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

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Old Feb 14, 2013, 9:50 am
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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.
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ARCHIVE: US LCC & AMR / AA Takeover / merger Rumors and Discussion (consolidated)

 
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Old Apr 20, 2012, 3:14 am
  #151  
 
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Goodness. I remember when you could use AC cards to get into US Airways clubs, and when you could transfer miles between the two programs. Would be like deja-vu if something similar were to happen again.
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Old Apr 20, 2012, 6:24 am
  #152  
 
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Originally Posted by pdquick
But three unions and the Pension Benefit Guarantee Corporation are on the 9-member unsecured creditors board. A deal that protects pensions, and that also gives the banks and lessors something to pique their interest might just be able to fly.
Correct. I knew instantly when the commitee was announced that the outcome was pretty much a worst case scenario for AA...they had 4 out of 9 members opposed to their business plan from the get-go. All it would take is an extra vote the other way, and AA's in trouble.

In the end, the unions helped steer AA into Ch11, and now they determine AA's fate in bk, too. And don't even get me started on the PBGC...
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Old Apr 20, 2012, 6:37 am
  #153  
brp
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Wow, too bad we don't have a consolidated thread about this earth-shattering topic right on the front page. Oh wait, we do

http://www.flyertalk.com/forum/ameri...solidated.html

Cheers.
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Old Apr 20, 2012, 6:47 am
  #154  
 
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One wonders if AA fa's are making some deal not to get stapled as thy did to their TWA friends, The Irony.
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Old Apr 20, 2012, 6:55 am
  #155  
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I guess I can burn my EXP card now.
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Old Apr 20, 2012, 7:34 am
  #156  
 
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Originally Posted by BigAppleCoder
Parker and company will promise the unions at AA the sun, the moon and the stars to get a deal done. They should talk to their union brethren at US Airways to see how they're faring. Once the ink is dry on a merger then I'm afraid they'll be in the same boat as the Frontier unions once Republic took over.
Here's the thing US can promise anything they want and deliver nothing. The AA unions do see how the US/West FA & Pilots are being treated and for them it could mean 5 more years of contract fighting. Which means today that AA unions lose nothing. They know very well that combining the unions will be almost impossible but they will keep everything they have today.

Now I say that from the perspective of the AA unions. However, this could be very bad for the US management for dealing with the unions. Would they be willing to pass on some seniority issues for significant increases in benefits and pay from the AA unions. If they did combine into the AA unions the power of those unions against management would be huge (in my opinion).
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Old Apr 20, 2012, 7:40 am
  #157  
 
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Originally Posted by uxb
I guess I can burn my EXP card now.
Hang on to the EXP card. US Airway's Doug Parker has a lot of obstacles in the way of acquiring AA. While there are a number of synergies that might benefit both carriers, there is so much baggage on the part of both carriers that it would be at best a 50% likelihood of this happening.

If US is successful, you EXP card will retain its standing. Remember Parker has done this before. As CEO of America West, he acquired US Airways, and kept the name, frequent flyer programs, and branding of the larger carrier. In that case, the larger carrier's passengers only real change was the addition of a hub at Phoenix. Similarly, history says that the surviving name, frequent flyer programs, and branding would be that of AA. As AA passengers, we would simply have 3 new hubs and a lot of Airbus aircraft - AA is going to start receiving Airbus next year regardless of any mergers.
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Old Apr 20, 2012, 7:45 am
  #158  
 
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Originally Posted by Pucnit
If they did combine into the AA unions the power of those unions against management would be huge (in my opinion).
If they did combine, yes the power would be huge. I would bet against that happening though. The seniority issues may be insurmountable. That is why US is still operating as 2 carriers (HP and US) under a single brand. I really expect that if a merger occurs, there will be 3 carriers each with its own union groups, operating under a new AA brand. Casual passengers will assume that they are flying on a single larger carrier called American Airlines.
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Old Apr 20, 2012, 7:55 am
  #159  
 
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On April 20, 2012, W. Douglas Parker, the Chairman and Chief Executive Officer of US Airways Group, Inc. and US Airways, Inc., released an employee letter.

Dear Fellow Employees ?

Today, we filed a statement (a form called an 8-K) with the Securities and Exchange Commission disclosing that we have signed agreements with the three unions that represent nearly 55,000 American Airlines employees. These unions are the Allied Pilots Association (APA), the Association of Professional Flight Attendants (APFA) and the Transport Workers Union (TWU), which represents all of American Airlines' mechanics and fleet service employees. Shortly after our disclosure, these three unions issued a public statement announcing their support of a US Airways-American Airlines merger and that they have agreed to terms that would govern collective bargaining agreements for their members at the merged airline. I want to explain to you why we have done this and what it means.

First of all, today's news does not mean we have agreed to merge with American Airlines. It only means we have reached agreements with these three unions on what their collective bargaining agreements would look like after a merger, and that they would like to work with us to make a merger a reality. To get to an actual merger, many more things must happen including gaining the support of AMR's creditors, its management team and its Board of Directors. But this is obviously an important first step along that path and we are hopeful we can all work together to make this happen.

All of you have heard me talk about the benefits consolidation has created for US Airways and our industry. You have also heard me say that US Airways does not need to merge with anyone, as evidenced by our team's outstanding results. That is still the case, but after studying American Airlines' current state and their future plans, we have concluded that a merger with American, while they are undergoing their bankruptcy restructuring, represents a unique opportunity that we should not ignore. These beliefs are shared by the three American labor unions and we are delighted to have their support. Like us, they recognize the potential of a merger to improve the current and future careers of both airlines' employees.

Combining American Airlines and US Airways would create a preeminent airline with the enhanced scale and breadth required to compete more effectively and profitably. Our intention would be to put our two complementary networks together, maintaining both airlines' existing hubs and aircraft, and create an airline that could compete successfully with United, Delta and other carriers within our industry. A merged airline would provide competitive, industry-standard compensation and benefits, as well as improved job security and advancement opportunities for all employees of the combined airline. Most importantly, in American's standalone strategy, over 13,000 employees at American will lose their jobs. Our merger contemplates saving at least 6,200 of these positions. For the US Airways team, the agreements we have reached with the unions representing employees at American would also provide enhancements to the compensation and benefits currently in place here.

Today is one step in what will be a much longer process. For now, it remains business as usual. We must continue to provide the outstanding service that customers have come to expect from US Airways.

In the meantime, if you have any questions, please stay connected via Wings (www.wings.usairways.com) and we will continue to provide updates on our progress. Thanks for all that you continue to do to take care of our customers. Together, whether a merger is our future or not, we will continue to run a great airline and have a bright future ahead of us.



Sincerely,
/s/ Doug
Doug
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Old Apr 20, 2012, 7:58 am
  #160  
 
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http://aviationblog.dallasnews.com/a...ons-us-ai.html

American Airlines unions, US Airways announce deal to support merger
American Airlines' three unions and US Airways Group Inc. announced Friday that the unions are supporting a possible merger between American and US Airways...
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Old Apr 20, 2012, 7:59 am
  #161  
 
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What does a merger mean for our miles? I hope AA does not merge with US Airways. No more flying to Asia for low miles. Our AA miles should devalue like a rock dropped from the sky.
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Old Apr 20, 2012, 7:59 am
  #162  
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Originally Posted by apodo77
On April 20, 2012, W. Douglas Parker, the Chairman and Chief Executive Officer of US Airways Group, Inc. and US Airways, Inc., released an employee letter.

Dear Fellow Employees ?

Today, we filed a statement (a form called an 8-K) with the Securities and Exchange Commission disclosing that we have signed agreements with the three unions that represent nearly 55,000 American Airlines employees.
Now it gets interesting. They are without a doubt publicly interested in a merger now of course. Still a long way to go, but it definitely looks like they will try.
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Old Apr 20, 2012, 8:00 am
  #163  
 
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Originally Posted by apodo77
Our merger contemplates saving at least 6,200 of these positions.
(my emphasis)

LOL.
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Old Apr 20, 2012, 8:05 am
  #164  
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Originally Posted by opus2002
What does a merger mean for our miles? I hope AA does not merge with US Airways. No more flying to Asia for low miles. Our AA miles should devalue like a rock dropped from the sky.
Huh? Why would AA miles be devalued? The US award chart is relatively in line with the AA chart. One-way awards aren't permitted. But stopovers are. A give and take. But in terms of actual mileage requirements, not sure what the fuss is.
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Old Apr 20, 2012, 8:09 am
  #165  
 
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I agree with previous post. The initial inclination is always to deem this catastrophic. But, as an AA EXP that lives near DCA, this would thrill me.
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