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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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MODERATOR GUIDEPOST

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 Jan 21, 2013, 7:13 pm
  #2911  
 
Join Date: Jun 2010
Location: ROC/NYC/MSP/LAX/HKG/SIN
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Originally Posted by Dr. HFH
I stand corrected on the joint business arrangement, I had overlooked it. But part of the reason is that I've always been skeptical of these, including the one with BA. Do they really share the revenue in a metal-neutral manner? How is it allocated? 50/50? I get the coordinating schedules, etc., but I'm still not sold on the complete financial metal-neutrality of these arrangements.
Different JVs have different T&Cs, and I can imagine the JV of AA/JL and JV of BA/IB/AA have different terms of revenue and cost sharing. Some might be shared but some might not, but if you have metal-neutrality like these two, and also BA/QF, then rest assured most of the revenue will be shared.

http://www.iata.org/whatwedo/Documen...s_Jan2012L.pdf

If an airline carves out the beyond-gateway traffic in the JV agreement, then airlines do not share 50/50 in all the O&Ds.
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Old Jan 21, 2013, 8:01 pm
  #2912  
 
Join Date: Jan 2003
Location: DL: Silver; AA: EX PLAT; UA: Silver; HY: DIA; HH: DIA; MR: TIT
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Originally Posted by diver858
I also find it interesting that most TATL J, F saaver awards on aa.com tend to be on BA metal, which incur hundreds in fees.
And another source of skepticism for me is that when I was recently rebooked JFK-LHR due to a mechanical issue, they would only re-book me on AA not BA despite the fact that I was traveling in purchased F.
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Old Jan 21, 2013, 8:51 pm
  #2913  
 
Join Date: Oct 2010
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Posts: 3,502
Originally Posted by LINDEGR
And another source of skepticism for me is that when I was recently rebooked JFK-LHR due to a mechanical issue, they would only re-book me on AA not BA despite the fact that I was traveling in purchased F.
So you paid the extra taxes and fees to ticket BA metal, yet were refused after a mechanical issue? I would ask for a refund.
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Old Jan 21, 2013, 8:54 pm
  #2914  
 
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Originally Posted by joejones
Two things come to mind:

(1) JL and AA would compete to some extent on Korea to US flights, e.g. ICN-NRT-ORD versus ICN-DFW-ORD.
(2) It's pretty common for business travelers to hit multiple Asian cities on one visit, e.g. MIA-DFW-ICN-NRT-ORD-MIA, where it would make sense for JL and AA to offer a coordinated fare and product.
JL wil likely service flights in and out of ICN, until/unless AA established a sufficient number of flights to justify its own ground staff.
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Old Jan 21, 2013, 11:36 pm
  #2915  
 
Join Date: Sep 2001
Location: los angeles, calif.
Programs: Alaska Airlines Gold MVP
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Originally Posted by joejones
I seriously doubt that we will ever see MIA-HKG. It would be an extremely long flight, in the same general distance range as NYC/LAX-SIN, where SQ could not get the economics to work despite a lower cost base and (what I assume is) much, much higher O&D demand.

DFW, maybe, but I think the real demand to/from HKG is with the financial sector out of JFK, ORD and LAX.
It wouldn't shock me to see it on a 788 or A350, which also will make SINNYC/SINLAX viable again. There is robust business demand between Miami and Hong Kong - the average one way fare between the two is higher than the average round trip fare between Los Angeles and Hong Kong, and the local market size is growing quite quickly.

As for DFWHKG, regardless of the size of the local market, there is a large local market between Texas and both the Philippines and Viet Nam, and while it's Not exactly high yielding, it will fill a plane between Dallas and Hong Kong.
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Old Jan 22, 2013, 4:28 am
  #2916  
 
Join Date: Mar 2007
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Originally Posted by MAH4546
As for DFWHKG, regardless of the size of the local market, there is a large local market between Texas and both the Philippines and Viet Nam, and while it's Not exactly high yielding, it will fill a plane between Dallas and Hong Kong.
As far as I could tell every time i flew the route in the back, the main drivers of Y demand on the NRT-DFW flights are military personnel and Southeast Asians. My guess is that HKG would be no better than NRT as a connecting point for most of those ethnic pax, especially if AA continues to not have a tpac JV with CX.
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Old Jan 22, 2013, 5:20 am
  #2917  
 
Join Date: Feb 2012
Posts: 3
I am sorry to post this question so late in the game here but i cant find this anywhere for some reason.
I am a platinum for life with aa. If merger-takeover happens. What will happen to platinum's for life and are they planning on staying on aa program or moving to us airways?
Thanks in advance!
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Old Jan 22, 2013, 5:48 am
  #2918  
 
Join Date: Aug 2008
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thenerdsnet

Originally Posted by thenerdsnet1
I am sorry to post this question so late in the game here but i cant find this anywhere for some reason.
I am a platinum for life with aa. If merger-takeover happens. What will happen to platinum's for life and are they planning on staying on aa program or moving to us airways?
Thanks in advance!
Several poster on this thread have mentioned that AA ff will be the one surviving. However, all of this are speculations since nothing has occurred yet. I wouldn't worry too much about it as no one knows what will happen, it is all speculations.
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Old Jan 22, 2013, 10:23 am
  #2919  
Moderator: American AAdvantage
 
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Programs: AA LT Plat; HH LT Diamond, Maître-plongeur des Muccis
Posts: 62,948
In a merger, there would not be two frequent flyer programs left standing for long. Most likely they would also be merged into something a bit new, and nobody can predict what would happen to lifetime status, though some might say it would be foolish to throw 'em out with the bathwater.

One never quite knows what will occur finally - my TW Aviators miles were easily integrated into AAdvantage, and AA matched status for TW Aviators elites and extended that status one year iirc - but those 30,000 with lifetime Ambassadors Club (lounge) membership were thrown a mere chicken bone (they were "allowed" to purchase annual Admirals Club memberships after April 30, 2003). (Link to WSJ article.)

Que sera, sera. No sense to panic over a merger that is not a done deal, IMO.

Originally Posted by thenerdsnet1
I am sorry to post this question so late in the game here but i cant find this anywhere for some reason.
I am a platinum for life with aa. If merger-takeover happens. What will happen to platinum's for life and are they planning on staying on aa program or moving to us airways?
Thanks in advance!

Last edited by JDiver; Jan 22, 2013 at 11:03 am
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Old Jan 22, 2013, 10:55 am
  #2920  
 
Join Date: Dec 2006
Location: The views I express here are not necessarily supported by any airline or codeshare partners, nor do I represent their views and/or opinions. They are my own OPINIONS dont like them dont read them.....
Posts: 1,615
Originally Posted by arollins
Several poster on this thread have mentioned that AA ff will be the one surviving. However, all of this are speculations since nothing has occurred yet. I wouldn't worry too much about it as no one knows what will happen, it is all speculations.
Been through many airline mergers. US Airways always kept miles from merged airlines. Regardless who has control on paper, there is no reason to think the same wouldn't happen this time.

FWIW, the airline will be American Airlines, Headquarters in Dallas, and the AA American Advantage will be the FF name. That has already been decided.
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Old Jan 22, 2013, 11:10 am
  #2921  
 
Join Date: Apr 1999
Location: South Florida USA
Programs: DL-MM/FC/FO AA-EXP/MM Starwood-Platinum Marriott-Platinum Hilton-Gold Hyatt-Diamond
Posts: 1,515
A bigger question for me is what will happen with the US and or AA total flown miles. When AA acquired TW the total miles from TW were rolled into the unofficial "Million Miler" bank. When DL acquired NW, they were not added. Only the currently available for redemption miles were transferred.

TW
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Old Jan 22, 2013, 11:23 am
  #2922  
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Originally Posted by flight62
FWIW, the airline will be American Airlines, Headquarters in Dallas, and the AA American Advantage will be the FF name. That has already been decided.
Almost. American's headquarters are in Fort Worth, not Dallas. Southwest is headquartered in Dallas.
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Old Jan 22, 2013, 12:08 pm
  #2923  
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Posts: 19,781
Originally Posted by FWAAA
Almost. American's headquarters are in Fort Worth, not Dallas. Southwest is headquartered in Dallas.
I've seen Virgin America described as being headquartered in "San Francisco" when they are in fact headquartered in Burlingame. Unless you live in the area, it's close enough to the same thing either way (and in both cases, on FT, it's probably a matter of remembering the airport rather than the city.)
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Old Jan 22, 2013, 12:18 pm
  #2924  
 
Join Date: May 2005
Programs: Marriott LT Titanium, Hilton LT Diamond, AA LT Platinum
Posts: 426
Originally Posted by nkedel
I've seen Virgin America described as being headquartered in "San Francisco" when they are in fact headquartered in Burlingame. Unless you live in the area, it's close enough to the same thing either way (and in both cases, on FT, it's probably a matter of remembering the airport rather than the city.)

Yes, but the airport`s official name is Dallas - Fort Worth Airport (DFW), so saying Fort Worth is as worthy as saying Dallas. After all, it has 2 of the 3 words making up the name of the airport. So being specific and correct is probably advisable.
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Old Jan 22, 2013, 12:24 pm
  #2925  
 
Join Date: Jan 2007
Location: PHX
Programs: AA ExPlat, United Gold, IHG Amb Plat, HHonors Diamond(Aspire), Bonvoy LT Plat, Hyatt Globalist
Posts: 453
Originally Posted by Dr. HFH
I don't see AA going head-to-head against CX at this point, despite the apparently high demand from the NYC area. Sure, AA does compete directly with JL, but JL was on very shaky ground just a few years ago. As I said, though, I could easily see AA initiating DFW/HKG.

DFW-HKG for CX connections to SE Asia would be wonderful. If one wants to use miles + copay to upgrade, the only choice right now is connecting in NRT which leaves a very uncomfortable non- upgradeable 6 -7 hours on JAL into BKK or SIN. HKG gives you an extra hour or 2 of sleep on the T-PAC and a very tolerable 3 more hours to go to BKK.

I've always wondered about PVG or PEK as a connection point, but I'm not sure who the partner airline would be.
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