ASFlyer
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AA Looking At 5 Merger Partners

Wed Jul 11, 2012 1:44 am

http://finance.yahoo.com/news/americ...creditors-discuss-5-003453922.html

Looks like things are going to get all kinds of interesting now. I'm just wondering, if this happens are the AA folk prepared to be stapled to the bottom of whatever seniority list they join? They are, after all, a dying airline and whomever they join forces with would be saving their bacon. They should all be okay with that though since that's logic they understand well, having used it on the TWA folk. Just sayin....
 
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yellowtail
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 1:49 am

Where is DL in all of this. I surely expect them to protect their competitive interests.

Wait....their off stealing AA customers in Latin America! 
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BD338
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 1:52 am

errr...okay...US was obvious and B6 somewhat inevitable but AS, F9 and VX??? I believe AS to be strongly focused on independence but what possible scale and advantage would an F9 or VX merger make against UA and DL (or even AS if it did come to it)? Makes no sense, maybe this is a ploy to say, Gee, we looked at all the options but only US made any real sense (but we secretly knew it would be them all along)
 
FWAERJ
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 1:55 am

Quoting yellowtail (Reply 1):

Where is DL in all of this. I surely expect them to protect their competitive interests.

Richard Anderson has stated that DL is only interested in the DFW and MIA hubs.

That said, in addition to the mandatory US bid and an asset sale to DL, I could also see a Texas Pacific Group/IAG joint takeover, with TPG owning 75% of "new AA" shares to comply with US foreign ownership laws. I'm not so sure what the other two would be besides US, DL (assets only), and TPG/IAG.
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ASFlyer
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 1:55 am

Quoting BD338 (Reply 2):
errr...okay...US was obvious and B6 somewhat inevitable but AS, F9 and VX??? I believe AS to be strongly focused on independence but what possible scale and advantage would an F9 or VX merger make against UA and DL (or even AS if it did come to it)? Makes no sense, maybe this is a ploy to say, Gee, we looked at all the options but only US made any real sense (but we secretly knew it would be them all along)

I think you hit the nail on the head. It's just posturing. That said, it's interesting to contemplate all the different scenarios.
 
wrldtvlr
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 1:56 am

With that list the AA pilots won't be too far down the list at all, if not end up on top.

The question is, how would any of them make sense as a merger partner, save for US? Even US doesn't really bring much to the table regarding strengthening their network or economies of scale.
 
jfk777
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 2:05 am

Quoting FWAERJ (Reply 3):
That said, in addition to the mandatory US bid and an asset sale to DL, I could also see a Texas Pacific Group/IAG joint takeover, with TPG owning 75% of "new AA" shares to comply with US foreign ownership laws. I'm not so sure what the other two would be besides US, DL (assets only), and TPG/IAG.

Maybe the pilots own 15 %, IAG 25%, TPG 51% and other labor 9%.

Alaska, JB and small fish do stuff in certain markets but not in DFW, MIA or ORD. AA should chnage its name to "AAG", American Airlines Group and have multiple airlines, it could operate AA and JB. Hey in Chapter 11 anything can happen and why not ? Qantas is getting saved by its LCC, Jetstar.

Usair wants to get bigger for its own interests, they don't care about AA. DL justs wants to be the biggest airline in the world, AA's Miami hub would fill the last hole in their route map very nicely and all AA 777 would end up flying to Asia and not from Miami. Can you imagine no 777 to Sao Paulo, Buenos Aires or LHR, I can and DL would 767 everyhing.
 
flyguy89
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 2:05 am

Quoting ASFlyer (Thread starter):
They are, after all, a dying airline

A dying airline? That's a tad over-the-top isn't it? There no more "dying" than DL, NW, US, UA were "dying" when they went through BK.
 
milemaster
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 2:05 am

My money is on a B6/IAG tie up.
 
chepos
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 2:05 am

Up until yesterday it was all about emerging from BK standalone and the cornerstone etc. etc. What could have possibly happened? Tom apparently was forced to change his tune.

Regards,

Chepos
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PHX787
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 2:06 am

Quoting BD338 (Reply 2):
errr...okay...US was obvious and B6 somewhat inevitable but AS, F9 and VX???

IMO:
B6- More obvious than US
AS- ehh, not really
F9- never going to happen
VX- nope either.
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einsteinboricua
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 2:07 am

I don't see how an AA tie up with AS, F9, or VX could be called a merger when it'll be more like a takeover. A true merger is with either B6 or US.

What does AS bring to the table? A northwestern hub? A 737 fleet?

What about F9? the DEN hub? VX and some slots at LAX/SFO?

B6 brings much more to the table, with its position in JFK. US brings the most: CLT and PHL.

The question is whether AA has already accepted that merging is inevitable and is seeking to weasel out of a deal with US?
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flightsimer
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 2:12 am

American and Virgin America/ Frontier? Lmao... I guess in the business world, two loss makers put together equal one money maker. Why not just merge all three of them together...

I could see an Alaska and American tie up, but it would be Alaska taking over American, not the other way around.
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deltaflyertoo
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 2:46 am

A merger with B6 AND US could be interesting. If they dumped PHL out the scenario that would give them solid footholds at Boston, JFK and CLT and would go well with the MIA feed to the Caribbean and beyond.
 
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 2:46 am

Quoting einsteinboricua (Reply 11):
What does AS bring to the table?

- An excellent management team

- A solid balance sheet

- A business with a larger market cap than AMR (i.e., AS would be the one 'taking over' AA).

But please, for the love of all that is holy, keep AA (and DL) away from AS!!!
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eagle125
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 2:57 am

Quoting einsteinboricua (Reply 11):
B6 brings much more to the table, with its position in JFK.

Not to mention a revitalized SJU operation. I would love to see AA pull out of this and stand alone, but if a merger must happen, a tie-up with B6 looks the most appealing, more so than a merger with US. Certainly not F9.
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william
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 3:06 am

Funny how everyone eager to see JetBlue merged into AA. Apparently many on this site are too young to remember Reno Air merger. Where is the vestiges of the TWA merger?
 
texan
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 3:10 am

Quoting chepos (Reply 9):
Up until yesterday it was all about emerging from BK standalone and the cornerstone etc. etc. What could have possibly happened? Tom apparently was forced to change his tune.

Nothing happened, it is part of due diligence. The CEO and Board of Directors must look out for the creditors and keep them informed of all options. AA has simply stated that these are the five most likely merger scenarios and outlined the positives and negatives to its creditors. No doubt AA also explained the positives and negatives of remaining a stand alone carrier.

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Alias1024
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 3:19 am

Quoting flightsimer (Reply 12):
American and Virgin America/ Frontier? Lmao... I guess in the business world, two loss makers put together equal one money maker. Why not just merge all three of them together...

In my mind, Virgin America would be about eliminating a competitor. VX is competing in markets like JFK-LAX, JFK-SFO, and SFO-DFW, and mucking things up for AA and others that were already entrenched in those markets. Maybe they'd keep a few of the routes that VX has, but for the most part it would just be dismantled and the airbuses would go to replacing MD-80s.

Frontier could likely be had for very cheap, and probably has some nice lease rates on their fleet after their trip through bankruptcy. Might be another way to accelerate the MD-80 retirement. Unless AA believes that post-bankruptcy they will have their costs low enough to win the three way battle at DEN, I think F9 would also be about dismantling the airline and moving the assets elsewhere.

Quoting einsteinboricua (Reply 11):
What does AS bring to the table? A northwestern hub? A 737 fleet?

AS brings a few things to the table, but nearly all of them are already covered by the codeshare. The only reason I see for AA to merge with AS is if they fear that DL will make a move for them first, locking AA out of the west coast network that AS provides.
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CIDFlyer
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 3:19 am

talk about a smoke screen....in the end it will be inevitable that AA/US tie up somehow, its the only true legacy tie up left to happen.
 
AS739BSI
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 3:21 am

Quoting Hamlet69 (Reply 14):

But please, for the love of all that is holy, keep AA (and DL) away from AS!!!

I do not see why they would want to take over AS. It would ruin the SEA customer base and the hub that has already been created as many have stated and predicted that if AS was taken over, hub status would be gone quickly. I don't see F9 happening at all given the three-way war at Denver. VX would eliminate one competitor to the cornerstones (except MIA) but I don't see the benefit long-term. B6 for the JFK slots but I bet DOJ would have something to say about that such as keeping fares low and given that B6 is a well recognized brand name in customer service, that would not go over well. I like the idea of US/AA coming together though as it would be an airline on the scale of DL and UA.
 
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 3:21 am

Funny that the airline in BK seems to be acting like they are in the drivers seat. I know they are bigger than most of the potential airlines , but the BK laws are out of line if AA is running the show as to if they will merge and to whom.
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hiflyeras
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 3:29 am

Quoting flightsimer (Reply 12):
I could see an Alaska and American tie up, but it would be Alaska taking over American, not the other way around.

Exactly. AA is a failed airline in its current state and is in no position to engage in any hostile takeovers...which is what it would be in the case with AS. B6 is probably happy to continue and expand on its code-share agreement with a new AA and just the same with AS. The idea of a 'merger' with F9 and VX is absurd...they bring nothing to the table whatsoever. US just wants a little respect and thinks they'll finally get it with being bigger. Bigger isn't necessarily better.
 
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 3:35 am

Quoting deltaflyertoo (Reply 13):
A merger with B6 AND US could be interesting. If they dumped PHL out the scenario that would give them solid footholds at Boston, JFK and CLT and would go well with the MIA feed to the Caribbean and beyond.

Because simply dumping a top-5 domestic market and fortress hub is always a good idea.
 
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ssteve
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 3:37 am

Quoting CALPSAFltSkeds (Reply 21):
Funny that the airline in BK seems to be acting like they are in the drivers seat. I know they are bigger than most of the potential airlines , but the BK laws are out of line if AA is running the show as to if they will merge and to whom.

The creditors get to appoint new management, and that new** management is now running the airline and running this merger "show." The creditors prefer to get the best possible return, and that's what the management is supposed to seek. That new management is appropriately called AA, and they are in the drivers seat insamuch as they have a few options to entertain, and are seeking the best one for the creditors. Management wouldn't be doing it's best diligence if they hitched up with the first suitor to come calling. (** I know it may be only superficially new.)
 
TecumsehSherman
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 3:40 am

Quoting BD338 (Reply 2):
US was obvious and B6 somewhat inevitable but AS, F9 and VX???

With US and B6, I think you're looking at just AA one of them merging. With the other three, simply to get any kind of mass out of it, A would have to merge with at least two, if not all three of them. And I don't know if the government will allow so many niche carriers to be taken off the board.

Interesting, though.
 
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 3:42 am

Quoting FWAERJ (Reply 3):
Richard Anderson has stated that DL is only interested in the DFW and MIA hubs.

That said, in addition to the mandatory US bid and an asset sale to DL, I could also see a Texas Pacific Group/IAG joint takeover, with TPG owning 75% of "new AA" shares to comply with US foreign ownership laws. I'm not so sure what the other two would be besides US, DL (assets only), and TPG/IAG.

Why would DL want DFW?
 
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 3:44 am

Quoting PHX787 (Reply 10):
IMO:
B6- More obvious than US
AS- ehh, not really
F9- never going to happen
VX- nope either.
Quoting einsteinboricua (Reply 11):
What does AS bring to the table? A northwestern hub? A 737 fleet?

What about F9? the DEN hub? VX and some slots at LAX/SFO?

B6 brings much more to the table, with its position in JFK. US brings the most: CLT and PHL.

Think outside the box a bit.

F9 is likely the least attractive. I think the tell of the tape will be the acquisition costs of a brand for a (primarily) leased fleet of airplanes. If the lessors are willing to marginalize lease costs to such an extent that perhaps AA adjusts the Airbus orders...or maybe not.
I doubt that AA wants any part of DEN, MCI or MKE.

I wouldn't underestimate VX. Yes, fleet situation is nearly identical to that of F9. But, VX would add a bit of heft in the west for AA. SFO is still high yielding; important oneworld destination. Somewhat additive to LAX. Most importantly - eliminates a midcon / transcon competitor. And I think its investors might be willing to deal.

AS and B6 - primarily superlatives in my estimation. Obvious operational cost issues when melded with AA. B6 would be the least costly acquisition....but I wonder if the acquisition costs (based on book) are worth the duplicative aspects of the networks. IOW, getting a basketful of JFK slots would nice (though I wonder if AIR 21 would force some level of divestiture?); big presence in BOS again. Then again, seems a lot of flying would have to be eliminated.

Sorry, still not sold on a US combo.
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IndustryInsider
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 3:48 am

Quoting HiFlyerAS (Reply 22):
B6 is probably happy to continue and expand on its code-share agreement with a new AA and just the same with AS.

AA and B6 do not have a codeshare agreement today.
 
roseflyer
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 3:48 am

Quoting ASFlyer (Thread starter):
Looks like things are going to get all kinds of interesting now. I'm just wondering, if this happens are the AA folk prepared to be stapled to the bottom of whatever seniority list they join?

That can't happen. After the TWA merger ex-TWA crews lobbied the Missouri congressmen and a law was passed requiring that mergers fairly preserve seniority. The bill was passed too late to help the TWA crews but there will be no stapling to the bottom of a seniority list unless AA liquidates.
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PHX787
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 3:48 am

Quoting aaway (Reply 27):
I wouldn't underestimate VX. Yes, fleet situation is nearly identical to that of F9. But, VX would add a bit of heft in the west for AA. SFO is still high yielding; important oneworld destination. Somewhat additive to LAX. Most importantly - eliminates a midcon / transcon competitor. And I think its investors might be willing to deal.

Well with VX I honestly think that it would be a very temporary solution to the problem. Sure you'll get more ops at LAX but I don't think that it would be a good fit for AA.


But on the other hand, better them than US   
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HPRamper
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 3:51 am

Quoting questions (Reply 26):
Why would DL want DFW?

Same reason US wants DFW. Fantastic O&D base in a healthy market, and fantastic location for east-west connections across the southern half of the country.
 
aaway
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 4:03 am

Quoting PHX787 (Reply 30):
Well with VX I honestly think that it would be a very temporary solution to the problem. Sure you'll get more ops at LAX but I don't think that it would be a good fit for AA.

Adds a couple of new (to AA ex-LAX) nonstop markets - deletes a fairly large number of competitive flights.
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 4:04 am

My bet is on a three way deal. Other than domestic East and Southeast US does not bring much to the table and a 1:1 merger will just add more complexity to USs already mucked up labor groups. AA needs greater international reach and US does not have that and there are no more US-based carriers that can bring that to the table in a 1:1 merger that will not be heavily scrutinized. An AS or B6 merger will not really help AA complete on the global stage. This is why AA has been an advocate of greater foreign ownership. Therefore a three way deal is the way to go.

- DL will bid for MIA (facilities, routes)... JFK (facilities - T8 + cash for T2, T3, T4 project/facilities)... West Coast/LAX, SFO, SJC (facilities, routes).

- US will bid for for everything else, including ORD (facilities, routes)... DFW (facilities, routes)... LHR routes... entry into oneworld... transfer domestic non-business center and non-LHR routes to PHL... AA name and branding

- Both bid for relevant numbers of ee's and aircraft to support routes

DL gets better LATAM and Caribbean penetration from MIA, superior JFK facilities to support its Win New York strategy, and greater west coast coverage.

US gets a better brand identity, ORD and DFW, LATAM routes from DFW, AAs corporate contracts, and lucrative LHR routes.

Eventually...

- VX and B6 will merge

- AS will continue to maintain its independence and will have a strong partnership with DL
- F9 will declare Chapter 7 and liquidate
 
FlyASAGuy2005
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 4:08 am

Quoting ASFlyer (Thread starter):
Looks like things are going to get all kinds of interesting now. I'm just wondering, if this happens are the AA folk prepared to be stapled to the bottom of whatever seniority list they join?

This can't happen BECAUSE of what went down with the TWA-AA merger.
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F9Animal
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 4:12 am

I had to laugh when I saw F9/AA. No way. I think AA is smarter than that!

I personally would prefer to see AA remain solo. As for saying AA is dying, I have to respectfully disagree. AA can be turned around, and AA is still a massive beast that can win. I love US, but I don't like the idea of AA and US together. The workforces are nowhere compatible in terms of personality, attitude, and work ethics. I can already imagine the clashes between the workforces. B6 and US would be interesting.
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RWA380
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 4:15 am

Quoting Hamlet69 (Reply 14):

But please, for the love of all that is holy, keep AA (and DL) away from AS!!!

Amen and a hallelujah my brother..........

Quoting PHX787 (Reply 10):
IMO:
B6- More obvious than US
AS- ehh, not really
F9- never going to happen
VX- nope either.
Quoting eagle125 (Reply 15):
I would love to see AA pull out of this and stand alone, but if a merger must happen, a tie-up with B6 looks the most appealing, more so than a merger with US.
Quoting CIDFlyer (Reply 19):
talk about a smoke screen....in the end it will be inevitable that AA/US tie up somehow, its the only true legacy tie up left to happen

Yes that is true, AA & US are the last two at the merger party, likely they have both been there the whole time, but nobody wanted to dance with them, now they are looking at each other at just before closing time deciding if they are that desperate or not. Hope cocktails were served. A desperation merger, nothing can go wrong there, right? I hope there are no regrets the next day.

Quoting questions (Reply 26):
Why would DL want DFW?

Maybe they have been missing Dallas since the last time they had a hub there, let's face it, if AA wasn't big dog at DFW DL wouldn't have left in the first place, right?
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hiflyeras
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 4:21 am

Quoting IndustryInsider (Reply 28):
AA and B6 do not have a codeshare agreement today.

My mistake...I'd read about an agreement but didn't realize it hadn't actually started yet.
 
PHX787
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 4:47 am

Quoting RWA380 (Reply 36):
Yes that is true, AA & US are the last two at the merger party, likely they have both been there the whole time, but nobody wanted to dance with them, now they are looking at each other at just before closing time deciding if they are that desperate or not. Hope cocktails were served. A desperation merger, nothing can go wrong there, right? I hope there are no regrets the next day.

Crazy question:

Why doesn't US and AS/VX/F9 merge?
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questions
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 4:52 am

Quoting PHX787 (Reply 38):
Crazy question:

Why doesn't US and AS/VX/F9 merge?

QUESTION: What do you get when you combine a flag, an Eskimo, a virgin, and an animal?

ANSWER: ___________________________________________________________________
 
ASFlyer
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 4:56 am

Quoting questions (Reply 39):
QUESTION: What do you get when you combine a flag, an Eskimo, a virgin, and an animal?

ANSWER: ___________________________________________________________________

The slow and painful death of the only healthy airline in that bunch.
 
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RWA380
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 5:02 am

Quoting PHX787 (Reply 38):
Crazy question:

Why doesn't US and AS/VX/F9 merge?

Indeed a crazy question, I doubt it would get approved, It would be a disaster for AS being the strongest link in that daisy chain, the rest being weaker and would eventually bring the service level down to the lowest common denominator. It would be a train wreck on an epic level, kind of like the sound of 100 dump trucks being thrown off the edge of a big canyon.
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etops1
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 5:05 am

So AA see's its self as the acquirer huh ? Did someone forget to tell them that they are the ones in BK ? Folks , this is all a smoke screen . Get it all in your head . USAirways will prevail in acquiring AMR . Its as simple as that .
 
VS11
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RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 5:17 am

AA and VX together sounds pretty ridiculous on the surface but AA desperately needs to do something big and out of the box. AA can be split so that the American Airlines brand is used for international flying and the VX brand and product are used for domestic.

VX will give AA a phenomenal product to compete against everyone else including B6. If you think about it, AA cornerstone markets are exactly where the VX product is most popular and viable. The AA brand can be used for international flying.

Plenty of issues to overcome obviously, the biggest one being AA staff delivering VX service and replicating the VX model but the post-BK AA is supposed to be much smaller anyway. AMR could be an investor in VX and gradually reduce flying in markets where VX is already flying. I know this is a fantasy-like idea but I believe AA is ready for bold actions - look at those Airbus's that nobody ever believed they would order. I think that order alone signaled that AA is ready for a total makeover. And you know, VX switched to Sabre.... 
 
N172DM
Posts: 40
Joined: Sat Jul 07, 2012 8:34 pm

RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 5:23 am

Quoting etops1 (Reply 42):
So AA see's its self as the acquirer huh ? Did someone forget to tell them that they are the ones in BK ? Folks , this is all a smoke screen . Get it all in your head . USAirways will prevail in acquiring AMR . Its as simple as that .

   I really can't imagine AA merging with B6 or any of the others. A legacy merging with an LCC? That would ruin the name AA has made over the years. I could not imagine what would come out of that merger.

Quoting VS11 (Reply 43):
AA and VX together sounds pretty ridiculous on the surface but AA desperately needs to do something big and out of the box. AA can be split so that the American Airlines brand is used for international flying and the VX brand and product are used for domestic.

VX will give AA a phenomenal product to compete against everyone else including B6. If you think about it, AA cornerstone markets are exactly where the VX product is most popular and viable. The AA brand can be used for international flying.

VX would definitely be the best out of the other airlines, but I still can't see that happening.
I think it will be US in the end.

Danny
And in the world, a heart of darkness... -U2
 
questions
Posts: 1165
Joined: Thu Sep 15, 2011 4:51 am

RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 5:33 am

Quoting VS11 (Reply 43):
Quoting VS11 (Reply 43):
AA and VX together sounds pretty ridiculous on the surface but AA desperately needs to do something big and out of the box. AA can be split so that the American Airlines brand is used for international flying and the VX brand and product are used for domestic.

VX will give AA a phenomenal product to compete against everyone else including B6. If you think about it, AA cornerstone markets are exactly where the VX product is most popular and viable. The AA brand can be used for international flying.

Plenty of issues to overcome obviously, the biggest one being AA staff delivering VX service and replicating the VX model but the post-BK AA is supposed to be much smaller anyway. AMR could be an investor in VX and gradually reduce flying in markets where VX is already flying. I know this is a fantasy-like idea but I believe AA is ready for bold actions - look at those Airbus's that nobody ever believed they would order. I think that order alone signaled that AA is ready for a total makeover. And you know, VX switched to Sabre.... 

Let me see if I understand this:

Domestic flying will be branded Virgin America
International flying will be branded Popped Cherry American

And the Signature Cocktails... Shirley Temple and Sex on the Beach
 
boeing773er
Posts: 480
Joined: Sat Dec 03, 2011 7:23 pm

RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 5:55 am

Quoting Hamlet69 (Reply 14):
But please, for the love of all that is holy, keep AA (and DL) away from AS!!!

Well, maybe AS is looking into merging since they recently just took away the pray cards served with dinner.....

But in all seriousness, I don't want any of the mentioned airlines to merge with AA. This industry does not need anymore consolidation as it is. Sure it may be fun to see a merger take place, but in 10-15 years certain hubs will no longer be around. For example if AA and VX merge (unlikely) the company would dump the LAX hub due to major competition, and move to SFO where they will gain a nice slot portfolio. As crowded as SFO is, the consolidation there would be easy, AA and VX operate from the same terminal. Then UA and AA duke it out to see who can be the best in SFO, and this isn't an unusual idea to them look at ORD and to a lesser extent DFW and IAH.

An, AA-F9 merger/acquisition would be a bit more sense if you ask me. AA needs a true transferring hub, even though STL didn't work out maybe with lower costs and a little bit better management they could make it work.

Of course, everyone's perfect couple AA-B6. Well, I don't see it so fit. AA-B6 merge and the JFK market is seceded to them. They would face major backlash from DL (I'm sure they would go marching down to the bankruptcy court or Washington to protest this merger) and I'm sure the unions will not be happy with the E190's in the mainline fleet.

AA-AS shouldn't happen, AS already has a great reputation and is doing great as a standalone carrier (considering how close they are to DL and AA, they have the best of both worlds, so why go to oneWorld?)  

AA-US.....no. Just no. There is currently too much overlaps, even though it isn't 100% overlap two out of US's 3 1/2 hubs are just too close to each other and economically will not work out perfectly. Reducing even more hub cities in the US.

The main point is, there are too few airlines in the US already. There shouldn't be anymore reductions in this country due to competition.
Work Hard, Fly Right.
 
etops1
Posts: 833
Joined: Mon Nov 14, 2005 12:26 pm

RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 6:09 am

Quoting boeing773ER (Reply 46):

What overlaps are you do you mean between AA and US?? I don't see any except maybe for DC ..
 
chrisair
Posts: 1799
Joined: Fri Sep 01, 2000 11:32 pm

RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 6:28 am

KEEP ALASKA MY ALASKA.
 
gigneil
Posts: 14133
Joined: Fri Nov 08, 2002 10:25 am

RE: AA Looking At 5 Merger Partners

Wed Jul 11, 2012 6:32 am

AA and US dont overlap in DC. American barely flies there.

NS

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