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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 Feb 13, 2013, 5:37 pm
  #76  
uxb
 
Join Date: Jan 2008
Location: JFK, DCA, BUR, YVR
Programs: AC, AS, BA, DL, HH (D), MR (T/LTP), UA (*S), UScAAre (PLT/1,87MM), WN
Posts: 5,207
Originally Posted by dtremit
Even leaving US out of the picture, you've got a lot more destinations on UA than on AA.
Because, clearly, everyone is clamouring to go on UA metal outside of the US.

Originally Posted by dtremit
As a big network carrier, LH is a lot easier to deal with than BA;
I'll agree with you there... except when their planes go Mx. Then it's a free-for-all.

Originally Posted by dtremit
OW is the only alliance without a Korean carrier.
Who cares? That's like saying SkyTeam is the only alliance with a Saudi Arabian carrier.

Originally Posted by dtremit
It's the only alliance whose US carrier doesn't maintain an Asian hub.
Again, who cares? I think OW has solid Asian hubs in NRT and HKG through its partners. It also has a solid Oceania presence thanks to QF. Does Star have QF? No! If you want to go anywhere in the pacific, then you are likely connecting in Hawai'i or Guam.

Originally Posted by dtremit
As for the "quality over quantity" argument: AirBerlin.
What's wrong with AirBerlin? Star got tonnes of gems that are far worse than AB.

Originally Posted by 787fan
Zero carriers in the whole continent of Africa (marginally if you count Comair).
I suppose that BA/IB/QR/RJ don't count for squat.

Originally Posted by 787fan
US wasn't any crown jewel within Star to begin with, so losing it wasn't a really big deal. And bringing in Sri Lankan isn't going to help much either (that's assuming the hub airport is safe from the separatist militants).
I'd prefer if you guys kept US - believe me.

Originally Posted by sts603
Frankly, other than SAA, there aren't too many African carriers I want to fly.
+1. Maybe Star will pick up Air Nigeria.

Originally Posted by 787fan
If not for their political unrest, Egyptian is acceptable.
Ahh... Now you make a logical argument. Political unrest.

Originally Posted by 787fan
If we're counting partners, I don't think BA+QR+IB can beat the access that SN+LH+TK gives.
-1, SN/LH are tired and treading water. TK is the only bright spot of the three carriers you mentioned.

Originally Posted by MetricFlyer
Is there any chance that the US-AA merger will be denied by the USA or EU?
Slim to none.

Originally Posted by FWAAA
UCC has approved the deal.



http://www.chicagotribune.com/busine...,3154967.story



If the unsecured creditors are made whole, then AA didn't trim enough.
Yaaaaaaaaaaaaaaay! I'll be made whole! Whoopie!!!

Originally Posted by grahampros
pennies on the dollar i'm sure.. "small stake" being the key words
Pennies on the dollar? I'm expecting an Admiral's Club day pass as compensation. That, or I can gift gold status on the new UScAAre.
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Old Feb 13, 2013, 5:53 pm
  #77  
 
Join Date: Mar 2004
Location: San Francisco, CA
Posts: 681
It's Official! AA-US Merger
http://www.washingtonpost.com/local/...y.html?hpid=z1

Edit: Well, okay, it's confirmation of an agreement to be announced Thursday
And I'll leave it to the mods to figure out how to sort the threads, but felt the decision merited new discussion.
Last edited by Potreroflyr; Feb 13, 2013 at 6:21 pm Reason: clarity
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Old Feb 13, 2013, 5:57 pm
  #78  
 
Join Date: Jun 2011
Posts: 3,528
Originally Posted by eponymous_coward
So we should be moving right along from denial to anger, right?

Cue the gnashing of teeth and rending of garments...
I think we're way past that phase, in terms of the merger itself.

Now the FF changes remain to be seen...
nall is offline  
Old Feb 13, 2013, 5:59 pm
  #79  
 
Join Date: Dec 2006
Location: ORD
Programs: AA EXP,2MM, DL Gold,Starwood PLT
Posts: 3,876
Originally Posted by eponymous_coward
So we should be moving right along from denial to anger, right?

Cue the gnashing of teeth and rending of garments...
Yep, there will be a lot of pissed of AA folks in particular no doubt. I'm sure there will be ramblings about how this thing is gonna fall apart etc, but again more denial then anything. We will just all have to adapt as this thing progresses. We'll see what the new carrier turns out to be and make changes to other carriers as needed.

I do hope this merger goes smoothly without all the animosity the UA/CO folks have shown..some justified, some not.
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Old Feb 13, 2013, 6:01 pm
  #80  
uxb
 
Join Date: Jan 2008
Location: JFK, DCA, BUR, YVR
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Posts: 5,207
Originally Posted by nall
I think we're way past that phase, in terms of the merger itself.

Now the FF changes remain to be seen...
Nope. That part has been pretty transparent. As per a survey I received, AA is considering adding another tier that will cheese off EXP or PLT. In addition, they are considering an RDM earning scheme similar to DL.

http://www.flyertalk.com/forum/ameri...ther-ffps.html

Get ready for the shaft folks.
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Old Feb 13, 2013, 6:03 pm
  #81  
uxb
 
Join Date: Jan 2008
Location: JFK, DCA, BUR, YVR
Programs: AC, AS, BA, DL, HH (D), MR (T/LTP), UA (*S), UScAAre (PLT/1,87MM), WN
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BOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!! :t d:
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Old Feb 13, 2013, 6:05 pm
  #82  
 
Join Date: Dec 2006
Location: ORD
Programs: AA EXP,2MM, DL Gold,Starwood PLT
Posts: 3,876
Originally Posted by uxb
Nope. That part has been pretty transparent. As per a survey I received, AA is considering adding another tier that will cheese off EXP or PLT. In addition, they are considering an RDM earning scheme similar to DL.

http://www.flyertalk.com/forum/ameri...ther-ffps.html

Get ready for the shaft folks.
That was gonna happen merger or no. So folks just have to get use to it's the new model going forward. That's not even related to the merger. The days of easy miles and lots of free upgrades for little spend are coming to an end
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Old Feb 13, 2013, 6:06 pm
  #83  
 
Join Date: Dec 2009
Location: San Francisco Bay Area
Posts: 210
It seems like recently US has been keeping airfares down on routes I've been looking at. With further consolidation with AA, I'm going to assume the US and AA capacity will be rationalized and with the absence of US low fares, airfares will be going up across the board
syzygy is offline  
Old Feb 13, 2013, 6:09 pm
  #84  
 
Join Date: Apr 2009
Location: CLD
Programs: ua S, marriott P, hilton G, ihg P
Posts: 579
oh well, what happens happens.. Hope they will merge their FF program, so that I can at least get a boost on the miles
travelsg is offline  
Old Feb 13, 2013, 6:09 pm
  #85  
 
Join Date: Jun 2011
Posts: 3,528
Originally Posted by uxb
Nope. That part has been pretty transparent. As per a survey I received, AA is considering adding another tier that will cheese off EXP or PLT. In addition, they are considering an RDM earning scheme similar to DL.

http://www.flyertalk.com/forum/ameri...ther-ffps.html

Get ready for the shaft folks.
Wait, I skimmed through that thread, but what is the RDM earning part?

I thought they asked about some spend requirement, and Delta's spend requirements don't affect RDM earning, just elite qualification, no?
nall is offline  
Old Feb 13, 2013, 6:10 pm
  #86  
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Join Date: May 2001
Location: LAX; AA EXP, MM; HH Gold
Posts: 31,789
Originally Posted by grahampros
Not necessarily. They primarily got equity in the combined company not big pay outs from AA. They will get issued stock so that really costs the new entity little.
Thanks, but I'm keenly aware of how the AMR unsecured creditors will be paid.

Your post is irrelevant to my opinion that AA didn't cut enough debt and that its balance sheet won't be significantly improved. Of course, AMR didn't file for Ch 11 protection because it had a debt problem - it was filed to force the unions to submit to workrule concessions. But since the company is spending hundreds of millions of dollars on this bankruptcy, might as well clean up the balance sheet while you're there. IMO, if the unsecured creditors are made whole, then AA didn't cut enough debt.

Originally Posted by diver858
So what happens to the LCC long term debt? Does it become a liability of the merged entity, paid off with stock of the new entity, ... ? Considering the makeup of the new board (American's creditors will appoint five directors, American will appoint three and US Airways four), a majority are looking to cash out now, are less concerned with such details moving forward - not a good sign.
Nothing happens to LCC debt; LCC isn't in Ch 11. When the merger occurs, the LCC debt continues as debt of the merged entity.
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Old Feb 13, 2013, 6:11 pm
  #87  
Moderator: American AAdvantage
Original Poster
 
Join Date: May 2000
Location: NorCal - SMF area
Programs: AA LT Plat; HH LT Diamond, Maître-plongeur des Muccis
Posts: 62,948
I don't tend to get pissed at what I have no control over, merely to plan to take the best "advantage" (heh!) of changes that are beyond my control. Hans Selye said, roughly, stress is 30% what happens and 70% how we respond.

We'll see what the announcement says tomorrow.

Originally Posted by grahampros
Yep, there will be a lot of pissed of AA folks in particular no doubt.
JDiver is offline  
Old Feb 13, 2013, 6:11 pm
  #88  
 
Join Date: Mar 2002
Location: Dallas, TX
Programs: AA GLD, Marriott PLT, Hilton Diamond
Posts: 2,900



Probably had my last meal ever on a plane Sunday night.
jsmeeker is offline  
Old Feb 13, 2013, 6:13 pm
  #89  
 
Join Date: Dec 2011
Location: NYC
Programs: AS MVPG75K; UA 1K
Posts: 186
Leery of this deal myself...less competition, higher prices.

http://dealbook.nytimes.com/2013/02/...te-for-merger/
matkusopet is offline  
Old Feb 13, 2013, 6:14 pm
  #90  
 
Join Date: Oct 2006
Location: New York City, NY
Programs: jetBlue TrueBlue, AAdvantage
Posts: 152
Can't wait for all the details. What does this mean for MQ?
JBLU421NYC is offline  



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