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)
#4081
Suspended
Join Date: Aug 2010
Programs: AA Advanatge
Posts: 474
I've flown UA, US and AA Y in the past month. I'm not sure what the "soft product" deal is, but I can tell you that back in Y, there is no discernible difference between the 3. Maybe for premium classes there is, but I've had some great US F service.
Still, though, I would rank my experience on USX above all 3 for the soft product. Specifically routes operated by YX.
AA has better lounges - the LAX location (not even the Flagship section) is miles above anything US offers anywhere. MCE is a differentiator - better coach hard product. Meals on shorter flights, whereas US has really cut back there.
Still, though, I would rank my experience on USX above all 3 for the soft product. Specifically routes operated by YX.
AA has better lounges - the LAX location (not even the Flagship section) is miles above anything US offers anywhere. MCE is a differentiator - better coach hard product. Meals on shorter flights, whereas US has really cut back there.
Cheers,
AA777
#4083
FlyerTalk Evangelist
Join Date: Mar 1999
Posts: 12,097
WHAT A SPINELESS TOOTHLESS WINDOW-DRESSING DEAL!
From the Fortune article:
So not only there are no penalties, but there's a built-in automatic out clause for HPdbaAA. You can say bye-bye to some hubs starting in the 2014/2015 timeframe; this merger is the same like AA/TW, DL/NW and CO/UA etc., where promises are lies. Expect PHX and CLT to pretty much go away, and PHL become a shade of its former self. Good job DAs!
And, of course, as discussed before, the agreement to continue service to certain airports is probably total BS as well, as I am sure HPdbaAA is free to substitute 7-daily service on a 738 at $200 average fare with a single, daily flight on an ATR-72 with a $800 (or higher) average fare -- or even reply on the "MAC" clause to renege. Again, great job DAs!
Here are my previous comments, which unfortunately seem spot on.
From the Fortune article:
In fact, it may be much shorter than three years. The settlement allows the New American to break its promise to maintain service levels at its hubs and cancel those flights to smaller cities if it feels that there has been a material adverse change, "in demand, the competitive environment, or New American's cost to comply." This so-called MAC clause is extremely vague and can be triggered at the sole discretion of management. So say oil prices go above $100 a barrel -- that could possibly be a trigger as it impacts the "cost to comply." Say Southwest starts a new route to Phoenix -- that could constitute a change in the "competitive environment" of the entire hub.
And, of course, as discussed before, the agreement to continue service to certain airports is probably total BS as well, as I am sure HPdbaAA is free to substitute 7-daily service on a 738 at $200 average fare with a single, daily flight on an ATR-72 with a $800 (or higher) average fare -- or even reply on the "MAC" clause to renege. Again, great job DAs!
Here are my previous comments, which unfortunately seem spot on.
Also it's unclear as to what are the penalties built-in to the deal. If the only way for the DOJ to enforce the deal is to sue HPdbaAA again, Parker will be free to "work on the margins" with impunity. If the DOJ can impose penalties for not following the deal without a new judgment, then Parker will have a higher incentive to behave. This assume that the DOJ even has enough people to monitor the judgment, which it probably doesn't.
#4084
FlyerTalk Evangelist
Join Date: Mar 1999
Posts: 12,097
Forcing the New American to maintain an inefficient route network and keep all its hubs open will be very costly. In addition, the combined airline will have a labor bill that will be at least $500 million more than what it was when the two airlines were separate companies. It will also have to pay at least $1.2 billion in "merger-related costs" over the next three years. The New American is also planning to massively upgrade its fleet, which will see leasing costs jump.
Clearly, this merger is going to cost a lot of money. That means higher fares -- period.
Clearly, this merger is going to cost a lot of money. That means higher fares -- period.
#4085
Join Date: Jan 2010
Location: Stockholm, Sweden + Austin, Tx
Programs: "But, I'm a GLOBALIST guest...."
Posts: 2,848
The deal requires a few more approvals, including a Nov. 25 U.S. Bankruptcy Court hearing, which should pave the way for the deal to close in the first half of December, the CEOs said. Customers will begin seeing the airlines operating as one on Jan. 7, the target date for frequent-flier miles to converge, along with other changes.
I was a little surprised to see that they were targeting the January 7th date for the freq flyer miles to be all converged. Has there been any details on this - besides speculation?
#4086
Join Date: Mar 2013
Location: SEA
Posts: 3,968
Anyway, what makes you think AA's service is going to drop substantially? Because Doug Parker's in charge? AA's brand and loyalty are built off of not sucking. The FF program is an example - it's entirely geared toward people who actually fly, unlike the others who at the extreme (DL) you can get status without ever being on a plane. I don't think that's going away. There has to be some reason AA is the brand the merged airline is sticking with and not US.
#4087
Join Date: Mar 2013
Location: SEA
Posts: 3,968
Guessing that means reciprocal crediting of miles, not merging balances or the program. Just being able to credit to US when flying AA and v.v.
#4088
Join Date: Jan 2013
Location: SFO
Programs: WFBF
Posts: 963
Apparently your argument is that if you paint "American Airlines" on the side of the plane, the seat inside it magically gets more comfortable.
Last edited by Microwave; Nov 14, 2013 at 3:39 am Reason: Updated quote of redacted post
#4089
FlyerTalk Evangelist
Join Date: Mar 1999
Posts: 12,097
Not all Cirrus seats are the same. Just having a Cirrus seat does not magically make it the best of the series. The mechanism is the same, but the cushioning and amount of privacy (plus other items like lighting, TV screen, etc.) are all different.
#4090
Join Date: Jan 2006
Location: Austin,TX (AUS)
Programs: AA, UA
Posts: 767
Any speculation on the logo and livery of the merged airline? Sure, that's probably a lower priority item, but it is part of the airline's branding.
Options:
1) Use the new livery AA is rolling out
2) Use the US livery with American as the name: http://www.cardatabase.net/modifieda...hp?id=00015619
3) Create a new livery
Options:
1) Use the new livery AA is rolling out
2) Use the US livery with American as the name: http://www.cardatabase.net/modifieda...hp?id=00015619
3) Create a new livery
#4091
FlyerTalk Evangelist
Join Date: Mar 2000
Posts: 17,474
CLT is an EXTREMELY valuable hub. It's perhaps the jewel in the US Airways systems -- at least for a merger partner. What does not seem to be well understood is that there are only 2 viable hubs in the South. ATL and CLT. If you had to own one, you'd prefer ATL, because it is a bigger city and has more corporate travel. That said, CLT is extremely valuable real estate and is considered one of the most profitable airline hubs in the world. It also has some significant advantages over ATL: less competition (LUV has a large presence in ATL thanks to the AirTran purchase) and better geography (look at a map of the Eastern seaboard and see why).
http://www.thestreet.com/story/11793...-anything.html
I would anticipate that CLT will grow larger after the merger. AA can leverage its strength in Latin America to route more traffic through CLT. MIA is a great origin/destination market, but connections north are scarce. You probably will also see more flights west after the merger.
PHX is in a more difficult situation. There's no question that DFW is a better hub for East-West travel. And you have a large Southwest operation at PHX, meaning lots of competition. That said, I would not think that the combined airlines operation at PHX will shrink. It's a great O/D market and will undoubtedly grow over time as Arizona will continue benefit from California's "live-ability" problems. And the geography of PHX isn't bad for serving lots of SoCal destinations (it's not like everybody in SoCal wants to drive to LAX -- an obvious point if you've driven the freeways there). I would also expect the new airline to offer more int'l service.
PHL also isn't going away and is actually likely to grow. PHL is one of the largest transatlantic gateway hubs now, and will only get bigger. You can't route that connecting traffic through JFK and the Philly metro area is large enough to support plenty of traffic. It's also a great fortress hub. Philly will be fine -- and bigger.
#4092
FlyerTalk Evangelist
Join Date: Mar 2000
Posts: 17,474
Any speculation on the logo and livery of the merged airline? Sure, that's probably a lower priority item, but it is part of the airline's branding.
Options:
1) Use the new livery AA is rolling out
2) Use the US livery with American as the name: http://www.cardatabase.net/modifieda...hp?id=00015619
3) Create a new livery
Options:
1) Use the new livery AA is rolling out
2) Use the US livery with American as the name: http://www.cardatabase.net/modifieda...hp?id=00015619
3) Create a new livery
#4093
Join Date: Apr 2006
Location: SJC/SFO & ORD
Programs: LT Gold/BA Executive Club/AS MP/Marriott
Posts: 1,646
I'm definitely going to start burning my AA miles, and depending on Parker's actions with the FF program and AA fares, may switch my primary airline for the first time in a decade. Regardless of what involved parties may claim, this merger is certainly not good for competition, although it's certainly good for the investment bankers, lawyers, and union leaders.
It hasnt been a secret for any airline that NYC has been a wasteland for profitability for a long time.
Dont be quick to judge an airline by not being the number one carrier in NYC. I'd much rather be the number one carrier (and grow) at their fortress hubs in PHL, CLT, MIA, DFW than try to fight it out in a place like NYC where AA will never be able to be that fortress carrier.
Armchair CEOs spend way too much time thinking NYC is a panacea...
Dont be quick to judge an airline by not being the number one carrier in NYC. I'd much rather be the number one carrier (and grow) at their fortress hubs in PHL, CLT, MIA, DFW than try to fight it out in a place like NYC where AA will never be able to be that fortress carrier.
Armchair CEOs spend way too much time thinking NYC is a panacea...
+1. I've been stating all along the "lollipops" Parker & Co. have offered the various unions is nothing more than that.."lollipops". Costs are going to increase big time and I don't see where the "revenue synergies" (besides firing people) are going to come from.
Don't forget, US has a nice huge bond payment of >$1 billion coming up in 2014. Guess where that's coming from?
This is the b.s. from the APA:
". "Merging with US Airways will remedy American Airlines' longstanding network shortfalls and put American on equal footing with Delta and United. With the merger, American will offer travelers a viable alternative to Delta and United.
"Today marks the culmination of an aggressive and unconventional strategy APA began pursuing early last year. Our primary goals were to help ensure American would survive and thrive, thereby ensuring long-term career stability for our pilots. This merger will accomplish both goals.
"With the DOJ settlement, American now has the opportunity to return to a position of industry preeminence. We look forward to working with our colleagues at the US Airline Pilots Association as we shift our focus to negotiating a joint collective bargaining agreement.""
https://public.alliedpilots.org/apa/...nd-Thrive.aspx
As if this will "pan out" in a few years.....MUAHAHAHAHA!!
Like I said, I cannot wait to see the unions (especially the APA and APFA) start "crying foul" and "we can't deal with Parker-he's got to go" rants
#4094
Join Date: Jun 2011
Location: BOS
Programs: AA EXP
Posts: 7,710
While I'm not saying CLT is doomed (especially given the scope of concessions new AA made at DCA), CLT does have a lot in common with AA's former hub at RDU. 2.3 million locals vs 2.0 million, same geographic area, less corporate contracts...
#4095
Join Date: May 2008
Location: NYC
Programs: too many
Posts: 4,587
While I agree that domestic connection in NYC are not ideal due to the already high traffic, Jetblue built itself up from nonexistent to a power LCC player via (originally) a sole, domestic-only hub at JFK. (Obviously, they have branched out a bunch since then)