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 19, 2012, 8:00 am
#121
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Don't burn your AAdvantage card just yet. It's not like US has a successful history with hostile takeovers.
Apr 19, 2012, 8:04 am
#122
Original Poster
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hahaha...that too...
(If true) Hopefully, it would be an opportunity for him to build a world class carrier, and his thoughts along those lines would be to keep AAdvantage intact.
I have a general concern apart from US/AA issue, that with all the industry consolidations, it is a matter of time before the three or so remaining mega carriers decide to make dramatic changes to FF programs anyway (less competitiion, more chance that the others will follow suit)...more like what WN has just done, or more looking like Asian and European counterparts with fares that don't even qualify for miles..etc... I hope not, but that may be coming anyway....AA BK and fallout/aftermath may buy some time before this may happen though...
I have a general concern apart from US/AA issue, that with all the industry consolidations, it is a matter of time before the three or so remaining mega carriers decide to make dramatic changes to FF programs anyway (less competitiion, more chance that the others will follow suit)...more like what WN has just done, or more looking like Asian and European counterparts with fares that don't even qualify for miles..etc... I hope not, but that may be coming anyway....AA BK and fallout/aftermath may buy some time before this may happen though...
Last edited by Clipper110A; Apr 19, 2012 at 8:14 am Reason: conditional tense
Apr 19, 2012, 8:16 am
#124
Join Date: Oct 2009
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Right. Just like J/SMI orchestrated a "merger of equals" and has built an airline that has "exceptional customer service".
Apr 19, 2012, 8:23 am
#125
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When did a rumor by "a less than credible poster on a.net" become a done deal? That poster apparently got his rumor from a pilot, and the rumor has it that "USAirways has signed agreements with all three AA unions". If that had been announced to the members of those three unions, it seems unlikely that this would be the only report of it.
Not saying that this could never happen, but it seems a bit early to be getting stirred up about it.
Not saying that this could never happen, but it seems a bit early to be getting stirred up about it.
Apr 19, 2012, 8:24 am
#126
Senior Moderator and Moderator: American AAdvantage & TravelBuzz
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Howdy folks - For now, we're going to continue keeping all the USAir "takeover" discussion, speculations, and rumours contained within this thread. If something confirmed does get posted, we'll, of course, have a separate thread with sources, post-announcement conversation, etc. Until then, feel free to continue the discussion in this thread or in the general "takover/merger" targets thread.
Thanks for your understanding.
/Moderator
Thanks for your understanding.
/Moderator
Apr 19, 2012, 8:29 am
#127
Join Date: Nov 2011
Location: Bay Area
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Don't be silly -- this is FT. Clearly an unconfirmed rumor from an unreliable source is sufficient to conclude that US will make a hostile takeover bid, the courts will approve it, the bid will ultimately be successful, and AAdvantage will be subsumed into Dividend Miles. What else could possibly happen?
Apr 19, 2012, 8:47 am
#128
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Not to mention SWUs, the current upgrade scheme, meal quality, etc.
IMO US Airways hasn't improved beyond the crap airline (US Air) it was way back in the 80's. A US+AA integration would be an operational nightmare, run by a group who has no experience or aptitude to handle anything nearly that scale. Indeed, they have proven unable to fully complete an even smaller merger. DL's integration of NW was done long ago, despite the US merger having closed years earlier. I'd even say the UA/CO integration is probably further along. A combined US+AA will now have three pilot lists to juggle? Craziness.
That is almost certain to happen, whether AA survives as an independent or not. DL will roll out such a plan soon. Enjoy the current system while you can.
IMO US Airways hasn't improved beyond the crap airline (US Air) it was way back in the 80's. A US+AA integration would be an operational nightmare, run by a group who has no experience or aptitude to handle anything nearly that scale. Indeed, they have proven unable to fully complete an even smaller merger. DL's integration of NW was done long ago, despite the US merger having closed years earlier. I'd even say the UA/CO integration is probably further along. A combined US+AA will now have three pilot lists to juggle? Craziness.
I have a general concern apart from US/AA issue, that with all the industry consolidations, it is a matter of time before the three or so remaining mega carriers decide to make dramatic changes to FF programs anyway (less competitiion, more chance that the others will follow suit)...more like what WN has just done, or more looking like Asian and European counterparts with fares that don't even qualify for miles..etc... I hope not, but that may be coming anyway....AA BK and fallout/aftermath may buy some time before this may happen though...
Apr 19, 2012, 8:51 am
#129
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9/11 and the resulting recession hit US and their short-haul heavy network particularly hard. Along with mismanagement US ended up an operational, customer service and soft product disaster. About all that was good left were some nice A330s and A321s and an industry-leading (among U.S. domestic carriers) Envoy Lounge. And again, many outstanding FAs (with perhaps more rotten, not bad, rotten apples than the other US legacies).
HP came in and gutted what was left of US really being a full-service airline. The airline became a hi-brid of a full service carrier and an LCC. Its generally a mediocre experience but many things were improved: on-time performance and plane cleanliness amongst them.
Apr 19, 2012, 9:01 am
#130
Join Date: Nov 2010
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I can't see either the existing OW or Star Alliance members being at all supportive of a merged AA/US moving away from OW. From an OW perspective it would kill the whole alliance since they would have no North American presence and from a Star Alliance perspective it would add increased competitive pressure for UA which I'm sure they want like a hole in the head.
Apr 19, 2012, 9:08 am
#131
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I just did a google news search and there is no new news about this.
Remember, post BK AA can actually take over US if it wishes. AA does have a good cash position.
AGAIN- don't burn your EXP cards.
Remember, post BK AA can actually take over US if it wishes. AA does have a good cash position.
AGAIN- don't burn your EXP cards.
Apr 19, 2012, 9:31 am
#132
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http://www.reuters.com/article/2012/...83F18U20120416 dated 4/16/2012
Of course, Horton is not the AMR board, a creditor, or the bk judge so he's only one player, as are the other parties.
Horton shrugged off merger interest from US Airways Group Inc (LCC.N), saying AMR plans to exit Chapter 11 as a stand-alone company. He dismissed talk of meetings between US Airways and members of AMR's creditors committee, saying objections to a business plan are normal. "There's a lot of due diligence that is done on the plan," he said.
Apr 19, 2012, 10:15 am
#133
Join Date: Jan 2007
Posts: 2,905
Thank you - well said. A few pages back I asked how this could solely be a "US takeover" scenario, when in fact, AA is a bigger, more liquid company.
Apr 19, 2012, 12:21 pm
#134
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If any of the AA unions actually believe that US can actually deliver on those promises they are much more gullible than I can thought. There is no way that the rest of the committee will go with this, and the BK judge will look at the numbers and probably pretty quickly figure out that there is absolutely no way that US can turn a profit with AA's wage scale (+ increases) and size of workforce.
The PBGC rep probably will not be too likely to go along with this because it is bound by the likelihood of the ongoing concern actually paying its obligations.
Any unsecured creditor who thinks that US can manage 3 companies unions, give wage hikes, and not lay off people while turning a profit is probably insane.
Any due diligence will show that this is a Hail Mary by US.
The PBGC rep probably will not be too likely to go along with this because it is bound by the likelihood of the ongoing concern actually paying its obligations.
Any unsecured creditor who thinks that US can manage 3 companies unions, give wage hikes, and not lay off people while turning a profit is probably insane.
Any due diligence will show that this is a Hail Mary by US.
Apr 19, 2012, 12:30 pm
#135
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No longer just a rumor...
AMR Unions Said Prepared to Back US Airways Takeover Offer
By Zachary R. Mider, Jeffrey McCracken and Mary Schlangenstein - Apr 19, 2012 11:09 AM PT
American Airlines’ three largest unions have agreed to support a possible takeover offer from US Airways Group Inc. (LCC) rather than remain independent, three people familiar with the matter said.
The groups plan to say that they believe they can reach better terms with US Airways than what they expect if American parent AMR Corp. (AAMRQ) exits bankruptcy by itself, according to the people, who asked not to be identified because the talks are private.
http://www.bloomberg.com/news/2012-0...tml?cmpid=yhoo
By Zachary R. Mider, Jeffrey McCracken and Mary Schlangenstein - Apr 19, 2012 11:09 AM PT
American Airlines’ three largest unions have agreed to support a possible takeover offer from US Airways Group Inc. (LCC) rather than remain independent, three people familiar with the matter said.
The groups plan to say that they believe they can reach better terms with US Airways than what they expect if American parent AMR Corp. (AAMRQ) exits bankruptcy by itself, according to the people, who asked not to be identified because the talks are private.
http://www.bloomberg.com/news/2012-0...tml?cmpid=yhoo