Crandall was pretty decent, as he was the one responsible for inventing revenue management and helping AA defeat low-cost carriers such as PeoplExpress after deregulation. However, after him, AA hasn't had a good CEO.

Exhibit A
Wasn't Carty the one who told the flight attendants union that if they didn't accept wage concessions AA would file for bankruptcy only to then try to give all the senior execs a huge bonus?

Exhibit B
As for Arpy, under his leadership (or lack of), AA took forever to introduce lie flat beds in J and when it did, the seats were already subpar compared to what other airlines were already offering. Arpy also made really stupid mistakes such as not allowing AA to file for CH 11 and thereby preventing the carrier from reducing its horrible labor costs. Oh and let's not forget the interview where he stated that he wouldn't open up saver mileage inventory for his friends... I was 19 at the time and I kept thinking, wow, this 19-year old has always managed to find award availability at the lowest mileage levels and here you are essentially telling the world that you are willing to screw your friends every time... imagine the things you would do to your customers and employees.

p.s. Let me clarify what I said earlier: just because you work a long time for an airline does not mean that you actually have a strong understand of it.

Untrue. Before 911, US Airways won many awards for having the best transatlantic business class and was a very innovative carrier. Though of course things quickly changed after Doggie Poop took over. :D

That's ridiculous. I was stuck on USScare in the 90's, and it was an abomination then.

Mohawk - Slowhawk
Allegheny - Agony
USAir - USScare
USAirways - USELessAirways



Instead of changing their name from Allegheny to escape the reputation for poor service, they should have just spent the money on..... better service

TW

I've been singing "Off to Alaska" in my head as I read this thread. Dreaming? Yes, I know.

"Off to Alaska?" Perhaps you mean "NORTH to Alaska."

That's just your opinion, doesn't change the fact that US won many awards for its long-haul J in the late 90s and early 00s.

Alaska / American?
 

That's an interesting scenario - Alaska acquiring AA. That has not been in any of the scenarios that I've seen in the financial news. As I've read it analysts seem to rank the likely end games as:

1). AA emerging as an independent carrier
2). TPG or some other venture capital firm buying AA
3). USAirways buying AA
4). DL with a ton of divestitures buying AA
5). An Eastern Airlines style sell off of the pieces to DL and US

None of the analysts have mentioned Alaska acquirers AA as a scenario, so it is quite possible that Alaska has no interest in this. Alaska, unlike US and DL has not sought out advisors on acquiring AA. That said, what a great opportunity for Alaska. If they can get past the labor issues (big IF) this is an opportunity for a well run carrier to move into the big leagues.

I am necessarily objective from an AAdvantage flyer standpoint (I'm Diamond on DL and Platinum on AA), but since the bancruptcy filing I have been flying more AA than DL for the first time in many years because I would be sad to see AA dissapear from my home airport - STL. DL has a very tight relationship with Alaska and I have made good use of and am very impressed with the Alaska Boardrooms - I think they are, on average, better than most Admirals and SkyClubs. There is zero doubt that the combined carrier would have bare aluminum planes with red, white, and blue stripes and the FF program would be AAvantage. It is probably fantasy, but I believe this combination unlike DL/AA, US/AA or worse yet TPG/AA would be staged for success for the company and for the passengers. I think a combination in the opposite direction (AA acquires Alaska after exiting chapter 11) is unlikely since both Alaska and DL employees have told me that if AA attempted to acquire Alaska, a gentleman's agreement that DL would then launch a takeover attempt endorsed by Alaska management would kick in.

It seems to me that AS is very happy being a very profitable niche airline. If anything, I would think AS would look at a small carrier, someone like Frontier (although there has been no indication AS has an interest in that carrier.)

Since I know that rumors are a staple at FT.... Some of my friends are AA FAs. I heard from them this morning that some unspecified type of deal (Takeover? Buyout? Merger?) with US is rapidly approaching signing.

Dreamers everywhere but in this thread majority are...

The interesting thing, maybe, is some US FAs are gossiping about the same thing: Doug Parker's plans for AA-US. But gossip and rumors run at high volume at these times.

As friendly as flight attendants can be, they won't be the first ones alerted if a transaction is to occur. But galley gossip continues unabated.

A recent example of galley gossip that the FA union had to debunk:

http://www.apfa.org/content/category/9/17/46/

From the April 5, 2012 Weekly Hotline of the APFA:

Actually the US FA contract rejection probably is not an impediment to Doug Parker. He currently is operating 2 carriers under a single brand and marketing and then coordinating scheduling and partners across the two carriers. Why would he find operating 3 carriers (HP, US, & AA) under the AA brand problematic? To a rational person that might seem like a circus act, but that doesn't mean he isn't crazy enough do it or creditors spooked enough to approve it. Even if AA isn't able to lower its costs, he would get what he wants - the AA network along with the newer aircraft. He would transfer flying to HP and US, while reducing flying by legacy AA crews. He will discard the MD-80s as part of the acquisition, dump current AA management, and gradually downsize the number of AA rank and file. I suspect that the rhetoric between AA management and the rank and file is such that unsecured creditors may assume that labor contracts that both parties can agree to won't happen and without US, the only other option is an Eastern / Braniff style dismantling breakup. Never confuse logic and business ;)

I would second this. No matter which side of the fence you stand on the unions at AA are going to be neutered either by the Court or under pressure to go along with management under threat of much harsher measurers put into place by the Court. Look at all of the huffing and puffing that went on by unions with the other carriers in Chapter 11, all of which mounted to less than a hill of beans.

Most creditors are looking at the situation as to will a much larger airline with a more robust route structure benefit me more than a smaller airline still hobbled by two larger competitors. Its not to say that they will not discuss and consider implications of labor unrest but having a bunch of happy pappy FAs is probably not very high on their list.

USAir needs AA more than AA needs USAir and Parker appears to be dying to do a merger (he has tried to dance with just about everyone else.) If he can make a compelling argument to creditors he has a very good shot at doing something. There will likely be no shortage of parties willing to line his pockets with funding.

The counteraction could be DL to make a run for AA, assuming DL has a somewhat credible strategy of getting around antitrust concerns without gutting itself.

With the anti-trust issues, DL would only succeed by buying parts and spinning the rest off to someone else. For example DL might want to do a joint deal with US. DL would pickup the ORD hub along with some 737s and US would take the rest. DL would move ahead of UA in the "mine is bigger than yours" game they are playing. US would still benefit massively with the MIA, DFW, and LAX hubs. Other than some scenario like this where DL buys components of AA, the anti-trust issues would stop DL dead in its tracks.

The additional problem would be that any sizable break up of assets/operations makes it much harder for creditors to determine if they are better off than leaving AA emerge as a standalone operation. Creditors are going to want a very concise plan without having dozens and dozens of offshoots. Any prospective acquisition needs to past muster with creditors even before the government gets involved.

If AA has little use for USAir, why would AA's creditors?

Because it would be a larger airline but yet able to scale down to the point a potentially making it a more profitable airline. It would give AA a larger European presence along with more command of the East Coast.

Now an AA with lower costs would probably be able to eventually build a greater route structure to Europe but that could take several years at least. It would also enhance AA's operations at DCA which has recently granted removing some of its perimeter restrictions.

Us hostile takeover bid
 

This is a newsroom leak: US Airways is about to move on a hostile takeover of American Airlines.

Can't say any more.

Isn't there some stipulation within the bankruptcy that AA can't entertain offers until after September?

I remember reading that Sen. Hutchinson came out specifically against the possibility of merging AA with another carrier. I don't think the political powers that be would let that occur, regardless of US Air's purported working with Union reps/creditors.

This would seem to be contrary to your "newsroom leak":

http://aviationblog.dallasnews.com/a...ors-commi.html

I am not in the corporate world, but doesn't a hostile takeover mean that the target doesn't want to be taken over? :confused:

My assumption is that this statement from Hutchinson is what is being referenced above, but please keep in mind her representative body :P.

"I've seen the public reports about hostile takeovers involving American Airlines, including another airline that is communicating directly with American's creditors and unions.
"I'm concerned about the potential disruptive effects of such efforts during the ongoing bankruptcy proceedings, and ask that all airlines give American and the committee of creditors an opportunity to complete the bankruptcy reorganization process.
"Completing this essential step is in the best interests of American's employees, creditors, and the communities served by American Airlines. Any merger discussions can occur when the bankruptcy court has cleared the process by which American can emerge from court supervision.""

Taken from:
http://aviationblog.dallasnews.com/a...-american.html

Generally, a hostile takeover is when the buyer attempts to pitch an offer directly to shareholders as opposed to a willing board and/or management. In most such situations, the board rejects an offer, or makes public that it is not entertaining any offers, so the hostile buyer may be going in with less foreknowledge than in a more cooperative process, and may in fact end up in a proxy battle to try to oust the existing management or board.

In any case, a target company (AMR?) that has publicly pooh-poohed acquisition by a particular buyer (US Airways?) may easily find itself in a hostile situation where that acquirer attempts to circumvent the uncooperative target's leadership. I have zero idea what the effect of bankruptcy is on the process, however--though any such change by a firm currently in chapter 11 reorganisation would require approval of the bankruptcy court.

She has no regulatory authority, nor does the Senate as a whole; besides, she is a lame duck.

She's just stumping for Rick's job with her AMR comments.

Agreed, completely. Just saying, her husband (bond attorney) was and is heavily involved in DFW airport, so I'm betting she has more than a constituent based-interest (read: personal) in keeping American independent.

Here's what I was looking for, from an article just three weeks ago:

http://news.airwise.com/story/view/1332379473.html

If this information is true, how can another carrier take over AA until after September?

The court order contains some language that permits the unsecured creditors committee to petition the court to shorten the (now extended) period of exclusivity. If the UCC petitions to shorten the exclusivity period, the burden is on AA management if it resists shortening the exclusivity period. On another site, a flight attendant argued strenuously (but incorrectly) that the language permits the UCC to negotiate and accept competing bids now.

Rumor: US hostile in bk bid for AA done deal
 

Posted this morning by a less than credible poster on a.net:



From a source with American Airlines:

RECEIVED THIS MORNING FROM A JFK PILOT
(he also gave me permission to post it) It may not have been announced Tuesday but I think this is going to happen. No information on how this would effect flight attendants.

USAirways has signed agreements with all three AA unions and the support of the PBGC in a bid to execute a "hostile in BK" merger with American. It is possible, even likely, that US has the support of enough of the other members of the committee to get a majority vote.

US's plan includes a loss of control by AA's management team. On the pilot side the agreement? Onhe pilot side the agreement includes a 5.5% pay raise upon date of signing, with 4 annual 3% raises over a 5 year term. In 2018 the pay rates will adjust to the average of DAL and UAL rates or our own rates , whichever is higher. The EMB-190 CA rate will top out at 136 per in 2017 and these airplanes will be flown at mainline. I have no further confirmed details other than AA management and Horton plan to fight this in court and that the union agreements in principle do include concessions such as elimination of the A-fund, preferential bidding, and more hours flown per month.

Link here: http://www.airliners.net/aviation-fo....main/5434044/

Huge news if true.

I heard it on KRLD in dallas this morning, i have no idea what this means for AA fliers/elite passangers.

Initially nothing. Longer term it all depends on the choices the combined entity makes...OW or Star, AA service levels or US service levels, massive devaluations or not?

Well it BETTER not mean drinks in F in plastic cups... LOL

Seriously, interesting development if true, but even if true difficult to predict how it will play out.

More importantly,what happens to the AA forum :D

Cheers.

I have said for a long time now that the merger is inevitable, but a "in bk hostile takeover" makes us AA elites very vulnerable since in theory the entire program could be dumped....

Don't laugh!

While I think Dixie Cup Doug has gotten over his passion for plastic, I wouldn't put it past that hole to start jerking around with AAdvantage.:mad: