AA and US Merge?

[Maark767]

I remember it differently. US made the leap from "major carrier" to low cost carrier. That's what saved US. That's why US isn't on the brink of bankruptcy and is doing fine as a stand alone. On a side note US is a "major carrier" even though it is a LCC. Admittedly a dysfunctional major carrier just the same.

Major carrier with "300 airplanes and a very limited network"? Not so...... I guess filing BK twice has it's advantages .

 

[jimntx]

AA will settle with the pilots before the jets come, thats a given. There will be no LOA when it comes to rates of pay. Both sides know that will never happen.
Management will toy along until they absolutely have to sign.

As the old saying goes, from your lips to God's ears. (Though the company has tried to get a pay rate LOA, the pilots are standing firm at this point..."Arpey, you can put the rates of pay for the new equipment on Page 1 of the NEW contract.")

 

[eolesen]

Yes, US is considered a major. It's a flawed naming convention -- any airline with more than $1B in revenue is ranked as a major.

US Air earned just under $12B last year, and makes them about half the size of AA in terms of both aircraft and revenue.

It's really not even worth continuing the discussion of a merger or an acquisition.

 

[Maark767]

Yes, US is considered a major. It's a flawed naming convention -- any airline with more than $1B in revenue is ranked as a major.

US Air earned just under $12B last year, and makes them about half the size of AA in terms of both aircraft and revenue.

It's really not even worth continuing the discussion of a merger or an acquisition.

I guess AA needs US.... Looks like a done deal. Once AA files and guts the contracts and creditors we do shall shine again.

 

[johnny kat]

Yes, US is considered a major. It's a flawed naming convention -- any airline with more than $1B in revenue is ranked as a major.

US Air earned just under $12B last year, and makes them about half the size of AA in terms of both aircraft and revenue.

It's really not even worth continuing the discussion of a merger or an acquisition.

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The word Arogance comes to mind. The last time I checked $12B was still alot of moola. So, according to your logic it is better to earn $24B instead of $36B. Although. I certainly hope there will never be a merger between the two, it is hard to ignore what that kind of revenue represents. At present both companies are small shrimp compared to DAL and UA/CO. Maybe it would be better for AMR to be busted up and sold off to highest bidder.

 

[Maark767]

Yes, US is considered a major. It's a flawed naming convention -- any airline with more than $1B in revenue is ranked as a major.

US Air earned just under $12B last year, and makes them about half the size of AA in terms of both aircraft and revenue.

It's really not even worth continuing the discussion of a merger or an acquisition.

_____________________________________________________________________________________________________________________________________________

The word Arogance comes to mind. The last time I checked $12B was still alot of moola. So, according to your logic it is better to earn $24B instead of $36B. Although. I certainly hope there will never be a merger between the two, it is hard to ignore what that kind of revenue represents. At present both companies are small shrimp compared to DAL and UA/CO. Maybe it would be better for AMR to be busted up and sold off to highest bidder.

If US could survive , AA surely will survive.

 

[paul1]

If US could survive , AA surely will survive.

not so sure what pan am and eastern

 

[LUVJAMESC4EVER]

http://www.thestreet.com/story/11275434/2/does-slot-deal-impact-us-airways-merger-hops.html

In terms of the assets brought to such a merger, Rederer added, American's hubs in Miami and Dallas and US Airways' dominance at National are "terrific" assets, while the hubs in Chicago and Charlotte are "decent." As for global alliances, he said, "US Airways has no place in Star Alliance and probably should move to Oneworld even without an American merger."

 

[LUVJAMESC4EVER]

http://www.portfolio.com/business-travel/2011/10/12/american-airlines-troubles-suggest-possible-bankrutpcy-or-takeover/index.html
"Even to mention [AMR] in the same sentence as US Airways is a nightmare," one former American Airlines executive told me the other day. "We used to get a lot of mileage out of being seen as the big bullies on the block. Now [American] is being pushed around by 97-pound weaklings. And don't think the weaklings aren't getting a lot of psychic satisfaction out of it."

Read more: http://www.portfolio.com/business-travel/2011/10/12/american-airlines-troubles-suggest-possible-bankrutpcy-or-takeover/#ixzz1adHUGQXm

 

[LUVJAMESC4EVER]

http://www.smartertravel.com/travel-advice/what-to-expect-when-american-files-for-bankruptcy.html?id=9257289&source=91&value=2011-10-12+00%3A00%3A00&u=3727A65D0E&nl_cs=9121041%3A%3A7597281%3A%3A9257289%3A%3A

American will likely do what all of its big "legacy" competitors have done, some more than once: File for Chapter 11 bankruptcy, "clean up" its balance sheet, eliminate many potential losses, and continue flying with an improved cost structure.

 

[BoeingBoy]

I remember it differently. US made the leap from "major carrier" to low cost carrier. That's what saved US.

I guess that's one way to look at it. High cost bankrupt US merged with low cost not bankrupt HP to produce a not quite as high cost LCC. The new investment money the merger brought in is what made the difference.

That's why US isn't on the brink of bankruptcy and is doing fine as a stand alone.

The old US didn't survive as a stand alone. The new US - LCC, a product of a merger - is holding it's own for now.

Jim

 

[Rookie Jr]

I guess AA needs US.... Looks like a done deal. Once AA files and guts the contracts and creditors we do shall shine again.

Not a done deal, thankfully. It is true that AA may need US, just as US needed AWA. It is also true that US does not need AA just as AWA did not need US.

You may question whether US is a major, and that's fine, but right now US is not the endangered airline, AA is. Most of us at US have been through (still going through) the turmoil of a merger. Not pleasant. Not anxious to repeat. Glad to let AA fix its own mess. Or not.

 

[Rookie Jr]

If US could survive , AA surely will survive.

Maybe, maybe not, considering the current economy. Negotiations with your pilot group could make or break this thing. Might want to stow your arrogance for a while.

 

[Maark767]

Maybe, maybe not, considering the current economy. Negotiations with your pilot group could make or break this thing. Might want to stow your arrogance for a while.

You spelled it wrong.... AArrogance.

 

[Maark767]

Not a done deal, thankfully. It is true that AA may need US, just as US needed AWA. It is also true that US does not need AA just as AWA did not need US.

You may question whether US is a major, and that's fine, but right now US is not the endangered airline, AA is. Most of us at US have been through (still going through) the turmoil of a merger. Not pleasant. Not anxious to repeat. Glad to let AA fix its own mess. Or not.

I hear you..... We will see if AA can fix its problems, only time will tell. The fact that we are not in BK makes me feel that there is hope. Not looking forward to a merger.... the TWA acquisition was plenty for me.