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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%
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189
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AA - US Merger Agreement / Announcement / DOJ Action Discussion (consolidated)

 
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Old Aug 24, 2013, 3:07 pm
  #2401  
 
Join Date: Jul 2013
Programs: AA EXP; UA 1k; MR Platinum; SPG Gold
Posts: 167
This is sort off both on and off topic, but I just wanted to mention that when I read the $$/day this is costing AA the first thing I thought of was, like everyone has said, wow that is a lot of billable hours and then --> gee those poor younger associates at the law firms! I cannot even begin to imagine how many hours they have spent in the middle of the night at the office picking through boring documents.

Also a tip of the hat to the analyst and associate classes in the restructuring group at rothschild. They probably wake up with nightmares over not being able to troubleshoot #DIV/0! errors in the monster models they have to keep updating.

(please don't flame me for the observation - I realize people are going to say they make a lot of money, but the work can be pretty brutal at the more junior levels in those fields. most of this is 1% fascinating for them, 99% mundane.)
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Old Aug 24, 2013, 6:08 pm
  #2402  
 
Join Date: Apr 2006
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Originally Posted by morrisunc
My company no longer uses aa because of route network. I had an aairpaas before we signed with delta and I frequently flew rdu to lga. Now we have delta and ua/co - which includes Lufthansa and us airways. We have tens of thousands of employes around the globe - that's my only stat. I wasn't involved. At my level I can use aa if it saves time - however that only ends to be to South America where I rarely go.
Every carrier can't be all things to all people/companies. Win some/lose some.

There could be other factors as well-such as costs, benefits, etc.

You asked for how will AA get from RDU to NRT and I cited you an example of all 3 legacies. Timings are about the same and all had only 1-stop connections so if your company went from AA to DL, there might have been other reasons.
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Old Aug 24, 2013, 7:08 pm
  #2403  
 
Join Date: Mar 2011
Location: NYC LAX RDU
Programs: US-Plt;Concierge key; American AAirpass; Delta Silver;Starwood - Platinum; Amex Cent
Posts: 710
Originally Posted by Jacobin777
Every carrier can't be all things to all people/companies. Win some/lose some.

There could be other factors as well-such as costs, benefits, etc.

You asked for how will AA get from RDU to NRT and I cited you an example of all 3 legacies. Timings are about the same and all had only 1-stop connections so if your company went from AA to DL, there might have been other reasons.
I meant hkg. And how about Mumbai and Delhi? You can't argue with someone who ignores facts. I know why we dropped aa. And it wasnt price - it was network.
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Old Aug 24, 2013, 7:10 pm
  #2404  
 
Join Date: Jun 2004
Location: ATL
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Originally Posted by richarddd
...On the drop dead date, take a look at US's proxy statement from June. They specify the date of the second request, include language on how the drop dead date can be extended and don't even include that the second request was complied with. I can't see anything in either party's SEC filings on the exact date or, other than an off hand mention in some newsletter, that they complied. In the BK filing they only list May, not the exact date. Not very good disclosure, whatever the facts may be.
The extension of the Dec deadline is only by the number of days that the reply to the second request was later than 60 day mark. So assuming AA replied sometime in May then the deadline could only be extended a few weeks if at all.

This Agreement may be terminated and the Merger may be abandoned at any time prior to the Effective Time by duly authorized action of either American or US Airways if: (a) the Merger shall not have been consummated by October 14, 2013, whether such date is before or after receipt of the Stockholder Approval or the entry of the Confirmation Order, provided , that in the event that, (i) as of October 14, 2013, the condition set forth in Section 5.1(b) has not been satisfied (or waived), the termination date may be extended from time to time by American or US Airways one or more times to a date not beyond December 13, 2013; provided further that in the event that a party fails to certify compliance with any Second Request prior to the 60th day following the issuance of such Second Request, such termination date may be extended by the other party one or more times for an additional number of days beyond December 13, 2013 equal to the number of days that elapsed between such 60th day and the day on which the first party actually certifies compliance with such Second Request
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Old Aug 24, 2013, 7:17 pm
  #2405  
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Originally Posted by morrisunc
I meant hkg. And how about Mumbai and Delhi? You can't argue with someone who ignores facts. I know why we dropped aa. And it wasnt price - it was network.
RDU-ORD/JFK-HKG on AA/CX.

RDU-LHR-BOM on AA/BA.

RDU-LHR-DEL on AA/BA.

I agree that AA has some weak spots in their network. However, if you aren't too concerned about price, then I think you'll find that BA, CX, and JL have pretty decent coverage to get you where you need to go.
FriendlySkies is offline  
Old Aug 24, 2013, 7:28 pm
  #2406  
 
Join Date: Aug 2010
Programs: AA 1.6MM EXP; UA GS; SPG LTG,Hilton Gold, Marriott Gold
Posts: 1,477
Originally Posted by morrisunc
I meant hkg. And how about Mumbai and Delhi? You can't argue with someone who ignores facts. I know why we dropped aa. And it wasnt price - it was network.
Edited to add: FriendlySkies beat me to it

HKG: RDU-ORD-HKG (AA/CX)
BOM/DEL: RDU-LHR-BOM/DEL (AA/BA) (and if IIRC only UA can also manage this in a one-stopper from RDU via EWR. Doesn't DL need two stops? ATL/JFK and then AMS/CDG?)

Actually, RDU having the LHR connection puts it in a better place than most other non-cornerstones.

And yes, there are many, many city pairs that can be identified that work well on one network and not another. But destinations that matter? AA has bet on a few major destinations as being important to most corporate traffic - NYC, London, L.A., Chicago, and through OW, Hong Kong, Tokyo and some others (Kuala Lumpur, Oz). And it is dominant in Latin America with good bets on growth there. (And yes, there are some important destinations not on this list. Frankfurt. Dubai. Singapore. My point is only that AA has bet on the others given what options were available at the time)

Can't (and shouldn't) be everything to everybody. Dominating the lucrative NYC-London market in collaboration with BA has a cost. Sure, AA is weak in Africa. But if I had to pick between Africa and Latin America for paid premium traffic, hmmm, yeah, I think LatAm has an edge. No question that the Middle East is weak but the upcoming QR entry into OW should help address that.

But then again, if your company doesn't do work in LatAm, or needs own-metal connections () from RDU to HKG, BOM and DEL, sure, the others sound like the way to go. To each their own.

Last edited by scnzzz; Aug 24, 2013 at 7:31 pm Reason: Beaten to the punch
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Old Aug 24, 2013, 8:06 pm
  #2407  
 
Join Date: Apr 2012
Location: LA
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Posts: 308
AA's network works for me!!

When I had to go to our Hong Kong office, had a direct flight out of JFK on Cathay Pacific. Not sure what the other poster is talking about. Also, if I am not mistaken, RDU has a direct flight to LHR. Furthermore, as others have said, AA offers one-stop service to many of the locations listed by the other poster.

Last edited by LAXJFKesq; Aug 24, 2013 at 8:16 pm
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Old Aug 24, 2013, 8:08 pm
  #2408  
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nothing like a website full lawyers who think they know the industry because they have a few thousand airline miles.

Just a heads up APA will have job actions if this doesn't work. Enjoy x-mas eve in an airport.
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Old Aug 24, 2013, 8:12 pm
  #2409  
 
Join Date: Apr 2012
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Posts: 308
Originally Posted by Kootur
nothing like a website full lawyers who think they know the industry because they have a few thousand airline miles.

Just a heads up APA will have job actions if this doesn't work. Enjoy x-mas eve in an airport.
That's me. Not to mention folks like us who provide "revenue" to our favorite airline. By the way, if that happened, the legal consequences for APA will be hefty.
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Old Aug 24, 2013, 8:17 pm
  #2410  
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Posts: 76
Originally Posted by LAXJFKesq
That's me. Not to mention folks like us who provide "revenue" to our favorite airline. By the way, if that happened, the legal consequences for APA will be hefty.
Not gonna have any pilots then.

enjoy the "new" AA. You'll wish it was the old AA.
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Old Aug 24, 2013, 8:23 pm
  #2411  
 
Join Date: Apr 2012
Location: LA
Programs: AAdvantage, CK, 4 MM; Marriott Lifetime PLT
Posts: 308
Originally Posted by Kootur
Not gonna have any pilots then.

enjoy the "new" AA. You'll wish it was the old AA.
We get it, you hate management. By the way, just a suggestion, before you posts about what the pilots will do, please educate yourself on the Federal laws against illegal jobs actions.

Cheers!
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Old Aug 24, 2013, 9:17 pm
  #2412  
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Join Date: Aug 2008
Location: Usually in SAN or Central Europe.
Programs: AA:EXP/1MM. Accor/Radisson:Silver; HH:Gold; ICH:Plt Amb.
Posts: 22,307
Originally Posted by LAXJFKesq
We get it, you hate management. By the way, just a suggestion, before you posts about what the pilots will do, please educate yourself on the Federal laws against illegal jobs actions.

Cheers!
Pilots can cause a lot of havoc by following the letter of the law. Which is one of the main reasons why AA gave out a DEQM promo at the end of last year.
Fanjet is offline  
Old Aug 24, 2013, 9:29 pm
  #2413  
 
Join Date: Jul 2007
Programs: QFF
Posts: 5,304
Originally Posted by scnzzz
(And yes, there are some important destinations not on this list. Frankfurt. Dubai. Singapore. My point is only that AA has bet on the others given what options were available at the time)
AA codeshares on JL into SIN. The SIN-HND and one of the SIN-NRT JL flights are timed to connect to AA flights.
Also codeshares with BA into DXB.
Himeno is offline  
Old Aug 24, 2013, 9:54 pm
  #2414  
 
Join Date: Jul 2009
Location: AUS / DXB
Programs: BA Silver | AA LT Gold | EY Silver | Marriott LT Titanium
Posts: 1,838
Originally Posted by scnzzz
And yes, there are some important destinations not on this list. Frankfurt. Dubai. Singapore.
AA does fly to FRA. No US carrier flies to SIN nonstop from the USA (at least as far as I know). There most certainly is a DXB-sized hole in AA's network though.

Originally Posted by Himeno
Also codeshares with BA into DXB.
DL and UA (ostensibly, the two legacies AA primarily competes with in terms of network size) do have nonstops into DXB from their hubs (ATL and IAD). In my opinion AA will need to begin the route at some point to stay competitive.

DL does not have competition from ATL while UA competes with EK from IAD. EK already flies to LAX, DFW and JFK, so MIA and ORD are the only remaining AA hubs if it wishes to fly to DXB without competing with EK. This was also true of DFW until not too long ago, until EK moved one of the IAH flights to DFW.

I'm still holding out hope that some day AA starts service to DXB. Maybe with the 787s.
Hyperacusis is offline  
Old Aug 24, 2013, 9:57 pm
  #2415  
 
Join Date: Jul 2013
Programs: AA EXP; UA 1k; MR Platinum; SPG Gold
Posts: 167
Step 1: make demands
Step 2: ruin the holiday season for everyone (this will help get public support)
Step 3: ...
Step 4: PROFIT!!!

I don't think anyone is going to buy into that one
WhatsInYourBackpack is offline  


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