AAMRQ: TPG, US Airways (LCC) and Delta (DAL) consider bids for AMR Corp-- WSJ ($0.36)
#121
Suspended
Join Date: May 2009
Location: DFW
Programs: AAdvantage Platinum, Hilton HHonors Gold
Posts: 2,863
if AA/US merge, no doubt the company will relocate to Tx, stay AA and remain within OW. Also, I do not think that CX, BA, JL will let AA switch allegiance. They would rather help out financially than make it happen.
#122
Join Date: May 2004
Location: LAX, BUR
Posts: 545
After years of loyalty to AA, I'm at the cusp of hitting 2MM within the next month or two. I hope it was all for nothing!
#123
Join Date: Aug 2009
Location: BNA and TPA
Programs: AA-EXP, UA, WN, DL- zilch by choice, IHG-Diamond, Marriott-Gold, Hilton Gold,
Posts: 566
I agree, but let's hope it doesn't turn out like Charlotte's troubled First Union Bank's acquistion of Wachovia Bank. They took the name Wachovia and still managed to go down the tubes only to be acquired (rescued) by Wells Fargo.
#124
Join Date: Jun 2011
Location: STL
Programs: DL Diamond, AA Platinum, Hilton Diamond, Marriott Platinum
Posts: 32
I disagree with the statement that Delta frequent flyer program leaves much to be desired. I'm active in AA and DL and can say unequivically that DL is better:
1). Rollover miles - any miles in excess of the level you attained in a year roll into the next year (Marriott does this nights in their hotel program).
2). Free lounge access for Diamonds
3). Ability to gift an elite status to the person of your choice - I was able to give my wife Medallion Gold (equivilent of Platinum on AA).
4). People who are at lower levels like Silver, Gold, and Platinum still receive free upgrades - none of this $30 per 500 mile stuff that AA has for Gold and Platinum.
I'm not saying that DL is better, because I love certain things about AA - e.g. I'd rather connect at DFW with the great AC in terminal D than deal with crowded connections in ATL or DTW. Both carriers have their positives and negatives, and if the required anti-trust shedding of routes and gates could be done surgically without killing the patient the result of a combined carrier could be great!
1). Rollover miles - any miles in excess of the level you attained in a year roll into the next year (Marriott does this nights in their hotel program).
2). Free lounge access for Diamonds
3). Ability to gift an elite status to the person of your choice - I was able to give my wife Medallion Gold (equivilent of Platinum on AA).
4). People who are at lower levels like Silver, Gold, and Platinum still receive free upgrades - none of this $30 per 500 mile stuff that AA has for Gold and Platinum.
I'm not saying that DL is better, because I love certain things about AA - e.g. I'd rather connect at DFW with the great AC in terminal D than deal with crowded connections in ATL or DTW. Both carriers have their positives and negatives, and if the required anti-trust shedding of routes and gates could be done surgically without killing the patient the result of a combined carrier could be great!
#125
Join Date: Jan 2012
Posts: 1
What will happen to lifetime elite status if AA is acquired?
Any speculation as to what would happen to lifetime gold status if AA is acquired? When Delta bought NWA, my non-flying miles (credit card) were lost toward reaching lifetime status on Delta. On American, I have lifetime gold but only because of non-flying miles. Any idea how this would playout with the various suitors?
#126
Join Date: Jun 2011
Location: STL
Programs: DL Diamond, AA Platinum, Hilton Diamond, Marriott Platinum
Posts: 32
"if AA/US merge, no doubt the company will relocate to Tx, stay AA"
Looking at what has happened previously with US (a.k.a America West Airlines) - when they acquired US Airways, they kept the headquarters in Phoenix, but retained the name of the larger carrier and made very few changes to the larger carrier. I suspect that any tie up woud be an acquisition of AA by US. AA is so much larger and has such a valuable brand, the customer would probably see few changes to AA other than MD80s being replaced by A320s on routes and the addition of AA hubs in CLT, PHX, ad PHL. Under the covers it will be the original America West management team in Phoenix running the company, not the current American management team in Fort Worth.
Looking at what has happened previously with US (a.k.a America West Airlines) - when they acquired US Airways, they kept the headquarters in Phoenix, but retained the name of the larger carrier and made very few changes to the larger carrier. I suspect that any tie up woud be an acquisition of AA by US. AA is so much larger and has such a valuable brand, the customer would probably see few changes to AA other than MD80s being replaced by A320s on routes and the addition of AA hubs in CLT, PHX, ad PHL. Under the covers it will be the original America West management team in Phoenix running the company, not the current American management team in Fort Worth.
#127
FlyerTalk Evangelist
Join Date: May 2001
Location: LAX; AA EXP, MM; HH Gold
Posts: 31,789
Welcome to Flyertalk.
I have no idea. What sort of lifetime elite status exists at DL or US or any other potential acquirer? Of course, what really matters is whether AA is the surviving corporation and whether AAdvantage is the surviving frequent flyer program. Given that AA has something like as many as 16 more months of exclusivity before others may file competing plans of reorganization, that gives us as many as 16 months before anyone has any clue.
I have no idea. What sort of lifetime elite status exists at DL or US or any other potential acquirer? Of course, what really matters is whether AA is the surviving corporation and whether AAdvantage is the surviving frequent flyer program. Given that AA has something like as many as 16 more months of exclusivity before others may file competing plans of reorganization, that gives us as many as 16 months before anyone has any clue.
#128
A FlyerTalk Posting Legend
Join Date: Feb 2000
Location: Cambridge
Posts: 63,636
Given antitrust concerns, an acquisition by Delta would mean AA is likely forced to give up some of its most profitable assets plus give up on oneWorld as well as its existing credit card deals.
I just can't see how that could be considered a good deal from Delta's perspective.
I just can't see how that could be considered a good deal from Delta's perspective.
#129
Join Date: Aug 2008
Location: South Park, Metropolis
Programs: AA LT PLT 3MM, Hilton/Marriott/SPG/Club Carlson GLD, IHG PLT
Posts: 4,608
I never though of DL
I've been reading this thread, among others and see that many share my same feelings. I never really though that DL will be in the picture, US, WN, B6, AS yes, but DL no. However, I can certainly see why DL could benefit from AA. Ultimately, think about the press that this has gotten, free publicity, also, look at some of the things that have been shared/posted here and in other blogs about the good and bad of a DL/AA merger. I bet that even with their best analyst on DL payroll, there where some things that they couldn't have seen. We basically gave them some fuel or additional info free of charge. This is similar to any sports draft, a team will have try outs for a particular prospect, seeing what others can offer for it, when in reality they wanted someone else. Either DL is making others to increase its bid for AA, thus weakining the competition, or they looking out for themselves and their strategic advantage. Regardless, this will be a fun thread to watch for a while.
#130
Join Date: Jun 2011
Location: STL
Programs: DL Diamond, AA Platinum, Hilton Diamond, Marriott Platinum
Posts: 32
DL is making other increase their bids for AA?
"Either DL is making others to increase its bid for AA, thus weakining the competition, or they looking out for themselves and their strategic advantage"
That is an angle that I've not heard before, but agree makes perfect sense strategically for DL. Assuming that the anti-trust issues would require shedding of more than DL is willing to do, why not push up the price of of a US acquisition of AA? While DL is not in great fear of US, I'm sure that if US were burdened in debt after acquiring AA, its CLT hub would be reduced, providing more advantage for DL's ATL hub. Pushing up the price of an AA acquisition could also sufficiently overburden the combined US/AA to push it back to Chapter 11 or worse Chapter 7. Maybe this is a little too much of a conspiracy theory stretch, but I'll throw it out there as yet another of the hundreds of permutations that can impact AA.
That is an angle that I've not heard before, but agree makes perfect sense strategically for DL. Assuming that the anti-trust issues would require shedding of more than DL is willing to do, why not push up the price of of a US acquisition of AA? While DL is not in great fear of US, I'm sure that if US were burdened in debt after acquiring AA, its CLT hub would be reduced, providing more advantage for DL's ATL hub. Pushing up the price of an AA acquisition could also sufficiently overburden the combined US/AA to push it back to Chapter 11 or worse Chapter 7. Maybe this is a little too much of a conspiracy theory stretch, but I'll throw it out there as yet another of the hundreds of permutations that can impact AA.
#131
Join Date: Aug 2006
Location: DCA / WAS
Programs: DL 2+ million/PM, YX, Marriott Plt, *wood gold, HHonors, CO Plt, UA, AA EXP, WN, AGR
Posts: 9,388
Well, they were pretty damn quiet when Jeffery packed up and called the movers to ship his office to Chicago from Houston after the CO/UA merger.
I disagree with the statement that Delta frequent flyer program leaves much to be desired. I'm active in AA and DL and can say unequivically that DL is better:
1). Rollover miles - any miles in excess of the level you attained in a year roll into the next year (Marriott does this nights in their hotel program).
1). Rollover miles - any miles in excess of the level you attained in a year roll into the next year (Marriott does this nights in their hotel program).
2). Free lounge access for Diamonds
3). Ability to gift an elite status to the person of your choice - I was able to give my wife Medallion Gold (equivilent of Platinum on AA).
4). People who are at lower levels like Silver, Gold, and Platinum still receive free upgrades - none of this $30 per 500 mile stuff that AA has for Gold and Platinum.
DL is also pushing to monetize first class, reducing the number of upgrades substantially. You can pay for it, or you can take your chance. I'm Platinum on DL, and have been all except for about a year when I was Gold. During the time I was Gold (and this was before Diamond was created), my upgrade percentage dropped from ~85% to ~30%. When I was AA Platinum (where one pays for upgrades), my percentage was ~20-25%, but as EXP that went up to 90+% (even as EXP it's tough to upgrade on a transcon).
On the mileage/systemwide upgrade front, AA is far and away superior to DL. Yes, AA has a copay for mile upgrades, but DL has both fare limitations (M or higher internationally) AND stiff capacity controls. DL is substantially more expensive even if one is using a systemwide. In fact, it's usually less expensive to use a systemwide on AF metal than on DL metal.
DL does allow you to choose the benefits you receive, but if you look closely the choices equate to <$200 value on the systemwides certificates.
I'm not saying that DL is better, because I love certain things about AA - e.g. I'd rather connect at DFW with the great AC in terminal D than deal with crowded connections in ATL or DTW. Both carriers have their positives and negatives, and if the required anti-trust shedding of routes and gates could be done surgically without killing the patient the result of a combined carrier could be great!
#132
Join Date: Nov 2002
Location: NY USA-Buenos Aires Argentina.
Programs: AA,US,AR,Hyatt, Hilton, holidayinn/AR Plus, DiscoPlus& JumboMas
Posts: 407
A news commentador in Buenos Aires said, that the Argentinean government will not fight a DAL acquisition because will benefit Aerolineas Argentinas, but will fight US acquisition.
#133
FlyerTalk Evangelist
Join Date: Oct 2011
Location: Anywhere I need to be.
Programs: OW Emerald, *A Gold, NEXUS, GE, ABTC/APEC, South Korea SES, eIACS, PP, Hyatt Diamond
Posts: 16,046
I disagree with the statement that Delta frequent flyer program leaves much to be desired. I'm active in AA and DL and can say unequivically that DL is better:
1). Rollover miles - any miles in excess of the level you attained in a year roll into the next year (Marriott does this nights in their hotel program).
2). Free lounge access for Diamonds
3). Ability to gift an elite status to the person of your choice - I was able to give my wife Medallion Gold (equivilent of Platinum on AA).
4). People who are at lower levels like Silver, Gold, and Platinum still receive free upgrades - none of this $30 per 500 mile stuff that AA has for Gold and Platinum.
I'm not saying that DL is better, because I love certain things about AA - e.g. I'd rather connect at DFW with the great AC in terminal D than deal with crowded connections in ATL or DTW. Both carriers have their positives and negatives, and if the required anti-trust shedding of routes and gates could be done surgically without killing the patient the result of a combined carrier could be great!
1). Rollover miles - any miles in excess of the level you attained in a year roll into the next year (Marriott does this nights in their hotel program).
2). Free lounge access for Diamonds
3). Ability to gift an elite status to the person of your choice - I was able to give my wife Medallion Gold (equivilent of Platinum on AA).
4). People who are at lower levels like Silver, Gold, and Platinum still receive free upgrades - none of this $30 per 500 mile stuff that AA has for Gold and Platinum.
I'm not saying that DL is better, because I love certain things about AA - e.g. I'd rather connect at DFW with the great AC in terminal D than deal with crowded connections in ATL or DTW. Both carriers have their positives and negatives, and if the required anti-trust shedding of routes and gates could be done surgically without killing the patient the result of a combined carrier could be great!
#134
We already saw that happen with JAL. Other members of the alliance will jump in to help rather than loose a member (and it's region). This will certainly be the case for the US. OW will become close to useless with a US member.
#135
Join Date: Jan 2007
Posts: 2,905
Another (perhaps naive) question. I believe US is the most likely candidate to "merge" with AA here. Since AA is the "larger airline" (albeit, not the more financially viable at the moment), why do folks seem to refer to a US merger as a takeover of AA? Wouldn't the larger airline (AA) take over the smaller one (market share-wise)?