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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, 9:58 am
  #1501  
 
Join Date: Jun 2000
Location: LAX
Posts: 3,639
Best news I've seen in a long time. I was dreading AA turning into a division of US Scareways. AA is basically a great airline, good domestic and global route structure, great motivated workforce and a great fan-club of happy pax (somewhat due to Aadvantage). Methinks this near-death experience will energize everyone on both sides of what was once a management-employee divide to rise to new glory.

Fingers crossed.
JohnAx is offline  
Old Aug 13, 2013, 9:58 am
  #1502  
FlyerTalk Evangelist
 
Join Date: Aug 2006
Location: SNA
Posts: 18,240
Originally Posted by CDKing
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.
Me too. Husband and I compete with our slush fund money, I'm way ahead of him for the last few years. I tend to follow transportation stocks, he follows technology. Although my early, very early, investment in Amazon has more than paid off.

Not going to look at it for at least a day now.
VickiSoCal is offline  
Old Aug 13, 2013, 9:59 am
  #1503  
dw
 
Join Date: Jun 1999
Location: NYC/LA
Programs: DL Plat, AA Plat Pro, Marriott Titanium, IHG Diamond Amb
Posts: 7,486
Originally Posted by txrus
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
I'd wager the reactions were the same. Horton wants to get out w/ his $20MM severance payment!
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Old Aug 13, 2013, 10:01 am
  #1504  
 
Join Date: Dec 2003
Location: NYC
Posts: 6,433
Originally Posted by dw
I'd wager the reactions were the same. Horton wants to get out w/ his $20MM severance payment!
Didn't the BK judge block that payment? Or did he change his mind?
richarddd is offline  
Old Aug 13, 2013, 10:01 am
  #1505  
 
Join Date: Jan 2010
Location: Stockholm, Sweden + Austin, Tx
Programs: "But, I'm a GLOBALIST guest...."
Posts: 2,848
guess the hope that those US Airways miles from the barclay's card transferring over were just a pipe dream.
austin_modern is offline  
Old Aug 13, 2013, 10:02 am
  #1506  
 
Join Date: Jan 2011
Location: DFW...at the moment
Programs: AA EXP, SPG Plat, Hyatt Diamond, HH gold
Posts: 609
Originally Posted by dw
I'd wager the reactions were the same. Horton wants to get out w/ his $20MM severance payment!
If he stays as CEO of an independent AA, he will probably make more than that in just a few short years while also running his own ship. That $20M is probably still there for him down the road.
Zomba is offline  
Old Aug 13, 2013, 10:04 am
  #1507  
 
Join Date: Oct 2012
Programs: AA: EXP/5.2mm
Posts: 251
I think pretty much everyone at AA (except perhaps the unions) is ecstatic. They all keep their jobs, they now are part of a lean, mean, restructured AA with a terrific competitive position, and they all want to drive a stake through the heart of USAir.

Even Tom Horton is happy. Long term he'll make more than $20 million as head of AA, and there aren't any other CEO jobs at airlines that he can get instead.
lhl12 is offline  
Old Aug 13, 2013, 10:06 am
  #1508  
 
Join Date: Jul 2010
Location: NYC, SLC, LAX
Programs: AA EXP, UA Plat
Posts: 3,951
This is the best news I have heard in weeks.
Finally, some proper DOJ intervention just like with AT&T and T-Mobile.
DWFI is offline  
Old Aug 13, 2013, 10:06 am
  #1509  
 
Join Date: Oct 2012
Location: Portland, Oregon
Programs: United Mileage Plus (Silver 2014), AAdvantage, Aeroplan, Flying Blue
Posts: 53
Plan B

While this is a surprise, US can still be effective by moving to OneWorld and codesharing with AA (and BA, etc.), then make a strategic investment in AA as part of a consortium to take it out of bankruptcy.

US has been the forgotten sibling to UA/CO (new UA) since CO arrived ...
garydpdx is offline  
Old Aug 13, 2013, 10:07 am
  #1510  
FlyerTalk Evangelist
 
Join Date: Jul 1999
Location: ORD/MDW
Programs: BA/AA/AS/B6/WN/ UA/HH/MR and more like 'em but most felicitously & importantly MUCCI
Posts: 19,719
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).
It's not transcon routes that suffer from lack of competition (you can fly eight or so different carriers from JFK to LAX/SFO). Pointless example. It's the 500-700 mile feeder routes in and out of hubs that are at risk. Each time a player gets knocked off the chess board, it gets easier for the remaining airlines to cut frequencies, hike prices, tell you to drive or stay home if you don't like it, and drive out new challengers with temporary fare wars. That's not "stabilizing the industry," it's leveraging cartel economics, and I find it weird that so many frequent flyers root for it (and against their own interests).
BearX220 is offline  
Old Aug 13, 2013, 10:09 am
  #1511  
 
Join Date: Jan 2008
Location: KAUS
Programs: AA EXP; AC 100K
Posts: 132
From the CNN article at http://www.cnn.com/2013/08/13/us/air...html?hpt=hp_t2


"The Justice Department lawsuit cites internal documents from the airlines to show that the merger isn't needed and in fact would lead to cuts in programs that benefit travelers. An example is American's Advantage Fares discount program, which American executives said would likely be eliminated after the merger, according to the Justice Department."

Huh? Might be bad reporting, or semantics, but this would be huge information to give the public (read AAdvantage members), if at all true.
daru1 is offline  
Old Aug 13, 2013, 10:10 am
  #1512  
 
Join Date: Oct 2012
Programs: AA: EXP/5.2mm
Posts: 251
The Advantage Fares are a USAir program, not an AA program. The reference to American in this quote must refer to New (i.e. merged) American.
lhl12 is offline  
Old Aug 13, 2013, 10:12 am
  #1513  
 
Join Date: Aug 2010
Location: CLT
Programs: AA, UA, BA, Hilton Diamond, Marriott Gold, IHG Platinum
Posts: 2,074
Originally Posted by stupidzbu
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
Considering the expanded role of credit unions in the market as well as the recent arrival of numerous "alternative checking" products, all on top of the relatively low barriers to entry in banking, I don't think this is an equal comparison.

Last edited by Microwave; Aug 13, 2013 at 2:17 pm Reason: Redacted quote of massive image
dukerau is offline  
Old Aug 13, 2013, 10:16 am
  #1514  
dll
 
Join Date: Jun 2001
Location: LAX
Programs: AA Gold (prev. Ex Plat for 10 years); DL Plat; UA Gold; Hilton Diamond
Posts: 2,338
I can't imagine that AA execs are unhappy about this. I have to wonder if they might have even, ahem, played along with DOJ to coax it into taking this position.

In other news, AA is set to have a bankruptcy exit meeting with their judge this week. Interesting timing.
dll is offline  
Old Aug 13, 2013, 10:18 am
  #1515  
ffI
 
Join Date: Jan 2009
Location: WAS
Programs: AA EXP2M, DL 1MM DM ext, UA PP <=> HH G/Marr PE/Hyatt G/IHG P FT RA ( Recovering Addict)
Posts: 4,596
Originally Posted by ksweeney
Government pushing prices down via blocking this merger only works as long as the carriers remain in business. .....
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? ......
Blocking this merger might have made more sense had they also blocked DL/NW and UA/CO.
+1
See the "SW effect" after they knocked the competition out
ffI is offline  


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