AAMRQ: TPG, US Airways (LCC) and Delta (DAL) consider bids for AMR Corp-- WSJ ($0.36)
Jan 12, 2012, 7:56 pm
#106
Join Date: Sep 2009
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If the US Airways and American merger occurs, I tend to think that US Airways will use the American name and the AAdvantage program.
Last edited by rendezvous; Jan 12, 2012 at 8:04 pm
Jan 12, 2012, 8:30 pm
#107
Join Date: Mar 2011
Location: NYC LAX RDU
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AA cannot compete with ua/co or delta without a us merger. That is so obvious. My rdu based company just switched from aa to ua and most of my offices travel is to lhr which now requires a stop at iAd ( whichni now like because of the am flightnto lhr). DCA and CLT(from what I remember these were UAL's reasons for wanting the 2000 merger). Would help aa bulk up.
I agree AA has the best milage program for elites, but it is inevitable that the program(especially swu's) will be devalued post bankruptcy to mirror delta and ual. Those that think aa emerging as a standalone carrier would preventnthis are smoking the good stuff.
I agree AA has the best milage program for elites, but it is inevitable that the program(especially swu's) will be devalued post bankruptcy to mirror delta and ual. Those that think aa emerging as a standalone carrier would preventnthis are smoking the good stuff.
Jan 12, 2012, 8:48 pm
#108
Join Date: Jul 2006
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I'll use an underdog: AS buys out AA and carries the AA name. 
Jan 12, 2012, 9:14 pm
#109
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Keep in mind once the BA BD acquisition goes through BA has much less exposure if AA is chopped up as it can use the BD slots to replace AA flights to the USA.
OW could then have US or B6 as its USA partner assuming AA is split up much like PA.
OW could then have US or B6 as its USA partner assuming AA is split up much like PA.
Jan 12, 2012, 9:21 pm
#110
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Or at least AAdvantage management runs the ff program.
Delta's FF program is easily the worst, and AA's arguably the best.
Jan 12, 2012, 9:26 pm
#111
Join Date: Jan 2007
Location: Mostly AUS or rural England
Programs: BAEC redundant Bronze, AAdvantage Lifetime PLT, CO, WN, B6
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I wonder under what circumstances AA / IAG would have to reapply for ATI? Is US acquired AA would the ATI automatically continue, or would they have to make a fresh application? Like you I can certainly imagine DL acquiring much of AA, and effectively moving it into SkyTeam would invalidate the ATI, and I'm not sure that wouldn't ultimately be the best outcome for consumers?
Jan 12, 2012, 9:28 pm
#112
Join Date: Jan 2007
Location: Mostly AUS or rural England
Programs: BAEC redundant Bronze, AAdvantage Lifetime PLT, CO, WN, B6
Posts: 6,526
AA's being the more generous to passengers doesn't necessarily make it the most beneficial to the airline. Would you prefer a financially healthy carrier that's going to be around a while, or a generous one that teeters on the brink of Bankruptcy?
Jan 12, 2012, 9:58 pm
#113
Join Date: Nov 2002
Location: NY USA-Buenos Aires Argentina.
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Well, bye bye to OW, LAN goes with TAM *A
Jan 12, 2012, 10:10 pm
#114
Join Date: Aug 2008
Programs: AA EXP
Posts: 1,714
If I'm getting a service I'm happy with I don't much care what the state of the Airline's finances is. If it's a choice of current AAdvantage benefits for X amount of months/years longer and then loss of those benefits or immediate loss of those benefits then I'll take the former. Either way I lose the service I like....just in the former case I get it for that bit longer.
Jan 12, 2012, 10:30 pm
#115
Join Date: May 2011
Location: BOS
Programs: AA EXP, Morning Calm, Marriott Plat., Hyatt Globalist
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Delta 16.3%
Southwest 14.8%
American 13.3%
United 9.6%
US Airways 7.9%
Continental 7.3%
JetBlue 4.6%
Alaska 3.5%
AirTran Corporation 3.4%
SkyWest 2.1%
Other 17.2%
Southwest 14.8%
American 13.3%
United 9.6%
US Airways 7.9%
Continental 7.3%
JetBlue 4.6%
Alaska 3.5%
AirTran Corporation 3.4%
SkyWest 2.1%
Other 17.2%
I don't know, but is it even viable to think that the DOJ will approve something like this? Assuming CO+United is one, a Delta+AA (29.6%) will result in a airline with 75% more than the 2nd largest airline(16.9%).
AA+US does not seem that bad, but personally hope that does not happen.
Jan 13, 2012, 1:17 am
#116
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I wonder under what circumstances AA / IAG would have to reapply for ATI? Is US acquired AA would the ATI automatically continue, or would they have to make a fresh application? Like you I can certainly imagine DL acquiring much of AA, and effectively moving it into SkyTeam would invalidate the ATI, and I'm not sure that wouldn't ultimately be the best outcome for consumers?
I guess the other aspect - that could tell AA's future - is what happens to AAdvantage. I believe that TPG paid for part of its acquisition of Neiman Marcus by spinning out the NM credit card division and selling it to a bank. One would think that could be on their mind with AAdvantage. As at least one other said, a TPG deal would probably be in the best interest of AAdvantage fliers, however, IMO the EVIP gravy train will soon be a goner.
Jan 13, 2012, 2:08 am
#117
Join Date: Jul 2010
Location: DCA
Programs: US CP, DL GM, AA Plat
Posts: 729
Anyone know how to use this news to make money on airline stocks?
I always bought US airways stock (LCC) and made money on it because I always thought AA or another airline was going to buy them. Funny how the opposite is about to happen.
No way a delta/AA merger will pass regulatory approval. It would be like the ATT-Tmobile merger that got squashed. US and AA merger has always been speculated and makes the most sense.
I always bought US airways stock (LCC) and made money on it because I always thought AA or another airline was going to buy them. Funny how the opposite is about to happen.
No way a delta/AA merger will pass regulatory approval. It would be like the ATT-Tmobile merger that got squashed. US and AA merger has always been speculated and makes the most sense.
Last edited by TAWS; Jan 13, 2012 at 2:13 am
Jan 13, 2012, 2:40 am
#118
Join Date: Dec 2005
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Nope. But just take the opposite side of my trades and you'll usually do well.
About to happen? Really?
A merger with US? Puke. Let's hope AA stays AA (OK, a merger with AS might be cool albeit astronomically unlikely.)
A merger with US? Puke. Let's hope AA stays AA (OK, a merger with AS might be cool albeit astronomically unlikely.)
Jan 13, 2012, 2:59 am
#119
Join Date: Sep 2011
Location: BOS
Posts: 519
But, AAdvantage isn't why AA is having financial difficulties.
Jan 13, 2012, 3:11 am
#120
Join Date: Jul 2010
Location: DCA
Programs: US CP, DL GM, AA Plat
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AA is having trouble because they should have declared Chapter 11 like the other major airlines (Delta, United, US, Northwest) shortly after 9/11.
Since they avoided bankruptcy after 9/11, they were not able to reorganize like the other airlines and simply couldn't compete.
Since they avoided bankruptcy after 9/11, they were not able to reorganize like the other airlines and simply couldn't compete.