nwcoflyer
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AA/US To Hold Official Talks Next Tues (10/30)

Thu Oct 25, 2012 9:13 pm

One day before the NDA is set to expire, AA and US will hold formal talks next Tuesday to weigh the pros and cons of a merger.

This will be interesting to watch.

Source: WSJ

online.wsj.com/article/SB10001424052970203897404578079033959686290.html

[Edited 2012-10-25 14:14:41]
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PHX787
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Thu Oct 25, 2012 9:28 pm

Well this officially shuts down what people have been saying about a merger actually occurring   


This will probably raise a number of points, but a few I wish to see are
1) Employee relations post merger, including East West issues and labor issues with AA and the layoffs which will have to occur
2) The issues with the hubs and the allocation of flights and fleet
3) The issues with the creditors, primarily Boeing being very cautious about this merger, especially since US is an Airbus airline

Those three need to be discussed pretty thoroughly.
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nwcoflyer
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Thu Oct 25, 2012 9:36 pm

Quoting PHX787 (Reply 1):
3) The issues with the creditors, primarily Boeing being very cautious about this merger, especially since US is an Airbus airline

Not to get to far off topic but when fleet sizes are as large as what a combined AA/US would be, I am pretty sure that they could happily keep split fleets into the future. I have heard Parker say that once fleet size passes a certain number of frames, the cost savings are not as large as you would think if you had all of one type or another.

Neither Airbus or Boeing could supply the needs of what the combined US/AA needs in the near term. As such, I wouldn't expect a merger to result in US canceling an order for hundreds of Boeing AC and delaying the fleet renewal program just to have all Airbus.

I can almost guarantee US would ensure Boeing a certain amount of business in order to get their buy-in since they are a creditor. US and Boeing may have had bad blood in the past but I don't think that represents the current US management team. The current US management team followed on the Airbus order from Wolf since Airbus gave US the better deal. Plain and simple. They were looking at Airbus and Boeing a few years ago before they placed their most recent order.
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Flighty
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Thu Oct 25, 2012 10:40 pm

This implies they haven't been officially talking 24/7. IMO that hints against a merger.
 
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Thu Oct 25, 2012 10:42 pm

Quoting Flighty (Reply 3):
O that hints against a merger.

I dont see how. I would think holding public talks is a sign of coming together not pulling apart. Not saying US and AA will merge, but in my opinion it will happen at some point.
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par13del
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Thu Oct 25, 2012 10:44 pm

Quoting nwcoflyer (Thread starter):
One day before the NDA is set to expire,
Quoting Flighty (Reply 3):
This implies they haven't been officially talking 24/7. IMO that hints against a merger.

My money is on AA using these talks to delay their exit from chpt.11.
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aacun
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Thu Oct 25, 2012 10:45 pm

I really think this merger will be taking place sooner than we all think.
 
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Thu Oct 25, 2012 10:48 pm

If the talks don't end with an agreement to merge, I assume Nov. 1 we'll be expecting a full on barrage from US Airways to take over AA.

I don't exactly know how that will pan out, but I do hope the employees of both carriers are able to focus on the task at hand, which is taking care of their customers. It is sometimes difficult under these circumstances, and I don't envy the positions they find themselves in, but I'm sure they will all come out of it working for better, a stronger carrier(s).
 
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Thu Oct 25, 2012 10:56 pm

Quoting Prost (Reply 7):
but I'm sure they will all come out of it working for better, a stronger carrier(s).

Well since US made a profit and east and west still exist is it really that important for labour to be onboard, just show up to work and do their jobs, as it should be, these days there are too many bosses.
 
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 2:10 am

Quoting PHX787 (Reply 1):
This will probably raise a number of points, but a few I wish to see are

In all honesty I sincerely doubt they will discuss any of them. Instead they will throw data and economic forecasts back and forth at each other to try and figure out who will deliver the best return to AA's creditors (and - to a lessor extent - US' investors).

The location of hubs and the color of the planes are trivial points which only interest ANetters.
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 2:13 am

Quoting PHX787 (Reply 1):
The issues with the creditors, primarily Boeing being very cautious about this merger, especially since US is an Airbus airline

And AA was all Boeing until they ordered a ton of Airbuses. AA is no longer all-Boeing so it's not like Boeing would be losing an exclusive customer.
 
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 3:16 am

Quoting RyanairGuru (Reply 9):
The location of hubs

It's not necessarily an a.netter only debate, this is pretty relevant to the business as a whole, and especially for who gets employed where.
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bhmdiversion
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 8:08 am

I think talks will fail between American and USAirways. I believe that AA will be then taken over by Delta (if you want to call it a Hostile Takeover or what...) This would be a perfect way to get the LATAM routes/MIA, rebuild the DFW hub, and then OWN the NYC market. I only say this because this entire thing smells like the NWA merger to me.

Of course, this is my 2 cents.
 
777law
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 8:16 am

Quoting Flighty (Reply 3):
This implies they haven't been officially talking 24/7.

Perhaps - but it just as easily implies that they HAVE been talking unofficially while the NDA has been in place and the talks announced on 10/30 are the first public talks to be held. It wouldn't suprise me if things start to move very quickly after the "public" talks - possible an official merger announcement within a few weeks of the start of the meetings.

Let's face it - the NDA period has essentially been a due diligence review by both airlines. I don't think there would be any talks announced if the due diligence and the (inevitable) talks around the due diligence had not shown some promising results and a willingness on both sides to seriously pursue a merger.
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 11:10 am

Quoting bhmdiversion (Reply 12):
I think talks will fail between American and USAirways. I believe that AA will be then taken over by Delta (if you want to call it a Hostile Takeover or what...) This would be a perfect way to get the LATAM routes/MIA,

I bet Delta is really kicking themselves now for throwing Pan Am under the bus the way they did. If they would have kept the deal with Pan Am the way it was worked out, they would have never lost MIA/LATAM.

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n737aa
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 11:43 am

We keep hearing a December timeframe for an announcement regarding a merger......with whom it has not been revealed obviously.....but one VP told us that we are looking to regain our foothold at JFK and the Caribbean that we have lost over the last few years....

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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 12:19 pm

Quoting HPRamper (Reply 10):
AA is no longer all-Boeing so it's not like Boeing would be losing an exclusive customer.

I disagree with you. One of the major reasons AA bought Airbus single aisle aircraft was the perception Boeing couldn't delivery enough 737s to satisfy their perceived needs, at that time. Boeing is still a creditor, a very important one and they are well within their rights to kibosh any merger.

Has the Airbus purchase even been okayed by the bankruptcy judge? I believe the 737 purchase was.
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commavia
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 12:25 pm

Quoting N737AA (Reply 15):
We keep hearing a December timeframe for an announcement regarding a merger......with whom it has not been revealed obviously.....but one VP told us that we are looking to regain our foothold at JFK and the Caribbean that we have lost over the last few years....

Hmmm ...

I, too, have heard the same rumor from several at AA, although I have no idea of its veracity.

But it does pose a fascinating prospect: what if Horton does propose a merger, just not one with USAirways? What about an alternative merger with an airline that provides some level of meaningful presence in the northeast and the north-south east coast market (which is essentially what USAirways would bring to AA, anyway), and what if that merger was with an airline with far less integration issues, a far less complicated labor situation, etc.?

Not sure if it's really plausible, but it sure is interesting.

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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 1:06 pm

Quoting bhmdiversion (Reply 12):
I think talks will fail between American and USAirways. I believe that AA will be then taken over by Delta (if you want to call it a Hostile Takeover or what...) This would be a perfect way to get the LATAM routes/MIA, rebuild the DFW hub, and then OWN the NYC market. I only say this because this entire thing smells like the NWA merger to me.

YAWN.......................................A hostile takeover in a industry like the airline industry will kill off the company that does the take over. Airlines, unlike many other industries have a disproportionate number of employees who have face contact with the customer. Angry AA employees could easy ruin Delta if they took it over if the employees choose to do so. Again it is nonsense to think AA could spurn US but somehow fall to Delta in a hostile takeover. As though AA mgmt is too dense to see such a scenario and prepare for it. AA mgmt has been poor at running an airline but

Quoting txkf2010 (Reply 14):
I bet Delta is really kicking themselves now for throwing Pan Am under the bus the way they did. If they would have kept the deal with Pan Am the way it was worked out, they would have never lost MIA/LATAM.

What makes you think DL would have done any better in MIA than UA did? They still would have faced a stronger AA in MIA and in the mid 1990s Delta was not exactly the best run airline. In fact I bet Delta would have surrendered MIA faster than UAL did.
 
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 1:14 pm

Quoting bobloblaw (Reply 18):
YAWN.......................................A hostile takeover in a industry like the airline industry will kill off the company that does the take over. Airlines, unlike many other industries have a disproportionate number of employees who have face contact with the customer.

Well, true in the sense that if the employees are against the takeover it will kill the airline. US/DL would have been ugly.

But a hostile takeover really only refers to the financial side of the company. The employees can potentially be all for a "hostile" takeover without that changing the fact that it's still "hostile."
 
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par13del
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 1:33 pm

Quoting bobloblaw (Reply 18):
Angry AA employees could easy ruin Delta if they took it over if the employees choose to do so.

Does anyone really believe that the authorities would allow a merger betwen DL and AA after the legacy consolidation that has already taken place? UA would then have to scoop up US to remain competitive, so the USA would have two legacies, UA and DL and a number of LCC's, from a competitive standpoint I do not see it being "approved" but you can never say never.
 
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 1:34 pm

Quoting Flighty (Reply 3):

This implies they haven't been officially talking 24/7. IMO that hints against a merger.

There has been a non-disclosure agreement in place that has prevented US from talking about a merger.
 
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 2:07 pm

Quoting commavia (Reply 17):
But it does pose a fascinating prospect: what if Horton does propose a merger, just not one with USAirways? What about an alternative merger with an airline that provides some level of meaningful presence in the northeast and the north-south east coast market (which is essentially what USAirways would bring to AA, anyway), and what if that merger was with an airline with far less integration issues, a far less complicated labor situation, etc.?

If youre refering to B6, they have come out strongly saying they want nothing to do with AA in the way of a merger. It would be interesting if they went back on that statement.

Quoting bhmdiversion (Reply 12):
I believe that AA will be then taken over by Delta (if you want to call it a Hostile Takeover or what...) This would be a perfect way to get the LATAM routes/MIA, rebuild the DFW hub, and then OWN the NYC market. I only say this because this entire thing smells like the NWA merger to me.

What evidence is there to support that?

I personally believe that a AA/US tie up will happen. I dont know what time frame.
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 2:15 pm

They are not holding "public" talks. They are holding "formal" talks. AA has to be in a position to say they examined the US proposal closely--very closely before rejecting it.
 
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 3:22 pm

As I posted in the 'AA hiring pilots' thread; I am curious about why AA mgmt would say that they are overstaffed and then change course and hang the NOW HIRING sign in a matter of 8 weeks. IMHO this says that AA is planning on going forward alone. OTOH I can see US moving to Oneworld in the near term and testing the waters for a possible merger down the road. Similar to CO 's migration to Star in 08 ahead of the UA combination.
 
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 3:58 pm

Quoting ItalianFlyer (Reply 24):
As I posted in the 'AA hiring pilots' thread; I am curious about why AA mgmt would say that they are overstaffed and then change course and hang the NOW HIRING sign in a matter of 8 weeks. IMHO this says that AA is planning on going forward alone.

I don't think it necessarily says that. I think that its more they have too many pilots leaving for retirement that they need new ones, and why not? They start with a lower pay then.
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Italianflyer
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 4:15 pm

Quoting iFlyLOTs (Reply 25):
I don't think it necessarily says that. I think that its more they have too many pilots leaving for retirement that they need new ones, and why not? They start with a lower pay then.

Very true...and the ramped up retirements are well know public news. Yet the recall of pilots (apporx 1K) & recruitment of newbies with associated training costs involve quite a capital investment; not the kind of behavior of an organization that anticipates more skilled labor joining the organisation via a merger. If they needed to right-size the operation to match labor, they could reject leases and park a number of MD80s. (Remember PMUA culling the 737s in a matter of months? And that was done ourside Ch11)

I am not pretending to present this as fact...just theory.
 
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 4:32 pm

Quoting ItalianFlyer (Reply 24):
As I posted in the 'AA hiring pilots' thread; I am curious about why AA mgmt would say that they are overstaffed and then change course and hang the NOW HIRING sign in a matter of 8 weeks.

Well remember - there are really only two groups about which AA has spoke of additional hiring - pilots and flight attendants. And the two groups are very different.

The only work group where AA really is putting out the "NOW HIRING sign" in a major way right now is the flight attendants. Because of the huge amount of buyouts, AA will soon be in a situation - absent new hiring - of having far too few flight attendants. Thus, the staggered departures of those taking the buyouts, and the announcement of 1,500 new hires starting next month. Thankfully for the company, flight attendants are - relatively speaking - among the fastest, cheapest and easiest of the major work groups to train (i.e., relative to mechanics or pilots) so as long as AA keeps a steady pipeline of new hires going into training, they should be able to mitigate any staffing disruptions.

The pilots is a whole different situation. AA is not, to my knowledge, actively recruiting or hiring any new mainline pilots. Unlike the flight attendants, not only has the AA pilot furlough recall list not been exhausted, but in fact it still has hundreds of names on it. Now, of course, many of the people on the recall list won't return because they have found pilot jobs at other airlines, or other jobs in other industries, etc. since being furlough. So if, for example, there are still 900 pilots on furlough, not all 900 are likely to actually return once hiring resumes. And some of those that will be (re)joining the pilot ranks at AA - either as returning furloughees or new hires - in the coming years will go simply to replace attrition from pilots retiring, particularly as many of AA's most senior pilots will very rapidly be bumping up against the 65-year-old FAA limit. So given that it would be surprising if AA didn't have the need to hire lots of new pilots in the next five years.

But, even with that, AA management has claimed - both internally and publicly - that they plan on mainline growth in coming years, particularly internationally, and that, too, would generate new pilot jobs. And that is really the crux of where the rubber meets the road: the unions (at least some of them, like Glading's APFA) believe AA will be essentially incapable of being competitive and growing absent a merger. Horton says differently. Who's right?

Also important to remember: AA says that it "plans" to save or create 2,500 additional mainline pilot jobs "over the next five years." That is just a "plan" - and a non-specific and non-binding one at that. AA is, at least of today, as far as I know, certainly under no contractual obligation to "save or create" any additional pilot jobs, let alone 2,500, over any timeframe. And as most APA members will likely be concluded - plans of hiring sound nice, but until AA either does it, or is forced to do it, the plans mean very little.

Quoting ItalianFlyer (Reply 24):
IMHO this says that AA is planning on going forward alone.
Quoting ItalianFlyer (Reply 26):
Yet the recall of pilots (apporx 1K) & recruitment of newbies with associated training costs involve quite a capital investment; not the kind of behavior of an organization that anticipates more skilled labor joining the organisation via a merger.

AA has, in my view, been sending out quite a few signals in the last 6-8 weeks that it intends to try and pursue a strategy of emerging from bankruptcy as an independent airline. And that shouldn't be surprising - that was essentially the talking points and "party line" of AA's executives until they were forced to be more diplomatic and explore a merger under creditor pressure. Either way, it does seem to me that several moves AA has made in the last couple of months would tend to indicate, perhaps in subtle ways, that they do not intend to pursue a merger.

Nonetheless, of course, the intentions and desires of AA management mean little here, since of course they will not get the final say in whether a merger does or does not take place. I, personally, think it is clear that AA management does not - or at least did not - want to merge while in bankruptcy. We'll see if they get what they want/wanted.

Quoting ItalianFlyer (Reply 24):
OTOH I can see US moving to Oneworld in the near term and testing the waters for a possible merger down the road. Similar to CO 's migration to Star in 08 ahead of the UA combination.

If a merger does not ultimately end up happening while AMR is in bankruptcy, then I don't find that implausible at all. Frankly, even without a merger, USAirways no longer fits all that well in Star, where it's entire need and role has now been effectively minimized via the United-Continental merger. In that context, oneworld is probably a better fit, anyway. Nonetheless, not merging in bankruptcy may mean Parker not getting control, which would be a huge blow for him, since that is what he has wanted all along.
 
nwcoflyer
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 4:39 pm

Quoting ItalianFlyer (Reply 26):
Very true...and the ramped up retirements are well know public news. Yet the recall of pilots (apporx 1K) & recruitment of newbies with associated training costs involve quite a capital investment; not the kind of behavior of an organization that anticipates more skilled labor joining the organisation via a merger.

I would bet whether a merger happens or not, they will need to hire. There is going to be a pilot shortage brewing in this industry over the next several years, its not an AA problem it is an industry problem. Many pilots who have decided to fly until they are 65 will be coming up on their mandatory retirement soon.

Merger or not AA will need pilots.
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Bobloblaw
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 4:42 pm

Quoting HPRamper (Reply 19):
Well, true in the sense that if the employees are against the takeover it will kill the airline. US/DL would have been ugly.

I agree. I am happy it didnt happen. It shows some ton e deafness on the part of Parker that he tried to take over DL hostely
 
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 5:16 pm

Quoting nwcoflyer (Reply 2):

Not to get to far off topic but when fleet sizes are as large as what a combined AA/US would be, I am pretty sure that they could happily keep split fleets into the future. I have heard Parker say that once fleet size passes a certain number of frames, the cost savings are not as large as you would think if you had all of one type or another.

It's hardly off-topic, since it is at issue in any potential merger scenario. Boeing has been watching what proceedings it can with great interest and they are opposed to the merger. They wouldn't oppose the merger on purely sentimental grounds, so they must be concerned that it would negatively affect their order book either immediately or in the long run.

While it is true that neither A nor B would realistically be able to provide all of the fleet needs, particularly on such a gargantuan narrowbody fleet, it is quite realistic to suggest that the widebody/long-haul fleet could go to mostly one manufacturer or another. I doubt that DP would cancel any existing orders, since that would involve paying penalties that would outweigh any advantage he might get from ordering Airbus. But for future orders, AA might be a harder sell for Boeing than it has been in the past.
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ckfred
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 5:48 pm

I just saw the Zagat list of 10 worst airlines. US was number 5, while Spirit was number 2. (Ryan Air was number 1). So, why would the unionized employees of AA want to merge with a carrier that has a far worse reputation than AA?
 
HPRamper
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 6:05 pm

Must a good list to be on seeing as those terrible airlines are making money.
 
D L X
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 6:25 pm

I have to wonder something out loud: why would AA and US announce this meeting in any situation other than they had already held numerous private discussions and had reached a conclusion?

Quoting ckfred (Reply 31):
So, why would the unionized employees of AA want to merge with a carrier that has a far worse reputation than AA?

Because it may allow them to keep their professions.
 
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 6:28 pm

Quoting D L X (Reply 33):
I have to wonder something out loud: why would AA and US announce this meeting in any situation other than they had already held numerous private discussions and had reached a conclusion?

Thats kind of my line of thinking too. Why say anything unless youve either made significant progress one way or the other?
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b377
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 7:34 pm

Quoting D L X (Reply 33):
I have to wonder something out loud: why would AA and US announce this meeting in any situation other than they had already held numerous private discussions and had reached a conclusion?


If you would read the WSJ article again, you will see that it is the AMR Creditors committee, and not AA, that is asking US to present what synergies they see in merger with AA.
 
PSA727LAX
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Fri Oct 26, 2012 7:34 pm

If there hasn't been any meaningful progress in talks between AA/US during the time frame of the NDA I seriously doubt they would publicly announce a meeting. If the NDA hasn't allowed a forging of concensus on how to proceed then they would have let it lapse with no fanfair.

As LAXDude mentioned, it will most likely happen, just not sure when. It might be the outcome of the meeting is to announce an agreement in principle between the parties involved i.e. AA/US & major creditors or they may simply release a prepared statement saying "We are diligently working the issues that still exist and are hopeful a mutually agreeable outcome is forthcoming shortly".
 
vlad1971
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Wed Oct 31, 2012 8:03 pm

Any news on the meeting on 30th ?? Anybody knows if AA/US met ?
Thanks .
 
D L X
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Wed Oct 31, 2012 8:26 pm

Quoting B377 (Reply 35):
If you would read the WSJ article again, you will see that it is the AMR Creditors committee, and not AA, that is asking US to present what synergies they see in merger with AA.

I read the article, and that is to whom I am refering.

We all know that US Airways has had many chats with American's creditors prior to this date.

Now that the date has passed, I have to wonder if anything happened. Did the meeting go ahead as scheduled (given the events of this week)?
 
rj777
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Thu Nov 01, 2012 1:16 am

Quoting D L X (Reply 38):
Now that the date has passed, I have to wonder if anything happened. Did the meeting go ahead as scheduled (given the events of this week)?

I would think it would depend on where the meeting was held. If it was held in NC or PA, then it probably didn't. But if it was in TX or AZ, it might have.
 
DLD9S
Posts: 159
Joined: Wed Jun 14, 2006 12:25 pm

RE: AA/US To Hold Official Talks Next Tues (10/30)

Thu Nov 01, 2012 4:08 am

Quoting rj777 (Reply 39):
I would think it would depend on where the meeting was held. If it was held in NC or PA, then it probably didn't. But if it was in TX or AZ, it might have.

The meeting was to be held in NYC at AA's law firm's office.
717 727 737 747 757 767 777 DC9 DC10 M80 M90 M11 L10 AB6 333 340 319 320 321 ARJ CRJ EM2 EMJ SF3 146 100 BE1...
 
Beardown91737
Posts: 812
Joined: Wed Jun 15, 2011 10:56 pm

RE: AA/US To Hold Official Talks Next Tues (10/30)

Thu Nov 01, 2012 7:48 am

Quoting HPRamper (Reply 19):
Well, true in the sense that if the employees are against the takeover it will kill the airline. US/DL would have been ugly.

Probably would not happen that way with Delta's employees and Parker's plans to use the name "Delta". They would make the best of flying for Delta with a new management.

Quoting ckfred (Reply 31):

I just saw the Zagat list of 10 worst airlines. US was number 5, while Spirit was number 2. (Ryan Air was number 1). So, why would the unionized employees of AA want to merge with a carrier that has a far worse reputation than AA?

Why? Hopes of better relations with LCC's management than with their current management at AMR. They probably don't care. However with Parker's plans to use the name "American", no need for PMAA employees to be worried about the the "reputation" of US being cast on them. The public will see American. The public will be just as confused as all the a.netters that think that after LCC takes over, current AA management will be in charge and Parker will be the only US employee that makes it past the merger.
135 hrs PIC (mostly PA-28) - not current. Landings at MDW, PIA, JAN.
 
n737aa
Posts: 226
Joined: Thu Aug 28, 2008 6:00 pm

RE: AA/US To Hold Official Talks Next Tues (10/30)

Thu Nov 01, 2012 12:03 pm

Quoting commavia (Reply 17):
But it does pose a fascinating prospect: what if Horton does propose a merger, just not one with USAirways?



Like I said.....one VP told us that we are looking to regain our foothold at JFK and the Caribbean that we have lost over the last few years....

This same VP said consolidation in the market place is inevitable.

No word internally if the talks took place.

N737AA
 
etops1
Posts: 833
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RE: AA/US To Hold Official Talks Next Tues (10/30)

Thu Nov 01, 2012 1:59 pm

Meeting was not held .
 
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enilria
Posts: 6906
Joined: Fri Feb 22, 2008 7:15 pm

RE: AA/US To Hold Official Talks Next Tues (10/30)

Thu Nov 01, 2012 2:05 pm

Quoting N737AA (Reply 42):
Quoting commavia (Reply 17):
But it does pose a fascinating prospect: what if Horton does propose a merger, just not one with USAirways?



Like I said.....one VP told us that we are looking to regain our foothold at JFK and the Caribbean that we have lost over the last few years....

It's no surprise that AA and OW want B6, not US. B6 won't do the deal unless forced, however. At best, I think they get B6 in OW only by giving them their LGA slot portfolio (absent hubs).

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