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Would An AA/US/B6 Merger Work?  
User currently offlineTWA85 From United States of America, joined Feb 2012, 226 posts, RR: 0
Posted (2 years 7 months 1 week 1 day 19 hours ago) and read 4345 times:

Hello everybody,

If AA and US merge, would it make sense to have a side alliance with B6 to help compete with low cost carriers while the new AA (or US) focus on competing for premium passengers similar to QF/JQ? The deal could be structured as follows. AA and US would primarily target corporate and premium passengers while B6 would target small business and leisure passengers. AA and US could handle all long haul flights and most domestic flights from DFW, CLT, ORD, PHL, PHX, MIA, JFK, LAX, DCA and LGA while B6 could handle short haul international flights to the Caribbean and most domestic flights from BOS, MCO, FLL, and LGB. As for JFK, AA and US could handle transcontinental flight to destinations like LAX and SFO etc. and the Eagle feeder flights while B6 handles flights to secondary destinations like LGB and OAK. What are everybody's thoughts?

14 replies: All unread, jump to last
 
User currently offlineAcey559 From United States of America, joined Jan 2007, 1544 posts, RR: 2
Reply 1, posted (2 years 7 months 1 week 1 day 18 hours ago) and read 4273 times:

I personally think it would be hilarious. All the union (and non-union, in B6's case) infighting would be a mess. The four-way brawls in the terminal would be pretty darn funny.

User currently offlineslcdeltarumd11 From United States of America, joined Jan 2004, 3638 posts, RR: 0
Reply 2, posted (2 years 7 months 1 week 1 day 18 hours ago) and read 4243 times:

I can't see more than two. It would be way too complicated. Can you imagine trying to get three airlines employees to all agree on the same terms at the same time, it sounds like a nightmare/impossible to all agree at once. The merger would be maybe the most complicated in history of three airlines at once. Southwest seems to be making the airtran merger alone take forever can you imagine three at the same time. Zero percent chance of happening I think based purely on reality.

User currently onlineflyby519 From United States of America, joined Jul 2007, 1234 posts, RR: 0
Reply 3, posted (2 years 7 months 1 week 1 day 18 hours ago) and read 4189 times:

What do you mean AA/US have a side alliance? B6 join oneworld?Or AA/US have a full codeshare agreement with B6? I could see a codeshare, but B6 hasnt seemed interested in alliance memberships.

A three way merger AA/US/B6 would be absolutely nuts!



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User currently onlineatrude777 From United States of America, joined Aug 2003, 5702 posts, RR: 52
Reply 4, posted (2 years 7 months 1 week 1 day 18 hours ago) and read 4189 times:

Quoting slcdeltarumd11 (Reply 2):
Can you imagine trying to get three airlines employees to all agree on the same terms at the same time, it sounds like a nightmare/impossible to all agree at once.

Yep..Republic, Frontier and Midwest...while AIRLINE wise, Republic was merging YX/F9 together, they were still trying to merge the SLI from YX/F9 into Republic as well..a 3-Way.

So I can imagine it just fine cause it's been attempted!

Alex



Good things come to those who wait, better things come to those who go AFTER it!
User currently offlineslcdeltarumd11 From United States of America, joined Jan 2004, 3638 posts, RR: 0
Reply 5, posted (2 years 7 months 1 week 1 day 18 hours ago) and read 4154 times:

They merged frontier and Midwest which are two small airlines. How well did that work out? They can't find anyone who wants it now and republic has lost millions.

Merging Jetblue, American, and usairways would be HUGE to all be one airline all under the same mileage plan, brand, oc, unions all to agree, commonality, software, one headquarters etc etc

The word frontier was mentioned so..........mariner  Smile

[Edited 2012-05-15 18:40:56]

User currently offlineaeroblogger From India, joined Dec 2011, 1363 posts, RR: 0
Reply 6, posted (2 years 7 months 1 week 1 day 18 hours ago) and read 4092 times:

Well I've been advocating US merging with F9, AS, and HA at the same time for a while now  

I think US/AA/B6 would be possible, but not practical.



Airports 2012: IXE HYD DEL BLR BOM CCU KNU KTM BKK SIN ICN LAX BUR SFO PHX IAH ORD EWR PHL PVD BOS FRA MUC IST
User currently onlineByrdluvs747 From United States of America, joined Jul 2004, 2465 posts, RR: 1
Reply 7, posted (2 years 7 months 1 week 1 day 17 hours ago) and read 3988 times:

First of all, a simultaneous three way merger is insane.

Once AA exits bankruptcy, its first priority should be to secure a strong B6 partnership via a merger or a sizable ownership (45% AA, 6% BA).

JFK should be on top of AA's strategic priority list, thus making B6 and its JFK slots more of a priority than anything US has to offer. Hopefully, Horton will study and present a AA-B6 merger to the UCC as opposed to one between AA and US.


Quoting Acey559 (Reply 1):
All the union (and non-union, in B6's case) infighting would be a mess. The four-way brawls in the terminal would be pretty darn funny.

Union issues wouldn't be a problem, if AA merged with one airline at a time. B6's tiny unions would be quickly absorbed by AA's, and a subsequent AA/B6 - US merger would dwarf US's even further.

If things worked out perfectly the natural order of things would go as follows

  • - AA emerges from bankruptcy independently.

  • - AA convinces US to move over from *A and begin the process of aligning with OW. This will make integration easier.

  • - AA merges with B6, thus securing slots and freeing up AA's domestic slots for more intl flights.

  • - Upon full union integration with B6, AA and US begin plans to merge.

  • - Once the mergers are complete AA would be number 1 in LAX, JFK, MIA, DFW, BOS, PHL, and CLT



The 747: The hands who designed it were guided by god.
User currently offlinecatiii From United States of America, joined Mar 2008, 3092 posts, RR: 4
Reply 8, posted (2 years 7 months 1 week 1 day 17 hours ago) and read 3907 times:

The biggest issue in any merger or acquisition is the cultural collision. That would be exponentially so in this case.

User currently offlineMetrojet732 From United States of America, joined Nov 2011, 27 posts, RR: 0
Reply 9, posted (2 years 7 months 1 week 1 day ago) and read 3331 times:

Since other airlines are being added to the US/B6/AA merger talk..... Add Virgin America to the mix. From day one the word was that V.A. was created to be the west coast B6 n eventually join forces. So we have to add them to the mix here!!! Ha!!

User currently onlineByrdluvs747 From United States of America, joined Jul 2004, 2465 posts, RR: 1
Reply 10, posted (2 years 7 months 1 week 12 hours ago) and read 3043 times:

Quoting Metrojet732 (Reply 9):
Add Virgin America to the mix. From day one the word was that V.A. was created to be the west coast B6 n eventually join forces.

VA only helps an independent B6. VA provides no real value to AA-B6.



The 747: The hands who designed it were guided by god.
User currently offlinejporterfi From United States of America, joined Feb 2012, 447 posts, RR: 0
Reply 11, posted (2 years 7 months 1 week 12 hours ago) and read 3018 times:

If, as you suggested in the title, you mean a true merger between the three (and not an just an alliance between a merged AA/US and B6), then I say no way. I can't see a carrier like JetBlue merging with much bigger carriers that have a different business model (like US and AA). B6 is an LCC, like WN. I highly doubt they would be willing to merge with a legacy carrier. Also, B6 offers a very different in-flight experience than US and AA, so that would cause a huge problem (the "culture collision" that catiii mentioned).

User currently onlineByrdluvs747 From United States of America, joined Jul 2004, 2465 posts, RR: 1
Reply 12, posted (2 years 7 months 1 week 11 hours ago) and read 2966 times:

Quoting jporterfi (Reply 11):
B6 is an LCC, like WN. I highly doubt they would be willing to merge with a legacy carrier. Also, B6 offers a very different in-flight experience than US and AA, so that would cause a huge problem (the "culture collision" that catiii mentioned).

All that is irrelevant to the shareholders of B6. The question to them is does their investment potential increase with a merger/buyout.

Given B6's far smaller size, inflight experience and corporate culture(collision) all gets absorbed into the bigger carrier. Maybe you wouldn't like a AA-B6 merger, but nothing you described can be called a barrier to integrating B6 into AA.



The 747: The hands who designed it were guided by god.
User currently offlinebobloblaw From United States of America, joined Jan 2012, 1725 posts, RR: 1
Reply 13, posted (2 years 7 months 1 week 9 hours ago) and read 2913 times:

Why in the world does anyone think AA will merge with B6???? B6 has a buch of traffic that has been stimated with low fares. Fares too low for AA to ever make money on. Raise fares to levels AA can be profitable with and presto no passengers.

User currently offlineslcdeltarumd11 From United States of America, joined Jan 2004, 3638 posts, RR: 0
Reply 14, posted (2 years 7 months 1 week 9 hours ago) and read 2886 times:

All in one world is probably more likely or AA-us merge and b6 as a stronger partner. I think Jetblue is gonna need a partner to tango with for miles reasons but I think as people said they are a unique carrier and wouldn't perform at aa price levels. B6 is a great product it would be sad to reduce it to AA or us levels and no free luggage. If all b6 flights earned aa miles and vice versa it would be awesome for me personally  

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