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)
#61
Original Poster
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Add AA's bad labor juju on top of that for a real bizarre dynamic. maybe they would all neutralize each other in the confusion, but I think it would go from ultra ugly to hideous fast.
#62
Moderator: American AAdvantage
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Location: NorCal - SMF area
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^ Exactly!
They are still discussing, among other issues, seniority lists. Kind of reminds me of Republic's airplane running out of fuel, iirc, because of lack of CRM between pilots from two merged airlines (Hughes and Republic, iirc).
For those interested in a discussion on the difference between mergers and acquisitions in the airline business, there's a good and short study here in PDF form.
(Mergers & Acquisition in Aviation Industry:.Issues & Concerns, by Julie Desai)
I could see some AA employees considering sackcloth, ashes and wrist slitting with a US/AA "merger", particularly if they have spoken to original US employees.
They are still discussing, among other issues, seniority lists. Kind of reminds me of Republic's airplane running out of fuel, iirc, because of lack of CRM between pilots from two merged airlines (Hughes and Republic, iirc).
For those interested in a discussion on the difference between mergers and acquisitions in the airline business, there's a good and short study here in PDF form.
(Mergers & Acquisition in Aviation Industry:.Issues & Concerns, by Julie Desai)
I could see some AA employees considering sackcloth, ashes and wrist slitting with a US/AA "merger", particularly if they have spoken to original US employees.
#63
Suspended
Join Date: Sep 2006
Programs: AAdvantage PP
Posts: 13,913
My admittedly anecdotal impression of the East-West pilots from talking to several is that they HATE each other mutually and collectively in a way that has happened at no other airline merger in history.
Add AA's bad labor juju on top of that for a real bizarre dynamic. maybe they would all neutralize each other in the confusion, but I think it would go from ultra ugly to hideous fast.
Add AA's bad labor juju on top of that for a real bizarre dynamic. maybe they would all neutralize each other in the confusion, but I think it would go from ultra ugly to hideous fast.
Yes it could get really messy but Parker doesn't seem to be fazed by that prospect.
#64
Join Date: Jul 2005
Location: National Capitol Region
Programs: Delta Dirt Medallion,AA,USairways, WN Rapid Rewards, National Emerald Club
Posts: 3,912
AA is last to the ball (Bankruptcy), it gets to dance with the ugly sister (USairways).
#65
Join Date: Jan 2006
Location: Arlington, VA
Programs: DL GM
Posts: 181
My apologies if it is already being discussed somewhere, but this Reuters article from last night reports that AA's unsecured creditors "want AMR management to explore other options that may lead to a better recovery of their claims [than AA's stand-alone plan], including a potential combination with another carrier."
http://www.reuters.com/article/2012/...81801K20120209
http://www.reuters.com/article/2012/...81801K20120209
#66
Join Date: Jun 2011
Location: STL
Programs: DL Diamond, AA Platinum, Hilton Diamond, Marriott Platinum
Posts: 32
My apologies if it is already being discussed somewhere, but this Reuters article from last night reports that AA's unsecured creditors "want AMR management to explore other options that may lead to a better recovery of their claims [than AA's stand-alone plan], including a potential combination with another carrier."
http://www.reuters.com/article/2012/...81801K20120209
http://www.reuters.com/article/2012/...81801K20120209
From a customer perspective, I think most things would remain the same in a merger due to the larger size of AA compared to US. Looking at past mergers, Delta and NWA essentially left the Delta passengers the winners with the Skymiles program as the survivor, United and Continental left United's Mileage Plus intact with some improvements based on benefits that Continental passengers had grown to know and love, and USAir/America West left Dividend miles intact. In each case, the larger carriers name survived, the plane were painted to match rebranding, and the resulting carrier was actually better for the customers. If USAirways acquires AA (or Vice versa) the name will no doubt be AA, the planes will be repainted, the Advantage program will remain intact, and we will have a couple more destinations that have Admirals Clubs. The only other change will be that now there will be three groups of employees that hate each other and collectively hate management.
#67
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Join Date: Sep 2006
Programs: AAdvantage PP
Posts: 13,913
The article quoted above takes some of the emotions out of this. Ultimately, the outcome - standalone, acquired by US, split into pieces will be based on where the creditors believe they face the greatest ability to recover their investments of money. The employee groups will no doubt continue to pursue the standalone option unless they begin to question long term viability. Boeing and others probably want some form of merger. The only scenario where an Eastern Airlines style "sell of the pieces" would come into play would be if the employees prove intransigent in agreeing to lowered labor costs.
From a customer perspective, I think most things would remain the same in a merger due to the larger size of AA compared to US. Looking at past mergers, Delta and NWA essentially left the Delta passengers the winners with the Skymiles program as the survivor, United and Continental left United's Mileage Plus intact with some improvements based on benefits that Continental passengers had grown to know and love, and USAir/America West left Dividend miles intact. In each case, the larger carriers name survived, the plane were painted to match rebranding, and the resulting carrier was actually better for the customers. If USAirways acquires AA (or Vice versa) the name will no doubt be AA, the planes will be repainted, the Advantage program will remain intact, and we will have a couple more destinations that have Admirals Clubs. The only other change will be that now there will be three groups of employees that hate each other and collectively hate management.
From a customer perspective, I think most things would remain the same in a merger due to the larger size of AA compared to US. Looking at past mergers, Delta and NWA essentially left the Delta passengers the winners with the Skymiles program as the survivor, United and Continental left United's Mileage Plus intact with some improvements based on benefits that Continental passengers had grown to know and love, and USAir/America West left Dividend miles intact. In each case, the larger carriers name survived, the plane were painted to match rebranding, and the resulting carrier was actually better for the customers. If USAirways acquires AA (or Vice versa) the name will no doubt be AA, the planes will be repainted, the Advantage program will remain intact, and we will have a couple more destinations that have Admirals Clubs. The only other change will be that now there will be three groups of employees that hate each other and collectively hate management.
But the idea that a merger would turn AA into some kind of pseudo Spirit Airlines is just too much FT unnecessary worrying.
#68
Join Date: Dec 2004
Posts: 2,866
.... The only scenario where an Eastern Airlines style "sell of the pieces" would come into play would be if the employees prove intransigent in agreeing to lowered labor costs.
..... The only other change will be that now there will be three groups of employees that hate each other and collectively hate management.
..... The only other change will be that now there will be three groups of employees that hate each other and collectively hate management.
PS - NorthCentralDC3, did you have the opportunity to fly the DC-3?
#69
Join Date: Nov 2004
Location: DFW
Programs: AA (ExPlat).DL,UA Hertz (Pres Circle); Avis (First), Hilton (Diamond), Marriott (Gold)
Posts: 452
Actually, they're pretty good these days. on time flights, clean airplanes. Their soft product isn't as nice as AA, but they aren't as bad as many others anymore.
Jeff
#70
Join Date: Nov 2004
Location: DFW
Programs: AA (ExPlat).DL,UA Hertz (Pres Circle); Avis (First), Hilton (Diamond), Marriott (Gold)
Posts: 452
AA has quite a few non LHR flights:
AA metal: 37 Europe flights, 26 routes, 13 cities in Europe
JFK-LHR 4x
JFK-CDG 2x
JFK-MAN 1x
JFK-BRU 1x
JFK-ZRH 1x
JFK-MXP 1x
JFK-FCO 1x
JFK-BCN 1x
JFK-MAD 1x
ORD-LHR 4x
ORD-HEL 1x
ORD-DUB 1x
ORD-MAN 1x
ORD-CDG 1x
ORD-FCO 1x
DFW-LHR 3x
DFW-FRA 1x
DFW-CDG 1x
DFW-MAD 1x
MIA-LHR 1x
MIA-CDG 1x
MIA-MAD 1x
LAX-LHR 1x
BOS-LHR 3x
BOS-CDG 1x
RDU-LHR 1x
US metal: 24 Europe flights, 22 routes, 16 cities in Europe
PHL-FRA 2x
PHL-DUB 1x
PHL-GLA 1x
PHL-MAN 1x
PHL-LHR 1x
PHL-AMS 1x
PHL-BRU 1x
PHL-CDG 1x
PHL-MUC 1x
PHL-ZRH 1x
PHL-VCE 1x
PHL-ATH 1x
PHL-FCO 1x
PHL-BCN 1x
PHL-LIS 1x
PHL-MAD 1x
CLT-FRA 2x
CLT-DUB 1x
CLT-LGW 1x
CLT-CDG 1x
CLT-FCO 1x
CLT-MAD 1x
European cities served by AA, not US:
MXP
HEL
European cities served by US, not AA:
GLA
AMS
MUC
VCE
ATH
LIS
AA metal: 37 Europe flights, 26 routes, 13 cities in Europe
JFK-LHR 4x
JFK-CDG 2x
JFK-MAN 1x
JFK-BRU 1x
JFK-ZRH 1x
JFK-MXP 1x
JFK-FCO 1x
JFK-BCN 1x
JFK-MAD 1x
ORD-LHR 4x
ORD-HEL 1x
ORD-DUB 1x
ORD-MAN 1x
ORD-CDG 1x
ORD-FCO 1x
DFW-LHR 3x
DFW-FRA 1x
DFW-CDG 1x
DFW-MAD 1x
MIA-LHR 1x
MIA-CDG 1x
MIA-MAD 1x
LAX-LHR 1x
BOS-LHR 3x
BOS-CDG 1x
RDU-LHR 1x
US metal: 24 Europe flights, 22 routes, 16 cities in Europe
PHL-FRA 2x
PHL-DUB 1x
PHL-GLA 1x
PHL-MAN 1x
PHL-LHR 1x
PHL-AMS 1x
PHL-BRU 1x
PHL-CDG 1x
PHL-MUC 1x
PHL-ZRH 1x
PHL-VCE 1x
PHL-ATH 1x
PHL-FCO 1x
PHL-BCN 1x
PHL-LIS 1x
PHL-MAD 1x
CLT-FRA 2x
CLT-DUB 1x
CLT-LGW 1x
CLT-CDG 1x
CLT-FCO 1x
CLT-MAD 1x
European cities served by AA, not US:
MXP
HEL
European cities served by US, not AA:
GLA
AMS
MUC
VCE
ATH
LIS
Don't forget that US serves PHL-TLV.
#71
Join Date: Jun 2011
Location: STL
Programs: DL Diamond, AA Platinum, Hilton Diamond, Marriott Platinum
Posts: 32
Eastern Airlines was brought down by intransigent management and intransigent employees. There are probably a few senior AA & US employees around who came from Eastern. Being an Eastern frequent flyer, I watched that saga go on for years. During Eastern's last year there seemed to be good cooperation, and service was improving, but it was just too late to save Eastern.
PS - NorthCentralDC3, did you have the opportunity to fly the DC-3?
PS - NorthCentralDC3, did you have the opportunity to fly the DC-3?
#72
FlyerTalk Evangelist
Join Date: Jan 2005
Location: home = LAX
Posts: 25,934
If USAirways acquires AA (or Vice versa) the name will no doubt be AA, the planes will be repainted, the Advantage program will remain intact, and we will have a couple more destinations that have Admirals Clubs. The only other change will be that now there will be three groups of employees that hate each other and collectively hate management.
As I don't frequent the US forum, it seems the only time I ever run a lot into US FFs on FT is during GrandSlam, when a bunch of them barrage the forums of partners -- hotels, rental cards, etc -- trying to figure out specific ways to get "hits" from that partner.
I shudder at the thought of the much greater number of AA FFs doing the same thing if AA started doing Grand Slam yearly!
#73
FlyerTalk Evangelist
Join Date: Dec 2004
Location: East Coast
Programs: AA CONCIERGE KEY & 1MM, HILTON DIAMOND
Posts: 11,970
My admittedly anecdotal impression of the East-West pilots from talking to several is that they HATE each other mutually and collectively in a way that has happened at no other airline merger in history.
Add AA's bad labor juju on top of that for a real bizarre dynamic. maybe they would all neutralize each other in the confusion, but I think it would go from ultra ugly to hideous fast.
Add AA's bad labor juju on top of that for a real bizarre dynamic. maybe they would all neutralize each other in the confusion, but I think it would go from ultra ugly to hideous fast.
#74
FlyerTalk Evangelist
Join Date: Dec 2004
Location: East Coast
Programs: AA CONCIERGE KEY & 1MM, HILTON DIAMOND
Posts: 11,970
Domestically, I find US to be awful unless you get a flight with meal service. However, for long-haul travel, US actually has the best J hard product on A330-200 aircraft and the soft product definitely beats AA's.
#75
FlyerTalk Evangelist
Join Date: Dec 2004
Location: East Coast
Programs: AA CONCIERGE KEY & 1MM, HILTON DIAMOND
Posts: 11,970