Feb 14, 2013, 9:50 am
Last edit by: JDiver
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.
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.
ARCHIVE: US LCC & AMR / AA Takeover / merger Rumors and Discussion (consolidated)
Jan 31, 2013, 3:33 pm
#3121
Moderator: American AAdvantage
Join Date: May 2000
Location: NorCal - SMF area
Programs: AA LT Plat; HH LT Diamond, Maître-plongeur des Muccis
Posts: 62,948
A number of articles, pundits (some with some actual insight to the airline industry) etc. out there seem to feel the annuoncement is imminent. Some talk about Parker as CEO and Horton as Chairman. At this point, I would not be surprised at an announcement - sooner than 15 Feb. Too much ground shaking - I think there's a herd approaching.
Jan 31, 2013, 3:43 pm
#3122
Join Date: Dec 2002
Location: eastern Europe & NC
Posts: 4,527
A number of articles, pundits (some with some actual insight to the airline industry) etc. out there seem to feel the annuoncement is imminent. Some talk about Parker as CEO and Horton as Chairman. At this point, I would not be surprised at an announcement - sooner than 15 Feb. Too much ground shaking - I think there's a herd approaching.
Jan 31, 2013, 3:55 pm
#3123
Join Date: Sep 2009
Location: MSN
Programs: AA Plat 1MM, HH GLD, Hyatt Diamond, SPG GLD
Posts: 325
Like I have said before, I am hoping that someone will be stupid enough to write put contracts on the merged entity. I will be a great $$ making opportunity.
Jan 31, 2013, 4:26 pm
#3124
Suspended
Join Date: Dec 2005
Posts: 9,916
US is currently promising AA employees higher compensation to take effect immediately upon a merger which is contrary to the reasons that AA filed for bankruptcy: to bring its labor costs down from their industry-leading position. On top of that, US is finally (almost eight years after its merger) offering to raise its own employees' compensation to the new AA levels, which requires hundreds of millions of dollars in additional annual costs.
Same deal for Horton's stand alone plan to grow revenues significantly as a stand alone. Can he deliver on what he has promised? Nobody knows.
As I mentioned, the fact that the BA/IB and JL CEOs are supporting a merger - and both are key components of Horton's stand alone plan - suggests they think there is less risk to their JVs through a merger. Of course they could be wrong.
Jan 31, 2013, 4:38 pm
#3125
Join Date: Aug 2011
Location: ELP
Programs: AAdvantage, Amex MR
Posts: 2,314
Well, I guess if a merger is inevitable it is not the end of the world. Obviously I want AAdvantage to survive with minimal gutting, if the 100% miles earning rate on flights booked as an AA codeshare remain that would be great. Hopefully fuel surcharges do not spread to more partners besides BA/IB, and hopefully we are still allowed to upgrade from any published fare. Those are the three big things for me.
I have a flight in F on US MEX-PHX in March. A smooth and enjoyable experience would do wonders to put my mind at ease.
I have a flight in F on US MEX-PHX in March. A smooth and enjoyable experience would do wonders to put my mind at ease.
Jan 31, 2013, 4:46 pm
#3126
Join Date: Jun 2011
Posts: 3,529
Also, eliminating one of your few major competitors can probably do wonders for the kinds of fares you can charge.
Jan 31, 2013, 5:14 pm
#3127
Join Date: Oct 2009
Location: Austin, TX
Programs: AA LT Plat, UA 1k/1mm+, National EE, IC Plat, Bonvoy Gold
Posts: 2,605
Jan 31, 2013, 5:18 pm
#3128
Join Date: Jun 2000
Location: RDU
Programs: AA LTP, Bonvoy Titanium; AA CK before I retired
Posts: 1,597
No kidding. Ask people who live near southern airports where the pre-merger DL from ATL and NW from MEM were the primary two carriers. Didn't take the post-merger DL long to figure out how to squeeze higher fares from those airports.
Jan 31, 2013, 8:13 pm
#3130
Join Date: Apr 2010
Location: SF Bay Area
Programs: Marriott Bonvoy Ambassador, AA EXP
Posts: 2,704
Be careful what you wish for.
I like AA being being smaller. AA has an incentive to treat its customers better.
I like AA being being smaller. AA has an incentive to treat its customers better.
Jan 31, 2013, 9:54 pm
#3131
Join Date: Jun 2007
Posts: 797
Are you saying that size does not matter?
Jan 31, 2013, 10:00 pm
#3132
Join Date: Apr 2010
Location: SF Bay Area
Programs: Marriott Bonvoy Ambassador, AA EXP
Posts: 2,704
With fewer carriers the chance of higher fares and revenue based elite status increases.
Feb 1, 2013, 12:20 am
#3133
FlyerTalk Evangelist
Join Date: Mar 2006
Location: DFW
Programs: AA 1M
Posts: 31,475
I was not very active in the DL forum, but somehow my impression is that whenever there is a merger people are unhappy. After a few years when the dust settles/another merger happens everything is well and good.
Feb 1, 2013, 12:28 am
#3134
Moderator: Coupon Connection & S.P.A.M
Join Date: May 2000
Location: Louisville, KY
Programs: Destination Unknown, TSA Disparager Diamond (LTDD)
Posts: 57,953
"Do not merge."
Feb 1, 2013, 6:43 am
#3135
FlyerTalk Evangelist
Join Date: Sep 2000
Location: Chicago, IL
Posts: 20,404
It really annoys me that union/stakeholder groups are so myopic to the big picture of the business that is American Airlines, and I really feel they would be to blame should a merger occur with the biggest piece of pond scum airline on the planet. I understand the importance of a salary and a paycheck, but to throw away the great potential because some other CEO has promised you a raise is very short-sighted and reeks of poor business sense. The reality is that AA, in its current form, knows how to keep its customers loyal, and without customers, there is no paycheck.
This exercise of letting the various stakeholder groups have a voice in the matter is a good one, but the execution is poor because it's decision making off of speculation. I feel like more realistic tactics such as interviewing both prospective CEOs and "living a day in the life of US pilot/baggage handler/FA" would provide better context for the various AA groups in making a decision rather than the "he cut our salaries, we don't like him, let's get revenge and railroad him" approach that seems to be taking place here.
Doug Parker's track record is average at best in a time when exceptional is required to keep American in a leading position. How this guy thinks he's going to merge and then bring up US' salaries while saving money at the same time is beyond me. There should be a lockdown on the $4BB or so in cash AA has in the bank. I'm hopeful the DOJ sees right through it.
This exercise of letting the various stakeholder groups have a voice in the matter is a good one, but the execution is poor because it's decision making off of speculation. I feel like more realistic tactics such as interviewing both prospective CEOs and "living a day in the life of US pilot/baggage handler/FA" would provide better context for the various AA groups in making a decision rather than the "he cut our salaries, we don't like him, let's get revenge and railroad him" approach that seems to be taking place here.
Doug Parker's track record is average at best in a time when exceptional is required to keep American in a leading position. How this guy thinks he's going to merge and then bring up US' salaries while saving money at the same time is beyond me. There should be a lockdown on the $4BB or so in cash AA has in the bank. I'm hopeful the DOJ sees right through it.