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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 29, 2013, 2:32 pm
  #3046  
 
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Originally Posted by SylvesterDisco1978
Board chairman for major companies don't do much of anything these days, it's basically a sinecure.
Exactly - had Horton embraced being open to the merger from the beginning instead of making all those bush league CEO comments about us airways being insignificant he would have had a chance at running the merged carrier. Parker has totally bitc@ slapped Horton in this process.

Although I prefer to see the carriers stay independent for selfish reasons I due tend to pull for the underdog when forced to pick a side.
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Old Jan 29, 2013, 2:35 pm
  #3047  
 
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It sounds like they've reached the point where they're just deciding who sits where at the table.
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Old Jan 29, 2013, 2:38 pm
  #3048  
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Originally Posted by JetAway
It sounds like they've reached the point where they're just deciding who sits where at the table.
It sounds like to keep Horton from being the fly in the ointment he is being given a token position on the Board.
MiamiAirport Formerly NY George is offline  
Old Jan 29, 2013, 2:45 pm
  #3049  
 
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Originally Posted by morrisunc
<snip>
Although I prefer to see the carriers stay independent for selfish reasons I due tend to pull for the underdog when forced to pick a side.
I pull for the best solution/outcome, YMMV

Regards
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Old Jan 29, 2013, 3:39 pm
  #3050  
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Originally Posted by SOBE ER DOC
Thank you for the personal attack on my intellectual capacity. Much appreciated.

The only objective way one can view the potential behavior of someone in a role is to view their past behavior in a similar role. Parker started with "US is a LCC." The it was "oh, wait, we're a legacy carrier." When oil prices spiked US did everything but start sky writing to drum up revenue with investing in HVCs that drive the profitability for airlines that run a hub and spoke model. Parker walked into the strongest carrier on the east coast and and watched an the competition ate this lunch. US had over 120 flights a day at LGA and could not figure out how to make that work in the most lucrative airline market in the world. That to me would be cause for termination.

Look, I used to a CP with US and watched the rather precipitous decline of that airline post-merger with HP. It was a disaster. I have NO reason to believe Parker will do any better with AA's assets.
It was hardly a personal attack. I specifically outlined the misleading and nonsensical elements of your hype.

US was about to liquidate when HP merged with them - hardly a "strong" carrier --

Parker or anyone isn't going to come in and burn down the house - and dismantle AA's strengths.

Whether the merger happens or not, I expect AA will devalue and loyalty rewards in the future will be more closely linked to $$$ spent.

I'm not a Parker fan - but then again there are risks in Horton's plan - neither is a wonderful option - most folks who aren't PRing it up for one airline or another can see that pretty clearly. The fact that AA JV partners are openly supports a merger calls into question that Horton's stand alone plan - which is based on growing JV revenue - can achieve those objectives. At the same time as I have said before both sides are obviously inflating their revenue projections and costs savings to support their plan. In all likelihood neither plan will achieve what is being sold.

Of course there are some folks who just will ignore anything positive US has done - like TATL Envoy Class - which is essentially what AA is now installing.
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Old Jan 29, 2013, 4:05 pm
  #3051  
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Exclamation Seriously???

Originally Posted by belynch
Despite the hyperbole here on FT, UA isn't all that terrible.
You said this is to be joke, right???!!!
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Old Jan 29, 2013, 4:23 pm
  #3052  
 
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Originally Posted by newyorkgeorge
It sounds like to keep Horton from being the fly in the ointment he is being given a token position on the Board.
Same thing happened to Glenn T. at UA.
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Old Jan 29, 2013, 4:54 pm
  #3053  
 
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How long would a merger take to be finalized?

Dumb question but would it impact an AA award (using Alaska Air points) I have this Summer?
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Old Jan 29, 2013, 4:57 pm
  #3054  
 
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Originally Posted by apodo77
Dumb question but would it impact an AA award (using Alaska Air points) I have this Summer?
Unlikely.
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Old Jan 29, 2013, 4:59 pm
  #3055  
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Originally Posted by apodo77
How long would a merger take to be finalized
a lot longer than six months. Look at UA. It's taken almost two years...
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Old Jan 29, 2013, 5:58 pm
  #3056  
 
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2-3 years!

It's going to be the Jerry Springer show everyday!

Originally Posted by apodo77
How long would a merger take to be finalized?

Dumb question but would it impact an AA award (using Alaska Air points) I have this Summer?
mach92 is offline  
Old Jan 29, 2013, 6:03 pm
  #3057  
 
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Originally Posted by newyorkgeorge
It sounds like to keep Horton from being the fly in the ointment he is being given a token position on the Board.
Chairman of the Board is hardly a token position unless the guy who holds it wants it to be.
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Old Jan 29, 2013, 6:12 pm
  #3058  
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Originally Posted by taliesin
Chairman of the Board is hardly a token position unless the guy who holds it wants it to be.
It really depends on how it is set up. For example, would it be until a specific short-term date (within a year) with Parker designated to take the position on that date.

Either way if they are making Horton take Parker it is akin to a no-confidence vote, although I do think as I have said they have a ying-yang potential.
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Old Jan 29, 2013, 6:33 pm
  #3059  
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Originally Posted by morrisunc
Exactly - had Horton embraced being open to the merger from the beginning instead of making all those bush league CEO comments about us airways being insignificant he would have had a chance at running the merged carrier. Parker has totally bitc@ slapped Horton in this process.
I don't think Horton has any desire to run a merged AA/US. If I were him, I too would want the Chairman gig for a bit, a nice payout, then leave as the inevitable freakshow that will be AA/US integration unfolds.
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Old Jan 29, 2013, 6:35 pm
  #3060  
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Originally Posted by taliesin
Chairman of the Board is hardly a token position unless the guy who holds it wants it to be.
A position with no real executive authority, and only gets involved in the affairs of the company a few times per year is indeed a token position. Modern day BODs of publicly traded companies don't do much these days, which admittedly poses its own set of problems in corporate governance, but I digress.
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