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)
Apr 29, 2012, 3:37 pm
#721
Join Date: Apr 2012
Location: LA
Programs: AAdvantage, CK, 4 MM; Marriott Lifetime PLT
Posts: 314
All AA managed to do by waiting was sell off most assets, agree to unworkable benefits for far too long and lie to its shareholders who lost it all believing management. They should have taken the govt loan guarantees and gone Ch 11 10 yrs ago and come out far stronger with less expectations.
As for going chapter 11 10 years ago, any company filing for bankruptcy is not an easy decision. AA is in chap 11 because it has lost $12 billion over the past decade -- propelled the past 5 years due to soaring fuel prices. While I am not an airline manager, I could reasonably argue that AA in bankruptcy now is an advantage if it emerges successfully because it has a better idea of the impact of soaring fuel prices compared to its competitors who filed for bankruptcy earlier in the decade when jet fuel prices are no where near what they are today. Advantage: American.
Apr 29, 2012, 3:38 pm
#722
Moderator: Delta SkyMiles
Join Date: Mar 2006
Location: Hotlanta.
Programs: DL (duh), AA 1MM, Bonvoy Titanium, HH Diamond
Posts: 4,691
Ooooohhhhhhhh Yeahhhhhhhhhhhhhh!!!!!!!!!
Apr 29, 2012, 3:41 pm
#723
Join Date: Apr 2012
Location: LA
Programs: AAdvantage, CK, 4 MM; Marriott Lifetime PLT
Posts: 314
Or, as has been reported I believe in the Financial Times, BA buying a stake in AA -- due to US law, a foreign airline cannot own more than 25% of a US carrier or 49% of the voting shares. Once again, whether Jetblue, Alaska, British Airways/IAG, American will have options that are much more attractive than US with its labor problems and crappy network.
Apr 29, 2012, 3:44 pm
#724
Join Date: Nov 2011
Location: Bay Area
Programs: WN A-List, AA good-riddance, Safeway Club Card Extraordinaire
Posts: 3,851
Apr 29, 2012, 3:47 pm
#725
Join Date: Feb 2010
Location: US
Programs: (PM)AA SPG (Marriott), Hilton
Posts: 1,040
I have to go with a quote from the illustrious eightblack made last month in the UACO forum:
All I know is that most mergers don't work. It's sort of like sleeping with your cousin. At the time, it might seem like a good idea. But you know, deep down, in 9-months time, you're going to produce one ugly looking kid.
Apr 29, 2012, 3:52 pm
#726
Join Date: Jan 2004
Location: DFW
Programs: Former AA EXP; 2M Lifetime PLT member-
Posts: 405
Exactly--- that was what I meant! NOT ON USAIRWAYS TERMS--- but under AA terms it may be feasible-- as you say--- so it may be a while....
Apr 29, 2012, 4:03 pm
#727
Suspended
Join Date: Dec 2005
Posts: 9,916
As for going chapter 11 10 years ago, any company filing for bankruptcy is not an easy decision. AA is in chap 11 because it has lost $12 billion over the past decade -- propelled the past 5 years due to soaring fuel prices. While I am not an airline manager, I could reasonably argue that AA in bankruptcy now is an advantage if it emerges successfully because it has a better idea of the impact of soaring fuel prices compared to its competitors who filed for bankruptcy earlier in the decade when jet fuel prices are no where near what they are today. Advantage: American.
Suggest you give this a watch:
http://www.charlierose.com/view/interview/12228
Apr 29, 2012, 4:10 pm
#728
Join Date: Jun 2010
Location: DCA and STL
Programs: AA Concierge Key, Marriott Lifetime Titanium, National Car Executive Elite
Posts: 524
I agree that it seems likely that Parker fears lack of options without an AA acquisition. As CEO of America West he did a very similar move to acquire US Airways while it was in an even weaker position than it is in today. Before integrating HP and US (still not done) he set his sights on Delta. With he current goal of being global player AA is his last chance. Yes, he could switch to a niche player strategy that focuses on his current markets or maybe stretch that niche player with an Alaska merger, but that's about all that's left of the United States domestic landscape. I think his best path is to stop jousting at windmills and learn how Alaska has very successfully used the niche player strategy.
Apr 29, 2012, 4:14 pm
#729
Suspended
Join Date: Dec 2005
Posts: 9,916
I agree that it seems likely that Parker fears lack of options without an AA acquisition. As CEO of America West he did a very similar move to acquire US Airways while it was in an even weaker position than it is in today. Before integrating HP and US (still not done) he set his sights on Delta. With he current goal of being global player AA is his last chance. Yes, he could switch to a niche player strategy that focuses on his current markets or maybe stretch that niche player with an Alaska merger, but that's about all that's left of the United States domestic landscape. I think his best path is to stop jousting at windmills and learn how Alaska has very successfully used the niche player strategy.
Apr 29, 2012, 4:23 pm
#730
Suspended
Join Date: Dec 2005
Posts: 9,916
If you look back on airline history, how did Lorenzo get into EA? Unions thought he was better than the then management or Icahn. How did Icahn get into TW? Unions thought he was better than Lorenzo. When you make your backyard a cesspool, the grass looks greener next door even when its mud.
Bethune, Crandall, Lord Marshall and Keller may have been the only four executives in the past 30 years that battled entrenched, adversarial and short-sighted unions and actually figured out a way to not self-implode. Obviously it's not easy @:-)
I also didn't say Parker is an All-Star. I just said he knows the songs to sing while dating. At the same time, AA management plays it rough and tough with a comical FA then caves to the tune of $1 billion in financing for the pensions. It is supposed to be the reverse
Apr 29, 2012, 4:41 pm
#731
Join Date: Jun 2010
Location: DCA and STL
Programs: AA Concierge Key, Marriott Lifetime Titanium, National Car Executive Elite
Posts: 524
It is hard to argue against Parker's point. I think that consolidation is a good thing for most industries. The arguments on this forum of course center not on what's good for the industry as a whole, but what is good for AA and/or its customers. I tend to think that a merger would be good for the surviving company but am at least a little skeptical that it would be good for AA's elite flyers.
Apr 29, 2012, 4:41 pm
#732
Join Date: Dec 2005
Location: Vancouver, BC
Programs: AA EXP 3MM, FB Plat, AS Gold, Marriott Gold, Fairmont Plat, BA wannabe
Posts: 684
What's the status of the interest of BA in AA?
Apr 29, 2012, 4:45 pm
#733
Join Date: Jan 2007
Location: Mostly AUS or rural England
Programs: BAEC redundant Bronze, AAdvantage Lifetime PLT, CO, WN, B6
Posts: 6,526
I can't speak for Bethune or Crandall but the point about Kelleher and Marshall is very much that they DIDN'T battle with Unions - their approach was much more one of teamwork and getting everyone pulling in the same direction which reduced the need for battles. And no, it certainly isn't easy to build a non-adversarial business of this kind with 10's of thousands of remote employees, though my observation from the outside is AA's managers seem to have abdicated responsibility for a lot of management of the people a long time ago which has almost certainly allowed the confrontation to increase. Plus making promises and breaking them never helps.
Apr 29, 2012, 4:50 pm
#734
Suspended
Join Date: Dec 2005
Posts: 9,916
I can't speak for Bethune or Crandall but the point about Kelleher and Marshall is very much that they DIDN'T battle with Unions - their approach was much more one of teamwork and getting everyone pulling in the same direction which reduced the need for battles. And no, it certainly isn't easy to build a non-adversarial business of this kind with 10's of thousands of remote employees, though my observation from the outside is AA's managers seem to have abdicated responsibility for a lot of management of the people a long time ago which has almost certainly allowed the confrontation to increase. Plus making promises and breaking them never helps.
Apr 29, 2012, 4:51 pm
#735
Join Date: Jan 2007
Location: Mostly AUS or rural England
Programs: BAEC redundant Bronze, AAdvantage Lifetime PLT, CO, WN, B6
Posts: 6,526
If they look across LHR at SQ's investment in VS they'll probably run a mile from any kind of minority investment. They already serve a lot of US gateways, plus they seem to be pulling back to much more of a point-to-point operation and focusing on smaller groups of customers where they can be profitable, so it's hard to imagine they couldn't fashion some kind of feeder deal with whomever survives, or with B6, AS etc. etc.