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)
#1471
Join Date: Jul 2004
Location: (near) Cambridge, MA
Programs: US GP (used to be *G, now,what)
Posts: 1,777
#1472
FlyerTalk Evangelist
Join Date: May 2001
Location: LAX; AA EXP, MM; HH Gold
Posts: 31,789
Ever since Parker began beating the "I'm going to take over AA" drum, we've been subjected to a constant drumbeat of "AA is too small to successfully compete against much larger UA and DL and thus a merger with US is absolutely essential or else AA goes back to Chapter 11." Even though AA has a plan to leverage its bankruptcy-induced lower costs and grow substantially. Organic growth, which is usually preferred by airline rank and file.
Even those with a mere rudimentary background in logic have to admit that if AA is far too small to succeed against UA and DL, then US, being just slightly larger than half of AA's size, is far to small to succeed.
Even those with a mere rudimentary background in logic have to admit that if AA is far too small to succeed against UA and DL, then US, being just slightly larger than half of AA's size, is far to small to succeed.
#1473
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
Correction: It leaves US in a much weaker condition. AA had little vested in this process as they had/have a standalone plan. AA doesn't operate as "East" and "West." AA didn't give up their terminal at LGA. AA didn't increase their presence at DCA. Those were all US blunders. Time for DP to pay the piper.
#1474
Join Date: Mar 2012
Location: Southern California
Programs: AA: EXP, SPG: Gold
Posts: 201
I am excited at the prospect of AA remaining a stand alone company. I think the competition will help keep fares lower than with one less airline.
#1475
Join Date: Oct 2006
Location: ANP
Programs: UA 1k, Marriott Plat, HH gold, Avis/Hertz Pres
Posts: 1,408
bye bye stock....down 50% and still dropping faster than a dude without a parachute
#1476
Join Date: Apr 2006
Location: SJC/SFO & ORD
Programs: LT Gold/BA Executive Club/AS MP/Marriott
Posts: 1,646
Looking at LCC's stock and some of the comments on CNBC, it seems that the anti-trust lawsuit is more than "just giving up a few slots". This potential merger might go way of the T-Mobile/AT&T deal. Ostensibly, this seems like it might a long "drawn-out" merger process.
Coincidentally, Tom Horton before coming back to AA was instrumental in turning AT&T into the current behemoth it currently is.
Coincidentally, Tom Horton before coming back to AA was instrumental in turning AT&T into the current behemoth it currently is.
#1477
Join Date: Jan 2001
Location: Bellevue, WA - AA EXP 3MM
Posts: 2,756
This part rang particularly true to me:
No doubt many of us have noticed that US systematically offers low fares on connecting markets, where others may offer nonstops. Meanwhile, AA, DL, and UA ordinarily do not offer low fares in these connecting markets. It's hard to see how the withdrawal of these low fares could benefit consumers. This is also an important difference between the proposed AA-US transaction, versus DL-NW and UA-CO -- it's only US that has been, and would stop, providing this consumer benefit.
Today, US Airways competes vigorously for price-conscious travelers by offering discounts of up to 40 percent for connecting flights on other airlines’ nonstop routes under its Advantage Fares program. The other legacy airlines – American, Delta and United – routinely match the nonstop fares where they offer connecting service in order to avoid inciting costly fare wars. The Advantage Fares strategy has been successful for US Airways because its network is different from the networks of the larger carriers. If the proposed merger is completed, the combined airline’s network will look more like the existing American, Delta and United networks, and as a result, the Advantage Fares program will likely be eliminated, resulting in higher prices and less services for consumers. An internal analysis at American in October 2012, concluded, “The [Advantage Fares] program would have to be eliminated in a merger with American, as American’s large, nonstop markets would now be susceptible to reactionary pricing from Delta and United.” And, another American executive said that same month, “The industry will force alignment to a single approach–one that aligns with the large legacy carriers as it is revenue maximizing.” By ending the Advantage Fares program, the merger would eliminate lower fares for millions of consumers, the department said.
#1478
Join Date: Oct 2012
Programs: AA: EXP/5.2mm
Posts: 251
AMR's corporate legal department is ecstatic. Without a merger, they all still have jobs.
#1479
Join Date: Jun 2011
Location: DCA
Programs: AA EXP; BoNVoY Tit LTP
Posts: 1,923
And the Antitrust Division thinks that 4 to 3 is a lot worse than 6 to 5 and 5 to 4 (see the accounting industry mergers).
#1480
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
Anyone that has had the misfortune of flying TCON this summer will be happy at the prospect of lower fares. This summer, fares between JFK and LAX/SFO have been in the $400 - $650 range. Not good!
#1481
FlyerTalk Evangelist
Join Date: Aug 2006
Location: SNA
Posts: 18,240
Well I just put all my slush fund money (a designated percentage of our portfolio I dedicate to high risk investments) into AMR. Made a killing back when United stock plummeted then rose again, hoping to do the same here.
#1482
FlyerTalk Evangelist
Join Date: Aug 2006
Location: SNA
Posts: 18,240
If that is the true cost of flying those planes, then overall for the health of the industry, that is good.
#1484
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
#1485
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 don't think that $650,- represents the true cost of flying those planes. It's a money grab that will only be made worse post-merger. TATL fares are competitive right now. A combined AA/US-BA JV would send those fares sky high. And, BTW, let's not forget the fact that all of these airlines nickel and dime us to death with ancillary fees. Absent any legislation to kerb those fees, then prices should be much lower.