriced and -- its -- united tried to raise the ticket prices twice.
Last year and had to revert back they charge to consumers for bags consumers got ticked off about that and I I just think overall.
It's definitely or not it's not worth the it it's not positive experience for flyers George let me ask you.
You know so one of the concerns is that if you have fewer airlines -- all the really small markets are even you know just smaller markets.
Don't get served -- as many airlines because there isn't as much competition and not looking that niche play.
So if you happen to go to a market that's not terribly popular you're gonna really pay through the -- -- not have a lot of choices does this make that problem worse.
Well that is jealous -- but I I've seen so many emails in my inbox from our.
Consumers who suddenly discover that united doesn't fly there anymore and they leave them stranded and the reason they don't -- there anymore is because.
They are losing money in general I think now with a larger -- structured Americans going to be able to fly people.
-- are more places -- more easily for example if you're flying from.
From New York to Los Angeles -- -- Dallas -- your flight's canceled not you can go through Charlotte or another US Airways hub in the same is true the united delta.
Mer merger.
I don't think it's gonna be bad for consumers believe it I'd like to see low airfares but I really don't think it's.
And might I gotta support the industry that -- low airfares are the reason why we come to -- flying any Jordan what the biggest problems at airlines have now.
Is really image I mean it used to be I don't know before I was -- that people would dress up for you notifying it would look forward to -- it was this special experience.
Now we know we're gonna -- we.
All to read it and you just you hear the horror stories you expect the worse our attitude is so -- Because it has been a terrible experience I think turn that image -- I think first of all you know if you go back to southwest.
-- was founded in 1971.
You think about the experience -- -- no frills airline but still a great experience the people rate the airline -- every year and I think most importantly.
With that.
The employees -- love their airline when you look at back again at the united.
Continental.
Merger the employees are -- in -- they're not happy.
And I think that if -- happy employees you're gonna have happy customers I think you know when you look at southwest they're singing to you.
On the -- So I think again it's you have to position a brand properly in the marketplace what you need to activate that brand of -- with the great experience.
It's sued George what are the odds of this new combined airline doing a better job positioning in identifying itself because I I mean I certainly hear what Jordan as saying a lot of people think of jetBlue and a really positive way my kids -- You know I mean it has that certain attraction they have the televisions they market no way that it feels -- -- younger vibrant.
You know I don't know -- how -- the new merged airline did the same thing.
What I agree that what reason why southwest employees -- are -- is because they haven't gone through bankruptcy they haven't been furlough they haven't lost their pensions but American has and also the other that airlines have the reason they've done that this because they're too many airlines.
Chasing too few non discretionary.
Travelers the people who don't really have to -- they can stay home or they can drive or protect the bus.
So I think it.
Probably a stronger airline industry this country will make for happier.
Airline employees that's what do you think if you're -- -- not smiling she lost -- pension she was laid off for five years.
I also think that we are competing against those very well funded and -- international carriers like emirates.
Singapore Turkish Airlines which -- -- siphoning off.
Some of the high value.
International travelers so we're not just competing amongst ourselves in the US and industry we are competing with the -- of variable finance and sometimes subsidized.
International carriers into -- all right guys thanks much for coming -- we appreciate your time.
Thanks let's --
