Feb 14, 2013, 9:50 am

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MODERATOR GUIDEPOST

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.

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

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Jan 15, 2013, 10:55 am

#2806

FWAAA

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US will move from T-1 to T-3 at LAX while WN will have T-1 (getting a $400 million renovation) all to itself:

http://www.dailybreeze.com/news/ci_2...ion-renovation

If/when the merger happens, frequent airside bus service between T-3 and T-4 can make the two-terminal setup work.

Jan 15, 2013, 11:03 am

#2807

Thunderroad

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Quote:

Originally Posted by elitetraveler

This is a bunch of malarkey - AA is at best a niche carrier to Asia - with 7 flights a day and just three Asia destinations. Over time they have tried and pulled out at SYD, MEL, TPE, KIX, NGO and DEL.

The reasons for their low profile in Asia (and limited profile in Japan) is that UA beat them out to buy the former PA Asia Pacific network and DL bought NW and picked up their Pacific network.

AA has not been able to expand on its because of they:

A) have never successfully developed a West Coast Asia hub (they have also dropped service after trying at SEA and SJC)

B) their pre-11 cost structure was made expansion difficult

C) they couldn't get pilots to agree to concessions that would have enabled new routes

Post 11 and with 787s they can probably launch some new routes from hubs to key cities and maybe even some routes from non-hubs to partner hubs - i.e. - SEA-HKG, LAS-HKG, SEA-NRT, BOS-HKG and other hub to hub to hub flying such as MIA-NRT, MIA-HKG, ORD-SYD plus perhaps hub flights to India, Taipei, New Zealand, Singapore, etc.

If there is a merger with US, then adding 787 flights from CLT and PHL to HKG and NRT plus some China would be natural.

However, there is no defense for AA's lagging position in Asia except their own inability to acquire the PA/NW networks.

That said 10 years from now with new, longer range airplanes, it may be entirely possible that with partners at NRT and HKG and the ability offer nonstop traffic on thinner routes, AA may well be as well positioned or even better of than UA or DL.

However, if one wants to give an honest assessment AA is at best niche right now.

Not disputing the general thrust of your comments, but FWIW isn't AA adding Seoul as a destination pretty soon?

And, also FWIW, wasn't it the much-praised Robert Crandle who decided not to go after PA's Asia routes?

Jan 15, 2013, 11:04 am

#2808

FWAAA

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Quote:

As American's performance improves, creditors could demand an even larger share of the merged airline's equity. But US Airways executives and advisers believe the current 70-30 proposal offers American's creditors a premium and have made clear they aren't interested in ceding more value, according to people close to the company.

If Parker isn't interested in giving creditors more than 70%, the creditors should bid him farewell and then make an offer for LCC at about $6/sh, which is where it will probably land in several weeks if LCC does not merge with AMR while AMR is in Ch 11.

Jan 15, 2013, 11:16 am

#2809

FWAAA

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Details of the pilots' discussions with Parker are now out; in a memo of understanding, Parker has offered the APA an extra $552 million above the bankruptcy contract over six years. Fences keep the APA pilots flying all AA planes and orders (likewise for US pilots). All TPAC flying is performed by pre-merger AA pilots. Scope provisions on large RJs remain largely the same, domestic codesharing is scaled way back (sensible, if AA and US are merged) and various other changes:

http://aviationblog.dallasnews.com/2...ion-plus.html/

http://blogs.star-telegram.com/sky_t...-released.html

Jan 15, 2013, 11:20 am

#2810

Justin Does...

Used to be Premier Monkey

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Quote:

Originally Posted by FWAAA

Interesting. This sounds like the US pilots and AA pilots would be kept separate? I thought one of the major points of merging was that it would help to resolve the US/HP employee integration?

Jan 15, 2013, 12:06 pm

#2811

diver858

Join Date: Oct 2010

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Quote:

Originally Posted by FWAAA

First time I have seen public comments from IAG and JAL management on a possible merger - both appear to be in favor, curious what if any influence this may have on AMR management.

Quote:

Originally Posted by FWAAA

I assume AMR management is doing their best to maintain control after any deal, could use resolution of LCC labor issues (pilots, FA) as a precondition - tough for any creditor, investor to argue, could prove to be Parker's Achille's heel.

Jan 15, 2013, 12:08 pm

#2812

diver858

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Quote:

Originally Posted by Premier Monkey

Interesting. This sounds like the US pilots and AA pilots would be kept separate? I thought one of the major points of merging was that it would help to resolve the US/HP employee integration?

He is simply attempting to kick the can down the road, doubt many creditors or investors will buy it.

Jan 15, 2013, 12:27 pm

#2813

eponymous_coward

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Quote:

Originally Posted by FWAAA

If/when the merger happens, frequent airside bus service between T-3 and T-4 can make the two-terminal setup work.

T3rdWorld is a lousy terminal and the bus service is lame, speaking as someone who used to make AA->AS connections T4->T3 before AS got their shiny, new, nicer space in T6.

Jan 15, 2013, 12:41 pm

#2814

CubsFanJohn

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Quote:

Originally Posted by FWAAA

You have to wonder what this means for the Alaska codeshare. With that being said it does make you wonder how US Air's network will fare with AMR's CASM.

Jan 15, 2013, 1:01 pm

#2815

Cannonball Run

Join Date: Jul 2009

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a few stats....

per the filings:

69 million Aadvantage members

7,100 NEW members each day (yes Day)

Think there's an asset there? Anyone care - IMO no.....

Jan 15, 2013, 1:02 pm

#2816

diaspora04

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Quote:

Originally Posted by eponymous_coward

T3rdWorld is a lousy terminal and the bus service is lame, speaking as someone who used to make AA->AS connections T4->T3 before AS got their shiny, new, nicer space in T6.

Agree completely.

Jan 15, 2013, 1:04 pm

#2817

BStrauss3

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Quote:

Originally Posted by FWAAA

Interesting - I would suggest people read both. The Dallas News article seems to take things for granted, while the Star Telegram one talks about things that COULD happen.

The DMN for example talks about AA flying AA metal and US flying US metal - but the ST article indicates it only happens until there is a joint collective barganing agreement and that THAT is dependent on a senority integration list.

VERY different statements.

Jan 15, 2013, 1:50 pm

#2818

serfty

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Quote:

Originally Posted by FWAAA

Quote:

Originally Posted by diaspora04

Quote:

Originally Posted by eponymous_coward

T3rdWorld is a lousy terminal and the bus service is lame, speaking as someone who used to make AA->AS connections T4->T3 before AS got their shiny, new, nicer space in T6.

Agree completely.

No bus would be required going forward with the completion of the Bradley West redevelopment.

PAX will be able to walk airside between T4 and T3 via TBIT.

Jan 15, 2013, 1:57 pm

#2819

AAExPlat

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Quote:

Originally Posted by CubsFanJohn

You have to wonder what this means for the Alaska codeshare. With that being said it does make you wonder how US Air's network will fare with AMR's CASM.

You already know the answer. AA's CASM will render much of US network into a huge money loser.

DP doesn't care. He needs the merger fast and once he's got that in the bag, he will either reneg on many of his promises or take the combined entity back through bk to wash the inflated CASM right off the books.

To think that he cares about any of the employees is absurd.

Jan 15, 2013, 2:06 pm

#2820

Carolinian

Join Date: Dec 2002

Location: eastern Europe & NC

Posts: 4,527

That is a much better option. An AA takeover of US would beat the heck out of the reverse, even though either will be anti-consumer as it will reinforce the oligopoly in the airline business.

Quote:

Originally Posted by FWAAA

Parker made merger proposal in April that would have given AA creditors 49.9% of the merged company and would have given LCC shareholders 50.1% of the merged company. AA management dismissed the offer without a response:

http://online.wsj.com/article/SB1000...googlenews_wsj

(search for "AMR" in Google News to read entire article).

If Parker isn't interested in giving creditors more than 70%, the creditors should bid him farewell and then make an offer for LCC at about $6/sh, which is where it will probably land in several weeks if LCC does not merge with AMR while AMR is in Ch 11.