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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, 8:09 am
  #166  
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Originally Posted by sts603
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.
My only complaint is the booking fees US charges and the change fees . Otherwise, I think the US award chart to Asia is actually better. Maybe I should start building my US Airways balances up to get the *A F trip I want to take before they join OW. As much as I'd prefer AA and US to stay separate, Parker and US look like they are lining the ducks up much better this time. Seems they learned from the attempt at DL. And this likely wouldn't be the end of the world as well. For me personally, the extra US service from BOS would be nice, as they have many more destinations out of BOS than AA does now.
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Old Apr 20, 2012, 8:11 am
  #167  
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Originally Posted by billycwhatup
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.
Thanks. I mean I am anti-merger. But I don't think that merger will be all bad. Most of us who aren't in MIA, ORD or DFW struggle routinely with AA's route system domestically - even those of us in cornerstone NYC. I am also a US Silver for the Shuttle flights but do resort to them for other East Coast hops as well. And its not like there aren't things that US does better than AA (booze quality for starters).
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Old Apr 20, 2012, 8:12 am
  #168  
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Amazing. Particularly while we observe HP took over US in 2005, and the East-West divide is s=nearly as strong as ever. Not to mention the recent recall of the "US" FA president (March 23) and union's rejection of what would have been the first contract approved since the merger (March 30).

If AMR unions want to skirmish, they will certainly get that option with the HP and US unions infighting after seven years to get it together.

"Rising water will lift all boats" - What is that sucking, drain-like sound?

Originally Posted by jrreynolds
The largest unions stated today that they would be in favor of an merger with US air. Doesn't mean it is a done deal, but suggests progress is being made.

Who can forecast how this would impact all of our miles.
Originally Posted by sfozrhfco
AMR Unions Said Prepared to Back US Airways Takeover Offer
By Zachary R. Mider, Jeffrey McCracken and Mary Schlangenstein - Apr 19, 2012 11:09 AM PT


American Airlines’ three largest unions have agreed to support a possible takeover offer from US Airways Group Inc. (LCC) rather than remain independent, three people familiar with the matter said.

The groups plan to say that they believe they can reach better terms with US Airways than what they expect if American parent AMR Corp. (AAMRQ) exits bankruptcy by itself, according to the people, who asked not to be identified because the talks are private.

http://www.bloomberg.com/news/2012-0...tml?cmpid=yhoo
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Old Apr 20, 2012, 8:14 am
  #169  
 
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Sounds like LTG and LTP may be lost especially since I don't think US Air has a LTP.
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Old Apr 20, 2012, 8:15 am
  #170  
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Originally Posted by TheBOSman
My only complaint is the booking fees US charges and the change fees .
Top elites exempt though I believe...

http://www.usairways.com/en-US/divid.../benefits.html

Furthermore, as a general proposition - as dumb as US is at times - I also thinks that US knows that they are taking over a larger airline with a more lucrative and deep elite base. I think assuming that the combined program will look exactly like DM is a mistake. I do think that benefits will fall more in line with DL and UA but I think AA would head there on its own as well.
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Old Apr 20, 2012, 8:16 am
  #171  
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Originally Posted by JDiver
Amazing. Particularly while we observe HP took over US in 2005, and the East-West divide is nearly as strong as ever. Not to mention the recent recall of the "US" FA president (March 23) and union's rejection of what would have been the first contract approved since the merger (March 30).

If AMR unions want to skirmish, they will certainly get that option with the HP and US unions infighting after seven years to get it together.

"Rising water will lift all boats" - What is that sucking, drain-like sound?
Indeed, now we will have an East (US)-West (HP)-Central (AA) divide. That is my biggest concern with this, the union infighting that already exists at US. Now put in a union bigger than both of them combined. That I could see getting ugly. I wonder what the US/HP unions think of this?
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Old Apr 20, 2012, 8:18 am
  #172  
 
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Agreed. I have no idea why AA's unions are convinced they would get a better deal with Doug Parker than with AA's current management if they've been paying any attention to the running gun battles between US Air East and West.

Also, to that point, shouldn't US Air attempt to complete one merger before embarking on another? This feels like something Frank Lorenzo would have done back when he was trying to turn Texas International into something (acquiring Eastern, Continental, People's Express) without any idea of how to make it all work.
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Old Apr 20, 2012, 8:19 am
  #173  
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When you have a mess in your own house, it's kind of stupid to think that you can solve that mess by buying a bigger house with an even bigger mess existing in that house.
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Old Apr 20, 2012, 8:19 am
  #174  
 
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Originally Posted by sts603
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.
Can one book a flight from JFK to HKG on F for 121,500 miles (135,000 less 10% for having an AA credit card)? US Airways is on Star Alliance. We'll be left with using BA miles on One World.
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Old Apr 20, 2012, 8:20 am
  #175  
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Originally Posted by sts603
Top elites exempt though I believe...

http://www.usairways.com/en-US/divid.../benefits.html

Furthermore, as a general proposition - as dumb as US is at times - I also thinks that US knows that they are taking over a larger airline with a more lucrative and deep elite base. I think assuming that the combined program will look exactly like DM is a mistake. I do think that benefits will fall more in line with DL and UA but I think AA would head there on its own as well.
True. I've only been EXP for a couple of days, I forget that most of the fees no longer apply at the top level elite status.
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Old Apr 20, 2012, 8:21 am
  #176  
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Originally Posted by opus2002
Can one book a flight from JFK to HKG on F for 121,500 miles (135,000 less 10% for having an AA credit card)? US Airways is on Star Alliance. We'll be left with using BA miles on One World.
There is one consensus here. There is NO WAY that a combined US-AA would be anything but One World. US-AA/UA will never be allowed to be in the same alliance by the DOJ for anti-trust rules. Period. End of story.

N.B. The 10% discount with the AA credit card is capped at 10K miles annually.
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Old Apr 20, 2012, 8:26 am
  #177  
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US's decision to negotiate a merger with AA's unions -- instead of dealing with AMR's management first -- will likely go down in history as one of the most brilliant takeover strategies ever. They obviously learned a lot from their unsuccessful efforts to buy DL.

I'd now put the odds of a US-AA merger at 80%.

I don't think this is bad news for AA flyers. US is already saying they'll move to Dallas and keep the AA name. One thing they'll likely keep almost completely in place is the AAdvantage program. This is a cash cow for AA, and is one of the few (?) areas where AA probably has more expertise than the US management team. Yes, there will be changes, but I wouldn't expect anything earthshaking.

The picture for US frequent flyers seems murkier to me, and there certainly could be losers among the US elites. If you're DM elite, you have a pretty sweet deal with upgrades because the size of the DM pool is relatively small. Now you will get swamped with AA elites. You also will lose access to the excellent Star Alliance for award travel. Oneworld isn't terrible (we're not talking DL and Skyteam here) and it's actually stronger than Star in some places (South America, South Pacific), but it's definitely inferior overall for int'l travellers.
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Old Apr 20, 2012, 8:27 am
  #178  
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Originally Posted by sts603
There is one consensus here. There is NO WAY that a combined US-AA would be anything but One World. US-AA/UA will never be allowed to be in the same alliance by the DOJ for anti-trust rules. Period. End of story.

N.B. The 10% discount with the AA credit card is capped at 10K miles annually.
Also, booking an award on US metal as a US Airways CC cardholder gives a 5k reduction on all award bookings. And, for something pretty unsubstantive, I do like how the US Airways CC looks more than the AAdvantage CCs (I have both).
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Old Apr 20, 2012, 8:30 am
  #179  
 
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Originally Posted by sts603
There is one consensus here. There is NO WAY that a combined US-AA would be anything but One World. US-AA/UA will never be allowed to be in the same alliance by the DOJ for anti-trust rules. Period. End of story.

N.B. The 10% discount with the AA credit card is capped at 10K miles annually.
I hope you're right. I am not familiar with using US Airways to book on partner airline. Do you know what the award availability are like?

I was looking at this chart ... I guess it is not too bad like the recent BA award chart re-make. Looks like I'll need 160,000 compared with 125,000 (135,000 - 10,000; thanks for pointing out the cap at 10k miles).
http://www.usairways.com/pv_obj_cach...wardtravel.pdf
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Old Apr 20, 2012, 8:36 am
  #180  
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Originally Posted by billycwhatup
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.
For me, there are few things that I need to make whatever happens work. These are the things that make AA my choice. Not sure how things like this would fare in a merger:

1. Ability to buy cheapest tickets and upgrade both domestically and internationally for free (SWU and free domestic)
2. The fabulous service of the EXP desk

Other airlines do not allow #1 (and I don't know much about US Air). It's something that I could see going away, or being reduced. That would be a big deal for me.

Adding more options would not be bad. Losing these few things would.

Cheers.
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