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

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)

 
Old Feb 13, 13, 3:25 pm
  #16  
 
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the pilots are idiots for thinking this will mean greener pastures for them. (full disclosure, my father is a retired AA pilot and thinks the union has made horrible decisions)
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Old Feb 13, 13, 3:29 pm
  #17  
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Originally Posted by mrowl View Post
the pilots are idiots for thinking this will mean greener pastures for them. (full disclosure, my father is a retired AA pilot and thinks the union has made horrible decisions)
In fairness to the pilots, Parker wooed them last April with promises of smaller concessions than Horton was demanding and true to his word, he recently agreed to give them raises that will be effective immediately upon exit from Ch 11. Those raises, of course, will reverse some of the cost-savings that prompted the AMR board to overrule Arpey and file for Ch 11 in the first place.

I'm not convinced that the combined airline will ever report the kinds of profits that DL has shown the last three years.
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Old Feb 13, 13, 3:31 pm
  #18  
 
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Originally Posted by newyorkgeorge View Post
You have to hand it to Parker, he took the lesson of his failed DL attempt. Go for the employees and creditors, find a few key allies that are comfortable in approaching management, have a lot of patience (the NDA was signed all the way back at the end of August) and you will likely get your deal.
Yep. I expected from the very beginning that the deal would get done since there are really not any other options left. AA put itself in a bad position waiting as long as it did to file. If they would have filed back in 03 there would have been far more options on the table then were left by the point they actually filled. AA was in no position of strength to decide their fate at this point.
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Old Feb 13, 13, 3:31 pm
  #19  
 
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Originally Posted by mrowl:20241244
the pilots are idiots for thinking this will mean greener pastures for them. (full disclosure, my father is a retired AA pilot and thinks the union has made horrible decisions)
To be honest IMO even if the Unions hadn't been all rah-rah for the merger I think their is a decent chance it still would have happened. To Doug Parker's credit he realized the mistake's from his last merger attempts and has attempted to fix them. I think this merger will be good for AA. I wasn't a fan at first but the merger is starting to grow on me.
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Old Feb 13, 13, 3:35 pm
  #20  
 
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Expected 19:30CST tomorrow

I want Horton to stay!
I dont want the Merger!
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Old Feb 13, 13, 3:38 pm
  #21  
 
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Originally Posted by SpeedBird17Victor View Post
Expected 19:30CST tomorrow

I want Horton to stay!
I dont want the Merger!
Well you'll just have to come to terms with the new reality. You didn't have a vote in the matter
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Old Feb 13, 13, 3:39 pm
  #22  
 
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Originally Posted by SpeedBird17Victor View Post
Expected 19:30CST tomorrow

I want Horton to stay!
I dont want the Merger!
Last I saw the announcement was set for 07:30 CST tomorrow. But the AMR board decision could leak out at any moment.
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Old Feb 13, 13, 3:43 pm
  #23  
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Originally Posted by grahampros View Post
Well you'll just have to come to terms with the new reality. You didn't have a vote in the matter
Really this industry needed to change. Since deregulation its been nothing but a cycle of semi boom and big busts, some surviving the Chapter 11 process, some going down in flames.

Now whether consolidation was the answer could be argued. The problem is that this industry has operated with over capacity for years made even more problematic when fuel prices took off. You can't fly DFW/PDX eight times a day using 757s with $69 fares and ever hope to stay in business.
MiamiAirport Formerly NY George is offline  
Old Feb 13, 13, 3:44 pm
  #24  
 
Join Date: Nov 2009
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Dissonance, dissonance...

http://business-news.thestreet.com/d...1840494?page=2

Frank Lorenzo agrees with the pilots that the merger is a good deal. Strange bedfellows indeed.

Also from the above referenced article ' "You didn't have to go to UT (University of Texas) to realize that it didn't make business sense to buy a company with a lower cost structure and then raise all the employees to your standard," Lorenzo said. '

This thread has gotten a little stale, I think that's going to change.
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Old Feb 13, 13, 3:45 pm
  #25  
 
Join Date: Aug 2009
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Originally Posted by former230 View Post
So this means officially I can book a US Air metal flight next week from MCI to PHX direct and get AA EQM, right?
Sigh, I'd been betting against this happening and have credited all of my US flights so far this year to A3. Oh well, I welcome our new southwestern overlords and the ability to fly all over the east coast through PHL/CLT and earn AA miles.
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Old Feb 13, 13, 3:51 pm
  #26  
 
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Originally Posted by newyorkgeorge View Post
Really this industry needed to change. Since deregulation its been nothing but a cycle of semi boom and big busts, some surviving the Chapter 11 process, some going down in flames.

Now whether consolidation was the answer could be argued. The problem is that this industry has operated with over capacity for years made even more problematic when fuel prices took off. You can't fly DFW/PDX eight times a day using 757s with $69 fares and ever hope to stay in business.
Agreed, it HAD to change or there would be no industry left. Consolidation was really the only way that could happen. It's true in any an industry with such high fixed costs. You always get down to a few key players. It's how economic markets operate. It took longer then most markets given all the legacy costs the airlines were burdened with in the regulated days. BK was really the only way to rid themselves of those.
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Old Feb 13, 13, 3:51 pm
  #27  
 
Join Date: May 2010
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Can't believe AA is marrying the UGLY DUCKLING
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Old Feb 13, 13, 3:54 pm
  #28  
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Originally Posted by jacca83 View Post
Can't believe AA is marrying the UGLY DUCKLING
So you think they're popping open some champagne in Atlanta, Chicago and Dallas today (DL, UA, WN)?
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Old Feb 13, 13, 3:55 pm
  #29  
 
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Originally Posted by jacca83 View Post
Can't believe AA is marrying the UGLY DUCKLING
We don't have to give up quite yet, sure everyone's dressed up, the music is playing and the processional is coming to an end, but the vows haven't been said and there's still a chance someone will object to the wedding rather than holding their peace. People do get left at the alter and they tend to resemble LCC.
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Old Feb 13, 13, 3:56 pm
  #30  
 
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Originally Posted by FWAAA View Post
In fairness to the pilots, Parker wooed them last April with promises of smaller concessions than Horton was demanding and true to his word, he recently agreed to give them raises that will be effective immediately upon exit from Ch 11. Those raises, of course, will reverse some of the cost-savings that prompted the AMR board to overrule Arpey and file for Ch 11 in the first place.

I'm not convinced that the combined airline will ever report the kinds of profits that DL has shown the last three years.
It may well. DL pilots now lead the industry in wages. The real key to the cost structure is not a few dollars and hour increase in pay, it's maintaining the productivity improvements, no pensions, health care, and scope. These items are what really drive costs more then anything. AA's workforce had the worst productivity in the industry and the highest benefit costs. It was not absolute pay rates that put them at such a cost disadvantage.
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