The US Airways /American Airlines merger-related thread (merged threads)
May 23, 2012, 8:06 am
#301
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2014 is not that far off anymore. Once that rolls around, I would think that UA/CO would have an incentive to try pushing US out of *A and they are enough bigger than US, that I am not sure that other members would not go along.
US is way to small to survive without being part of a major alliance, but I am not sure whether any of the dominant North American members (AA in One World or DL in Sky Team) would welcome new domestic competition in their alliance. Therefore US' only option is to merge with AA and get into One World.
US is way to small to survive without being part of a major alliance, but I am not sure whether any of the dominant North American members (AA in One World or DL in Sky Team) would welcome new domestic competition in their alliance. Therefore US' only option is to merge with AA and get into One World.
I agree that US needs to be part of an alliance, but I don't see an incentive to push US out. There are still plenty of places that UA/CO don't cover and provide opportunities for cooperation. If US is indeed a small player and not a threat to UA, there's no real reason to push them out. There are plenty of small carriers in *A.
US also has some tighter relationships with other *A carriers, such as SQ that could protect it from being booted out.
May 23, 2012, 11:42 pm
#302
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Another interesting article (mentioned in the AA forum thread), concerning a push by the secured creditors:
http://www.bloomberg.com/news/2012-0...-on-plans.html
http://www.bloomberg.com/news/2012-0...-on-plans.html
Jun 1, 2012, 3:28 pm
#303
Join Date: Jan 2007
Location: Washington, DC
Posts: 26
What to get used to when US acquires AA?
Given that it's mostly a done deal that US will acquire AA, I can off the top of my head think of two major downsides for Dividend Miles members:
There are probably more that I'm not thinking of, but at least from the DCA traveler's perspective, I can't think of one large benefit to this merger.
- Goodbye to status upgrades, save for Chairman's Preferred and maybe Platinum on occasion.
- Change from *A to the dreadful OneWorld Alliance
There are probably more that I'm not thinking of, but at least from the DCA traveler's perspective, I can't think of one large benefit to this merger.
Jun 1, 2012, 4:04 pm
#304
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Given that it's mostly a done deal that US will acquire AA, I can off the top of my head think of two major downsides for Dividend Miles members:
There are probably more that I'm not thinking of, but at least from the DCA traveler's perspective, I can't think of one large benefit to this merger.
- Goodbye to status upgrades, save for Chairman's Preferred and maybe Platinum on occasion.
- Change from *A to the dreadful OneWorld Alliance
There are probably more that I'm not thinking of, but at least from the DCA traveler's perspective, I can't think of one large benefit to this merger.
Nothing good about this for those of us for whom US works well now. I am guessing both PHL and DCA will lose a lot of flights, too.
Jun 1, 2012, 6:22 pm
#305
Join Date: Jan 2007
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I don't know about that.
I agree that US needs to be part of an alliance, but I don't see an incentive to push US out. There are still plenty of places that UA/CO don't cover and provide opportunities for cooperation. If US is indeed a small player and not a threat to UA, there's no real reason to push them out. There are plenty of small carriers in *A.
US also has some tighter relationships with other *A carriers, such as SQ that could protect it from being booted out.
I agree that US needs to be part of an alliance, but I don't see an incentive to push US out. There are still plenty of places that UA/CO don't cover and provide opportunities for cooperation. If US is indeed a small player and not a threat to UA, there's no real reason to push them out. There are plenty of small carriers in *A.
US also has some tighter relationships with other *A carriers, such as SQ that could protect it from being booted out.
As for giving up gates at PHL and DCA, I don't know anything about the former, but I figured most AA gates at DCA would have to go to other carriers. That said, I was chatting with an airline industry lobbyist last weekend and he said there might be fewer gates given up at DCA than expected.
Jun 1, 2012, 6:44 pm
#306
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That's not an accurate statement. You were looking at ClassicPlus redemption which guarantees you an award seat on any route anytime of the year Air Canada fly's for a "premium" amount of miles required.
Jun 1, 2012, 7:46 pm
#307
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If they adopt the AA policies, my 2M US and .5M AA lifetime miles will actually be worth something more than 1 free bag and last on the upgrade queue.
Jun 1, 2012, 10:00 pm
#308
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In any event, it's obvious that a combined US-AA would not be a member of Star, but would remain in Oneworld.
As for giving up gates at PHL and DCA, I don't know anything about the former, but I figured most AA gates at DCA would have to go to other carriers. That said, I was chatting with an airline industry lobbyist last weekend and he said there might be fewer gates given up at DCA than expected.
Jun 3, 2012, 3:29 am
#309
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So when
So when do you think the big announcement will happen about the merger of US and AA?
I'm thinking before the 4th quarter of this year... I'm sorry to see US leave *A, which is my perfered alliance, I refuse to fly UA.. I have been trying to get enough segments in to make Chairman this year, so when the merger happen I'll be EXP.
I'm thinking before the 4th quarter of this year... I'm sorry to see US leave *A, which is my perfered alliance, I refuse to fly UA.. I have been trying to get enough segments in to make Chairman this year, so when the merger happen I'll be EXP.
Jun 3, 2012, 6:18 am
#310
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Originally Posted by imverge:18682705
That's not an accurate statement. You were looking at ClassicPlus redemption which guarantees you an award seat on any route anytime of the year Air Canada fly's for a "premium" amount of miles required.
Now considering what you're hitting me on isn't what I said, where is the inaccuracy?
Jun 3, 2012, 9:46 pm
#311
Join Date: Dec 2005
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deleted
Last edited by lyiu18; Jun 4, 2012 at 2:08 am
Jun 4, 2012, 6:13 am
#312
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Confirmation re AA name
If a merger happens, the AA name will be kept and HQ will move to Texas ... (link)
US Airways Group Inc. Chief Executive Doug Parker tells the Fort Worth Star-Telegram if his airline merges with American Airlines, the combined companies would be based in Fort Worth, Texas, and be known as American Airlines ....
Jun 4, 2012, 11:05 am
#313
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Barring a change, that means that US can't even present a competing POR until the 4th quarter.
Jim
Jun 4, 2012, 1:30 pm
#314
Join Date: Dec 2002
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For example, can AA "bid" against US by submitting successive, matching proposals? I realize that US is claiming a $billion+ in synergy savings, but it appears nothing keeps AA management from mirroring whatever US submits and then hoping for the best.
Jun 5, 2012, 12:18 am
#315
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As it stands right now, AA has the exclusive right to submit a Plan of Reorganization to the Unsecured Creditors Committee. That exclusivity period lasts until late September, and can be extended further under current bankruptcy law with the Judge's approval. So nothing says that US will even get a chance to submit a POR to the UCC - AA could submit a plan and have it approved before the exclusivity period expires.
I doubt that a bidding war would happen regardless. It would behove AA to submit it's best offer, as well as US if it is able to offer a plan. A POR is a complex document usually several hundred pages long. I suspect that the UCC would look askance at a POR that kept changing to match any competing bid, asking themselves why the better offers weren't made in the first place. Just like management of a company is supposed to perform for the stockholders, in bankruptcy it's all about the creditors and what plan will give them the best return.
Jim
I doubt that a bidding war would happen regardless. It would behove AA to submit it's best offer, as well as US if it is able to offer a plan. A POR is a complex document usually several hundred pages long. I suspect that the UCC would look askance at a POR that kept changing to match any competing bid, asking themselves why the better offers weren't made in the first place. Just like management of a company is supposed to perform for the stockholders, in bankruptcy it's all about the creditors and what plan will give them the best return.
Jim