US Airways and American formally agree to consider merger [New Master Thread]
Sep 18, 2012, 3:02 pm
#61
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I for one remember the change in service levels from the old US to the present config, think loss of envoy lounge in PHL, decrease in benefits for status members, first airline to start charging fees for everything - or close to the first. AA has some issues with service also, but we do not need to turn these airlines into another giant airline with mediocre service. Flying just about any foreign carrier gets you better service and better metal. (with some exceptions). I am wholeheartedly against a merger of the two.
Sep 18, 2012, 3:42 pm
#62
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AMR Corporation And US Airways Announce Non-Disclosure Agreement
FORT WORTH, Texas and TEMPE, Ariz., Aug. 31, 2012 /PRNewswire/ -- AMR Corporation ("AMR"), the parent company of American Airlines®, and US Airways Group, Inc. (LCC) today announced that they have entered into a non-disclosure agreement ("NDA"), under which the companies have agreed to exchange certain confidential information and, in close collaboration with AMR's Unsecured Creditors Committee, to work in good faith to evaluate a potential combination.
The companies do not expect to provide any further announcements regarding the status of any such discussions unless and until the parties have entered into a transaction or discussions between the parties have been terminated. Furthermore, AMR and US Airways have each agreed while they are evaluating a potential combination that they and their representatives will not engage in discussions with other parties concerning a potential combination of AMR and US Airways. The companies noted that there can be no assurance that a transaction will result from these discussions.
FORT WORTH, Texas and TEMPE, Ariz., Aug. 31, 2012 /PRNewswire/ -- AMR Corporation ("AMR"), the parent company of American Airlines®, and US Airways Group, Inc. (LCC) today announced that they have entered into a non-disclosure agreement ("NDA"), under which the companies have agreed to exchange certain confidential information and, in close collaboration with AMR's Unsecured Creditors Committee, to work in good faith to evaluate a potential combination.
The companies do not expect to provide any further announcements regarding the status of any such discussions unless and until the parties have entered into a transaction or discussions between the parties have been terminated. Furthermore, AMR and US Airways have each agreed while they are evaluating a potential combination that they and their representatives will not engage in discussions with other parties concerning a potential combination of AMR and US Airways. The companies noted that there can be no assurance that a transaction will result from these discussions.
US + AA combined will have modern equipment to use on the most profitable routes, also will be able to use Joint venture partners better on the OneWorld alliance. Just so many net positives compared to the negatives.
At JFK and LGA you will have: JetBlue, Delta and AA with the USAir merger as the strongest domestic players. Less competition may lead to higher pricing but on the flip side it means more reinvestment and more integration making flights and connections easier. I would rather easier connections and more reinvestment and larger networks and improved customer service levels.
Last edited by adamj023; Sep 18, 2012 at 3:51 pm
Sep 18, 2012, 5:09 pm
#63
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Less competition WILL lead to higher pricing. In fact there was an article in USA Today (last week? two weeks ago?), that the average air fares already went up as a result of UA/CO & DL/NW mergers (and these went up significantly in cities like MEM where there is almost only DL left with very little competition). While merger might be good for US & AA, it will be bad for us - the travelers - just look what happened with UA. All in all, I am against... (Plus or selfish reasons, I want US in *A...)
Sep 18, 2012, 5:22 pm
#64
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Less competition WILL lead to higher pricing. In fact there was an article in USA Today (last week? two weeks ago?), that the average air fares already went up as a result of UA/CO & DL/NW mergers (and these went up significantly in cities like MEM where there is almost only DL left with very little competition). While merger might be good for US & AA, it will be bad for us - the travelers - just look what happened with UA. All in all, I am against... (Plus or selfish reasons, I want US in *A...)
The answer is yes, healthier airlines and better services albeit with higher prices at times. Mergers are not wrong. Startups or smaller airlines will merge or expand to fill in pricing gaps or to fill demand needs.
Just look at what AA did with the JFK to NRT route for instance, they pulled out, moved to Haneda, came out with a joint venture with partner JAL which went into bankruptcy. So now JAL/AA partnership gets to run the show at Narita which means a better quality airline for the customers with new Dreamliner 787. Carriers with integrate or merge get better, and it forces carriers to make improvements.
The system now is working and the USAirways/AA merger will be the last legacy carrier to integrate. And after this the whole Aviation system in america will be stable for the first time.
The government needs to take a hands off approach, and deregulation is working. We do NOT need nationalization of airlines or undue restrictions. USAir/AA merging is good for customers.
If pricing levels on routes get inflated new competition will come in especially if demand exceeds supply because adding seats on the route is now a reason for another airline to come in as fares get unduly high to compete on price and get more cost efficient structures.
This is the basis of the airline industry we live in and the cycle continues but is why we need the merger and why the system works. Artificial governmental controls do not work.
As multiple carriers in the USA merge for growth and if there is severe contraction on various routes, other carriers will be able to take over the segments so fewer carriers in the nation but stronger competition in respective markets and sufficient competition to maintain supply/demand levels in all markets.
AA/USAirways merger works for the USA. Just 1 major merger left, then the rest will play out itself.
Sep 18, 2012, 6:26 pm
#65
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If the merger goes through, why would the new joint venture continue with the name American Airlines, and not US Airways?
Sep 18, 2012, 6:31 pm
#66
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So fares go up, but you ask yourself this: Has convenience levels gone up, has safety levels gone up, has the alliance partners worked on improvements, have airlines been better funded and well capitalized and able to maintain their survival and success?
The answer is yes, healthier airlines and better services albeit with higher prices at times. Mergers are not wrong. Startups or smaller airlines will merge or expand to fill in pricing gaps or to fill demand needs.
Just look at what AA did with the JFK to NRT route for instance, they pulled out, moved to Haneda, came out with a joint venture with partner JAL which went into bankruptcy. So now JAL/AA partnership gets to run the show at Narita which means a better quality airline for the customers with new Dreamliner 787. Carriers with integrate or merge get better, and it forces carriers to make improvements.
The system now is working and the USAirways/AA merger will be the last legacy carrier to integrate. And after this the whole Aviation system in america will be stable for the first time.
The government needs to take a hands off approach, and deregulation is working. We do NOT need nationalization of airlines or undue restrictions. USAir/AA merging is good for customers.
If pricing levels on routes get inflated new competition will come in especially if demand exceeds supply because adding seats on the route is now a reason for another airline to come in as fares get unduly high to compete on price and get more cost efficient structures.
This is the basis of the airline industry we live in and the cycle continues but is why we need the merger and why the system works. Artificial governmental controls do not work.
As multiple carriers in the USA merge for growth and if there is severe contraction on various routes, other carriers will be able to take over the segments so fewer carriers in the nation but stronger competition in respective markets and sufficient competition to maintain supply/demand levels in all markets.
AA/USAirways merger works for the USA. Just 1 major merger left, then the rest will play out itself.
The answer is yes, healthier airlines and better services albeit with higher prices at times. Mergers are not wrong. Startups or smaller airlines will merge or expand to fill in pricing gaps or to fill demand needs.
Just look at what AA did with the JFK to NRT route for instance, they pulled out, moved to Haneda, came out with a joint venture with partner JAL which went into bankruptcy. So now JAL/AA partnership gets to run the show at Narita which means a better quality airline for the customers with new Dreamliner 787. Carriers with integrate or merge get better, and it forces carriers to make improvements.
The system now is working and the USAirways/AA merger will be the last legacy carrier to integrate. And after this the whole Aviation system in america will be stable for the first time.
The government needs to take a hands off approach, and deregulation is working. We do NOT need nationalization of airlines or undue restrictions. USAir/AA merging is good for customers.
If pricing levels on routes get inflated new competition will come in especially if demand exceeds supply because adding seats on the route is now a reason for another airline to come in as fares get unduly high to compete on price and get more cost efficient structures.
This is the basis of the airline industry we live in and the cycle continues but is why we need the merger and why the system works. Artificial governmental controls do not work.
As multiple carriers in the USA merge for growth and if there is severe contraction on various routes, other carriers will be able to take over the segments so fewer carriers in the nation but stronger competition in respective markets and sufficient competition to maintain supply/demand levels in all markets.
AA/USAirways merger works for the USA. Just 1 major merger left, then the rest will play out itself.
Competition = Good for everyone
Sep 18, 2012, 6:44 pm
#68
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Do yourself a favor: visit the UA forum. Read about SHARES fiasco, low upgrade opportunities for UA top elites, withdrawal of 'Expert Mode' etc. etc. etc. Each day is a disaster on the UA forum...
Sep 18, 2012, 7:56 pm
#69
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American's executives stress that their company is the larger, better-situated airline.
[US Airways CEO Doug] Parker doesn't buy that. But he says that if the two were to combine, the airline would be called American and would keep its headquarters in Fort Worth.
[US Airways CEO Doug] Parker doesn't buy that. But he says that if the two were to combine, the airline would be called American and would keep its headquarters in Fort Worth.
Sep 18, 2012, 9:17 pm
#70
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Right, but it really doesn't say why. I was hoping there was a definite reason. Personally, if a merger happened, I'd rather them stick with US Airways. Unfortunately, when I think of American Airlines (same with United), I think of 9/11 and a tarnished name. I just think US Airways or a new name would provide a fresh start.
Sep 18, 2012, 9:53 pm
#71
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OneWorld, SkyTeam and Star Alliance will all compete with each other for legacy flights. Some markets will have all three on flights.
And some carriers will go at it alone. But make no mistake: We will have better markets worldwide after the mergers.
Mergers in the airline industry have occured across nations, like British Airways and Iberia or Air France and KLM.
AA and USAir merger makes sense. After this merger, there won't be any others such as one global airline merger. That will be anti competitive. However I do expect non legacy carriers to grow and even expand if the other carriers force prices higher. JetBlue will take on more routes, Virgin America has room for growth as well as other non legacies.
And yes there will also be new startup airlines formed as well in the future. The market never stays still. Before the markets contracted we had a lot of competition in the industry. TWA, Pan Am, and many others. Then what happened, these airlines folded but new startups like JetBlue wound up taking away marketshare. After these mergers and I do believe AA and USAirways will merge and a deal eventually finalized with the American Airlines name intact on OneWorld, we will see healthy growth and competition emerge.
Last edited by adamj023; Sep 18, 2012 at 10:12 pm
Sep 18, 2012, 9:58 pm
#72
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Better name recognition world-wide.Thats why it wasnt called America West but USAirways even thou AW took over US. Also why CO/UA is called United even thou almost everything about it says Continental
Sep 18, 2012, 10:03 pm
#73
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Same w AA/US. US may be taking over American (if your in denial about this, just wait & see which executives stay & which leave) but American here to is the larger airline w more customers. It certainly gets more complicated then that but these are just a few reasons
Sep 18, 2012, 10:34 pm
#74
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Same reason the UA/CO merger stuck w the UA name (even though it was really more of a takeover by CO). UA was the larger carrier w more customers & certainly more name recognition in its 2nd largest market (Asia).
Same w AA/US. US may be taking over American (if your in denial about this, just wait & see which executives stay & which leave) but American here to is the larger airline w more customers. It certainly gets more complicated then that but these are just a few reasons
Same w AA/US. US may be taking over American (if your in denial about this, just wait & see which executives stay & which leave) but American here to is the larger airline w more customers. It certainly gets more complicated then that but these are just a few reasons
Thanks for the answers, I appreciate it.
Sep 18, 2012, 10:39 pm
#75
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Same reason the UA/CO merger stuck w the UA name (even though it was really more of a takeover by CO). UA was the larger carrier w more customers & certainly more name recognition in its 2nd largest market (Asia).
Same w AA/US. US may be taking over American (if your in denial about this, just wait & see which executives stay & which leave) but American here to is the larger airline w more customers. It certainly gets more complicated then that but these are just a few reasons
Same w AA/US. US may be taking over American (if your in denial about this, just wait & see which executives stay & which leave) but American here to is the larger airline w more customers. It certainly gets more complicated then that but these are just a few reasons
American Airlines name will be kept, no doubt about it and yes with US Management at the helm.