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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 24, 2013, 10:22 am
  #4561  
 
Join Date: Sep 2013
Programs: AA Exec Plat, UA 1K, SPG Plat, Marriott Gold, Hyatt Plat
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Originally Posted by 84fiero
Before the UA/CO merger completed, there was a "No One Knows What Will Happen to (insert your issue here) After the Merger" thread. Might be time for that here, to capture all those questions and speculation!
Is First class international going away, or will it be the zombie hybrid that UA/CO has?
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Old Nov 24, 2013, 10:24 am
  #4562  
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Originally Posted by Fanjet
Really? The most devalued FF program in the US market is Delta. Ironically, they are also the most profitable. Talk about idiocy!!
Delta is the network carrier with the highest customer satisfaction (in all large polls) of them all. Apparently a generous frequent flyer program does not make up for old planes, bad service, etc. etc.

DL can choose to reward less because people choose to fly it.
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Old Nov 24, 2013, 11:34 am
  #4563  
 
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Originally Posted by GeneralVeers
Ahh thanks. The Points system was confusing. I get most of my status from EQMS rather than points as I fly longer segments typically.
You're apparently still confused, as points (like miles) accrue faster for longer segments. Only segments do not accrue faster for longer segments. See the FAQ and the links therein: http://www.flyertalk.com/forum/ameri...l#post11822022. I'd suggest posting questions about elite qualifying on AA in some other thread, perhaps the newbie thread, as this isn't the place (and the questions are likely to get lost).
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Old Nov 24, 2013, 12:06 pm
  #4564  
 
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Originally Posted by ashill
You're apparently still confused, as points (like miles) accrue faster for longer segments. Only segments do not accrue faster for longer segments. See the FAQ and the links therein: http://www.flyertalk.com/forum/ameri...l#post11822022. I'd suggest posting questions about elite qualifying on AA in some other thread, perhaps the newbie thread, as this isn't the place (and the questions are likely to get lost).
Thank. The points are definitely confusing the issue when considering a switch. The website almost makes it seem like point=segments, as UA doesn't have a points system.

My original question was pertinent to the merger however, so it was the appropriate thread.
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Old Nov 24, 2013, 12:18 pm
  #4565  
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Originally Posted by diver858
It wasn't just the unions. If I am not mistaken, the larger LCC investors bought up AMR debt after the BK filing, gave them influence on both sides in the "merger" negotiations.
Horton misplayed the game, literally fumble it away - otherwise AA would have stayed independent. He came out of the gate praising the AArpey who was hated by the unions, then followed by saying that he wouldn't consider merger options until after 11 which caused creditors looking to maximize value to question him, he enabled a single FA to become a martyr.
And while he was making flip comments about the 'water' they drink he PHX, he let Dougie date his unions right under his nose, all while UA was handing him premium customers by the boat load which without the gaffes would have sealed AA leaving 11 stand alone.

AA has put together some good numbers and ran a solid operation during his tenure. He either overrode good CEO level communications advice or needed different, better advice. Dougie saw the openings and worked the cracks, and now he will be king.
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Old Nov 24, 2013, 1:49 pm
  #4566  
 
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Originally Posted by GeneralVeers

Once I get my 1K status with UA in December, I'm going to call up AA and see what they offer. Even with US at the helm, it can't be worse than UA right?
Probably won't be as rumor is US will be rolling out AA's in-flight product starting in April 2014, and I think that was one of the biggest concerns (it was certainly mine).
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Old Nov 24, 2013, 3:41 pm
  #4567  
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Originally Posted by elitetraveler
Horton misplayed the game, literally fumble it away - otherwise AA would have stayed independent. He came out of the gate praising the AArpey who was hated by the unions, then followed by saying that he wouldn't consider merger options until after 11 which caused creditors looking to maximize value to question him, he enabled a single FA to become a martyr.
And while he was making flip comments about the 'water' they drink he PHX, he let Dougie date his unions right under his nose, all while UA was handing him premium customers by the boat load which without the gaffes would have sealed AA leaving 11 stand alone.

AA has put together some good numbers and ran a solid operation during his tenure. He either overrode good CEO level communications advice or needed different, better advice. Dougie saw the openings and worked the cracks, and now he will be king.
Unfortunately, I think you are mistaken. Nothing Horton could have done other than give the unions a raise that would have led them not I hate him. The unions and it's members are like dogs, old dogs.

Unions are already fighting.....like stupid dogs over food. The complexities of a merger and the business in general are simply beyond the unions comprehension.

That is why Parker is in control.....a man who has no respect for anyone, as evidenced by is multiple DUIs, one after he failed at the Delta takeover and drank and drove like a petulant child.

Cheers,
AA777
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Old Nov 24, 2013, 3:46 pm
  #4568  
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Originally Posted by elitetraveler
Horton misplayed the game, literally fumble it away - otherwise AA would have stayed independent. He came out of the gate praising the AArpey who was hated by the unions, then followed by saying that he wouldn't consider merger options until after 11 which caused creditors looking to maximize value to question him, he enabled a single FA to become a martyr.
And while he was making flip comments about the 'water' they drink he PHX, he let Dougie date his unions right under his nose, all while UA was handing him premium customers by the boat load which without the gaffes would have sealed AA leaving 11 stand alone.

AA has put together some good numbers and ran a solid operation during his tenure. He either overrode good CEO level communications advice or needed different, better advice. Dougie saw the openings and worked the cracks, and now he will be king.
But then that sort of indicates Horton isn't as clever as some here claim he is. So maybe running the largest airline in the world was not meant for him to be.
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Old Nov 24, 2013, 4:14 pm
  #4569  
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Originally Posted by AA777
Unfortunately, I think you are mistaken. Nothing Horton could have done other than give the unions a raise that would have led them not I hate him. The unions and it's members are like dogs, old dogs.

Unions are already fighting.....like stupid dogs over food. The complexities of a merger and the business in general are simply beyond the unions comprehension.

That is why Parker is in control.....a man who has no respect for anyone, as evidenced by is multiple DUIs, one after he failed at the Delta takeover and drank and drove like a petulant child.

Cheers,
AA777
Are you saying the merger was going to happen regardless of anything Horton did or didn't do?
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Old Nov 24, 2013, 4:31 pm
  #4570  
 
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Originally Posted by elitetraveler
Are you saying the merger was going to happen regardless of anything Horton did or didn't do?
It could've been possibly done on Horton's terms, not Parker's.
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Old Nov 24, 2013, 4:52 pm
  #4571  
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Originally Posted by Jacobin777
It could've been possibly done on Horton's terms, not Parker's.
Horton stated he didn't want to consider a merger until after AA emerged from 11, and his actions showed he seemed to prefer an indy AA overall.
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Old Nov 24, 2013, 5:16 pm
  #4572  
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Originally Posted by elitetraveler
Horton misplayed the game, literally fumble it away - otherwise AA would have stayed independent. He came out of the gate praising the AArpey who was hated by the unions, then followed by saying that he wouldn't consider merger options until after 11 which caused creditors looking to maximize value to question him, he enabled a single FA to become a martyr.
And while he was making flip comments about the 'water' they drink he PHX, he let Dougie date his unions right under his nose, all while UA was handing him premium customers by the boat load which without the gaffes would have sealed AA leaving 11 stand alone.

AA has put together some good numbers and ran a solid operation during his tenure. He either overrode good CEO level communications advice or needed different, better advice. Dougie saw the openings and worked the cracks, and now he will be king.
Thanks for this. An interesting take. But wasn't at least one key aspect of this that, rightly or not, through BK Horton brought labor costs more in line with those of competitors and that Parker promised the unions raises that will again impose a higher and less competitive cost structure on AA?

Now, if that's the case, it could still be that Horton screwed up, but that it was toward the end of making AA much more competitive. So can't fully fault him in that regard. Conversely, Parker bought off the unions but at the price of restoring AA's less competitive cost structure and probably bringing about salary reductions, labor unrest and perhaps another plunge into BK down the line.

Or am I missing something here?
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Old Nov 24, 2013, 5:30 pm
  #4573  
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Originally Posted by Thunderroad
Thanks for this. An interesting take. But wasn't at least one key aspect of this that, rightly or not, through BK Horton brought labor costs more in line with those of competitors and that Parker promised the unions raises that will again impose a higher and less competitive cost structure on AA?

Now, if that's the case, it could still be that Horton screwed up, but that it was toward the end of making AA much more competitive. So can't fully fault him in that regard. Conversely, Parker bought off the unions but at the price of restoring AA's less competitive cost structure and probably bringing about salary reductions, labor unrest and perhaps another plunge into BK down the line.

Or am I missing something here?
Without going back to look at the blow by blow -- wasn't AA management initial offers (pre Parker getting involved) to unions far more generous than other airlines -- and also didn't AA agree to continue to fund the underfunded pensions? My point was Horton's missteps out of the gate -- praising the hated AArpey, going after a single loud mouthed FA poisoned the well for him. After that, nothing he did got a fair pass from the Unions. However, he probably still could have pulled it off if hadn't 'appeared' to be so intolerant of any ideas besides AA getting out of 11 on its own. I think this started to worry the creditors.

My point was these missteps opened the door for Dougie. Look at DL, where employees and management joined together to push Dougie back to the desert. Dougie picked up on the old adage, 'the enemy of my enemy is my friend' and got the unions on his side. Horton made a tactical blunder in letting that happen - in my opinion.
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Old Nov 24, 2013, 6:13 pm
  #4574  
 
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Originally Posted by elitetraveler
Horton stated he didn't want to consider a merger until after AA emerged from 11, and his actions showed he seemed to prefer an indy AA overall.
Which really doesn't contradict my comments either.
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Old Nov 24, 2013, 6:32 pm
  #4575  
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Originally Posted by Jacobin777
Which really doesn't contradict my comments either.
But it didn't happen on Horton's terms - merger or staying indy, and my comments were on why it didn't work out the way Horton wanted.
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