What Will the World’s Largest Carrier Look Like?

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Dec. 9 (Bloomberg) –- Hudson Crossing Travel Analyst Henry Harteveldt and Independent Aviation Analyst Ray Neidl discuss the new American Airlines’ priorities and the issues involved in integrating carriers. They speak with Pimm Fox on Bloomberg Television's "Taking Stock.” (Source: Bloomberg)

This is "taking stock." timing is everything.

American airline relaunches itself on the nasdaq.

It has a new ticker symbol.

What it means for passengers and shareholders.

Is the time right for luxury i choose -- ituems?

I am 90 second to guess tonight mystery guest.

Will my producers stump me?

Only time will tell.

For a closer look of individual companies making headlines, let's go to sue keenan.

Shares a twitter jet ix percent, the most since their initial public offering -- jumped 12%, the most since an initial public offering.

Cisco shares rose more than 10%. this is the largest food distributor in eight years in north america and expense to include dessert.

American airline, they began trading under nasdaq.

They plan on fleshing out the reservation system.

I am sure we are going to hear more on that from you.

Thank you.

What this means for the industries and for passengers.

I am joined by an independent aviation analyst.

Harry is a travel analyst.

We want to start with you.

The combination of american airlines and us airways.

What kind of carrier does it make?

It makes airline possible for you to get more single airline anywhere to anywhere flights with well-placed hugsbs and three very strong global competitors out of the u.s. you said this was a celebratory moment.


When i got out of graduate school my first job was with american airlines.

I thought it would take about 12 years for the industry to yell out to a few major competitors.

It took over 30 years.

We are here now.

We are making it very attractive for investors.

Do you agree?

Will it be more like a consumer durable category of the market?

I began my career working on american airlines as advertising.

I think this will be less of a tragedy more of a business.

A business focused business.

Does this mean this is what american airlines is going to be going after or is it an expanded room structure?

There've always been focused on the business structure but it has always been a bunch of bad things doing bad things badly.

You have seen that change as well.

The business traveler is important.

That is where they're going to make their money.

People running the airline today are different breeds and we had before which was marketing oriented.

Today you have financial types.

They're looking for investors.

They want the right generating ability.

What kind of revenue generating ability does american airlines now have that they are combining with u.s. airways?

Very strong.

This is not a marriage made in heaven.

And now have more than 100 people that will be in the combined advantage.

American will remain on its technology system which is more advance and will help them fine tune how they sell travelers.

It seems you will have three.

You have american and delta with a combination of northwest and then united airlines with a combination that they put together with continental.

These things do not always go smoothly.

U.s. airways did have a hard time with america west when they merged.

You have more than enough competition with three big carriers.

Very strong niche carriers and you have a lot of competition in the industry rationalize where they can charge the right price for their project.

Is is going to benefit pilots?

We know they are going to have a very large equity position.

Aside from the equity position, what this means is a more stable business.

You pretty much marry your carrier for life when you are in airline employee.

A stable carrier grows and means better job security and when they can buy newer airplanes.

Pilots love that.

And longer routes for working purposes and the ability to travel.

Speak about the transatlantic market.

It is a very competitive market.

America faces competition for international carriers.

All the older carriers face a major competitor.

They are growing their hugs very rapidly and have a lot of cash behind them.

Speak if you can about the frequent flyer programs.

He mentioned having that 100 million members of the advantage program, there is still the delta program, skype team, as well as united airlines.

Passengers can and do change amongst airlines.

That is why it'll be very important for american to offer not only good fares but good on- time performance and other amenities that the travelers like and will pay for.

I believe they are in a position to win.

And look back on u.s. airways and continental united to see what things they should avoid repeating.

If the merger continues at pace, it is expected that by 2015 or so these frequent-flier systems between u.s. airways in american will come together.

What about the actual aircraft.

When does the aircraft come together and be new and refurbished?

I am more skeptical.

It will be a little more difficult than the northwest continental delta.

It was pretty much done before the merger happened.

United did not have problems with continental.

He goes to the different corporate cultures.

Duncan parker learned from his previous mergers.

It may be more difficult than we are assuming right now.

It may get dumped it will take longer.

What about the combination when it comes to pilots and flight attendants?

I have gone through mergers before.

It will take an 18-24 months to put this together fully.

A big part is integrating the various work groups and all of the different things it will take the time to standardize the airline.

We will not see changes tomorrow.

Within two years, hopefully the majority of what is needed to be done will get done.

We should start to see business improvements and synergies realize within a year if not even sooner.

I want to thank you very much.

Henry joining us from hudson crossing.

My thanks also to ray, independent aviation analyst.

Coming up, american airlines is one of eight airlines that trades on the nasdaq owen max.

You typically would mean technology stocks.

We're going to find out what it means with bob mccooey.

My mystery guest could be considered the nsa of fine dining.

? we have a very large base of consumers who buy our product every day.

This is house in a former children's cinema.

Tenures atlas begin trading, it was ranked the top performer in the world.

They hope it will continue when new laws come into effect allowing dual listings.

The whole idea is to open up the idea for foreign capital.

One is oscar mendoza.

Mongolia was one of the hot spots for economic development.

He has open a mexican restaurant in the heart.

I want to bring in nasdaq senior vice president bob mccooey who joins is on the telephone and video from dallas, texas.

Thank you very much for making it through the snow and bad weather to make it to the studio.

Much appreciated.

You have something to celebrate.

How did you manage to get american airline group on the nasdaq?

What we did was use the opportunity of these two companies coming together to reach out and to speak to them about the opportunity of becoming part of the nasdaq family.

We think we have a very strong proposition.

We spoke to them about what we have been doing to enhance this experience for our companies.

The world has changed very dramatically.

We wanted them to get the great benefits of the nasdaq listing.

They were open to that opportunity.

They allowed us to come in and talk about the value proposition.

We were able to be victorious.

I know they love you.

I am sure they just sign on the dotted line after the first meeting.

Give us some details about the program you had to put together to show companies that listings on the nasdaq omx is good for their business.

You have several other airlines that are on the nasdaq.

It really is about the support we give to our companies, about the long-term partnership we are able to create with them.

We think we have the most innovative, growth oriented companies in the world.

Some of the worlds greatest brands associated with us.

We have the industry leader in terms of trading, technology.

We have some great branding opportunities including a seven tower s in japan -- time square.

We're the leader in corporate solutions.

It helps them be the best public company they can be.

Earlier this year we bought the irpr of quarters.

96% of the s&p 500 are using our services.

We have a whole program we lay out in front of companies.

We wrap all of those with lower fees.

Our fees are significantly less.

Americans thought they were able to pay a lot less if they had joined our competitors market.

How do you present any response to the idea that there had been computer glitches?

There have been trading issues.

All exchanges have been but noticeably in the recent times, nasdaq seems to have at least some yet to be resolved.

Hours have been resolved.

I thing the past 18 months have not been good to the industry in general.

Other exchanges having a very similar outage in early september.

August was a time when it was highlighted in a slower market.

It did focus on the need to make sure our industry is sound.

That is why the sec invited all of the exchanges to go down for a roundtable in september.

There are new fixes in place to make sure we are supporting all investors and issuers across all markets.

We are talking about it openly.

There are the changes we make to our market to make sure in the future we have ever each and every company.

I want to thank you very much.

He is the vice president joining us.

A watchmaker that is based out of detroit.

They use the wright brothers for inspiration for keeping time with the title of -- shiniolaola.

A watchmaker named shinola is proving that manufacturing is alive and well in detroit.

They make handcrafted luxury timepieces as well as leather goods.

They are introducing their wright brothers limited-edition merchandise.

For more details, the executive joins us from detroit.

Thank you very much for being with us.

Tell us a little bit about making watches in detroit.

How did that happen?

When all is said and done, we believe it is a fantastic idea?

We have been planning this for some time.

There have been assemblies for the last six or seven months.

At the moment, demand far exceeds our ability to supply.

It has been a very successful entry into the market.

Explain to us the process of making the watches you sale and their various price points.

The price points are all somewhere between $450 and $850. what we do is we have swiss movements that we assemble in our factory.

We occupy 60,000 square feet in the college's studies here in detroit.

We will assemble about 40,000 or 50,000 this year.

We have two stores.

One is in tribeca.

One is in midtown.

We are also selling our watches on our website.

We're also watching the american series.

The first watch in the series, every year there will be somebody who we will commemorate.

This year it is the right brothers.

Next are it will be henry ford.

The wright brothers limited- edition is estimated at $1000. what about the wright brothers made them the want you are going to honor?

Talk about a group of fellows who made an incredible impression not only on the united states in the world.

We thought this was a wonderful way to commemorate their 110th anniversary of the first flight.

We manufactured when thousand of these watches.

We have a very limited supply.

After tonight's reception, i expect that we will perhaps have 400 or 500 available on our website.

The last time we did something like this we launched the ranch in march or april.

With between 500 limited edition on the market slowdown and eight-10 days.

We may have underestimated the demand.

We think we will go through all of them in the next four or five days.

You have been in the watch industry for about a decade.

When he learned about the idea of shinola and assembling them into choi, what was your first reaction?

-- in detroit, what was your first reaction?

When you think about the combination of a city like detroit with the incredible history that it brings to the market, it is history based on design, manufacturing, craftsmanship, worth ethic -- work ethic.

Not for one moment can you diminish the issues and challenges that lie ahead for the city.

For us to come here and base our manufacturing facility here combined with great design, wonderful value and equality watch made was swift parts that is assembled using swiss equipment, we thing we have done something very compelling.

This is the actual watch.

This is what i was talking about a few minutes ago.

To my right, you can probably see the limited edition.

In celebration of the wright brothers who are steeped in bike manufacturing, we produced a limited-edition 25 bicycles.

They retail for $2950. fantastic ibike.

What is next?

You said henry ford is the icon that will be ordered -- honored next year.

What can we expect to see?

You will see a very limited edition iconic watch.

I'll will be part of what we have lunch, a foundry.

Shinola is a very broad concept.

We had to get a 100 year old brand and really turned it into a modern brand based on heritage.

Not only do we have bikes and watches but leather goods, journals, etc.. the henry ford watch will be an extension through the foundry which is a club that one belongs to want one buys one of these watches.

We do this every year and honor somebody in the great american series.

Thank you very much.

We have more next on "taking stock"." ?

This text has been automatically generated. It may not be 100% accurate.


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