Merger News

Discussion in 'American Airlines' started by chellow, Feb 6, 2013.

  1. 777 / 767 / 757 Love

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    Yes, gloat and laugh.......I will be sure to quote this when everyone is screaming about AA-US struggling, management pissing everyone off, and everything else that everyone thinks is now going away......

    Sickening the reaction........like a trojan horse, you have let the enemy in, you shall learn the hardway.....

    Cheers,
    777 / 767 / 757
     
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  2. 777 / 767 / 757 Love

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    Really? I didn't realize Horton had been in power for more than 12 months......hmmm, someone that looks just like him was running AT&T out of bankruptcy and back to dominance......ah, I must be mistaken, must have been someone who looks like Tom.

    Run an airline? If Tom had the labor rates Parker had, AA never would have gone to bankruptcy. He has been running an airline with no pension obligations, and labor rates in many positions that were still worse than AFTER the haircut that AA employees took in BK.

    He promised you the world, and you bought......HOOK.......LINE.......and SINKER.

    I worked on Wallstreet for too many years before leaving, and I have known reps and traders at funds with large positions in AA (both from equity and debt perspective). Back in in the early 2000s when AA negotiated some debt, I got all the chatter about what happaned and why they renegotiated. This time around, I was lucky enough to have one of my contacts directly involved with the UCC. NEWSFLASH: the UCC pressured AA's BOD because UCC saw the US share price, and saw what the new entity would be valued at, so they knew a stock deal would make them whole as long as the price stayed up long enough and high enough till they could sell off (assuming there are stock restrictions applied). They figured even if stock is valued at $5 - $7 per share (off the cuff numbers, I will not disclose their breakeven price) they would get their money back and maybe some extra. So, they don't think Parker's plan is any better, or Parker is any better, they think this will keep the price up the longest and keep the employees the happiest until they can get their money. Then when the house of cards starts crumbling, they won't be around to have to deal with it. This is why I have been so depressed the last few months, I wanted to believe it wasn't true, but my contact made it all too clear for me.....

    There are many publications that have pointed out the flaws of Parker on personal level (multiple DUIs is sickening, something you would agree on if one of your closet firends was killed by a drunk driver) and professional along with about a half dozen other issues with this merger (old fleet again, doesn't fix Asia, total mess merging cultures and service approaches, destroying huge loayl AAdvantage FF base, etc) that give it as much chance to fail as to succeed. But for some reason employees are blinded by one thing and one thing only: this mangement team and Horton have been here forever (false, as E has pointed out, there has been a lot of change) and they are the devil and must go at all costs.

    Hopefully, you didn't chop of your nose to spite your face.

    BTW, if you love this merger idea so much, then send some roses to Tom, because it was his idea that he floated to Parker more than a year ago......

    Cheers,
    777 / 767 / 757
     
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  3. WorldTraveler

    WorldTraveler Corn Field

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    so true.... so true.

    This merger is about nothing more than the UCC getting as much of a window to cash out as quickly as they can so they can run for the hills with their money as fast as they can.

    No one should have any delusions that the UCC has completely kicked AA mgmt. to the curb in this merger; it is a complete vote of no confidence in how the 10 years have been handled.

    But it still doesn't mean that this is the solution that AA needed or employees really want.
    It just means it is the next best alternative.

    No more.

    A once greAAt airline has come to the end of the road - or runwAAy.
     
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  4. Bob Owens

    Bob Owens Veteran

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    Why wait?
     
  5. Super FLUF

    Super FLUF Senior

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    You are a drama queen.

    You remind me of a cliche villain in a movie pointing his finger and screaming "YOU WILL RUE THE DAY!!!"

    The rest of us are moving on with a management team that wants to run a kick ass airline.

    You can sit and pout in the corner with ToHo.
     
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  6. AANOTOK

    AANOTOK Veteran

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    Goodbye, AMR – You’re headed for the boneyard

    http://aviationblog.dallasnews.com/2013/02/goodbye-amr-youre-headed-for-the-boneyard.html/
     
  7. robbedagain

    robbedagain Veteran

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    777 do you have a link where tom had come up with the merger? as a us employee i always thought parker came up with the idea to be honest. there was an interesting article on www.justplanenews.com yesterday that did mention that early on us was close to droppin the merger but with help from the lawyers and their associates it quickly became a set up and by jan 31 it was all but announced
     
  8. 700UW

    700UW Corn Field

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  9. AAviator

    AAviator Veteran

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    Pointless if its not profitable with the new cost structure.
     
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  10. 700UW

    700UW Corn Field

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    CLT is one of the lowest costing airports to operate from.
     
  11. AAviator

    AAviator Veteran

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    I wasn't talking about airport cost. In fact, thats not changing.

    I'm talking about the new, much higher LCC/New AA cost structure.

    You know the new airline LCC is part of?
     
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  12. 700UW

    700UW Corn Field

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    You can say that about EVERY city the new AA will fly to and from.
     
  13. 1AA

    1AA Veteran

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    CLT or ORD? Which one will bring in more revenue?
    AA had Nashville and Raleigh for a while. Nashville was dehubbed.
    Later on Raleigh was also dehubbed because we picked up Miami.
    I see Cleveland gone as a hub.
     
  14. 700UW

    700UW Corn Field

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    RDU and MIA have nothing to do with each other.

    Doug has even stated CLT will grow.

    I see PHL, ORD, DFW, CLT, DCA, JFK, LAX, MIA and LGA staying strong and maybe even growing, I see probably some DCA slots having to be given up, I see PHX as the causality in this merger.
     
  15. FWAAA

    FWAAA Veteran

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    Exactly. Airport costs for landing fees, terminal rents, etc. are miniscule compared to wage expense. Over at the US forum, there's a pilot (I think US East) droning on and on in every thread that he just got a raise of $4k per month. The USAPA told its members that its MOU will cost Parker $1.6 billion over six years, or an average of $267 million each year. Plus the improvements to the FAs, mechanics, fleet service, agents, etc. Once the new wage structure kicks in, it's possible that CLT could pay the new AA $5 for every passenger enplanement and it wouldn't make money there.
     

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