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)
Aug 13, 2013, 9:08 am
#1456
Join Date: Mar 2005
Posts: 447
LOL @ US Air:
The complaint also describes how, in recent years, the major airlines have succeeded in raising prices, imposing new fees and reducing service. The complaint quotes several public statements by senior US Airways executives directly attributing this trend to a reduction in the number of competitors in the U.S. market:
· President Scott Kirby said, “Three successful fare increases – [we are] able to pass along to customers because of consolidation.”
· At an industry conference in 2012, Kirby said, “Consolidation has also…allowed the industry to do things like ancillary revenues…. That is a structural permanent change to the industry and one that’s impossible to overstate the benefit from it.”
· As US Airways CEO Parker stated in February 2013, combining US Airways and American would be “ the last major piece needed to fully rationalize the industry.”
· A US Airways document said that capacity reductions have “enabled” fare increases.
· President Scott Kirby said, “Three successful fare increases – [we are] able to pass along to customers because of consolidation.”
· At an industry conference in 2012, Kirby said, “Consolidation has also…allowed the industry to do things like ancillary revenues…. That is a structural permanent change to the industry and one that’s impossible to overstate the benefit from it.”
· As US Airways CEO Parker stated in February 2013, combining US Airways and American would be “ the last major piece needed to fully rationalize the industry.”
· A US Airways document said that capacity reductions have “enabled” fare increases.
Aug 13, 2013, 9:12 am
#1457
Join Date: Apr 2005
Location: PHX
Programs: AA Ex Platinum & 1MM, DL PLT, Marriott Gold, HH Diamond
Posts: 2,490
Actually, from what I've read, the US & AW merger hasn't truly been finalized internally-hopefully that was also one of the reasons for stopping this, even if not stated. Doug Parker hasn't managed to fully integrate the 2 airlines he's currently running-what makes anyone think adding a 3rd to the mix will end well?
Aug 13, 2013, 9:13 am
#1458
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
I wonder how long it will take US to end up in BK court if the DOJ succeeds...
Aug 13, 2013, 9:15 am
#1459
Join Date: Nov 2008
Location: ORD
Programs: AA PLT
Posts: 2,781
Wild speculation, but I'm thinking USdbaAA might have been playing hardball on concessions (DCA slots, etc), so this is a way to force their hand. I can't believe that the merger would have gotten this far along without a lot of informal talks with the DOJ.
Aug 13, 2013, 9:16 am
#1460
Join Date: Mar 2002
Location: Dallas, TX
Programs: AA GLD, Marriott PLT, Hilton Diamond
Posts: 2,900
I thought that the original plan favored by AA was to emerge from bankruptcy as a standalone company, without a merger. Can they go back to that plan? or is it too late?
Aug 13, 2013, 9:17 am
#1461
In Memoriam, FlyerTalk Evangelist
Join Date: Jun 2000
Location: Benicia CA
Programs: Alaska MVP Gold 75K, AA 3.8MM, UA 1.1MM, enjoying the retired life
Posts: 31,849
Could US still make a move to One World independent of a merger?
Aug 13, 2013, 9:18 am
#1462
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
Actually, from what I've read, the US & AW merger hasn't truly been finalized internally-hopefully that was also one of the reasons for stopping this, even if not stated. Doug Parker hasn't managed to fully integrate the 2 airlines he's currently running-what makes anyone think adding a 3rd to the mix will end well?
Aug 13, 2013, 9:19 am
#1463
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
Yes/maybe. I don't think the DOJ took exception to them being part of OW. The Europeans did not. They took exception to them being the same behemoth entity. That being said, if the DOJ blocks the merger, but not OW entry, then it is likely that AA/US would also be blocked from a revenue-sharing scheme.
Aug 13, 2013, 9:20 am
#1464
Join Date: Mar 2011
Programs: AA Platinum Pro, Hilton Diamond, Hyatt Exploralist, Marriot Silver
Posts: 2,065
Aug 13, 2013, 9:21 am
#1465
Join Date: Jun 2005
Location: DCA
Programs: AA PPro, Mariott Ambassador, B6 Mosaic, SBUX Gold, Best Buy Elite
Posts: 1,838
Aug 13, 2013, 9:22 am
#1466
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
Aug 13, 2013, 9:23 am
#1467
Join Date: Apr 2005
Location: PHX
Programs: AA Ex Platinum & 1MM, DL PLT, Marriott Gold, HH Diamond
Posts: 2,490
There was a report several months ago speculating that, if the merger went thru, Doug Parker would make a beeline to BK to get the agreements w/the AA pilots nullified as well as look to drastically reduce the number of employees overall since it didn't appear, financially, Parker's stated plan was viable long term.
Aug 13, 2013, 9:26 am
#1468
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
There was a report several months ago speculating that, if the merger went thru, Doug Parker would make a beeline to BK to get the agreements w/the AA pilots nullified as well as look to drastically reduce the number of employees overall since it didn't appear, financially, Parker's stated plan was viable long term.
Aug 13, 2013, 9:27 am
#1469
Join Date: Mar 2009
Posts: 2,295
I think this is 100% right. If US/AA are willing to give up more slots at DCA, my bet is this can get done quickly.
Aug 13, 2013, 9:28 am
#1470
A FlyerTalk Posting Legend
Join Date: Jun 2005
Posts: 57,604
Bad timing. Last-mover vs. first mover makes all the difference.
DL/NW and UA/CO occurred when airlines financial performance was much worse than now and there were too many seats.
AA/US are both making piles of cash independently. They have a tough economic case to make.
Politics isn't really a major factor - CO/UA final approval came from the current administration.
DL/NW and UA/CO occurred when airlines financial performance was much worse than now and there were too many seats.
AA/US are both making piles of cash independently. They have a tough economic case to make.
Politics isn't really a major factor - CO/UA final approval came from the current administration.
The problem with saying "no" at this point is that the government has stacked the deck in favor of DL/NW and UA/CO, leaving US and AA in much weaker condition.