AA sniffing a JV with RW on F9

[The Goose]

What you would save in fuel would not be worth the cost of a merger.

"We are American Airlines. We know the cost of everything and the value of nothing."

As long as any costs (either real or imputed) can be offset by the magic of GAAP, any loss of value to the company becomes immaterial (you've just gotta love accountiing).

It's the American way.

 

[MAH4546]

What you would save in fuel would not be worth the cost of a merger.

Buying out Frontier for $170M, getting new planes and eliminating competition? Um, yeah, that's an absolute bargain.

 

[777 fixer]

Buying out Frontier for $170M, getting new planes and eliminating competition? Um, yeah, that's an absolute bargain.

New planes that AA would have to spend money on spare parts along with training pilots, mechanics and FA's. As for eliminating the compeitition AA and Frontier only compete on four routes. On one of those routes Frontier flies into a different airport, MDW.

 

[eolesen]

Oh, yeah, let's have an almost exact repeat of Reno -- let AMR take a minority ownership stake or even total control, and let their pilots operate their aircraft while AMR pilots are on furlough.

Yeah, that would be a great idea, Mark. Really.

Sounds like it's already a done deal -- WN had to walk away because of the pilots unions (anyone still think they're totally in lockstep with the company?).

 

[MAH4546]

Oh, yeah, let's have an almost exact repeat of Reno -- let AMR take a minority ownership stake or even total control, and let their pilots operate their aircraft while AMR pilots are on furlough.

Yeah, that would be a great idea, Mark. Really.

Sounds like it's already a done deal -- WN had to walk away because of the pilots unions (anyone still think they're totally in lockstep with the company?).

From a business standpoint, yes, it works.

Maybe if unions would stop getting in the way of running a profitable business, we would have profitable airlines.

 

[700UW]

You got to be kidding? Unions saved AA and most other majors, get a clue.

 

[Mach85ER]

From a business standpoint, yes, it works.

No, it doesn't work from a business standpoint. Maybe an academic excercise for a B-school undergrad, but surely not in the real world.