MountainFlyer
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AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 8:30 pm

Bloomberg is reporting that the AMR Corp board is currently meeting to vote on merger terms with US Airways with a possible announcement tomorrow.

http://www.bloomberg.com/news/2013-0...-to-agree-on-terms-for-merger.html
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Ryefly
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 8:38 pm

I just got a news flash from NBC Charlotte that US Airways & American agree on Merger.
 
stlgph
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 8:41 pm

Quoting Ryefly (Reply 1):

The merger details call ended just over an hour ago. Both boards came to an agreement on terms, which are 'interesting', and that's all I can say.

Now both boards must take a final vote. AMR is voting within a matter of minutes. US Airways will be voting in about two-three hours.
if assumptions could fly, airliners.net would be the world's busiest airport
 
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dabpit
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 9:10 pm

This mega merger is only going to hurt the consumer....
Carpe Diem
 
texan
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 9:12 pm

http://aviationblog.dallasnews.com/2...us-airways-merger-wrapped-up.html/

Dallas Morning News reports the announcement will be made early tomorrow morning.

Texan
"I have always imagined that Paradise will be a kind of library."
 
JFKPurser
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 9:17 pm

Like I've been saying all along -- this merger is never going to happen.
 
Av8tor
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 9:28 pm

Quoting dabpit (Reply 3):
This mega merger is only going to hurt the consumer....

Give me a break! This industry has lost billions of dollars over the past decade. Should they continue to lose money for the benefit of the consumer or should they be allowed to make strategic moves to help themselves become profitable? If the consumer doesn't like it, they should drive or take a train.
 
JetboyTWA
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 9:29 pm

Quoting JFKPurser (Reply 5):
Like I've been saying all along -- this merger is never going to happen.

Why exactly do you believe this to be the case?
 
SPREE34
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 9:30 pm

Quoting dabpit (Reply 3):
This mega merger is only going to hurt the consumer....

Tell that to junior employees looking for work this time next year.

Quoting JFKPurser (Reply 5):
Like I've been saying all along -- this merger is never going to happen.


Seems the money says otherwise. The Horton speedbump has been dealt with. The voting formalities will be over by 6pm PHX time. We shoild have solid leaks by 6:15.
I don't understand everything I don't know about this.
 
phxa340
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 9:30 pm

Quoting JFKPurser (Reply 5):

And you will be back here in 2 years complaining about the new management ... Be careful what you wish for but best of luck.
 
JFKPurser
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 9:33 pm

Quoting jetboytwa (Reply 7):
Why exactly do you believe this to be the case?

It's a joke. I have maintained, contrary to the views of a substantial number of members who frequently post here about AA, that this would be the exact outcome in the AMR bankruptcy since last April, when Parker first approached the leaders of AMR's unions. But nobody seemed to agree with much that. And now here we are. That's all.
 
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IrishAyes
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 9:38 pm

Quoting JFKPurser (Reply 5):

Like I've been saying all along -- this merger is never going to happen.

is that a figurative statement?
confidence is silent. insecurities are loud.
 
JFKPurser
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 9:40 pm

Quoting phxa340 (Reply 9):
And you will be back here in 2 years complaining about the new management ... Be careful what you wish for but best of luck.

You may be right. If there's something to complain about -- I very well might just "complain" about it, just like everyone else on the board "complains" about just about every other thing they personally find distasteful -- which by the way often happen to be labor unions or under qualified airline employees who claim to know a lot about things they don't or shouldn't really know anything about. But I digress. So far in this instance, US Airways management has demonstrated their willingness to handle AMR's labor unions much more equitably. We will see whether or not that continues. For now, we are hopeful that we may have at last transcended one of the worst labor/management relationships the airline industry has seen. There is a blueprint for a positive relationship moving forward, and that is at least something. Not to mention the real possibility of a viable AA for the long term. It's a good day.
 
phxa340
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 9:41 pm

Quoting JFKPurser (Reply 10):

Your fantasy that the unions are the reason this merger happened is the only joke - please.
 
tx2fl
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 9:45 pm

Quoting Av8tor (Reply 6):
Quoting Av8tor (Reply 6):
going to hurt the consumer....
Give me a break! This industry has lost billions of dollars over the past decade. Should they continue to lose money for the benefit of the consumer or should they be allowed to make strategic moves to help themselves become profitable? If the consumer doesn't like it, they should drive or take a train

Thank you...this is the only product/industry where I'm still paying within 20% of what I paid in the 90's. My parents paid around 500.00 to send me DFW-SJU for a school trip in the early 90's and the fares are still about the same. People need to stop the complaining about airfares. I always want to ask the complainer if they'll give me their product or service for the same price it was in 1993.
 
JFKPurser
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 9:45 pm

Quoting phxa340 (Reply 13):
Your fantasy that the unions are the reason this merger happened is the only joke - please.

Sour grapes?
 
ouboy79
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 9:48 pm

Quoting JFKPurser (Reply 10):
It's a joke. I have maintained, contrary to the views of a substantial number of members who frequently post here about AA, that this would be the exact outcome in the AMR bankruptcy since last April, when Parker first approached the leaders of AMR's unions. But nobody seemed to agree with much that. And now here we are. That's all.

Anyone with a half brain new this was happening, but there are many in denial. Depending on exactly how the SLI process works out, there are probably going to be a lot of current American employees laid off. Unless there is something worked out to give AA a seniority bonus (which I doubt), the highly senior US Airways is going send a pretty good impact through the system. Granted there will probably be fences on the hubs and large jet flying, but when it comes to outstations that aren't outsourced (yet) it'll get ugly.

My biggest concern is for those at Eagle. If they spin it off like what Delta did, and turn them into contractors, its going to be pretty devastating.
 
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dabpit
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 9:49 pm

Quoting Av8tor (Reply 6):
Give me a break! This industry has lost billions of dollars over the past decade. Should they continue to lose money for the benefit of the consumer or should they be allowed to make strategic moves to help themselves become profitable? If the consumer doesn't like it, they should drive or take a train.

Fewer choices for the consumer means higher prices since there will be less airlines

Quoting SPREE34 (Reply 8):
Tell that to junior employees looking for work this time next year.

Sadly it will hurt them as well

Quoting phxa340 (Reply 9):
And you will be back here in 2 years complaining about the new management ... Be careful what you wish for but best of luck.

Couldn't agree more!
Carpe Diem
 
maddogjt8d
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 9:49 pm

I really wonder if this proposed merger is going to clear the anti-trust & DOJ hurdles, I would think that would be the biggest obstacle at this point given the consolidation that's occurred in the industry over the past few years...
 
JoePatroni707
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 9:59 pm

Quoting ouboy79 (Reply 16):
there are probably going to be a lot of current American employees laid off.

I have from a pretty good source that no employees at US Air will be layed off at all. Virtually all of the layoffs approx 10,000-12,000 will be on the AA side of the equation. Virtually 100% of AA management from Horton on down to every front line manager will be gone.
 
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Revelation
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 10:00 pm

Quoting Av8tor (Reply 6):
If the consumer doesn't like it, they should drive or take a train.

Indeed, that or just not travel. There is a fair amount of travel that is discretionary, and if air travel becomes too costly, a lot of that discretionary spend will not happen or it will go other places. Consumers don't have a right to travel by air, and the air travel industry doesn't have a right to consumers.
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dabpit
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 10:06 pm

Quoting JoePatroni707 (Reply 19):
I have from a pretty good source that no employees at US Air will be layed off at all. Virtually all of the layoffs approx 10,000-12,000 will be on the AA side of the equation. Virtually 100% of AA management from Horton on down to every front line manager will be gone.

Didn't this happen with US when they were taken over by American West?
Carpe Diem
 
maddogjt8d
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 10:11 pm

Quoting dabpit (Reply 21):
Didn't this happen with US when they were taken over by American West?

And with TWA as well...payback is a bi@tch!   
 
PDX88
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 10:12 pm

Quoting JoePatroni707 (Reply 19):
I have from a pretty good source that no employees at US Air will be layed off at all.

With the presumed capacity cuts at US hubs, I'm pretty sure they won't be keeping everyone.
 
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dabpit
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 10:12 pm

Quoting MaddogJT8D (Reply 22):
And with TWA as well...payback is a bi@tch!

That is true...
Carpe Diem
 
texan
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 10:21 pm

Quoting MaddogJT8D (Reply 18):
I really wonder if this proposed merger is going to clear the anti-trust & DOJ hurdles, I would think that would be the biggest obstacle at this point given the consolidation that's occurred in the industry over the past few years...

For better or worse, it shouldn't have difficulty passing the antitrust tests, partially because of past industry consolidation. The DOJ will raise concerns, but DOT makes the decision. The DOT's use of HHI has been generous to the carriers, and I expect that will continue.

Texan
"I have always imagined that Paradise will be a kind of library."
 
stlgph
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 10:23 pm

Quoting dabpit (Reply 24):
That is true...

Well I feel for the TWA employees who were recalled, that's for sure.

Quoting Revelation (Reply 20):
Indeed, that or just not travel. There is a fair amount of travel that is discretionary, and if air travel becomes too costly, a lot of that discretionary spend will not happen or it will go other places. Consumers don't have a right to travel by air, and the air travel industry doesn't have a right to consumers.

Spirit Airlines just posted a 27% increase in traffic for the month of January and continues to grow.
Allegiant Airlines keeps continuing to post profits.
The 'new' Frontier is finding ways that work for them.

Looking forward to seeing what the airline industry is like in five years. Aren't you?  
if assumptions could fly, airliners.net would be the world's busiest airport
 
Av8tor
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 11:37 pm

Quoting dabpit (Reply 17):
Fewer choices for the consumer means higher prices since there will be less airlines

That's a good thing in my opinion!
 
TWA1985
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RE: AMR Board Voting Today...Announcement Tomorrow?

Wed Feb 13, 2013 11:55 pm

According to the WSJ ... the boards approved a merger!

Live Young. Live Wild. Live Free.
 
stlgph
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RE: AMR Board Voting Today...Announcement Tomorrow?

Thu Feb 14, 2013 12:07 am

$11 billion merger approved.
if assumptions could fly, airliners.net would be the world's busiest airport
 
ouboy79
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RE: AMR Board Voting Today...Announcement Tomorrow?

Thu Feb 14, 2013 12:48 am

Quoting dabpit (Reply 21):
Didn't this happen with US when they were taken over by American West?

Management team was split almost in half between US and HP, with HP guys getting some of the bigger titles. However front line wasn't as massively impacted as they will be here.

Quoting PDX88 (Reply 23):
With the presumed capacity cuts at US hubs, I'm pretty sure they won't be keeping everyone.

It'll come down to SLI. US is pretty senior so that can bump AA employees out of the way. It'll be interesting to see how the pilots SLI goes since the US pilots are still split.
 
texan
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RE: AMR Board Voting Today...Announcement Tomorrow?

Thu Feb 14, 2013 12:58 am

Quoting MaddogJT8D (Reply 18):
I really wonder if this proposed merger is going to clear the anti-trust & DOJ hurdles, I would think that would be the biggest obstacle at this point given the consolidation that's occurred in the industry over the past few years...

I calculate that the current HHI is in the range of .1110 (or 11.10%) to .1121. The HHI after the merger would be in the range of .1319 to .1330. The DOJ considers HHI indeces of between .15 and .25 as moderately concentrated industries and indeces of over .25 as heavily concentrated industries. The merger would not, therefore, raise the additional scrutiny a merger in a moderately to heavily concentrated industry would.

But increases of more than .01 add increased scrutiny because of the amount of decrease in competition in the market. This merger increases the HHI of the airline industry by approximately .0209, over twice the baseline for increased scrutiny.

I stand by my previous statement, though, that the merger will pass through all regulatory hurdles, albeit with some concessions at key airports (DCA, LGA).

Texan
"I have always imagined that Paradise will be a kind of library."
 
Maverick623
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RE: AMR Board Voting Today...Announcement Tomorrow?

Thu Feb 14, 2013 1:14 am

Quoting ouboy79 (Reply 30):
US is pretty senior so that can bump AA employees out of the way.

I find it hard to believe that US has more seniority than AA. Just my two cents.
"PHX is Phoenix, PDX is the other city" -777Way
 
JFKPurser
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RE: AMR Board Voting Today...Announcement Tomorrow?

Thu Feb 14, 2013 1:34 am

Quoting Maverick623 (Reply 32):
I find it hard to believe that US has more seniority than AA. Just my two cents.

The seniority curve of the US FA groups is just slightly ahead of AA toward the top of the list. But that may very well change when they open up the early-out for the US FA group, assuming they ratify their outstanding agreement, which is expected to happen. When you roll the US group into the fold, the effect on the AA group will be very minimal, considering not only the fact that US is about 1/3 the size, but also the retirements which will occur from the US early out, and the next early out which will cover AA FAs when the US Bridge Agreement takes effect at the BK exit.
 
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PA727
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RE: AMR Board Voting Today...Announcement Tomorrow?

Thu Feb 14, 2013 1:40 am

Per strong and reliable contacts within AA, the official announcement will be released at 5:30 a.m. CST tomorrow morning.

Also, I was told it will be Doug Parker in the lead with Tom Horton as an honorary chairman for an undisclosed period of time. That matches what has been rumored, however that is a bit more speculative than the firm confirmation of the announcement timing.
 
flyfree727
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RE: AMR Board Voting Today...Announcement Tomorrow?

Thu Feb 14, 2013 3:59 am

Quoting JFKPurser (Reply 5):
Like I've been saying all along -- this merger is never going to happen.

thank you for your FACTUAL information which you provided throughout this process.. Gotta hand it to you, you called it exactly as it played out and didnt waiver when others tried so very, very hard to discredit you! But then again, arm-chairs ALWAYS know best right?

Now, looking forward to moving this airline FORWARD! As I said from the onset, the employees of AA (as the numbers have shown) have rallied HARD to keep this airline in business, we have just NOT rallied to keep AA MANAGEMENT in business!

Back to work now!

AA ORD
 
speedbird9
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RE: AMR Board Voting Today...Announcement Tomorrow?

Thu Feb 14, 2013 11:56 am

Announced on Facebook:

"We are proud to announce American & US Airways are coming together to create the new American Airlines. The combined network will offer more than 6,700 daily flights to 336 destinations in 56 countries around the world under the iconic American Airlines brand. For more information, visit http://bit.ly/ARRIVING"
 
SA7700
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RE: AMR Board Voting Today...Announcement Tomorrow?

Thu Feb 14, 2013 12:36 pm

As the merger has been officially announced, this thread will be locked for further discussions. Any posts added after the thread lock will be removed for housekeeping purposes only.

Please feel free to contribute to the official merger thread, which can be found here: USAirways And American Agree To Merger (official)


Thanks and regards,


SA7700
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