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)
#1021
Join Date: Jul 2011
Posts: 2,353
It might well decline, but PHX couldn't go away without a combined airline giving up a lot of business. US' PHX operation is fairly large -- 180 mainline flights, 94 Express, and 77 nonstop destinations daily. By contrast, after expanding LAX last year, AA had 87 mainline flights, 63 Eagle flights, and 40 destinations.
A portion of that traffic could connect through Dallas, but a lot couldn't or wouldn't. (TUS-SFO, for instance, or SAN-SEA.) Expanding at LAX is the other option, in theory -- but there's really not much room to do that. I get the sense from AA's Eagle schedule at LAX that their mainline gates are pretty much maxed out already (though the TBIT expansion should help some), and US' current LAX gates are all but useless over in T1. Barring a major shuffle or construction project, major LAX expansion is probably not in the cards.
Which leaves PHX -- probably ending up as a smaller hub, but a hub nonetheless.
A portion of that traffic could connect through Dallas, but a lot couldn't or wouldn't. (TUS-SFO, for instance, or SAN-SEA.) Expanding at LAX is the other option, in theory -- but there's really not much room to do that. I get the sense from AA's Eagle schedule at LAX that their mainline gates are pretty much maxed out already (though the TBIT expansion should help some), and US' current LAX gates are all but useless over in T1. Barring a major shuffle or construction project, major LAX expansion is probably not in the cards.
Which leaves PHX -- probably ending up as a smaller hub, but a hub nonetheless.
Those of you hoping for a bigger better PHX will not get it via an AA merger with US, so be careful what you cheer for...
#1022
Join Date: Jan 2008
Location: JFK, DCA, BUR, YVR
Programs: AC, AS, BA, DL, HH (D), MR (T/LTP), UA (*S), UScAAre (PLT/1,9MM), WN
Posts: 5,214
PHX is the Southwestern USA version of DFW, and will be redundant if AA merges. the HQ will go, most if not all the connecting flights, and the international flights. They will likely switch int'l to DFW or LAX. PHX is in the unfortunate position of being to AA the next BNA or RDU. Along comes a better city AA can suddenly invest in like MIA, leaving RDU and BNA as shells of their former selves.
Those of you hoping for a bigger better PHX will not get it via an AA merger with US, so be careful what you cheer for...
Those of you hoping for a bigger better PHX will not get it via an AA merger with US, so be careful what you cheer for...
#1023
Join Date: Aug 2008
Programs: HHonors Gold, Marriott Lifetime Gold, IHG Gold, OZ*G, AA Gold, AS MVP
Posts: 1,874
There are, however, a couple of aspects of US I wish AA would take on, however (putting China in the same award redemption region as Japan, for instance).
#1024
FlyerTalk Evangelist
Join Date: May 2001
Location: LAX; AA EXP, MM; HH Gold
Posts: 31,789
It might well decline, but PHX couldn't go away without a combined airline giving up a lot of business. US' PHX operation is fairly large -- 180 mainline flights, 94 Express, and 77 nonstop destinations daily. By contrast, after expanding LAX last year, AA had 87 mainline flights, 63 Eagle flights, and 40 destinations.
A portion of that traffic could connect through Dallas, but a lot couldn't or wouldn't. (TUS-SFO, for instance, or SAN-SEA.) Expanding at LAX is the other option, in theory -- but there's really not much room to do that. I get the sense from AA's Eagle schedule at LAX that their mainline gates are pretty much maxed out already (though the TBIT expansion should help some), and US' current LAX gates are all but useless over in T1. Barring a major shuffle or construction project, major LAX expansion is probably not in the cards.
SAN-SEA would be flown nonstop by AS as an AA codeshare, not by connecting at PHX. TUS-SFO and similar would require PHX.
It's not so much that connections currently scheduled at PHX would be moved to LAX as much as LAX-Various western cities nonstops and DFW/ORD connections would decrease the traffic at PHX somewhat. Still, AA's fairly impressive LAX schedule makes connections possible. Several daily mainline LAX-SFO flights could easily be upgauged from MD-80s/738s to 757s/A321s if necessary without impacting gate space. Small RJs to those various western cities (where US now connects at PHX) could become larger RJs.
AA's plan (the 20% increase over five years) is to increase its flying, both by the number of flights plus using larger RJs. Years ago, AA flew almost two dozen daily LAX-SAN SAABs. Now, the schedule is about half that many daily small RJs. It's possible that with relaxed scope, the optimal plane is a larger RJ for LAX-SAN.
I agree that the PHX hub likely won't go away or be PIT'ted or STL'd. But I think it will get smaller.
#1025
Join Date: Apr 2012
Location: LA
Programs: AAdvantage, CK, 4 MM; Marriott Lifetime PLT
Posts: 314
AA's business plan is working just fine.....actually outperforming its competitors who went thru chapter 11 and subsequently merged.
http://www.washingtonpost.com/lifest...0NV_story.html
American Airlines parent AMR sees uptick in traffic, big gain in key revenue measurementBy Associated Press, Published: June 8
DALLAS American Airlines and its regional partner American Eagle saw a slight increase in passenger traffic in May and beat other airlines in a key revenue measure.
AMR Corp., which is operating while under bankruptcy protection, said Friday that revenue per mile that every seat flew increased 7.3 percent in May. The company credited solid demand, rising prices and fewer empty seats on international flights.
The AMR gain in revenue per seat mile compared to increases of up to 6 percent at Delta, US Airways and Southwest and roughly flat at United.
The statistic is closely watched by airline analysts and investors as an indicator of the carriers ability to raise fares and fill most of their seats.
http://www.washingtonpost.com/lifest...0NV_story.html
American Airlines parent AMR sees uptick in traffic, big gain in key revenue measurementBy Associated Press, Published: June 8
DALLAS American Airlines and its regional partner American Eagle saw a slight increase in passenger traffic in May and beat other airlines in a key revenue measure.
AMR Corp., which is operating while under bankruptcy protection, said Friday that revenue per mile that every seat flew increased 7.3 percent in May. The company credited solid demand, rising prices and fewer empty seats on international flights.
The AMR gain in revenue per seat mile compared to increases of up to 6 percent at Delta, US Airways and Southwest and roughly flat at United.
The statistic is closely watched by airline analysts and investors as an indicator of the carriers ability to raise fares and fill most of their seats.
#1026
Join Date: Aug 2008
Programs: HHonors Gold, Marriott Lifetime Gold, IHG Gold, OZ*G, AA Gold, AS MVP
Posts: 1,874
Not surprising, given the number of high-value customers they're poaching off of UA. When one airline calls its elites "over-entitled" and the other is offering free status matches (and in some cases, free SWU-equivalents)...
#1027
FlyerTalk Evangelist
Join Date: Jun 2001
Programs: DL 1 million, AA 1 mil, HH lapsed Diamond, Marriott Plat
Posts: 28,190
#1028
Join Date: Jan 2008
Location: JFK, DCA, BUR, YVR
Programs: AC, AS, BA, DL, HH (D), MR (T/LTP), UA (*S), UScAAre (PLT/1,9MM), WN
Posts: 5,214
#1030
Join Date: Dec 2005
Posts: 43
AMR, parent of American Airlines, has changed its method of reporting traffic this year, and it seems to coincide with an improving performance on unit revenues.
Another change in AMRs reporting of monthly traffic numbers is that it now mushes together American; its American Eagle-branded carriers that it owns, American Eagle Airlines and Executive Airlines; and its American Connection partners, such as Chautauqua Airlines, that operate flights on AMRs behalf.
Another change in AMRs reporting of monthly traffic numbers is that it now mushes together American; its American Eagle-branded carriers that it owns, American Eagle Airlines and Executive Airlines; and its American Connection partners, such as Chautauqua Airlines, that operate flights on AMRs behalf.
#1032
Join Date: Jan 2008
Location: JFK, DCA, BUR, YVR
Programs: AC, AS, BA, DL, HH (D), MR (T/LTP), UA (*S), UScAAre (PLT/1,9MM), WN
Posts: 5,214
http://www.youtube.com/watch?v=DnVrSZHnvYY
As a longtime flyer, I think the AA forum can use some cheerleaders during this process.
#1033
Join Date: Jun 2000
Location: RDU
Programs: AA LTP, Bonvoy Titanium; AA CK before I retired
Posts: 1,598
#1034
Join Date: Jan 2008
Location: JFK, DCA, BUR, YVR
Programs: AC, AS, BA, DL, HH (D), MR (T/LTP), UA (*S), UScAAre (PLT/1,9MM), WN
Posts: 5,214
In any case, a merger w/ US should happen on AA's terms, and not the other way around. I think even you could agree with that.
#1035
Join Date: Mar 2011
Location: NYC LAX RDU
Programs: US-Plt;Concierge key; American AAirpass; Delta Silver;Starwood - Platinum; Amex Cent
Posts: 712
Nope. The capital markets are with doug all the way. Good friend who does lots of transportation investment banking work at goldman says wall street has zero confidence in Horton.....this was from breakfast this am. Says merger is all but certain now and creditors/private equity/wall street all want Parker running the show. He is involved in the process. TPG is 100 focused on the merger w Parker at helm.