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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 Jul 15, 2013, 11:30 am
  #1396  
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Originally Posted by diver858
I was thinking Western Europe from East Coast hubs (CLT, DCA, PHL, JFK) based on the same reasoning for replacing 762 with 321, did not consider range as an issue.
Fortunately, both AA and US have 757s that do have sufficient range and 16 international business seats that fill that role, so no need to attempt them with A321s.

Originally Posted by diver858
Reasonable to expect AA to add service to LHR from current US east coast hubs to feed BA connections.
That won't be very cheap or easy, as LHR slots are still expensive. I see more larger planes substituting for smaller ones, like BA's new A380 and AA's new 77Ws.

US began new CLT-LHR service with an LHR slot obtained from BA/AA (originally one of the MIA-LHR slots the EU wanted available for competitors). Dunno if new AA will have to make that one available to other competitors.

BA could lease a slot or two to AA to permit AA to increase the number of flights to LHR or perhaps BA will add more flights (as it has a bunch of LHR slots obtained from BMI).

Originally Posted by eponymous_coward
Also, MIA is a rotten choice for a SE hub due to high costs of enplanements, CLT is better, leaving MIA for port of entry for South/Central America.
As a substantial part of the CLT hub consists of Dash8 turboprops and 50-seat CRJs (which are already inefficient and expensive due to fuel prices), it will be interesting to see if the CLT hub manages to stay its current size. MIA has as much domestic O&D as CLT and substantially more international O&D. That doesn't mean that MIA has a role to play as a SE connecting hub - just that MIA's higher CPE hasn't affected its substantial growth all that much.

Originally Posted by aafreq
The A321 may be the replacement for my 'beloved' Mad Dogs when they are relegated to the great desert in the sky....USAir now flys A321's to SJD and other MX and Central American destinations, which are within their flight range.
I doubt it. Perhaps US flies A321s seasonally to Mexico, but right now, CUN is about the only city in Mexico with A321s. Right now, SJD is A319s and A320s.

The replacements for the MD-80s appears to be A319s and 738s, and that's probably what you'll see.
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Old Jul 15, 2013, 1:09 pm
  #1397  
 
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Originally Posted by FWAAA
US began new CLT-LHR service with an LHR slot obtained from BA/AA (originally one of the MIA-LHR slots the EU wanted available for competitors). Dunno if new AA will have to make that one available to other competitors.
Interesting point...

What influence / impact could the EU have on the USAA merger?

I doubt they could or would disapprove it, but as you highlight above, might they force the divestiture of some routes or slots?
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Old Jul 15, 2013, 2:09 pm
  #1398  
 
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Originally Posted by aafreq
The A321 may be the replacement for my 'beloved' Mad Dogs when they are relegated to the great desert in the sky....USAir now flys A321's to SJD and other MX and Central American destinations, which are within their flight range.
USAir MX, Caribbean and Central American destinations are primarily leisure travelers, looking for deals or using awards; A321s were purchased for higher margin (business) routes.
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Old Jul 15, 2013, 2:12 pm
  #1399  
 
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Originally Posted by diver858
USAir MX, Caribbean and Central American destinations are primarily leisure travelers, looking for deals or using awards; A321s were purchased for higher margin (business) routes.
Is this really true anymore? The last two years I spent $1,200 per ticket to take my kids RDU-SKB in coach - purchasing months in advance. I really can't think of any similar domestic routes that capture that kind of rate. To burn miles was going to be like 100K per seat in coach because of high season. I spent roughly the same amount to get my daughter to Europe in Coach this summer.....I think they are making money down there now.
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Old Jul 15, 2013, 3:29 pm
  #1400  
 
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I have some flights coming up in the next 6 weeks on European Star Alliance carriers. I had planned to credit these to my UA account where I have some miles, but not much.

With the merger pending, I am considering opening a US account to credit the flights there. I only want to do this however if they would count for 2014 elite status, as I have so many AA RDM that I can't use them fast enough.

I know nothing has been announced definitively, but now that we are in the second half of the year, is there any chance that AA/US will combine 2013 activity for 2014 status, or is it just better to go ahead and build up my UA MP balance?
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Old Jul 15, 2013, 4:03 pm
  #1401  
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Originally Posted by maizenblue07
I have some flights coming up in the next 6 weeks on European Star Alliance carriers. I had planned to credit these to my UA account where I have some miles, but not much.

With the merger pending, I am considering opening a US account to credit the flights there. I only want to do this however if they would count for 2014 elite status, as I have so many AA RDM that I can't use them fast enough.

I know nothing has been announced definitively, but now that we are in the second half of the year, is there any chance that AA/US will combine 2013 activity for 2014 status, or is it just better to go ahead and build up my UA MP balance?
My instinct based upon going through the UA/CO and DL/NW merger would be no regarding 2013 earnings. However, I would not be surprised to see for the 2014 programs for each airline, members being status-matched to the other program. So if for 2014, you are AA Plat, you will also be US Gold. Of course, you could earn miles in only one of the programs for each flight you take. So I guess it's a matter of your wanting to stick with the UA program going forward. But if you credit to a US account, the miles will eventually be combined with your AA miles. It's only the EQM's that might not be for this year.
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Old Jul 15, 2013, 4:29 pm
  #1402  
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Originally Posted by LarkSFO
What influence / impact could the EU have on the USAA merger?
As much as it wants. The AA + US merger needs EU approval.

Think the EU can't block a merger between two U.S. companies? Ask GE & Honeywell how their merger went...

http://www.reuters.com/article/2013/...95I0AA20130619
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Old Jul 15, 2013, 4:57 pm
  #1403  
 
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Originally Posted by 3Cforme
As much as it wants. The AA + US merger needs EU approval.

Think the EU can't block a merger between two U.S. companies? Ask GE & Honeywell how their merger went...

http://www.reuters.com/article/2013/...95I0AA20130619
A function of how loud competitors complain. Branson was able to hold off AA/BA for many years, is now focused on aligning DL and VA, doubtful that *A members will chime in, so the prospects are encouraging.
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Old Jul 15, 2013, 5:02 pm
  #1404  
 
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Originally Posted by morrisunc
Is this really true anymore? The last two years I spent $1,200 per ticket to take my kids RDU-SKB in coach - purchasing months in advance. I really can't think of any similar domestic routes that capture that kind of rate. To burn miles was going to be like 100K per seat in coach because of high season. I spent roughly the same amount to get my daughter to Europe in Coach this summer.....I think they are making money down there now.
New AA 321s are configured with extra seats up front, where the real $$ is made. Repeat business travelers to Europe are more likely to spend $4k - $7k for a premium seat than the Kettles maxing out their credit cards for Y seats to Jamaica or Cancun.
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Old Jul 15, 2013, 5:19 pm
  #1405  
HNL
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Originally Posted by FWAAA
Fortunately, both AA and US have 757s that do have sufficient range and 16 international business seats that fill that role, so no need to attempt them with A321s.
...
Sadly the current US 757s only have 12 Envoy Seats.
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Old Jul 15, 2013, 8:37 pm
  #1406  
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Originally Posted by HNL
Sadly the current US 757s only have 12 Envoy Seats.
I really do hope these birds survive the merger, with an upgraded J cabin to match what AA has in their 75Ls, of course. Having the lavatories next to the 3 L/R doors is much easier for passengers and FAs on a single aisle plane, than having them in the back near the galleys. Is it possible to put the 762 Envoy seats on these 752s? Or are they too wide for the cabin in a 2+2 configuration?
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Old Jul 16, 2013, 4:48 am
  #1407  
 
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I think they would be too wide IMHO
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Old Jul 16, 2013, 12:31 pm
  #1408  
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Originally Posted by HNL
Sadly the current US 757s only have 12 Envoy Seats.
D'Oh! You're right - my apologies. I thought they had 16.

US has trailed the industry in TATL yield since at least 1995 (absolute lowest in most years), so fewer premium seats on their transatlantic airplanes actually makes some sense.
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Old Jul 16, 2013, 12:37 pm
  #1409  
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Originally Posted by FWAAA
As a substantial part of the CLT hub consists of Dash8 turboprops and 50-seat CRJs (which are already inefficient and expensive due to fuel prices), it will be interesting to see if the CLT hub manages to stay its current size. MIA has as much domestic O&D as CLT and substantially more international O&D. That doesn't mean that MIA has a role to play as a SE connecting hub - just that MIA's higher CPE hasn't affected its substantial growth all that much.
I think it would be a bad idea to split up CLT's hub service between DFW/MIA/DCA (which are all on the periphery of the South). You'd basically be ceding it to DL.

I think PHL, PHX and CLT will play their parts in newAA just like SLC, MSP and DTW have played parts in DL post merger. US already shed the weak sister hubs already in PIT and LAS. Everything else is probably workable in one form or another. Will there be service rationalization? Unquestionably- I wouldn't be shocked to see things like newAA dropping the BUR/LGB stations and adding some LAX RJs to SEA/PDX/YVR, or specializing the hubs (send more Caribbean service from CLT to MIA, have some connecting service through CLT). But if you want to be a big airline based in the USA, you should be able to sustain hubs in large metro areas just based on O/D from the population that lives there; if you can't, your business model is probably broken.
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Old Jul 21, 2013, 10:09 am
  #1410  
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AA fliers, what if anything are you looking forward to or hoping for?

For most of areas where the two airlines' policy, procedure, service, and programs differ, we don't yet know which one will win out, or whether it'll be some middle ground. But from what I can think of, in almost ever way, AA seems better.

I posted the quote below over on the US board earlier this month, and was disappointed to not get any answers.

So let's try it over here, to get the AA flier's perspective.

Originally Posted by swag
Generally, when you compare two airlines, as a consumer, there are some things better on one, some better on the other. When there's a merger, the combined airline will adopt the policy of one or the other, or perhaps choose a middle ground.

But looking at the differences between AA and US, as I see it, it's very one sided. In almost every case, I think, the AA policy is better for me.

In terms of my perspective, I'm a longtime AA hub captive, with lifetime Gold status. My flights are mostly domestic mid-cons.

Consider:
  • Checked bags: As a 25K level elite, AA gives 2 free bags. US only gives 1. Advantage: AA
  • Upgrades: All US elites get free domestic upgrades. AA requires 500 mile upgrades; you earn enough to upgrade 20%, and have to purchase others. This seems to favor US, but lots of chatter on the AA board speculates that means 50K elites will get more upgrades, leaving 25K elites in the back. Advantage: ?
  • F service: AA serves food in the front on most flights over 2 hours. US has a 3.5 hour threshold. Advantage: AA
  • Same day changes: AA offers same day changes to flights on the same calendar day, earlier or later, a 24 hour window. They are confirmable for $75, or elites can standby for free. US: No fee for elites to confirm the change, but limited to 6 hours prior, not allowed for later, and you can't change the number of stops. Advantage: AA
  • Award ticket changes: AA allows free changes to date and time for award tickets, if there is availability at the same award level. US, it's $150. Advantage: AA
  • Award booking fee: Free on AA if booked online. $25 on US. Advantage: AA
  • Award expedite fee: Waived on AA for all elites. $75 on US, not waived for Silver. Advantage: AA
  • 1-way awards: AA offers 1 way awards at half the cost of round trip. US doesn't. Advantage: AA

( Sadly, two cases where US does have the advantage, we already know the AA way will survive. Star seems to be a better alliance than OneWorld. And I think the Barclay's US card offers better benefits than the Citi AA card. But post-merger, we'll have OneWorld and Citi. )

So, US Experts, what am I missing? What might I have to look forward to? What US policies would be better for me than AA's, that I can root for to survive the merger?

Edit to add one more:
  • AA offers 24+ hour hold on most reservations. US requires me to ticket, then the hassle of refunding. Advantage: AA
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