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AA - US Merger Agreement / Announcement / DOJ Action Discussion (consolidated)

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View Poll Results: My opinion of the announced AA - US merger is:
This is the best of all possible worlds; great idea!
33
3.93%
This portends a stronger airline, with some changes for all
192
22.88%
I am neutral - pros and cons for all
199
23.72%
I think this is a somewhat bad idea with some real challenges
226
26.94%
I am completely opposed to this merger; terrible idea!
189
22.53%
Voters: 839. You may not vote on this poll

AA - US Merger Agreement / Announcement / DOJ Action Discussion (consolidated)

 
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Old Aug 13, 2013, 9:46 am
  #1486  
 
Join Date: Oct 2012
Programs: AA: EXP/5.2mm
Posts: 251
Originally Posted by austin_res
I think the DOJ sees going from 4 to 3 as the breaking point.
Yes. A truism in the antitrust world is that both Republican and Democratic administrations will allow an industry to consolidate from 5 to 4, and neither will allow an industry to consolidate from 3 to 2. The difference is that a Republican administration will allow consolidation from 4 to 3 but a Democratic administration will not.

The question has been whether Southwest counted for these purposes. The DoJ has concluded that they do not.
lhl12 is offline  
Old Aug 13, 2013, 9:46 am
  #1487  
 
Join Date: Aug 2011
Location: ELP
Programs: AAdvantage, Amex MR
Posts: 2,314
Ok even though I am sitting on 35k US miles I collected through a signup bonus in anticipation of the merger this is great news! With 4 legacy programs as opposed to 3 that means less likely devaluations could happen. Hopefully this means things like no revenue requirement for AAdvantage, and prices can stay in check.

Still need to figure out what I am going to do with my 35k DM's, but at least this points to a stronger AAdvantage program, and most of all more airline competition.
Dadaluma83 is offline  
Old Aug 13, 2013, 9:47 am
  #1488  
 
Join Date: Jan 2011
Location: DFW...at the moment
Programs: AA EXP, SPG Plat, Hyatt Diamond, HH gold
Posts: 609
Originally Posted by VickiSoCal
If that is the true cost of flying those planes, then overall for the health of the industry, that is good.
No kidding. TCON flyers have no right to complain when those routes actually have legit competition. They should try living in the Midwest where you often pay that much for a 300 mile flight (on mainline AC).
Zomba is offline  
Old Aug 13, 2013, 9:47 am
  #1489  
 
Join Date: Oct 2012
Programs: AA: EXP/5.2mm
Posts: 251
There are going to be some very unhappy unions at AA. With the merger, they got new, friendlier leadership as a negotiating partner, as well as a fresh bite at the apple to negotiate contracts after the merger closed. Now, they have to live with existing management and existing (from bankruptcy) contracts.
lhl12 is offline  
Old Aug 13, 2013, 9:50 am
  #1490  
 
Join Date: Jan 2008
Location: KAUS
Programs: AA EXP; AC 100K
Posts: 132
At least this slows the "race to the bottom" that many talk about.
daru1 is offline  
Old Aug 13, 2013, 9:50 am
  #1491  
FlyerTalk Evangelist
 
Join Date: Dec 2007
Location: BOS/ORH
Programs: AS 75K
Posts: 18,323
Originally Posted by VickiSoCal
Well I just put all my slush fund money (a designated percentage of our portfolio I dedicate to high risk investments) into AMR. Made a killing back when United stock plummeted then rose again, hoping to do the same here.
I cashed out when AA stock went back up to $2.50 after it became a penny stock. I still kept 10 shares and came ahead a little. Kicking myself when I didn't buy more back when it was under 50 cents a share.
CDKing is offline  
Old Aug 13, 2013, 9:51 am
  #1492  
 
Join Date: Apr 2003
Location: BOS .. but soon SFO
Programs: UA PLAT, TK GLD, Hilton Diamond, IC PLAT, SPG GLD, Marriott GLD
Posts: 1,528


I can't comment on this particular merger, but having more > less because they are all fighting for more of the same pie, which means we win.

However, I find it ironic that they allowed the banking system to consolidate to just 4 major players since the mid 90s
stupidzbu is offline  
Old Aug 13, 2013, 9:53 am
  #1493  
 
Join Date: Jan 2006
Location: Austin,TX (AUS)
Programs: AA, UA
Posts: 767
Originally Posted by lhl12
There are going to be some very unhappy unions at AA. With the merger, they got new, friendlier leadership as a negotiating partner, as well as a fresh bite at the apple to negotiate contracts after the merger closed. Now, they have to live with existing management and existing (from bankruptcy) contracts.
I don't think US management is necessarily friendlier towards employees. Doug Parker told employees what they wanted to hear to get support for the merger. What's to stop Parker from changing the contract terms during the next round of negotiations, if the merger goes through?
austin_res is offline  
Old Aug 13, 2013, 9:53 am
  #1494  
formerly gohima
 
Join Date: Jun 2011
Posts: 519
Originally Posted by uxb
Anyone that has had the misfortune of flying TCON this summer will be happy at the prospect of lower fares. This summer, fares between JFK and LAX/SFO have been in the $400 - $650 range. Not good!
I was looking at christmas travel JFK-LAX to see the 'rents and fares are already $680 on AA 4.5 months out
LAXJetter is offline  
Old Aug 13, 2013, 9:53 am
  #1495  
 
Join Date: Dec 2004
Posts: 7,901
I like the 3 screenshots in the suit taken August 12th for travel departing August 13th, returning August 14th. These are supposed to be examples of typical purchases by consumers. I'd rather not see a merger, but you could probably argue whatever you want by cherry picking fares like this.
rrgg is online now  
Old Aug 13, 2013, 9:53 am
  #1496  
 
Join Date: Apr 2005
Location: PHX
Programs: AA Ex Platinum & 1MM, DL PLT, Marriott Gold, HH Diamond
Posts: 2,490
Originally Posted by lhl12
AMR's corporate legal department is ecstatic. Without a merger, they all still have jobs.
Speaking of which, anyone besides me wish I were a fly on the walls of both Parker & Horton's offices when this news came thru? I suspect there were vastly different reactions

Actually wish I were flying today-I have yet to run across any employee who was happy at the prospect of this merger. The unions may not be happy, but the front line employees, I suspect, feel much differently.

As far as the pilots who wanted this, as I see it, they have 2 choices-either put their big boy pants on & make AA successful or send their CV's to Doug Parker.
txrus is offline  
Old Aug 13, 2013, 9:54 am
  #1497  
FlyerTalk Evangelist
 
Join Date: Nov 2009
Location: Northeast Kansas | Colorado Native
Programs: Amex Gold/Plat, UA *G, Hyatt Globalist, Marriott LT Gold, NEXUS, TSA Disparager Unobtanium
Posts: 21,603
Originally Posted by Zomba
No kidding. TCON flyers have no right to complain when those routes actually have legit competition. They should try living in the Midwest where you often pay that much for a 300 mile flight (on mainline AC).
building mine

If you're even lucky to get mainline in the Midwest. So much of the flying is now on RJs..
FriendlySkies is offline  
Old Aug 13, 2013, 9:55 am
  #1498  
 
Join Date: Jun 2010
Location: DCA and STL
Programs: AA Concierge Key, Marriott Lifetime Titanium, National Car Executive Elite
Posts: 524
Originally Posted by uxb
I don't think that $650,- represents the true cost of flying those planes. It's a money grab that will only be made worse post-merger. TATL fares are competitive right now. A combined AA/US-BA JV would send those fares sky high.
Government pushing prices down via blocking this merger only works as long as the carriers remain in business. Most of the discussions on AA emerging from bankruptcy as a viable carrier have been based on a merger. Is AA as a standalone carrier a viable long term option? Nothing in the AA business model has really been changed by the bankruptcy, other than reducing some expenses that will eventually trickle back in. If the government wishes to keep fares down by favoring UA and DL over AA and US, it might succeed for a while but what if AA and US fail? What will happen to prices when it is just UA and DL? Blocking this merger might have made more sense had they also blocked DL/NW and UA/CO.
ksweeney is offline  
Old Aug 13, 2013, 9:57 am
  #1499  
 
Join Date: Dec 2010
Posts: 142
Since it got approved in Europe, I'll be surprised if there isn't a workaround to make the DOJ happy.

I'd rather not have the airlines merge.
chitownjeff is offline  
Old Aug 13, 2013, 9:57 am
  #1500  
 
Join Date: Jun 2005
Location: DCA
Programs: AA PPro, Mariott Ambassador, B6 Mosaic, SBUX Gold, Best Buy Elite
Posts: 1,838
Originally Posted by VickiSoCal
Well I just put all my slush fund money (a designated percentage of our portfolio I dedicate to high risk investments) into AMR. Made a killing back when United stock plummeted then rose again, hoping to do the same here.
isn't amrqq worthless anyway? It's a liquidity company like what happened with GM. I assume AMR will issue new shares post BK.
ellinj is offline  


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