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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 May 9, 2012, 8:34 pm
  #841  
ffI
 
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Originally Posted by AAFA
Let me preface this by saying I love American Airlines and what it has always stood for until the last decade. I hate our management team and board of directors. They've managed to take a jewel and turn it into a dirty rhinestone. We were Saks and we are now Big Lots Air.
Agree with most of the above -
Let me preface this by saying I love American Airlines and what it has always stood for until the last decade. I hate THE CURRENT management team and board of directors. They've managed to take a jewel and turn it into a dirty rhinestone. IT WAS Saks and IT IS now Big Lots Air.

All due to waiting 5 extra years go to go BK. If they had done it in 2005 and again as and when needed as Doug Parker did, most of the assets would be still there, PBGC would be out after the 2nd BK and there would be a competitive cost advantage to this airline.
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Old May 9, 2012, 10:47 pm
  #842  
 
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Originally Posted by ffI
All due to waiting 5 extra years go to go BK. If they had done it in 2005 and again as and when needed as Doug Parker did, most of the assets would be still there, PBGC would be out after the 2nd BK and there would be a competitive cost advantage to this airline.
When going bankrupt is a strategic advantage, something is wrong.
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Old May 10, 2012, 2:55 am
  #843  
 
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Originally Posted by nall
I too had this discussion with one FA recently, and she didn't seem to be aware of the situation at US.
IMO that's a big part of the problem here. The AA Unions went into this US endorsement without being fully educated about the issues at the other airline. On Celebrity Apprentice the other night Arsenio Hall when asked if he'd trade his teammate for another on the opposing team smartly said "No sir. I'd rather go with the devil I know than the one I don't." AA workers decided to go with the devil they don't, and they're starting to get to know him and are having second thoughts.

Here is a big problem with that. In having second thoughts, they've weakened their position with AA even more. I honestly think this was Parkers agenda going in. He wanted to weaken their position with AA so he could swoop in knowing he couldn't do what he promised because he has union messes of his own.

Now AA workers are in a weakened vulnerable position because they acted in haste.
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Old May 10, 2012, 4:49 am
  #844  
 
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Originally Posted by ffI
All due to waiting 5 extra years go to go BK. If they had done it in 2005 and again as and when needed as Doug Parker did, most of the assets would be still there, PBGC would be out after the 2nd BK and there would be a competitive cost advantage to this airline.
The problem with that is AA, unlike its competitors was profitable in 2006 and 2007. The mounting losses that began in 2008 is directly attributable to soaring fuel costs. So for those who continue to blame AA's management and BOD are just parroting AA unions' leaderships talking points. The business plan, and employee concessions back in 2003, was working. No one in the industry calculated jet fuel increasing 500% in 2008.

For example, in 2011, AA's jet fuel costs increased more than $2 Billion over 2010, resulting in a 30%+ increase year-over-year. If AA had paid in 2011 for fuel as it did in 2010, AA would have been profitable just like the other legacy carriers who used bankruptcy to achieve its balance sheet success.

I understand the employees frustration. However, rather than just taking what AA's unions leadsership is telling them, if it was me, I would do my own research. You can easily begin with AA's 10K report which must be filed with the SEC each year.
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Old May 10, 2012, 5:27 am
  #845  
 
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American Airlines union begins voting on contract offer

American Airlines union begins voting on contract offer

What does this means?
If their vote result is Yes, they are backing out their support for US Airways takeover plan? or they can vote for Yes but still support US Airways takeover plan?
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Old May 10, 2012, 5:32 am
  #846  
 
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Originally Posted by lyiu18
American Airlines union begins voting on contract offer

What does this means?
If their vote result is Yes, they are backing out their support for US Airways takeover plan? or they can vote for Yes but still support US Airways takeover plan?
Maybe they are realizing if AA can get its costs aligned with the other carriers then management's plan for AA will succeed thus keeping the creditors on the side of management.

"American Airlines' bright outlook: 1Q yield grows as international flights & product to be enhanced"

http://www.centreforaviation.com/ana...enhanced-73496
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Old May 10, 2012, 9:13 am
  #847  
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Originally Posted by lyiu18
American Airlines union begins voting on contract offer

What does this means?
If their vote result is Yes, they are backing out their support for US Airways takeover plan? or they can vote for Yes but still support US Airways takeover plan?
The TWU vote on AA's Last Best Offer (LBO) has absolutely nothing to do with Doug Parker's takeover fantasy.

AA has filed a motion to reject its labor agreements under section 1113 and one prerequisite to abrogation of those agreements is that the debtor and the union negotiated in an attempt to modify the agreement. This vote is to approve or reject AA's LBO to the union.

If the TWU members accept the LBO, then those terms control their contract going forward. If they vote to reject the LBO, then the court may approve AA's plan to impose its terms on the employees.
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Old May 10, 2012, 10:06 am
  #848  
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Exclamation Moderator note

Please note that the AA Forum Moderator team has now created a new thread specifically for discussions of AA labor contracts:

http://www.flyertalk.com/forum/ameri...es-2012-a.html

While we expect that there may be a certain degree of topical overlap here, we ask that all members make their best efforts to continue restricting discussions here to the specific issues pertaining to a US Airways / AMR merger.

/Moderator
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Old May 10, 2012, 11:37 am
  #849  
 
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Originally Posted by chicaloca453
IMO that's a big part of the problem here. The AA Unions went into this US endorsement without being fully educated about the issues at the other airline. On Celebrity Apprentice the other night Arsenio Hall when asked if he'd trade his teammate for another on the opposing team smartly said "No sir. I'd rather go with the devil I know than the one I don't." AA workers decided to go with the devil they don't, and they're starting to get to know him and are having second thoughts.

Here is a big problem with that. In having second thoughts, they've weakened their position with AA even more. I honestly think this was Parkers agenda going in. He wanted to weaken their position with AA so he could swoop in knowing he couldn't do what he promised because he has union messes of his own.

Now AA workers are in a weakened vulnerable position because they acted in haste.
Second thoughts? Maybe, but I doubt it when the devil they knew backed them into a corner and left them no choice. Ever heard the expression "desperate times call for desperate measures?" That's the state of American Airlines right now and each and every employee is simply trying to save their individual butt and come out of this thing still employed. If that means jumping ship and going with the devil they don't, then so be it! When AA says they want to cut 13,000 jobs and US says come to our side and we can save at least half of those, which way would you go?!
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Old May 10, 2012, 11:52 am
  #850  
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Originally Posted by romadaro
Second thoughts? Maybe, but I doubt it when the devil they knew backed them into a corner and left them no choice. Ever heard the expression "desperate times call for desperate measures?" That's the state of American Airlines right now and each and every employee is simply trying to save their individual butt and come out of this thing still employed. If that means jumping ship and going with the devil they don't, then so be it! When AA says they want to cut 13,000 jobs and US says come to our side and we can save at least half of those, which way would you go?!
I have no axe to grind against any AA employee. My thought to them is did you get a detailed analysis and plan from Parker and did you seek expert advice to tell you whether this plan is really feasible or do you stand a good chance of being much worse off five years down the road.
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Old May 11, 2012, 2:59 pm
  #851  
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Originally Posted by LAXJFKesq
it still does not change the fact that AA/Horton is in complete control of AMR/AA.

...

So Parker is just like a little child yelling/screaming because the adults will not let the child play in their sandbox. He can kick up all the sand he likes but he is completely on the outside looking in and will be at least through the end of September.
LOL
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Old May 11, 2012, 3:16 pm
  #852  
 
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I hope that AA is able to stay as a stand-alone. Always been my favorite airline since I was a kid. Have not been impressed with US (America West) over the years.

IF (big IF) US and AA were to merge, is it likely that the frequent flyer miles would also merge into a single account?
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Old May 11, 2012, 4:02 pm
  #853  
 
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Originally Posted by Travel22
IF (big IF) US and AA were to merge, is it likely that the frequent flyer miles would also merge into a single account?
Yes
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Old May 11, 2012, 5:43 pm
  #854  
 
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Originally Posted by elitetraveler
LOL
If you disagree then please inform us who is in control of AA? The court is not running the company.

Also, you continue to demonstrate that you do not have any" understanding of US Code especially Title 11, Chapter 11 Subchapter 1113. While that is understandable as the 1113 process is very complex, you continue to state facts that are not germane to the process.
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Old May 11, 2012, 6:41 pm
  #855  
 
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Originally Posted by LAXJFKesq
If you disagree then please inform us who is in control of AA? The court is not running the company.

Also, you continue to demonstrate that you do not have any" understanding of US Code especially Title 11, Chapter 11 Subchapter 1113. While that is understandable as the 1113 process is very complex, you continue to state facts that are not germane to the process.
There is no doubt that AA management is running the company. Of course they are operating within the constraints of the bankruptcy court, the union contracts that are still in place, and contracts both formal and informal that have not been abrogated. This forum seems to be focusing on the back seat drivers who currently do not have control, but may have elevated control after AA management's period of exclusivity ends. For the most part, until this week, management's running of the company has been far less interesting than the back seat driver's opinions of where AA should be going. This week, AA management finally started to do interesting things that are "thread worthy" like announcing improved seating on 777 and 767-300 Aircraft, discussing potential changes to the hallowed AA livery, at least giving lip service to evaluation of consolidation, and it appears increasing fleet size by bringing back some previously parked MD-80s. This forum focuses on changes and back seat drivers typically identify more potential changes than does AA management. Most of what I've seen on this thread is wild speculation, but it's generally very interesting anyway.
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