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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 Feb 1, 2013, 7:30 am
  #3136  
 
Join Date: Oct 2008
Location: ABQ
Programs: Delta Platinum, Southwest A-List
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Well IF there is a merger and IF they start messing with AAdvantage and the first class offering, I'll be going right back where I came from, DL.
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Old Feb 1, 2013, 7:45 am
  #3137  
 
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Originally Posted by Panam Clipper
A recommendation for American/US Air:

http://www.dallasnews.com/business/c...ine-merger.ece
Delta executed well, especially in blending technology from Northwest and in keeping employee morale high. Executives and pilots also sidestepped a potential minefield by agreeing to a labor contract before the merger closed.

United pilots approved a new contract in December, putting an end to a thorny issue that had festered for years and harmed employee morale. New contracts and the integration of seniority lists are often sticking points after an airline merger, and United is still negotiating with other work groups.

I would like to believe that this is one of the major current sticking points in finishing a deal, remain optimistic that AMR will insist on LCC resolving its labor issues as a prerequisite. The Pilot MOU is interesting, but includes higher costs than the current AMR APA, is not a long-term, binding contract.
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Old Feb 1, 2013, 8:11 am
  #3138  
 
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Originally Posted by nall
Also, eliminating one of your few major competitors can probably do wonders for the kinds of fares you can charge.
, , , which is one of the reasons that this thing is such a disaster for consumers, and why the Justice Department should have refused all the mergers.
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Old Feb 1, 2013, 8:13 am
  #3139  
 
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Originally Posted by UA Fan
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.
Maybe if you were more active on that forum, you would realize that the DL merger is still a big disaster for its ff program.
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Old Feb 1, 2013, 8:47 am
  #3140  
jss
 
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I wonder how the ruling in Chicago (Fed Court) against United will alter the perception that a future AA/US miles progrm will have 4-tiers. As most aware UA junked the 1MM lieftime status for pmUA 1MM customers by dropping them down a tier in the pecking order from Prem Exec. to Gold (by adding Plat level) and eliminating several of the benefits promised.

UA tried to get potential class action suit dropped by saying they have the right to change the program. Court said 1MM plantiffs appear to have suffered damages and that since UA did not mention 1MM program in MP T&C that a separate contract (various emails , website statements, etc...) appears to exist between UA the the pmUA 1mm flyers.

Will this deter a potential AA/US (or AA alone) from adding/modifying sturcture by adding a forth tier and then moving "lifetime" benefits down a notch?
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Old Feb 1, 2013, 9:01 am
  #3141  
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Originally Posted by jss
Will this deter a potential AA/US (or AA alone) from adding/modifying sturcture by adding a forth tier and then moving "lifetime" benefits down a notch?
No, but it will certainly impact the counsel of AA/US lawyers relative to any proposed AAdvantage changes.
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Old Feb 1, 2013, 9:11 am
  #3142  
 
Join Date: Sep 2009
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I wonder if we may see dynamic award pricing. AA is testing it for elite members, and US Air currently uses dynamic award pricing. The basic sAAver award on AA has been 25k for a while now. With so many miles outstanding on the BS, a devaluation may be arriving.

Earn and burn!
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Old Feb 1, 2013, 9:13 am
  #3143  
 
Join Date: Jan 2007
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Originally Posted by Dadaluma83

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 flew PHX-MEX-PHX over New Years on US since I couldn't see justifying flying AA with a stopover in DFW for $200 more.

Believe me, my mind is NOT at ease.

Nasty service, dirty cabin, bad food, and whatever you do, if you're in F, don't look too deep into the armrest after you pull your tray out....there is something ALIVE in there
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Old Feb 1, 2013, 11:27 am
  #3144  
 
Join Date: Nov 2009
Programs: AA PLT, 60K "old miles"
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American and the unsecured creditors have once again filed for an extension of their exclusivity period, this time until April 15. My interpretation is that a merger is far from a slam dunk. The merger has obvious advantages for the financial types in terms of size, pricing power, cost reductions through the elimination of redundancies. But as so many of us have incredulously observed how can it work with Dougie's promises, bringing the US employees back into the real world in terms of pay, and giving back more of the bkr cost reductions to the AAL unions to say nothing of our skepticism as customers.

I can understand why they keep needing more time.
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Old Feb 1, 2013, 12:03 pm
  #3145  
 
Join Date: Jun 2011
Posts: 3,528
Originally Posted by kabroui
I flew PHX-MEX-PHX over New Years on US since I couldn't see justifying flying AA with a stopover in DFW for $200 more.

Believe me, my mind is NOT at ease.

Nasty service, dirty cabin, bad food, and whatever you do, if you're in F, don't look too deep into the armrest after you pull your tray out....there is something ALIVE in there
I concur, I've paid for F on US Airways and it's not a very good product.

Originally Posted by littlemookie
I wonder if we may see dynamic award pricing. AA is testing it for elite members, and US Air currently uses dynamic award pricing. The basic sAAver award on AA has been 25k for a while now. With so many miles outstanding on the BS, a devaluation may be arriving.

Earn and burn!
Even without dynamic award pricing (which I'd guess is not popular), a devaluation of some sort is likely. The award chart hasn't been changed in a while,
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Old Feb 1, 2013, 12:07 pm
  #3146  
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Originally Posted by bubba198
American and the unsecured creditors have once again filed for an extension of their exclusivity period, this time until April 15. My interpretation is that a merger is far from a slam dunk. The merger has obvious advantages for the financial types in terms of size, pricing power, cost reductions through the elimination of redundancies. But as so many of us have incredulously observed how can it work with Dougie's promises, bringing the US employees back into the real world in terms of pay, and giving back more of the bkr cost reductions to the AAL unions to say nothing of our skepticism as customers.

I can understand why they keep needing more time.
The NDA for bondholders expires on 2/15 and all parties seem to want an answer by then. This dance between USAir and AA has been going on since Labor Day when the original NDA was signed. So it should be a go or no go within the next two weeks but I agree this thing is anything but a slam dunk. In particular, is what to do with Horton. Even after Parker got the love of the unions they are now demanding that Horton must go. The question is will the Board make Horton the sacrificial lamb (and in doing so probably pay out some big bucks in severance) to make a deal.
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Old Feb 1, 2013, 2:27 pm
  #3147  
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Originally Posted by Carolinian
, , , which is one of the reasons that this thing is such a disaster for consumers, and why the Justice Department should have refused all the mergers.
Crandall suggested the industry be re-regulated

Originally Posted by Carolinian
Maybe if you were more active on that forum, you would realize that the DL merger is still a big disaster for its ff program.
Unfortunately what customers like - more legroom - easy upgrades - generous frequent flier programs - don't seem to necessarily correlate to financial success for an airline.
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Old Feb 1, 2013, 3:11 pm
  #3148  
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Originally Posted by elitetraveler
Crandall suggested the industry be re-regulated
I'm increasingly of the opinion that new regulation is needed.

We got the good from de-regulation over a period of about 20 years afterwards, but except for the convenient aspects of online sales and e-ticketing (and neither of those are all good) it's really been all down-hill since the mid-late 1990s (with the crap airlines pulled "because of TWA800," and then the security theater since Sept 2001)
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Old Feb 1, 2013, 3:18 pm
  #3149  
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Originally Posted by nkedel
it's really been all down-hill since the mid-late 1990s (with the crap airlines pulled "because of TWA800," and then the security theater since Sept 2001)
How would adding government regulation to the airlines make security hassles better? You think a new government agency will reduce the impact of another government agency (TSA/DHS)?
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Old Feb 1, 2013, 3:21 pm
  #3150  
 
Join Date: Aug 2008
Programs: AA EXP
Posts: 1,714
Originally Posted by morrisunc
Dreaming. Absolutely no way ucc or unions will allow Horton to be in control after bk. Merger will happen and I seriously doubt Horton will even get a token place on the board - though I do think the AMR board is sympathetic to Horton and will try.
If the unions think they're in for a big say in what happens then I'd suggest that they're the ones dreaming. Their power and influence is waning and will continue to wane as time progresses.
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