AA and US Merge?

This merger is about consolidation, and pricing power. The combined AA/US would have improved pricing power to the Caribbean for example. Consolidation would also produce better yields in the Florida north/south market.

It takes me to long to explain my view point on past "government over site" of this industry. But from 1980-2000, the bottom line is the industry was forced to compete at ridiculous levels, until labor was beaten into the ground in the name of cheap tickets. That is now complete and the Government has started allowing long over due consolidation.

In the end there will be fewer planes, fewer empty seats and higher airfares.

There still seems to be the idea that AA would come out on top. Really? Why in the world would US want AA as a whole entity? AArrogance, labor problems, poor industry customer service perception (not that I agree) and still the mess of the prior merger. In a bk situation (unless it is a pre-pack) all bets are off. If an acquisition is going to happen it has been planned for a long time (like the TWA acquisiton). The TWA deal was carefully planned so that ALL the financial warts were properly placed. From the outside it is deja vu....
 
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There still seems to be the idea that AA would come out on top. Really? Why in the world would US want AA as a whole entity? AArrogance, labor problems, poor industry customer service perception (not that I agree) and still the mess of the prior merger. In a bk situation (unless it is a pre-pack) all bets are off. If an acquisition is going to happen it has been planned for a long time (like the TWA acquisiton). The TWA deal was carefully planned so that ALL the financial warts were properly placed. From the outside it is deja vu....
FYI..... This "mess" that AA is in is only TEMPORARY. See you have to read between the lines. Once these contracts are signed, the new jets start coming and the BA/IB/JAL alliance is up and running, you'll see a new face of AA. All this doom is contract related. Mark my words!
 
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FYI..... This "mess" that AA is in is only TEMPORARY. See you have to read between the lines. Once these contracts are signed, the new jets start coming and the BA/IB/JAL alliance is up and running, you'll see a new face of AA. All this doom is contract related. Mark my words!
You're quite correct - the ink on the last contract signed won't be dry 'til they're spending money like drunken sailors (my apologies to the Navy guys out there - even the Marines).
 
Uncle Sam's Misguided Children are a branch of the Navy, you know ...
Now I am not a Marine, however the ones I have encountered have been very clear that the Navy just pays them and provides them transport. What was it the Lt. Kendrick told Tom Cuise in "A Few Good Men"? "NO, I like all of you Navy boys. Every time we'vegotta go some place to fight, you fellas give us a ride. :rolleyes:
 
Now I am not a Marine, however the ones I have encountered have been very clear that the Navy just pays them and provides them transport. What was it the Lt. Kendrick told Tom Cuise in "A Few Good Men"? "NO, I like all of you Navy boys. Every time we'vegotta go some place to fight, you fellas give us a ride. :rolleyes:
I was Navy and try not to miss any opportunities - went to Navy jet school in Memphis with quite a few of the Marines.
 
Yes the Marine Corps is part of the navy. But the squids understood that ther position in life was to be subserviant to the Marine Corps. :lol:
Yes, the Marines are a department of the Navy... The Mens Department....
 
i smell more like it

not looking good for American Airlines

http://www.reuters.com/article/2011/10/21/us-amr-shares-idUSTRE79K5QV20111021?feedType=RSS&feedName=globalMarketsNews&rpc=43


http://www.bloomberg.com/news/2011-10-21/amr-declines-after-morningstar-analyst-sees-bankruptcy-in-future.html?cmpid=yhoo


http://blog.chron.com/lorensteffy/2011/10/amr-usairways-the-next-airline-merger/

AMR-USAirways: The next airline merger?

Despite the struggles of United and Continental Airlines to complete their merger, other airlines can’t seem to resist the urge to merge. The United deal and the combination of Delta and Northwest has caused the lonely American Airlines to go from the biggest to third-biggest U.S. carrier.

On a conference call today, Tom Horton, the president of American’s parent company, hinted that American could be looking for a dance partner, according to SkyTalk’s Andrea Ahles.

In response to a question by TheStreet.com’s Ted Reed, Horton said that he believes there could be “further consolidation” in the U.S. airline industry.

“Does that include you?” Reed asked.

“Yeah, it could,” Horton said.

And just who might American be eying as a merger partner? Well, there aren’t that many candidates left. USAirways chief executive Doug Parker deflected the issue of a merger when it came up during an interview with a TV reporter earlier this week. Parker said the carrier remains a “happy stand alone airline.”

Oxymorons aside, US Air now finds itself in the basement of domestic carriers and if it hopes to compete it may need to get bigger. At the same time, the airline is still working out labor issues from its merger with America West six years ago. It’s not clear if American would want to absorb those problems just in hopes to getting bigger.

A merger like that might make the United-Continental combination look like a cake walk.


"American Airlines parent AMR Corp. (AMR) fell 6.6 percent, the fourth decline in six trading sessions, after a Morningstar analyst said he concluded that the company “will succumb to bankruptcy.”

The shares dropped to $2.69 at 4:15 p.m. in New York, capping a day in which they rose as much as 2.4 percent and fell as far 10 percent. Labor costs put Fort Worth, Texas-based AMR at a disadvantage to peers, and the carrier’s “viability is in jeopardy,” Morningstar’s Basili Alukos said in a report today. "

please don't kill the messenger
 
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Then, once and for all, AA needs to file already and move on....These analysts must all read each others reports and articles...
They are offfering the SAME opinions like parrots.

The only thing that will appease these ilks are screwing employees, take their pensions and screw creditors.

But of course, leave the executives be!
 
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Then, once and for all, AA needs to file already and move on....These analysts must all read each others reports and articles...
They are offfering the SAME opinions like parrots.

The only thing that will appease these ilks are screwing employees, take their pensions and screw creditors.

But of course, leave the executives be!

Of course their contracts are sacrosanct, one does not simply abrogate an executives contract, that is only for the hourly peon.I mean what would AA do without being able to retain the talent that has managed this airline into the ground these past few years?
 
AA is not interested in low fare florida north/south market. AA feeds from the north to our MIA hub ( Cornerstone Strag ).B6 has the looooow fare market all wrapped up. PHX ...... NOT something AA is interested.

Thanks for the info, Mr. Arpey.