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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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Last edit by: JDiver
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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 13, 2013, 12:26 am
  #3646  
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Originally Posted by JDiver
I don't think any A340 ever guzzled Avgas* - only jet fuel (Jet A and Jet A-1).
Correction noted, and I should have known that... although *lol* the parallel to the phrasing for cars isn't as good with "jet-fuel-guzzling."

As you say, with an aircraft with the "legs" and less capacity in a more standard configuration, who knows? Will it be the new AA? Who knows?
I think there's basically no chance for the new AA to be the first one to do it; can anyone see them having the stomach for it after the failure of ORD-DEL? If SQ or one of their closer competitors takes the chance and then shows it profitable, AA might follow.

While the A350/787 are the best probabilities for this kind of route, LAX-SIN might just be within the range of a 747-8I...

MH flies LAX-KUL, but they make a stop (TPE previously, now NRT, iirc).
That would be a plausible route, although I know far too little about MH to speculate on whether they'd be inclined or whether they have either of the interesting aircraft on order (although someone who cared more could look it up.)

--

Hard to see US having much impact on Asia, or any other ultra-long-haul routes; US international is almost all transatlantic, and other than TLV do they extend anywhere further than AA does in that direction?
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Old Feb 13, 2013, 12:37 am
  #3647  
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Originally Posted by littlemookie
I know that most of the posts on this board are against the merger, but if done right this merger can work out well for passengers and frequent flyers.

1. Prices - For the most part, this should stay flat. AA/US will still be competing against Delta and United for almost all major routes, which should keep prices in check.

2. Flight map - Regardless of the merger, AA was going to start adding routes. A merger with US should add new direct flights, and higher flight frequency (this may not last, but the early stages shouldn't see too many flight cuts). AA will probably focus on more profitable international routes and leverage the oneworld alliance to fill those planes.

3. Frequent flyer program - This gets tricky, as US Air's Dividend Miles as a stand alone ff program is subpar (IMHO) to AAdvantage. The AAdvantage program is a gold mine for AA, and the profit from the sale of AA miles to businesses is something that needs to remain after this merger. There are so many different ways to consolidate the programs that I can't even begin to speculate about the ramifications. History indicates that elites may be in for some pain when the programs are finally merged.
Please name a recent merger in the USA, in any industry, which benefited consumers.
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Old Feb 13, 2013, 12:54 am
  #3648  
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Originally Posted by travelinmanS
Please name a recent merger in the USA, in any industry, which benefited consumers.
^^^ well said ^^^
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Old Feb 13, 2013, 12:58 am
  #3649  
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Originally Posted by littlemookie
This gets tricky, as US Air's Dividend Miles as a stand alone ff program is subpar (IMHO) to AAdvantage.
Yes - unlimited upgrades without stickers are subpar to slicker upgrades for non-EXP members Yes - no YQ on any partner airline is subpar to YQ on awards on BA

And the name is US Airways not US Air...
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Old Feb 13, 2013, 1:04 am
  #3650  
 
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United / Continental did well by me...
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Old Feb 13, 2013, 2:27 am
  #3651  
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Originally Posted by FWAAA
AA needs to grow in Asia, to be sure, but inaugurating AA-metal connecting flights from NRT to BKK, SIN, TPE, etc. just ain't in the cards.
Gee, I don't know. Judging from posts on FT, there is a reasonably healthy demand for US-BKK service; and I bet that single plane service would have an advantage, even with a TYO stop. I'd sure love to have the opportunity to use my SWUs on that 6-7 hour flight between BKK and NRT. But where in the U.S. to originate?


Originally Posted by nall
Can a 777-200 do CLT-NRT?
Yes. All of AA's 772s are 777-200ER models which can easily make CLT-NRT. Boeing Tokyo Range Chart.
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Old Feb 13, 2013, 3:03 am
  #3652  
 
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Originally Posted by TPJ
Yes - unlimited upgrades without stickers are subpar to slicker upgrades for non-EXP members Yes - no YQ on any partner airline is subpar to YQ on awards on BA

And the name is US Airways not US Air...
Well we could just call it LCC, which everyone here can agree is a little ironic. Cherry picking the unlimited upgrades and YQ issue is misleading. I would assure you that a large majority of FTers would agree that AAdvantage is a superior program Dividend Miles. The good things about DM are that they sell miles cheap, 90k in C to N. Asia, have really loose routing rules, and they are part of Star.
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Old Feb 13, 2013, 3:17 am
  #3653  
 
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The European Commission has just rejected for the second time RyanAir's proposed takeover of Aer Lingus. Hopefully they will be pro-consumer enough to also reject the US takeover of AA.
Unlikely that would interfere on those grounds. US's service to Europe even when added to AA still wouldn't create any competition/monopoly issues..

Euro Commission is fine to intervene with two European airlines merging. Not going to have any say so about two American airlines merging. Completely invalid comparison.
Not quite correct. They, in theory, could have plenty to say about it. Remember, both carriers fly into Europe, and do business within it. However, I don't see it occuring for the reasons above.
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Old Feb 13, 2013, 3:48 am
  #3654  
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Originally Posted by travelinmanS
Originally Posted by littlemookie
I know that most of the posts on this board are against the merger, but if done right this merger can work out well for passengers and frequent flyers.

1. Prices - For the most part, this should stay flat. AA/US will still be competing against Delta and United for almost all major routes, which should keep prices in check.

2. Flight map - Regardless of the merger, AA was going to start adding routes. A merger with US should add new direct flights, and higher flight frequency (this may not last, but the early stages shouldn't see too many flight cuts). AA will probably focus on more profitable international routes and leverage the oneworld alliance to fill those planes.

3. Frequent flyer program - This gets tricky, as US Air's Dividend Miles as a stand alone ff program is subpar (IMHO) to AAdvantage. The AAdvantage program is a gold mine for AA, and the profit from the sale of AA miles to businesses is something that needs to remain after this merger. There are so many different ways to consolidate the programs that I can't even begin to speculate about the ramifications. History indicates that elites may be in for some pain when the programs are finally merged.
Please name a recent merger in the USA, in any industry, which benefited consumers.
That is really the bottom line - for passengers. The only real question is how bad will it be. I'm guessing horrific but hope I'm wrong. US seems to me to be Southwest with bad customer service.
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Old Feb 13, 2013, 3:50 am
  #3655  
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Originally Posted by sts603
Originally Posted by GadgetFreak
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If so why didn't he run the old airline that way? This sounds a bit like " I'm sure after we're married they will be a totally different person."
Because US's route structure, hubs, customer base, and revenue stream called for something different - a point that Doug Parker has clearly articulated.
I promise I will change!
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Old Feb 13, 2013, 4:43 am
  #3656  
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Originally Posted by GadgetFreak
Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 6_1 like Mac OS X) AppleWebKit/536.26 (KHTML, like Gecko) Version/6.0 Mobile/10B143 Safari/8536.25)



I promise I will change!
Are you going to refute the points we have made to disagree with your viewpoint for just spout out one liners?
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Old Feb 13, 2013, 6:05 am
  #3657  
 
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Is Today The Day?

Does anyone know what time the respective board meetings are scheduled?
The announcements may not formally happen today, but with the number of people involved, a leak would not be a surprise.
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Old Feb 13, 2013, 6:28 am
  #3658  
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Originally Posted by LovePrunes
Euro Commission is fine to intervene with two European airlines merging. Not going to have any say so about two American airlines merging. Completely invalid comparison.
The Delta/Northwest merger sought and received European regulatory clearance. Doing business in the EU subjects (even non-EU) firms to many EU regulations, just as the DOT can fine European carriers for advertising violations.
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Old Feb 13, 2013, 6:48 am
  #3659  
 
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Originally Posted by travelinmanS
Please name a recent merger in the USA, in any industry, which benefited consumers.
So true. I can't think of a single one.

Originally Posted by flyboy_421
United / Continental did well by me...
Glad to see you did well. If you can come off your perch as a GS for a moment, take a look what has happened to 1ks, and especially Plats, Golds, and Silvers. All tiers get less benefits now than they did before the merger and the benefits that remain are watered down (like "complimentary upgrades" for Silvers...read "you never get upgraded"). Just because you haven't done too badly doesn't mean there have been tens of thousands who receive less benefits. And then there's the small matter of airfares, which have generally gone up since the merger since there is now less competition...

Originally Posted by marlee1421
Does anyone know what time the respective board meetings are scheduled?
The announcements may not formally happen today, but with the number of people involved, a leak would not be a surprise.
A leak? Nah...we've not had any leaks in this saga so far .
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Old Feb 13, 2013, 7:05 am
  #3660  
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Originally Posted by AAExPlat
So true. I can't think of a single one.



Glad to see you did well. If you can come off your perch as a GS for a moment, take a look what has happened to 1ks, and especially Plats, Golds, and Silvers. All tiers get less benefits now than they did before the merger and the benefits that remain are watered down (like "complimentary upgrades" for Silvers...read "you never get upgraded"). Just because you haven't done too badly doesn't mean there have been tens of thousands who receive less benefits. And then there's the small matter of airfares, which have generally gone up since the merger since there is now less competition...



A leak? Nah...we've not had any leaks in this saga so far .
But airfares had to go up for the industry to be able to sustain itself.

And this is just a curiosity question - what benefits did 1Ks lose? I'm aware of the terrible system integration, bad customer service, and issues with Tens of Dollar upgrades post-merger but I wasn't aware that 1Ks actually had tangible benefits cut.
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