marlee1421

Very interesting article in Wall Street 24/7 today says AMR likely one of nine major companies not likely to be around after this year. Indicates that standing alone out of bankruptcy not likely. Either US or DL will be successful in their bids?

BF263533

"American could bulk up through US Airways merger"

That headline comes from The Associated Press, which reports:

American Airlines, which is slipping farther behind beefed-up rivals United and Delta, could bulk up through a merger with US Airways.

http://travel.usatoday.com/flights/p...erger/578726/1

aeroman380

The way I see it, why does it have to all go to US or delta or who ever is bidding. I think this is the way delta is going to get slots back at dca. The will prob just take what they can and us what they can. will be like Pan am. Or eastern.

BF263533

The ceditors and the court will have a lot to say how the AA disposition is handled. Is AA worth more as a single entity, or for its pieces? US, Delta or another party could come in with possibly the the most cash, and possibly sell the airline off in peces.

Eastern picked up the South American routes from Braniff. Then, I think, AA got those routes from Eastern. I think United ultimately got the PanAm South American routes. AA took the Eastern gates to build its Miami hub. Delta got PanAm's JFK hub.

futurectdoc

DL would have antitrust issue, US is better being a scavenger and picking up slots, routes and equipment it wants, I'd suggest getting the LAT AM and Caribbean routes, a few European routes, a select few Asian routes i.e. To PEK, NRT and some of their newer long range jets or their options from Airbus or Boeing, but that's just me, their labor costs seem to high and the hub mismatch is bad, US would add high cost hubs, near its own hubs.

dcpatti

A few months ago, Republic announced that it was considering spinning off Frontier and selling it, either to another airline or to the shareholders or possibly just as a stand-alone company with co-investors. Seems to have had some momentum lately as that's made some headlines today, although unfortunately most of the articles I wanted to read were on paid/subscription sites like the WSJ.

http://www.businessweek.com/news/201...ntier-air.html

There isn't much mention of US in the article other than the fact that Republic operates US Express, and Republic wants to focus on their role as Express provider to US and other carriers, and get out of the business of owning their own airline. Some of the previews of the paid access sites seemed to indicate that selling to Spirit or another ultra-LCC was not in the picture.

I wonder if this will have any impact on US' overall strategy in terms of AA; on one hand, AA does have the greater International coverage that US really needs, but on the other hand, companies tend to have an easier time buying companies when the target actually wants to be acquired. There would be little if any pushback from the Fed's, given Frontier's small size, a complimentary fleet, and an existing positive business relationship. If AA were not in the picture, I'd think it a no-brainer for US to purchase F9 (assuming the costs were where they needed to be).

Not saying US will not attempt to take over AA just because F9 is easier; just wondering if we'll see some sort of tie-up with someone and F9 while everyone's busy paying attention to the AA situation.

Superguy

If there was already cozy relationship with Republic since they're doing US Express, I wonder why they at least didn't do a closer code sharing agreement with between US/F9? I'm not that familiar with F9, would it because being hubbed in DEN with UA already there that UA pretty much overlaps with anything F9 could provide?

If F9 were to be acquired, their fleet would fit nicely with US's at least.

burlax

For those who follow that sort of thing...

Hutchison: AA Merger Talk Should Wait (MSNBC)

Report: US Airways brings takeover plan to AA's creditors (USA TODAY)

Michael El

I hope a merger doesn't happen. I love US and hate AA which would make for a love hate relationship.

CPRich

I'm looking forward to it. I moved my multi-year CP to AA PLT, and would live to combine my lifetime statuses into one airline.

kudzu

Reuters article

Of interest to me is that Bethune is reportedly saying there's a 50/50 chance of AA remaining independent ...

Of course, US is only one of the potential suitors

Superguy

So either it will or it won't. We should thank Captain Gordon Obvious for his insight.

kudzu

Odds matter when you have money on the line

Superguy

It still comes down to flip a coin.

iahphx

Bethune is probably about right on the odds. These things aren't that predictable.

I'd go 60-40 in favor of a merger, though. I just don't see AA emerging as an independent carrier. It doesn't make sense -- they need US to bulk up, and they need US's management. Eventually, this deal should become "inevitable." I think that process has already started.

BTW, having flown (unhappily) through MIA on AA last week, I wonder what changes Parker and Kirby would make to that operation. Basically, MIA is a horrific place to make a connection -- and no doubt many of their customers realize this. It's also an unbelievably expensive airport to operate out of (thanks to MIA mismanagement and white elephant projects). Would US shift some Latin flights to CLT, leaving MIA for mostly Origin/Destination traffic? AA has already done some of this, as they have a pathetic domestic network out of MIA. I'd also wonder if Parker could use the bankruptcy process to get out of some of the overpriced MIA leases (which, I guess, could theoretically bankrupt Miam-Dade County). It will be another interesting outcome of the deal.