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ARCHIVE: US LCC & AMR / AA Takeover / merger Rumors and Discussion (consolidated)

Old Feb 14, 2013, 9:50 am
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The AA - US merger was approved by AMR creditors and the boards of directors of both airlines on 13 Feb 2013, and announced the 14th.

There is no further speculation about whether the merger will occur; all that is pending is approval from the bankruptcy court and the regulatory authorities.

American Airlines and US Airways approve merger: just the facts, please outlines the facts we know;

AA - US Merger Agreement / Announcement Discussion (consolidated) is the thread for discussion of the announced merger.
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ARCHIVE: US LCC & AMR / AA Takeover / merger Rumors and Discussion (consolidated)

 
Old Jan 28, 2013, 2:54 pm
  #3016  
 
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Originally Posted by elitetraveler
I think this goes to the point that the airline industry does have trouble attracting the best and the brightest - not only the unions, but tremendous government regulations that make providing better service and innovative products sometimes close to impossible or cost-exhorbinant even if possible.
Great points. In addition to all of those I would also add, this is an "old economy" industry (ironic in the sense that planes themselves are bleeding edge) and it is very commoditized. Even if there were NO management/union issues and no government regulations, this is still an easy industry to lose money

You are unlikely to see a Steve Jobs (or put your favorite iconic CEO here) in an airline company

Therefore go with what you know. Both Horton and Parker are competent and the best we can find right now (and for the foreseeable future)

Pick one and be done! Personally I would vote for Horton. In my opinion his gig at AT&T is a huge plus
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Old Jan 28, 2013, 3:07 pm
  #3017  
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Originally Posted by panjabi
Therefore go with what you know. Both Horton and Parker are competent and the best we can find right now (and for the foreseeable future)

Pick one and be done! Personally I would vote for Horton. In my opinion his gig at AT&T is a huge plus
They also could - should split Chairman and CEO/President IMO. I think Parker seems to be creative, a people person whereas Horton is more the CFO type -- together they might be a good team. I'm not aware there is any bad blood between the two of them. AA needs a bit of a 'healer in chief' and Horton comes across as being very stiff. I'd have Dougie as Chairman on the road in break rooms with the FAs, throwing bags on the ramp, bringing out some Virgin Mary's to the gate agents, etc. Horton could stay out of the public eye and count beans like he did at ATT and hopefully operate the airline.
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Old Jan 28, 2013, 4:23 pm
  #3018  
 
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Making the airline market an oligopoly, which is what the mergers are doing, is bad for consumers on many fronts, and it is not just with ff programs. If we had a real Justice Department, instead of the joke of one we have these days, they would never have allowed competition to be destroyed in the manner it has.

NW used to be a great airline. DL had gotten worse and worse since it took over NW.

I really hope O'Leary finds a way to get RyanAir into the US market. These stinking oligopolists deserve SOME competition, even if it is competition of that nature.


Originally Posted by luv2ctheworld
Willie Walsh would like to say it's great for the U.S. industry and consumers, but in reality, it likely means consumers get the shaft.

Ever since DL took over NW, the way they've diluted their FFP has been atrocious. Looking at CO/UA, the same thing can be said of how the FFP is heading.

As I mentioned previously, I have no faith in Parker's ability to integrate AA with US; nor make it a better airline. Looking at his track record with US/HP, and my experiences are as a customer on US, I don't see it.
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Old Jan 28, 2013, 4:40 pm
  #3019  
 
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Who needs Ryanair? We have Spirit to fill the craphole niche. I may not want US and AA to merge, but I don't think it's really going to harm competition or keep new airlines out. There is still plenty of competition.
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Old Jan 28, 2013, 4:47 pm
  #3020  
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On the flip side of this, all the fragmentation meant that nobody ever made a consistent profit and the six major airlines were unable to invest in the future.




Originally Posted by Carolinian
Making the airline market an oligopoly, which is what the mergers are doing, is bad for consumers on many fronts, and it is not just with ff programs. If we had a real Justice Department, instead of the joke of one we have these days, they would never have allowed competition to be destroyed in the manner it has.

NW used to be a great airline. DL had gotten worse and worse since it took over NW.

I really hope O'Leary finds a way to get RyanAir into the US market. These stinking oligopolists deserve SOME competition, even if it is competition of that nature.
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Old Jan 28, 2013, 4:55 pm
  #3021  
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Originally Posted by Carolinian
NW used to be a great airline. DL had gotten worse and worse since it took over NW.
You have a strange recollection. Northwest was called Northworst for a reason - surly FAs, bad food, tattered airplanes with uncomfortable seats - remember those short back first class seats?

It did improve a bit with its new terminal at DTW.

That said, it had a generous FFP.

DL until Ron Allen started screwing things up was one of the top airlines for service in the world.

I certainly can't say DL is anything near what it was but certainly aside from its lucrative Pacific route system and highly regarded technology NW was a clunker from a pax perspective.

In terms of premium products, DL has been doing a good job with better J seats - at least over AA.
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Old Jan 28, 2013, 6:59 pm
  #3022  
 
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Originally Posted by elitetraveler


In terms of premium products, DL has been doing a good job with better J seats - at least over AA.
Yes, the hardest J seat among US carriers.
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Old Jan 28, 2013, 7:05 pm
  #3023  
 
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Originally Posted by pigx5
Yes, the hardest J seat among US carriers.
You beat me to it.
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Old Jan 28, 2013, 9:12 pm
  #3024  
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Originally Posted by diver858
Parker has had 2 BK11 filings, is 0-2 from a labor perspective, may require a third pass to resolve LCC's labor issues.
Still curious - what two BK11 filings has Parker caused/led/initiated?
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Old Jan 28, 2013, 9:21 pm
  #3025  
 
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Originally Posted by elitetraveler
You have a strange recollection. Northwest was called Northworst for a reason - surly FAs, bad food, tattered airplanes with uncomfortable seats - remember those short back first class seats?
Years ago when I lived in MSP we called it the world's largest unscheduled airline.
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Old Jan 28, 2013, 9:50 pm
  #3026  
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US Airways first filed for Chapter 11 protection (I don't call it bankruptcy) in August 2002. It emerged from that in March 2003.

In September 2004 a Second filing for Chapter 11 protection by US Airways was entered into before emerging in conjunction with its acquisition by America West in September 2005.
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Old Jan 28, 2013, 10:00 pm
  #3027  
 
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Originally Posted by serfty
US Airways first filed for Chapter 11 protection (I don't call it bankruptcy) in August 2002. It emerged from that in March 2003.

In September 2004 a Second filing for Chapter 11 protection by US Airways was entered into before emerging in conjunction with its acquisition by America West in September 2005.
Doug Parker was not involved in us first restructuringn. Doug Parker saved us airways from liquidation in their 2nd bk filling.
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Old Jan 28, 2013, 11:41 pm
  #3028  
 
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Let's review some of Dougie's finer moments at the helm of US:

1. Yanked all IFE out of domestic fleet.

2. Attempted to charge for water and other non-alcoholic beverages until there was too much of a backlash.

3. Ripped rows and rows of F seats out of their aircraft.

4. Put ads on tray tables.

5. Unable to secure labor contracts with pilots and FA unions

6. Closed Envoy lounge (premium lounge for TATL business class travelers) in PHL.

7. Gave away the LGA market to DL in a ridiculously lop-sided slot swap.


Parker is a fine CEO...for a company that wants to race to the bottom and compete with Spirit, not one that seeks to differentiate itself as a premium carrier in the US and abroad.
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Old Jan 29, 2013, 2:32 am
  #3029  
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Originally Posted by SOBE ER DOC
Let's review some of Dougie's finer moments at the helm of US:

1. Yanked all IFE out of domestic fleet.

2. Attempted to charge for water and other non-alcoholic beverages until there was too much of a backlash.

3. Ripped rows and rows of F seats out of their aircraft.

4. Put ads on tray tables.

5. Unable to secure labor contracts with pilots and FA unions

6. Closed Envoy lounge (premium lounge for TATL business class travelers) in PHL.

7. Gave away the LGA market to DL in a ridiculously lop-sided slot swap.


Parker is a fine CEO...for a company that wants to race to the bottom and compete with Spirit, not one that seeks to differentiate itself as a premium carrier in the US and abroad.

In terms of 7, Dougie did what every legacy is doing - focusing all resources on hubs and abandoning everything else -- DL is running a hub at LGA/JFK while US is doing likewise at DCA.

Hasn't AA close FLs in DFW and MIA?

In terms of ads, does not AA put ads on napkins in F? Perhaps tackier than tray tables in Y although I'm sure US does both.

Wake up and smell the coffee alert: At some point FAs will have ads on the back of their clothing with the upside they will be required to walk up and down the aisle every 15 minutes. The strategy of all the legacies and most airlines today is nickel and dime the customer, generate ancillary revenue everywhere - i.e. - get on CX and you have to watch three ads before your movie starts in F!

As to the rest, longtime head of AA International Service during the heyday of its industry leading product in the 80s and 90s was David Banmiller, who came over from Air Cal. When Willie Walsh was CEO of EI he turned it into a hybrid low cost carrier taking intra-European ops into all Y. Steve Wolf was CEO of Flying Tigers the cargo airline before taking over UA and US where he focused on premium product enhancements. The CEO of Starwood hotels came from Coors. The CEO of Cathay Pacific ran Swire's Coke distribution in China for 15 years before coming back to CX. The CEO of Spirit was former CMO of US when it was a full service carrier and previously worked at AA and NW.

The continued rhetoric that because Parker did X with his current hand of cards, he will play it the same way is pretty low level thinking.

Did they replace the Dom with Coors at the St. Regis? Did WW take out First Class when he got to BA?

Last edited by elitetraveler; Jan 29, 2013 at 2:46 am
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Old Jan 29, 2013, 2:40 am
  #3030  
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Originally Posted by pigx5
Yes, the hardest J seat among US carriers.
I like hard seats YMMV
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