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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 Nov 12, 2013, 1:08 pm
  #3901  
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Join Date: Jan 2005
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Originally Posted by AA_EXP09
Parker treating elites well? I doubt it.
US has actually done pretty well there, surprisingly.

Certainly much better than Smisek's been treating UA's elites ...
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Old Nov 12, 2013, 1:10 pm
  #3902  
 
Join Date: Jun 2012
Location: NYC
Programs: DL Platinum Medallion, AA Lifetime Gold, Hyatt Globalist, Marriott Gold, Amtrak Select
Posts: 303
Based on being LT Gold (assuming that continues) and long beholden to AA for nostalgic reasons and overall appreciation of the AAdvantage program (as a former EXP benefited from many EVIP's for flights to Europe for engagement, honeymoon, anniversaries...etc. - that's the nostalgia), as a NYC based flier, I've found myself forced to fly US for about 15 legs and 12,000 miles this year and about the same with Delta (some of those could have been US). I don't like being split between 3 airlines and consider my US miles virtually worthless since I don't accrue enough and have no status (at least Delta has crossover now which eases the pain as SPG Plat). With US and AA become one, at least this part of the pain will subside and I won't feel like my BIS miles are being wasted.

For PLT and GLD, my guess is the program will see very minimal, if any, negative changes (other than overall AAdvantage devaluation, of course). EXP's, however, will likely suffer the most.

While I'm sure it will cost more, I like the extra availability by combining the two here in NYC.

Last edited by AALoyalNYC; Nov 12, 2013 at 1:16 pm
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Old Nov 12, 2013, 1:10 pm
  #3903  
 
Join Date: Jun 2010
Location: ROC/NYC/MSP/LAX/HKG/SIN
Posts: 3,212
Originally Posted by GUWonder
Less competition amongst the legacy major airline programs has consequences for consumers that will lead to more and more frequent devaluations.
If one flies mainly international, the competition will still be there, since US is a small potato for TATL and nonexistent in TPAC. However, domestic routes will be damned. Whether the new RM of US/AA will still drag the prices down in some markets like US usually does, it's unknown, but consolidation will definitely lead to devaluations to customers.
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Old Nov 12, 2013, 1:13 pm
  #3904  
 
Join Date: Jun 2011
Location: BOS
Programs: AA EXP
Posts: 7,710
Originally Posted by imapilotaz
Sorry to burst your bubble. Mergers shrink hubs/focus cities, not grow them. Ever.
Surely that doesn't apply to BOS , clearly the new AA will have to rehub us now that they're becoming one of the two main carriers again.

Even the DOJ agrees, which is why we're the only non current hub city with gate divestitures.
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Old Nov 12, 2013, 1:17 pm
  #3905  
 
Join Date: Jan 2010
Location: New York and Vienna
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Posts: 3,870
I was just on the press conference call and was the first person asked to ask a question.

I asked first about upcoming milestones and then about US and oneworld.

To summarize:
- court hearing 25 November (to hopefully get approval for the settlement)
- early December - the deal closes
- 7 January 2014 - this is a "big day" Scott Kirby told me. He spoke of integrating the frequent flyer programs and hinted (slightly) at other things, calling it "the day when we will become a single airline."

As for *A and oneworld, US has been in the process of exiting *A for a few months in terms of selling *A tickets (or not selling them, to be specific) and plans to be in OW in January.

This all comes from a piece just published on Frequent Business Traveler magazine's website:

American Airlines-US Airways Merger: What Frequent Travelers Need to Know
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Old Nov 12, 2013, 1:18 pm
  #3906  
 
Join Date: Apr 2004
Location: BOS
Programs: Marriott LTG, HHonors Diamond, Nat'l Exec
Posts: 3,581
Originally Posted by lhl12
HOWEVER, United will be moving into the new connector from Terminal A (old Continental) and Terminal C (old United), and will therefore block the ability for AA and US to be contiguous.
What's the timetable for that move? It doesn't seem like the B connector is anywhere near ready to open. I could see UA moving to gates 30-38 or 4-14 without ever moving to 22-29.

I also wonder if Massport is still pissed enough at DL over the BK to make them move to B so that AA can take over terminal A.
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Old Nov 12, 2013, 1:18 pm
  #3907  
 
Join Date: Dec 2011
Location: BOS, BWI, DCA, IAD
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Posts: 2,049
Originally Posted by flyerdude88
My guess is B6 is a big winner here.
I would agree with that guess. B6 already leases some of these slots. I would expect it to purchase the slots it currently leases, and also obtain some additional ones.

But the option of gaining miles on AA for many B6 flights will probably come to an end, and perhaps be replaced by an option of gaining UA miles instead.
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Old Nov 12, 2013, 1:20 pm
  #3908  
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Originally Posted by bzcat
Would the 2 gates at LAX go to WN? It makes sense that new AA will vacate T1 but DOJ will presumably want to see the gates go to someone else besides WN. I mean the goal was to increase competition right...? Doesn't make sense to give the 2 gates to the largest airline at LAX, despite it making operational sense (WN is bursting at the seams at T1). However, doing so would actually reduce competition as gates are the currency at LAX (due to cap on gates).
Before the merger, plans were set in motion for US to move to T-3. What this means is that new AA won't be keeping the two US gates in T-3 after the merger. All new AA flights will operate from T-4, four gates in the new TBIT (connected behind security) and the Eagle terminal on the far east side of the airport.
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Old Nov 12, 2013, 1:22 pm
  #3909  
 
Join Date: Apr 2004
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Posts: 3,581
Originally Posted by FWAAA
Before the merger, plans were set in motion for US to move to T-3. What this means is that new AA won't be keeping the two US gates in T-3 after the merger.
Actually, there are to be 3 US gates in T-3; AA is only divesting 2 of them. I doubt they'll use the gate for anything but leverage, though.
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Old Nov 12, 2013, 1:24 pm
  #3910  
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Originally Posted by jspira
I was just on the press conference call and was the first person asked to ask a question.

I asked first about upcoming milestones and then about US and oneworld.

To summarize:
- court hearing 25 November (to hopefully get approval for the settlement)
- early December - the deal closes
- 7 January 2014 - this is a "big day" Scott Kirby told me. He spoke of integrating the frequent flyer programs and hinted (slightly) at other things, calling it "the day when we will become a single airline."

As for *A and oneworld, US has been in the process of exiting *A for a few months in terms of selling *A tickets (or not selling them, to be specific) and plans to be in OW in January.

This all comes from a piece just published on Frequent Business Traveler magazine's website:

American Airlines-US Airways Merger: What Frequent Travelers Need to Know
If FFP benefits are supposed to be reciprocal, are we going to get 8 SWUs for use on AA, and will EXPs get the CP certs?

It'll be interesting to see.
Superguy is offline  
Old Nov 12, 2013, 1:27 pm
  #3911  
 
Join Date: Apr 2012
Location: WAS
Programs: SW Companion, HH Gold, Marriott Gold, Hyatt Gold, Hertz Gold
Posts: 65
Originally Posted by imapilotaz
Which is a joke. The whole argument is that the competition to non-hub and small-hub airports will decrease, and ultimately fewer flights and seats will be available there. All this does is do that for DCA. Do you really think that AA will give up trunk routes to its hubs that are there to connect from everywhere else? Nope, they will be cutting the non-hub and small-hub flights (likely). Less competition is a good thing, according to the DOJ.

ETA: And where do you think B6 will be adding routes to? You think small town America? Yeah think again... yet more competition for Major US Cities to Florida. Just what this country needs.
Yeah I was thinking the same thing. I was scratching my head at the agreement by DOJ, particularly considering the DCA reduction. US Air serves more non-stop destinations than any other carrier out of DCA and now we're going to limit that further than AA was likely already planning to do? AA was probably like, "Umm, are these guys serious? Yes we'll take the deal!"

And as for B6, you'll prob still have to go through BOS half the time!

This seems like some really rough news for me and other frequent DCA flyers that appreciate the direct service to rural areas.

Last edited by Jumpseat18; Nov 12, 2013 at 1:29 pm Reason: Update
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Old Nov 12, 2013, 1:27 pm
  #3912  
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Originally Posted by Paulakers2010
If one flies mainly international, the competition will still be there, since US is a small potato for TATL and nonexistent in TPAC. However, domestic routes will be damned. Whether the new RM of US/AA will still drag the prices down in some markets like US usually does, it's unknown, but consolidation will definitely lead to devaluations to customers.
Even internationally, the TATL JVs (which have been given ATI by the DOJ) in combination with this combination will mean consumers are going to get burned by this combination in some way or another. I fly mostly international with only a spattering of domestic routes, many of which are for the purposes of connecting to/from international flights. There is no way this will make things better for me over the long-haul. Countdown to even my combined mileage balance and lifetime elite Platinum status being devalued.
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Old Nov 12, 2013, 1:28 pm
  #3913  
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Originally Posted by DC777Fan
Can someone translate what this means for DCA?

"It is also required to divest all 104 air carrier slots, or slots not reserved for use only by smaller, commuter planes, at Reagan National, as well as two gates and associated ground facilities at each of the remaining major cities mentioned above. "

http://www.foxbusiness.com/industrie...t-over-merger/
It basically means that after the merger, new AA will have about the same number of slots at DCA as US has now. And new AA has agreed to continue serving the smaller markets, opening the bigger markets to WN and B6 and maybe VX.
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Old Nov 12, 2013, 1:30 pm
  #3914  
 
Join Date: May 2009
Location: Washington, DC
Programs: UA 1K 1MM, AA, DL
Posts: 7,418
Originally Posted by dtremit
What's the timetable for that move? It doesn't seem like the B connector is anywhere near ready to open. I could see UA moving to gates 30-38 or 4-14 without ever moving to 22-29.

I also wonder if Massport is still pissed enough at DL over the BK to make them move to B so that AA can take over terminal A.
What would terminal A get AA/US?

BTW, couldn't AA/US get AC and Spirit to move out of B1-4 (is that all they have) into B30-35, where AA seems to operate, with two of those gates being sold off to other LCCs, leaving UA to its new B gates (plus AC gets UA lounge access for its *G customers).
drewguy is online now  
Old Nov 12, 2013, 1:33 pm
  #3915  
 
Join Date: Aug 2011
Location: ELP
Programs: AAdvantage, Amex MR
Posts: 2,314
Terrible news! Oh well at least I hedged my bet by opening a US credit card this summer. Once mileage balances are able to be combined I will have enough for a round trip F award on Qantas, going to just book the first available flight I see and then look into another credit card program. Maybe something like an AMEX platinum and/or a Capital one Venture. Once I burn my current miles a non-affiliated card is the way to go. I will still fly AA because they are the best for my needs and go where I need to go, but all my mileage earning will be by BIS flying. Not worth the risk anymore to collect credit card miles that may be devalued on the whim of Doug Parker.

The AMEX lounge at DFW is starting to look better and better once the gutting of the AC's start to happen, but the best way to stick it to these airlines is to go with a non branded credit card. Cut off their revenue stream from selling miles to partners, at least with credit cards rewards programs we still have a choice.
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