View Poll Results: Is an American Airlines/US Airways merger good for the traveling public?
Yes
84
28.19%
No
214
71.81%
Voters: 298. You may not vote on this poll
Last edit by: aztimm
Note:
There is an existing thread in the AA forum that may be useful to US and AA Flyertalkers:
US-AA Merger: Just the Facts thread
As facts become posted, that should be the place to look.
Merger discussion, speculation, and other questions can be directed here, or the similar thread in the AA forum:
MERGER: US and AA 9 Dec 2013 and implications for AA flyers (new)
AA - US Merger Agreement / Announcement / DOJ Action Discussion (consolidated, and now closed to new posts)
There is an existing thread in the AA forum that may be useful to US and AA Flyertalkers:
US-AA Merger: Just the Facts thread
As facts become posted, that should be the place to look.
Merger discussion, speculation, and other questions can be directed here, or the similar thread in the AA forum:
MERGER: US and AA 9 Dec 2013 and implications for AA flyers (new)
AA - US Merger Agreement / Announcement / DOJ Action Discussion (consolidated, and now closed to new posts)
US/AA merger- MASTER DISCUSSION THREAD/incl 'when will US leave STAR'
#1501
Join Date: Jan 2010
Location: New York and Vienna
Programs: PA WorldPass Platinum, AA, DL, LH. GHA Black, SPG and HHonors Gold
Posts: 3,870
According to AA's general counsel, there is no Plan B:
http://www.usatoday.com/story/todayi...fails/2681345/
But I guess that could be PR rhetoric to try to convince the DOJ that AA would not survive without the merger.
http://www.usatoday.com/story/todayi...fails/2681345/
But I guess that could be PR rhetoric to try to convince the DOJ that AA would not survive without the merger.
AA would have to create a new Plan of Reorganization if the merger doesn't go through.
That is all... no news here really...
#1503
Join Date: Jun 2012
Location: Oslo
Programs: SAS EBG, IHG Spire Amb, CCG
Posts: 589
http://www.usatoday.com/story/todayi...fails/2681345/
"Court records show that American Airlines, since it filed for bankruptcy in November 2011, is spending about $500,000 a day in legal expenses and that the airline's total legal expenses have been about $150 million."
"Court records show that American Airlines, since it filed for bankruptcy in November 2011, is spending about $500,000 a day in legal expenses and that the airline's total legal expenses have been about $150 million."
#1504
Join Date: Dec 2003
Location: NYC
Posts: 6,398
http://www.usatoday.com/story/todayi...fails/2681345/
"Court records show that American Airlines, since it filed for bankruptcy in November 2011, is spending about $500,000 a day in legal expenses and that the airline's total legal expenses have been about $150 million."
"Court records show that American Airlines, since it filed for bankruptcy in November 2011, is spending about $500,000 a day in legal expenses and that the airline's total legal expenses have been about $150 million."
Plan B is obviously to go back to their standalone plan of reorganization. They can't pursue it publicly so long as the merger agreement is in place.
#1505
Join Date: Jan 2011
Location: CLT
Programs: AA EXP
Posts: 709
So can we feel reasonably confident that the rumor from the US Airways employee newsletter a few weeks ago saying US would leave Star on November 1st is no longer valid? I just want to be able to book partner travel for the last few weeks of the year and know that it's going to count towards my PQMs for the year if I book flights on United.
#1506
Join Date: Aug 2007
Programs: AA EXP, Amex Plat
Posts: 571
"Court records show that American Airlines, since it filed for bankruptcy in November 2011, is spending about $500,000 a day in legal expenses and that the airline's total legal expenses have been about $150 million."
Even if you assume the average rate is $750/hr for an attorney at a large white-shoe firm (which might be low), that still requires about 66 attorneys all working 10 hours days. I've been around legal teams like this, but these are usually reserved for uber-large scale global litigations, not a typical merger between two major companies.
#1507
Join Date: Mar 2013
Location: SEA
Posts: 3,944
$750/hr as an average rate might even be high, unless it's all senior associates and partners working.
#1508
Join Date: Dec 2006
Location: Washington, DC
Programs: US-CP, UA, Marriott Rewards, HHonors, Avis,
Posts: 4,549
There will be a small army of bankruptcy lawyers and support staff. When I worked for the PBGC we had to expand our legal department for the UA bankruptcy. We got a whole new floor of lawyers and support staff, and our guys were still outnumbered by the UA lawyers. And that's just for the pension plan aspect of the bankruptcy. Granted not all were top-tier staff but it does add up really fast. Those guys were all putting in ridiculous hours too. We even had to cancel a planned IT disaster recovery drill at the last minute because the lawyers needed the network and IT systems up for that specific weekend, and the whole time that plan was going into trusteeship we had to double the helpdesk staffing for the weekends simply because there were so many users working on the weekends.
I remember thinking with the sheer amount of money coming from both sides and devoted to figuring out the pension plans' place in the BK, they probably could have just not hired any lawyers and used that money to fund the pensions.
I remember thinking with the sheer amount of money coming from both sides and devoted to figuring out the pension plans' place in the BK, they probably could have just not hired any lawyers and used that money to fund the pensions.
#1509
Join Date: Oct 2004
Posts: 246
Exiting Star Alliance
Sorry if I missed this, but what do people think of US still exiting Star Alliance for One World while this case is outstanding. If it goes to trial, I don't see a decision by the court until well into 2014 and then potential appeals. My brief search indicates that US would merge with AA and enter OW that way rather then entering separately. Would US stay in SA just in case they don't prevail in the DOJ case?
#1510
Join Date: Apr 2006
Location: High Point, NC
Programs: None
Posts: 9,171
And here I was thinking that AMR was being pretty frugal with it's bankruptcy expenses...
1Q2013 AMR spent $160 million in reorganization expenses, $124 million in the 2nd quarter. It's said that bankruptcy ain't cheap...
Jim
1Q2013 AMR spent $160 million in reorganization expenses, $124 million in the 2nd quarter. It's said that bankruptcy ain't cheap...
Jim
#1511
Join Date: Jan 2010
Location: New York and Berlin
Programs: MM, BA, AA EXP
Posts: 20
American and US Air said they want a speedy trial....
American and US Airways Seek November Trial Date for Antitrust Suit
American and US Airways Seek November Trial Date for Antitrust Suit
American Airlines parent AMR Corporation and US Airways said that they had filed a motion to set a trial date for the lawsuit filed earlier this month by the Department of Justice that seeks to block the merger of the two airlines. The DOJ had previously requested a trial date in roughly six months. Todays filing asks for a trial date on November 12, 2013. The two airlines also filed a brief in support of the expedited date....
#1512
FlyerTalk Evangelist
Join Date: Jan 2005
Location: BWI
Programs: AA Gold, HH Diamond, National Emerald Executive, TSA Disparager Gold
Posts: 15,180
American and US Air said they want a speedy trial....
American and US Airways Seek November Trial Date for Antitrust Suit
American and US Airways Seek November Trial Date for Antitrust Suit
Dougie's ego would be hurt if AA walked away from the merger. If it loses in the trial, he can blame the big bad government.
#1513
Join Date: Nov 2003
Location: AVL
Programs: AA EXP ; Cunard Plat
Posts: 4,211
#1514
Join Date: Mar 2012
Location: PHL
Programs: AA ExP, Marriott Amb, National EAE, Hilton Diamond, SPG Plat (RIP), US CP (RIP)
Posts: 2,370
So can we feel reasonably confident that the rumor from the US Airways employee newsletter a few weeks ago saying US would leave Star on November 1st is no longer valid? I just want to be able to book partner travel for the last few weeks of the year and know that it's going to count towards my PQMs for the year if I book flights on United.
#1515
Join Date: Apr 2012
Location: LAX
Posts: 556
Makes sense. If the drop dead date for the merger is in December, I think they'd want the trial to go forth so the merger can die rather than have one party (more likely AA) walk away from it. Anyone know if there'd be a breakup fee in the event a judge kills the merger?
Dougie's ego would be hurt if AA walked away from the merger. If it loses in the trial, he can blame the big bad government.
Dougie's ego would be hurt if AA walked away from the merger. If it loses in the trial, he can blame the big bad government.