777law
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US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:00 pm

We knew this day was coming

http://my.chicagotribune.com/#section/-1/article/p2p-73612409/

Says the combined company will be valued at $8.5 billion. A deal could be concluded next month.

[Edited 2012-12-07 13:04:10]
If its not a Boeing I ain't going
 
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DeltaMD90
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:06 pm

Finally. Article is kinda vague... what is standing in the way / helping the merger out? DOJ concerns, AA's management not wanting a buyout, etc?
Ironically I have never flown a Delta MD-90 :)
 
airliner371
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:08 pm

Finally.... Now lets get our hands dirty!
 
nw1852
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:09 pm

Great...Looks like AA will have their new livery for about 10 seconds.
 
JFKPurser
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:11 pm

Quoting DeltaMD90 (Reply 1):
Finally. Article is kinda vague... what is standing in the way / helping the merger out? DOJ concerns, AA's management not wanting a buyout, etc?

Horton's ego and his stock options in a post-BK AMR standalone, which will never exist at this point.

Since the NDA, US has had plenty of time to dig through AMR's finances and has, in all likelihood, presented the UCC with an offer they are certain Horton will not be able to beat, now that AMR's fixed costs are finally established in the wake of today's ratified AA pilot LBFO.
 
rwy04lga
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:23 pm

All it took was the APA agreement to get US on bended knee. Although it seems more like a shotgun wedding.
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nwcoflyer
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:25 pm

Can't say I'm surprised. Hopes it works out for all of us on both sides. There is great potential for success or failure with this merger if approved.
The New American is arriving.
 
kaitak
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:26 pm

Quoting JFKPurser (Reply 4):
LBFO.

What's this?

Good to hear that this is moving forward; I always thought that AA would welcome US; after all, it's an airline that makes AA look very good indeed.

Seriously, though, AA needs help to get its act together and there does not seem to be a lot of confidence in the current AA management. I guess the key question I would have (and I'm sure employees of both airlines would have) is this: over and above raising the $8.5b to buy AA, does US have the resources to invest in AA and bring it around. Will it invest in its product, cabin crew training (including rebuilding morale - and that applies across the airline, not just cabin crew). I really do hope that this is a success for both carriers.
 
PHX787
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:26 pm

Well the boys in Tempe better start packing    Not looking forward to this at all... the shuttering of another hub at an airport I have connections to is not something I can handle well.
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spiritair97
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:27 pm

Damn.......gone are the days of a nice US Airways livery and Star Alliance benefits for us Divdend Miles members.
 
southwest737500
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:30 pm

Screw this merger. US Is a great airline, there goes the livery and bye bye star alliance I loved the star
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avek00
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:35 pm

Y'all give up too easily, LOL.
Live life to the fullest.
 
timpdx
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:35 pm

Bad news for Tempe and PHX.
 
phxa340
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:38 pm

US Airways is bringing no cash to the table. It will be a 100% stock transaction. If Parker thinks the combined company will be valued at 8 billion he is dreaming. Far from a done deal ... Especially in current market conditions considering this is an all stock transaction

Patience people.
 
FWAERJ
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:38 pm

Not surprised, but this could be good or bad for FWA.

If things turn out positively, PHL and/or CLT could be added from FWA (with the Lincoln Financial and Wells Fargo connections, I wouldn't be surprised). Or US/AA could pull a PIT dehubbing on FWA and tell pax to just take them out of IND. I will be eager to see which route they take.

Quoting spiritair97 (Reply 9):
gone are the days of a nice US Airways livery
Quoting nw1852 (Reply 3):
Great...Looks like AA will have their new livery for about 10 seconds.

I'm willing to bet that the brand for the merged airline will be named American Airlines and the livery will be the new AA livery that we don't know much about other than it's based on silver paint. The idea of the AA image surviving isn't far-fetched: AA creditors would own 70% of the new US/AA per the article.

Quoting PHX787 (Reply 8):
Well the boys in Tempe better start packing   

Arizona will flight hard to ensure that US/AA HQ remains in Tempe. They don't want a repeat of UA/CO where Chicago won out over Houston due to sUA contracts, even though Houston is a far better place to do business. But I think that Texas will win out, even though both Arizona and Texas are very pro-business states.
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DocLightning
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:38 pm

Quoting PHX787 (Reply 8):
Well the boys in Tempe better start packing Not looking forward to this at all... the shuttering of another hub at an airport I have connections to is not something I can handle well.

I don't think they are going to give up PHX. It's too important of a sun destination and it also has good West Coast connections. I know DAL is close, but MSP is close to DTW and they both operate fine, too.

Quoting spiritair97 (Reply 9):
Damn.......gone are the days of a nice US Airways livery and Star Alliance benefits for us Divdend Miles members.

Well, you get OW instead, which isn't exactly something to sneeze at. We all know that US's days as a *A member were numbered once the UA/CO merger happened.
-Doc Lightning-

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AWACSooner
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:41 pm

US and HP merger is still working itself out how many years later?
I can't wait to see the results of THIS one...someone get me a decade's supply of popcorn!!!
 
N766UA
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:43 pm

If you'd told me 10 years ago that in a decade only United, USAir, and Delta would exist, I'd tell you you were nuts...
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airliner371
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:44 pm

Quoting FWAERJ (Reply 14):
Arizona will flight hard to ensure that US/AA HQ remains in Tempe.

US Airways has said the merged airline will be HQed in Dallas, no question about it.
 
Yflyer
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:45 pm

Quoting DeltaMD90 (Reply 1):
Finally. Article is kinda vague... what is standing in the way / helping the merger out? DOJ concerns, AA's management not wanting a buyout, etc?

Well, a few nights ago I heard on NPR that AA's management will get a large bonus if the airline emerges from bankruptsy as a standalone company, so I would imagine they're doing everything in their power to avoid merging.
 
JFKPurser
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:46 pm

Quoting kaitak (Reply 7):
What's this?

LBFO = Last Best Final Offer.
 
AA94
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:46 pm

Quoting phxa340 (Reply 13):
US Airways is bringing no cash to the table. It will be a 100% stock transaction. If Parker thinks the combined company will be valued at 8 billion he is dreaming. Far from a done deal ... Especially in current market conditions considering this is an all stock transaction

Patience people.

Hallelujah.

I don't understand why some people think that the phrase "US Airways makes merger offer for AA" means "AA/US are merging." People, they are not the same thing.

The fact that the APA and AA came to an agreement today takes away most of DP's leverage, IMO. This will be a decision made by AA's creditors, not Doug Parker or Tom Horton.

US trying to turn around AA is the blind leading the blind. No offense intended, but that's the way I see it. AA can do it by themselves, and they'll be better off for it.
If you can't take the heat, you best get out of the kitchen
 
PHX787
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:47 pm

Quoting FWAERJ (Reply 14):
Arizona will flight hard to ensure that US/AA HQ remains in Tempe. They don't want a repeat of UA/CO where Chicago won out over Houston due to sUA contracts, even though Houston is a far better place to do business. But I think that Texas will win out, even though both Arizona and Texas are very pro-business states.

I sure hope so, but I haven't seen crap from Jan or Greg or Mark about trying to stop this.

if things go PHX's way, we may finally see Asian service, however.

Quoting AWACSooner (Reply 16):
US and HP merger is still working itself out how many years later?

   this. There's no way this can actually proceed before east and west merge together. If not, we'll have east, west, and south   
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commavia
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:53 pm

Still not buying that it's as "done" a deal as some here continue to claim. I think the merger stands a good chance of happening, but I don't think it's a done deal - still plenty ahead to work out.

If it happens, the good news for me personally and other DFW-area travelers is that DFW will inevitably remain the headquarters, and largest hub, of American Airlines - with or without a merger. The name would stay AA, which I'm happy about, and the resulting airline would remain in oneworld, which I'm also happy about. In addition, the headquarters remaining in DFW would virtually guarantee that a large portion of the corporate functions running the company would be legacy-AA, not legacy-USAirways, regardless of who the actually executives are at the top. As somebody who views AA as the superior airline in a wide variety of areas including most aspects of hard and soft product, ground and onboard service, frequent flyer program, and IT/systems, that to me is a good thing. The combined company would have an expanded network with improved access to the northeast and to some extent Europe. I just hope that if Parker does get his hands on one of the largest and most storied brands in the industry he doesn't royally screw it up by imposing cheapened and suboptimal service or systems (SHARES) onto the "new AA."

And if a merger doesn't happen, I think AA will be just fine as well. The last year has seen AA improve dramatically in a variety of areas - without any "help" from Doug Parker. New (and very nice) planes are arriving at the rate of almost one per week. New onboard products and amenities are and will soon be rolling out, including the new longhaul premium meal service which I'm looking forward to enjoying soon. AA's IT systems from AA.com to the mobile app to tablets for pilots and FAs are continuing to see more and more enhancements. All of that is very positive.

I believe now, have believed, and will continue to believe regardless of the revisionist history that the unions have been and will always continue to be pushing that AA has very bright long-term prospects with or without a merger. AA does not "need" a USAirways merger (in fact quite the opposite - Parker desperately needs this merger far more than AA or Horton does). So whatever happens, I look forward to it just happening already. Merger or no merger, I'm looking forward to some clarity soon.

Quoting airliner371 (Reply 18):
US Airways has said the merged airline will be HQed in Dallas, no question about it.

Fort Worth, not Dallas.  
 
AA77W
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:54 pm

Maybe I'm naïvé, but I don't see this as a done deal. I mean AA has requested the ability to come out of BK as a standalone carrier be extended through March, 2013 and with labor relations as they are at both companies, it seems to me that there is no way that this will happen by Jan, or anytime in the near future. Again, not an expert by any means, but there seems to be a long road ahead before this could be a reality.
 
commavia
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:58 pm

Quoting PHX787 (Reply 22):
I sure hope so, but I haven't seen crap from Jan or Greg or Mark about trying to stop this.

They've got nothing to say. Earlier reports alluded to Parker's sales pitches all over Capitol Hill, where he was almost certainly - and not surprisingly - told in no uncertain terms by every member of the huge Texas congressional delegation he spoke with that they would do everything they could to block a merger if it meant the headquarters leaving Texas. In addition, I'm sure any "negotiations" now occurring also essentially take as given that the headquarters will stay in Texas. That is probably make-or-break.

Quoting PHX787 (Reply 22):
if things go PHX's way, we may finally see Asian service, however.

Doubtful.

Quoting PHX787 (Reply 22):
There's no way this can actually proceed before east and west merge together. If not, we'll have east, west, and south

Kirby has essentially said it himself, as have many current USAirways pilots: if this merger happens, the whole issue of east and west will in large part go away. There will be a single representation election in which, in all likelihood, the USAirways (USAPA) pilots will be outvoted by the AA (APA) members and APA will end up the single collective bargaining agent. When that occurs, the arbitration, seniority list integration, etc. process will all start rolling, but with the whole east-west fight on the back burner, as the USAPA members will be outnumbered roughly 2-to-1.
 
B757capt
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 9:58 pm

Quoting phxa340 (Reply 13):

Totally and respectfully disagree with you. There is so much value that the AMR Managment has left untouched.
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phxa340
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 10:03 pm

Quoting b757capt (Reply 27):

I am talking about what the financial markets value the new AA. Nothing to do with untapped value that management is leaving on the table. IPOs have been horrible this year because the market is undervaluing pretty much everything - just like they will the combined AA
 
seatback
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 10:49 pm

With AA creditors holding a 70 percent stake in the new company, wouldn't that put AA in the driver's seat?

The creditors will determine who runs the company, not Doug Parker.
 
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Acey559
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 10:51 pm

Quoting N766UA (Reply 17):
If you'd told me 10 years ago that in a decade only United, USAir, and Delta would exist, I'd tell you you were nuts...

Not to argue semantics, but it won't be Delta, United and US Airways; it would be Delta, United and American.  

I'm not convinced either though. I'd prefer AA to be a standalone carrier but we'll have to see. I'm not assuming anything is expected given the history of this industry.
 
brilondon
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 11:01 pm

Quoting nw1852 (Reply 3):
Great...Looks like AA will have their new livery for about 10 seconds.

Why?

Quoting commavia (Reply 26):
Kirby has essentially said it himself, as have many current USAirways pilots: if this merger happens, the whole issue of east and west will in large part go away. There will be a single representation election in which, in all likelihood, the USAirways (USAPA) pilots will be outvoted by the AA (APA) members and APA will end up the single collective bargaining agent. When that occurs, the arbitration, seniority list integration, etc. process will all start rolling, but with the whole east-west fight on the back burner, as the USAPA members will be outnumbered roughly 2-to-1.

This sounds something like the TWA/AA merger and the USAPA will just have their seniority list stapled to the bottom of the APA's list. What is the real bargaining power here as the unions have always been pushing for a merger, so I would not be surprised if you see the new AA livery come out on top.
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blueflyer
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 11:07 pm

Quoting FWAERJ (Reply 14):
The idea of the AA image surviving isn't far-fetched: AA creditors would own 70% of the new US/AA per the article.

The surviving image has very little to do with who owns what. The post-merger airline could be 100% owned by US Airways shareholders and it would still be called American Airlines. It's all about which brand has greater (positive) awareness, not just in the US but overseas as well, and for all the holes in its international coverage, AA is still better known in Europe and Asia than US Airways, hence the AA brand coming on top.

Same thing happened when US Airways and America West merged, or when Northwest and Delta did, or United and Continental. It is a marketing-driven decision.
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deltaffindfw
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 11:08 pm

Quoting brilondon (Reply 32):
This sounds something like the TWA/AA merger and the USAPA will just have their seniority list stapled to the bottom of the APA's list. What is the real bargaining power here as the unions have always been pushing for a merger, so I would not be surprised if you see the new AA livery come out on top.

That will most likely not be the case. With the new laws, binding arbitration is mandatory if they can't come to a compromise. I seriously doubt an independent arbitrator would "staple" the seniority list like TWA. They will be integrated just like DL and UA.

[Edited 2012-12-07 15:08:55]
 
deltairlines
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 11:10 pm

Quoting PHX787 (Reply 22):
if things go PHX's way, we may finally see Asian service, however.

Doubt it. Maybe eventually a 4x/week 787 on JAL to Narita. Still doubtful though - the LAX operation will remain pretty respectable and that's where there's the O&D, and most of the largest flows already have LAX service.

Quoting DocLightning (Reply 15):
I don't think they are going to give up PHX. It's too important of a sun destination and it also has good West Coast connections. I know DAL is close, but MSP is close to DTW and they both operate fine, too.

Agreed that PHX isn't going to go away completely. DFW is a good 850 miles or so east of PHX. LAX is a great location, but AA is maxed out on real estate over there. Phoenix at least allows for a gateway into the smaller California cities from large/mid-tier Eastern cities that the Eagle terminal at LAX can't really handle.

Quoting FWAERJ (Reply 14):
If things turn out positively, PHL and/or CLT could be added from FWA (with the Lincoln Financial and Wells Fargo connections, I wouldn't be surprised). Or US/AA could pull a PIT dehubbing on FWA and tell pax to just take them out of IND. I will be eager to see which route they take.

Maybe CLT would happen, PHL is a pretty constrained facility as it is.

Quoting seatback (Reply 30):

The creditors will determine who runs the company, not Doug Parker.

I believe part of the proposed deal is that Parker is the one that gets to run the show. That being said, I'd guess most of the creditors would rather take Parker, who is leading US to record profits while doing it with an inferior network compared to UA/AA/DL (having PHL as the Northeast hub, which is not the same level as Washington and New York; CLT for the Southeast hub which is heavily reliant on flow traffic, lacks high O&D numbers and is a second fiddle to a certain other hub that's 227 miles southeast down I-85; and PHX where nearly every route that sees mainline service sees another airline also flying mainline equipment on it, and there's that other airline that shares Terminal 4 with them which puts downward pressure on yields). Give him the network of AA, where (based on December ASMs), AA is 38x larger to Central America, 3.4x larger to Caribbean, 25x larger to South America, 2.2x larger to Europe and infinitelly larger to Asia. Not to mention hubs in much stronger cities such as Miami, Dallas, Chicago and New York (granted the last has some slot restrictions).
 
JBirdAV8r
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 11:11 pm

Quoting kaitak (Reply 7):
LBFO.
What's this?

Last Best Final Offer

Quoting brilondon (Reply 32):
This sounds something like the TWA/AA merger and the USAPA will just have their seniority list stapled to the bottom of the APA's list.

This is nothing like the TWA/AA merger. There will be no stapling of seniority lists.
I got my head checked--by a jumbo jet
 
platinumfoota
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 11:11 pm

Quoting blueflyer (Reply 33):
The surviving image has very little to do with who owns what. The post-merger airline could be 100% owned by US Airways shareholders and it would still be called American Airlines. It's all about which brand has greater (positive) awareness, not just in the US but overseas as well, and for all the holes in its international coverage, AA is still better known in Europe and Asia than US Airways, hence the AA brand coming on top.Same thing happened when US Airways and America West merged, or when Northwest and Delta did, or United and Continental. It is a marketing-driven decision.

So..... no American Airways??
Never forget United 93
 
LAXdude1023
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 11:13 pm

This was inevitable. We knew this day was coming, but lets keep a few things in mind:

1) So far this is just an offer. We already know AA itself will reject it, the question is what will the creditors board have to say. It could go either way so lets keep our emotions in check for a bit until we know more.

2) Should there be a merger, things like location of HQ and name have already been announced. No need to re-hash it.

3) We already know the Unions want a merger and management doesnt and they will fight tooth and nail to get what they want.

This all said Im all for a merger. I think it will give the combined airline a great network presence and fix the gaping holes in the current AA network (sans Asia, but AA made progress recently there). Selfishly, as a DFW resident, I would be happy about the extra jobs and the boost to the current hub here. Empathetically, I feel for our friends in Arizona because they will be the one taking it in the shorts over a AA/US merger.
It is what it is...
 
EricR
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 11:13 pm

Quoting commavia (Reply 24):
in fact quite the opposite - Parker desperately needs this merger far more than AA or Horton does


I would like to clear up one item. Parker doesn't "desperately need" this merger far more than American. US is very profitable (more so than AA) and US's stock has been one of the best airline stocks this year. US has been, and will continue to be, fine on its own.

However, Parker "wants" this merger because he believes that one of the few ways to make this industry profitable is via consolidation. Furthermore, a merger would put US in better competitive situation versus carriers such as UA or DL, especially on the international front. But to say Parker desperately needs this merger is exaggeration.

Quoting commavia (Reply 24):
I just hope that if Parker does get his hands on one of the largest and most storied brands in the industry he doesn't royally screw it up by imposing cheapened and suboptimal service or systems (SHARES) onto the "new AA."


Did Parker cheapen US or did he make the most out of the assets that he had? He did a far better job from a business standpoint than Arpey or Horton.

[Edited 2012-12-07 15:17:41]
 
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DocLightning
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 11:33 pm

Quoting brilondon (Reply 32):
This sounds something like the TWA/AA merger and the USAPA will just have their seniority list stapled to the bottom of the APA's list.

No. TWA was broke. Not just bankrupt but broke. On the day AA took over, TWA did not have enough cash on hand to fund their operations for the day. The TW employees basically got "staple or quit."

In this case, AA is not broke, they are in bankruptcy and are slated to come out of it even if no merger occurrs.
-Doc Lightning-

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GSPSPOT
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RE: US Airways Makes Formal Merger Offer For AA

Fri Dec 07, 2012 11:38 pm

Wow! So the merger potential is becoming reality - at least solicitation of a merger is reality. Can't wait to see what happens!
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allegiantflyer
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RE: US Airways Makes Formal Merger Offer For AA

Sat Dec 08, 2012 12:04 am

all we can do is hope that this doesn't happen! It would be a complete mess!
 
dcann40
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RE: US Airways Makes Formal Merger Offer For AA

Sat Dec 08, 2012 12:07 am

Quoting deltairlines (Reply 35):
I believe part of the proposed deal is that Parker is the one that gets to run the show.

One of the reasons cited for the United-US Air merger failing was the question of leadership (Tilton).

No way to predict who would run the show in the event of a merger.
 
coachclass
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RE: US Airways Makes Formal Merger Offer For AA

Sat Dec 08, 2012 12:29 am

Quoting southwest737500 (Reply 10):
Screw this merger. US Is a great airline, there goes the livery and bye bye star alliance I loved the star



Good god. I hope that the livery isn't like what UA/CO did.
 
SPREE34
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RE: US Airways Makes Formal Merger Offer For AA

Sat Dec 08, 2012 12:48 am

Quoting brilondon (Reply 32):
This sounds something like the TWA/AA merger and the USAPA will just have their seniority list stapled to the bottom of the APA's list.

I see no similarity at all. If there is a merger, there will be negotiations, then arbitration if necessary. (Not that USAPA understands the concept) No staple. Laws have been passed concerning seniority integrations.

If USAPA wants to kick, cry, and renig in an AA/US merger, it won't matter. APA out numbers USAPA. Ironic, eh?

Quoting deltaffindfw (Reply 34):
They will be integrated just like DL and UA.

  

Quoting JBirdAV8r (Reply 36):
There will be no stapling of seniority lists.

  
I don't understand everything I don't know about this.
 
gilesdavies
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RE: US Airways Makes Formal Merger Offer For AA

Sat Dec 08, 2012 1:03 am

So, so, so hope this does not go through...

I love US Airways, just the way they are!

I like their Dividend Miles, being a member or Star think their hubs at Philly and Charlotte are first rate. Always have a good experience when fly through them, to and from Europe.

US keep assuring users, their present client base and local markets that their existing hubs have nothing to worry about, and will just mean more flights to more hubs. I am not buying that!

I just think US are taking a great risk and is potentially a gamble too far...

Maybe I can be accused of holding on to the past, but since the HP/US Merger, the airline is doing great and why change?! They have turned themselves around...
 
Viscount724
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RE: US Airways Makes Formal Merger Offer For AA

Sat Dec 08, 2012 1:15 am

Quoting platinumfoota (Reply 37):

So..... no American Airways??

AA was American Airways until 1934.

August 1933 timetable.




June 1934 timetable.

 
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mayor
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RE: US Airways Makes Formal Merger Offer For AA

Sat Dec 08, 2012 1:19 am

Quoting blueflyer (Reply 33):
The surviving image has very little to do with who owns what. The post-merger airline could be 100% owned by US Airways shareholders and it would still be called American Airlines.

Exactly..........during US' failed attempt to gobble up DL during our BK, it was clear that Parker wanted it to be basically US Airways, but with DL's branding.
"A committee is a group of the unprepared, appointed by the unwilling, to do the unnecessary"----Fred Allen
 
kevindca
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RE: US Airways Makes Formal Merger Offer For AA

Sat Dec 08, 2012 1:52 am

Quoting commavia (Reply 26):
Kirby has essentially said it himself, as have many current USAirways pilots: if this merger happens, the whole issue of east and west will in large part go away. There will be a single representation election in which, in all likelihood, the USAirways (USAPA) pilots will be outvoted by the AA (APA) members and APA will end up the single collective bargaining agent.


So true. Kirby seems to think that this merger will solve the labor issues because AA employees will be the overwhelming majority, and since they have already come up with proposed agreements with AA's unions, poof, no more worries about integrating East and West.

I hate be cynical, but I can't help but believe that the driving force behind the union enthusiasm for a merger (apart from their hatred for the current AA management team) is that they are thinking along the same lines: a merged company will almost certainly elect all of AA's unions onto the property simply because AA's employees outnumber US's 2-1. So, poof, APA, APFA etc. will see their membership, and their dues income, increase 30-50%. Certainly a good business move for the unions, so even though I disagree with them, I can't blame them.

Personally, I think this merger would be a disaster for both companies. The nightmare of trying to integrate these companies is not worth the debatable benefits.
 
Beardown91737
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RE: US Airways Makes Formal Merger Offer For AA

Sat Dec 08, 2012 2:15 am

I hope this merger doesn't happen because US adds to, and fills the gaps in UA's network, without taking me way out of the way like SLC or DFW. I also like being able to get Mileage Plus credit on US, and the possibility of redeeming miles on US with the seats and international destinations it adds.

Quoting commavia (Reply 24):
In addition, the headquarters remaining in DFW would virtually guarantee that a large portion of the corporate functions running the company would be legacy-AA, not legacy-USAirways, regardless of who the actually executives are at the top.

Many corporations have a majority of their operations outside HQ. Boeing, for example. UCH is another.

Quoting commavia (Reply 26):
Earlier reports alluded to Parker's sales pitches all over Capitol Hill, where he was almost certainly - and not surprisingly - told in no uncertain terms by every member of the huge Texas congressional delegation he spoke with that they would do everything they could to block a merger if it meant the headquarters leaving Texas.

Like they did with United? If there were an internet in 1980, someone could have used the congressional delegation formula to predict that United and Delta would have HQ in Los Angeles (and US in San Diego).

Quoting seatback (Reply 30):
With AA creditors holding a 70 percent stake in the new company, wouldn't that put AA in the driver's seat?

Only if the AMR creditors think current AA management would do better. They just want their money.

Quoting Acey559 (Reply 31):
Not to argue semantics, but it won't be Delta, United and US Airways; it would be Delta, United and American.

More accurately it would be Delta, UCH, and LCC. That would also eliminate all the a.net confusion about how post merger AA will be exactly like pre-BK AA, except they have to "let" Parker be CEO.

Quoting gilesdavies (Reply 46):
US keep assuring users, their present client base and local markets that their existing hubs have nothing to worry about, and will just mean more flights to more hubs. I am not buying that!

The experience with DL and UCH has shown that merged legacies have more hubs than pre-merger.

Quoting mayor (Reply 48):
Exactly..........during US' failed attempt to gobble up DL during our BK, it was clear that Parker wanted it to be basically US Airways, but with DL's branding.

I can see why LCC would keep the AA name, not because it is storied in a good way, but because it tells when the airline files. I never saw the need to keep Delta since it describes where DL served before deregulation.
135 hrs PIC (mostly PA-28) - not current. Landings at MDW, PIA, JAN.
 
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pu
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RE: US Airways Makes Formal Merger Offer For AA

Sat Dec 08, 2012 2:32 am

Quoting kevindca (Reply 49):
The nightmare of trying to integrate these companies is not worth the debatable benefits.
AA's primary raison d'être is the relentless pursuit of premium markets and the most premium fliers. Their cornerstone plan, route structure, alliance strategy, marketing, product investments etc. all show AA aims towards the opposite end of the spectrum of customers compared to those who are fine with the US product.

To my mind US+AA adds very little competitive advantage beyond what AA already has in capturing the most premium fliers. Its no accident US chose the stock symbol LCC, and to me AA+US only adds value to a LCC-style, minimal service, non-premium-product airline business plan. I don't think Parker is going to change his style: cut costs, cut premium service....and gain the ability to earn profits on cheap fares.

...so I say Parker wants AA essentially to make whats worked at US work bigger and NOT to continue AA's premium service/premium customer strategy.




Pu

[Edited 2012-12-07 18:36:21]