USAirways Merger Rumors Resurfacing...
 

I saw this article today...I know the "comments" after the article are not credible but some seem to think its really going to happen. If it were to happen, do you think it would be more of a merger or takeover? I imagine in this case, USAirways would be the airline and name to go...maybe they would come up with a whole new name?

http://www.thestreet.com/storycommen...plausible.html

Meh. So very unlikely for 1,000,000 reasons. US is line a pregnant whore looking to name the baby daddy.

I'd be in favor of an AA-US merger as long as AA didn't acquire the US liabilities.

Of course, the liabilities at US are the philosophy, the management, the unions, the route system and the alliance.

Remember that US is still dealing with the internecine union wars of merging the pilot lists between "east" and "west". How could you expect to get their list merged with AA's list?

CLT is worthless as a hub now that it doesn't generate the premium traffic it used to. See the history of RDU (or STL) for what AA would do to a hub midway between 2 of its hubs.

PHL is worthless as a hub given its proximity to JFK, and the limitations of the airport itself.

PHX doesn't have high-yield traffic either.

Gee, maybe that's why US is in bigger trouble than AA.

US Airways has been trying to merge with everyone.

I am having trouble seeing anything, even something small, that AA gets out of it if they were to merge.
- AA has harmonized heir fleet on Boeing/MD. US Airways flies a bunch of Airbus
- Hubs in PHX, PHL, CLT, soon to be DCA (assuming the US/DL DCA/LGA slot swap gets approved)...what does this give AA? (other than cities to de-hub).
- US is constantly at the bototm of the piles of US airlines.

And, if AA were to go for this 'prize', they'd get to fight through integration of pilot and FA lists which took US/AWA forever to pull off.

That made me laugh out loud so hard! Good one! Ugh...I kind of feel bad for them in a way though...maybe because I was born and raised in Philadelphia (live in LA now) so I kind of don't want to see that hub crumble if US goes does or someone takes them over.

I like the way you think!

In addition to the A320-series and the A330s, I'll take the alliance too: I'd trade partnerships with LX and LH any day for the mirage of a meaningful (to the AAdvantage member) partnership with BA. And SQ isn't shabby either.

Star Alliance is about the only facet of US that I like, but if AA/US were to merge, I'm certain the new airline would be OW.

I'd much rather see AA and CO get together, but that seems a pipe dream.

The only airline US needs to merge with is Eastern, PAN AM, TWA, Braniff or Peoples Express.
Aprey is not this dumb.

I agree. I think that AA would ultimately de-hub CLT, PHL, and PHX. If this will be the outcome, then what's the point of the merger in the first place? All that AA would be doing is a favor to everyone else by expending cash to wipe out a competitor thereby allowing everyone to benefit at its own expense.

LOL! But you forgot the service.

It would benefit AA in a couple of ways. AA is relatively weak in both DC and the west coast. This would help. They also would be able to more effectively challenge DL in the southeast. I suspect the rest of the US network would go, but that is a lot of US in the west and southeast. That said, Im a bit skeptical. I would not want to bring US employees into AA. The AA employees on average are much more customer friendly in my experience.

It is really a race to Chapter 7 for the legacy carriers isn't it? I mean, one or two of them must go, kind of like musical chairs. In the meantime, it would be idiotic to merge when down the road, if you are counting on being one of the survivors, you could lie in wait and feed off the corpse for pennies on the dollar. I think the DCA hub would be of benefit to AA; it's not like govt spending is going down anytime soon.

[QUOTE=CO FF;12813847]I'd be in favor of an AA-US merger as long as AA didn't acquire the US liabilities.


You mean like the planes, employees, contracts, debts, ff program and gate/airport space?

The last thing AA wants is more high cost domestic capacity in markets to compete against B6, WN, FL & VX.

^ I agree.

I haven't flown US in so long, I can't remember why I don't like them. I just know that I don't.

I'd prefer that AA acquire UA before US.

UA would mean a strong presence on both coasts (SFO and LAX and JFK and IAD). ORD would be dominated but not much more than CO at IAH or DL at ATL or DL at DTW. Some asset divestitures could make the ORD domination tolerable to the antitrust regulators.

UA would bring substantial China and Tokyo frequencies and slots (which AA let get away when DL married NW).

Most importantly, UA would bring a substantial base of high-yielding customers (notably in Chicago, the Bay area and the LA area).

Denver would no doubt get some of what STL has been having, but that's probably a good thing.

Fleet imcompatibility? Solvable with some airplane orders. Star Alliance? They've got CO, US (until they dump US) and now LH has a codesharing arrangement with jetBlue. Star will get along fine without UA.

Before you type "the antitrust reguators would never allow an AA/UA combination," at least be kind enough to explain why, in your opinion, it stands no chance of approval.

UA's not the prettiest girl at the dance, but it is getting late and after a couple of beers, she's not the ugliest thing in the room. AA could do worse.