xdlx
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Could B6 Buy AA?

Tue May 01, 2012 9:51 am

Observing the smooth advance into SJU/JFK markets from B6, and considering the AMR order for A3xx NEO.
Is it possible to consider JBU buying AA?
 
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USAF336TFS
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RE: Could B6 Buy AA?

Tue May 01, 2012 10:57 am

Based on that logic, SouthWest could be a contender as well.

My guess is that, in the long run, AA will emerge from bankruptcy as an independent.
336th Tactical Fighter Squadron, 4th Fighter Wing, Seymour Johnson AFB
 
xdlx
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RE: Could B6 Buy AA?

Tue May 01, 2012 1:39 pm

Quoting USAF336TFS (Reply 1):

It is possible, but as a Rocketeer you should know the industry has excess capacity for the players to remain in
a sustainable model. The growth of Regionals to 76+ seats is inevitable as the mainline carriers refuse to pay
mainline rates for that lift. Something has to give....

During a visit to SJU last weekend the comment was made that the B6 & AA relationship is very cozy, and the
E190 is the "tool" to right size the SJU/Carribean markets. While AA offers its reach from MIA, B6 has carved
itself a decent niche in this market.

I think the medicine needed for AA to emerge on its own is just not available.

Just a different perspective.
 
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USAF336TFS
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RE: Could B6 Buy AA?

Tue May 01, 2012 1:53 pm

Quoting xdlx (Reply 2):
but as a Rocketeer

Thanks for the nod to the 336th!!!

[Edited 2012-05-01 07:11:52]
336th Tactical Fighter Squadron, 4th Fighter Wing, Seymour Johnson AFB
 
strfyr51
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RE: Could B6 Buy AA?

Tue May 01, 2012 2:38 pm

Unless LCC pulls some sleight of hand then American will NOT be merging with them. Who I Can see American merging with is B6 and ALK. LCC can't get their OWN house in order. American needs a GOOD pacific hub and Seattle is IT! Bringing on ALK with west coast Feed and JBLU with Feed from and to JFK?? A No Brainer WINNER!! All they'd need Next is more 777's and to go big to asia. because That's where they're Lacking! American has spent too much time in NOT growing worldwide as the PLayer they Should be..
 
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jfklganyc
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RE: Could B6 Buy AA?

Tue May 01, 2012 2:52 pm

" American has spent too much time in NOT growing worldwide as the PLayer they Should be.."

So with that said, why would the stakeholders turn down a viable offer by a competitor (US Airways) and hand the keys back to management.

In your words (And they are good words) AA is not the airline they should be

They will not come out independent IMO
 
SouthernDC9
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RE: Could B6 Buy AA?

Tue May 01, 2012 3:06 pm

Why in the world would JetBlue want to buy AA though? So they could experience sudden and probably overwhelming growth and add on a route network that is completely different from their current model? Is JetBlue in the market for an unhappy workforce made bitter by years of labor/management strife? Does JetBlue feel their costs just aren't high enough, and that their fleet is not sufficiently stocked with aging, inefficient aircraft?

If it's just about JFK and/or SJU/the Caribbean, seems like it would make more sense for JetBlue to continue to challenge AA in those specific markets through increased competition, better fares, more innovative service, etc, and force AA to fight battles for which it does not have the strength.
What does AA/US merger mean for CLT/JFK/PHX/North America/Southern Hemisphere/God's Plan for the Universe
 
strfyr51
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RE: Could B6 Buy AA?

Tue May 01, 2012 3:32 pm

Quoting jfklganyc (Reply 5):

Because Parker hasn't done so HOT in getting His "OWNSELF" house rocking. If you can't even get your OWN Flight Deck Crews on the SAME PAGE?? You're not DOING Much!! At least Jeff Smisek has got ALL the United Pilots on the same Page!! THEY all want to STRIKE!! Is THAT on the same page or WHAT?!?! The American Pilots are looking at Parker like a NEW BONE!! They don't CARE about USAIR they just Don't want Tom Horton the Give them What FOR!! Since the American bankruptcy is ALL about Pilot Pay.. Other than That? He could have negotiated everything else and taken whatever cuts he wanted. How is he going to order 460 Airplanes nad Cut Pilots?? All He's going to DO is lay off a bunch for 5 years then recall them as airplanes come in the door to replace the outgoing airplanes and Pilots as they retire/
This could be his plan to mitigate the Age 65 Retirement rule I'm SURE he hasn't addressed until Now.. This isn't about Money or Work Rules I can almost Guarantee that. Cut back to 5 weeks Vacation?? Increase the Flight Hours??
He could do that NOW!! But you HAVE to Negotiate!! Even in Bankruptcy TOM!!
 
MAH4546
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RE: Could B6 Buy AA?

Tue May 01, 2012 3:43 pm

Quoting jfklganyc (Reply 5):

" American has spent too much time in NOT growing worldwide as the PLayer they Should be.."

So with that said, why would the stakeholders turn down a viable offer by a competitor (US Airways) and hand the keys back to management.

In your words (And they are good words) AA is not the airline they should be

They will not come out independent IMO


There is nothing viable about an offer that takes AA's single largest impediment - unions - and makes it worse. AA will emerge from bankruptcy 100% independent, even though it likely will merge with somebody on its terms not long after.
a.
 
MAV88
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RE: Could B6 Buy AA?

Tue May 01, 2012 4:48 pm

Quoting MAH4546 (Reply 8):
There is nothing viable about an offer that takes AA's single largest impediment - unions - and makes it worse. AA will emerge from bankruptcy 100% independent, even though it likely will merge with somebody on its terms not long after.

How much of a burden are the unions on AA?
 
ROSWELL41
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RE: Could B6 Buy AA?

Tue May 01, 2012 4:58 pm

Quoting MAH4546 (Reply 8):
There is nothing viable about an offer that takes AA's single largest impediment - unions - and makes it worse. AA will emerge from bankruptcy 100% independent, even though it likely will merge with somebody on its terms not long after.

Almost every other airline has unions and some airlines, SWA, are more heavily unionized than AA. AA's problem is a management team without a vision, ready to double down on the failed 'cornerstone strategy.'
 
AADC10
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RE: Could B6 Buy AA?

Tue May 01, 2012 6:36 pm

Yes, B6 could buy AA, but why would they want to? What would B6 gain? B6 is stable and still has growth potential. Legacies like US make more sense because they have limited potential to grow beyond their current markets without a merger. Also, US's Doug Parker is a former AA guy under Crandall. David Barger came from CO.
 
wrldtvlr
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RE: Could B6 Buy AA?

Tue May 01, 2012 6:39 pm

Could B6 buy AA? Sure, just as AS could by AA. Would they? No way. B6 has an interline agreement with AA that suits it just fine, there's no need to get entangled in the clusterf*ck that is AA's union battles.
 
EricR
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RE: Could B6 Buy AA?

Tue May 01, 2012 7:17 pm

Quoting wrldtvlr (Reply 12):
B6 has an interline agreement with AA that suits it just fine, there's no need to get entangled in the clusterf*ck that is AA's union battles.


On one hand I certainly agree. However, what's B6's longer term strategy? They seem to be idle at the moment.....a ship without a sail.

I think this is one reason (among others) that B6's stock has been so flat. I don't think analysts see a clear long term growth strategy. B6 does not appear to be able to make large penetrations in market share outside of the east coast / Florida / Caribbean market. I think AA can help B6 as much as B6 can help AA.
 
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1337Delta764
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RE: Could B6 Buy AA?

Tue May 01, 2012 7:30 pm

Quoting ROSWELL41 (Reply 10):

Almost every other airline has unions and some airlines, SWA, are more heavily unionized than AA. AA's problem is a management team without a vision, ready to double down on the failed 'cornerstone strategy.'

And B6, along with DL, are the only two airlines that are mostly non-union (with DL, only the pilots and flight dispatchers are unionized, and I don't think there are any unions at all in B6).
The Pink Delta 767-400ER - The most beautiful aircraft in the sky
 
chepos
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RE: Could B6 Buy AA?

Tue May 01, 2012 7:47 pm

AS merges with AA and you will see the end of the intra Alaska flying and all the lift they to do the state of Alaska. Plain and simple AS will not be merging with DL, AA or whomever else is mentioned. I am sure AS is more than happy to codesahe with both of these carriers, it suits their current business model.

Regards,

Chepos
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BoeingGuy
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RE: Could B6 Buy AA?

Tue May 01, 2012 8:31 pm

Quoting chepos (Reply 15):
AS merges with AA and you will see the end of the intra Alaska flying and all the lift they to do the state of Alaska.

You would see the end of pretty much all of AS's lift anywhere, not just the state of Alaska.
 
Sevensixtyseven
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RE: Could B6 Buy AA?

Wed May 02, 2012 1:30 am

Quoting BoeingGuy (Reply 16):

In this case..what lift? I'd imagine in theory, if an event were to happen...I could theoretically see WN pulling capacity from their own network and maybe striking a nice deal with all of AS' stations to pick up the slack...

Ehh. Would be be a nice thing to see..Southwest in Alaska. Oh well.
Will that ex-HP 752 get delayed...again?
 
PHX787
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RE: Could B6 Buy AA?

Wed May 02, 2012 1:30 am

I honestly see B6 and AS merging before either of them place a bid on AA.

Quoting USAF336TFS (Reply 1):
My guess is that, in the long run, AA will emerge from bankruptcy as an independent.

→  
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MSYPI7185
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RE: Could B6 Buy AA?

Wed May 02, 2012 10:42 am

Quoting strfyr51 (Reply 4):
LCC can't get their OWN house in order
Quoting strfyr51 (Reply 7):
Because Parker hasn't done so HOT in getting His "OWNSELF" house rocking. If you can't even get your OWN Flight Deck Crews on the SAME PAGE??

Do you guys realize that the situation with the pilots has absolutely nothing to do with US Airways or Parker?
This is an internal Pilot issue that US cannot do anything about. US is, has been waiting, on the courts to issue a ruling
on this very issue and US cannot do anything about it. If US were to get involved as they would like to, they would be interfering in an internal UNION issue. IIRC they (US) could possibly be sued for interference. Once the federal court issues their ruling US will move fairly quickly if it is able to do so.

IMO blaming US or Parker for the Pilot situation is like you being blamed because two of your co-workers are arguing.

I believe that a merger with AA would actually resolve this problem just becasue of the shear size of the AA pilot group.

What is intersting is that I am reading that the pilot groups of US and AA are holding talks to try to have a joint contract in place prior to any merger.

AS for the topic at hand I guess B6 could try, but I do not believe they will. However should AA and US merge I can see that the new AA would probably try to acquire B6. Should AA and US not merge I am not so sure a merger with B6 would solve any of AA problems other than additional capacity in JFK/BOS/SJU. IMO B6 just is not big enough for what AA needs.

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