American looking to "right-size" the company and staffing levels for the Fall and 2021

swamt

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Oct 23, 2010
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Who would you put merging with AA? Or even UAL?? Or would a Delta/SWA merger be easier as they are the two strongest as far as balance sheets and available $$$ to do the mergers???
I still just don't think the regulators would like it and still say they would more than likely request way too much dumping of routes, flights, and other assets to make it doable for 2 of the big 4 to combine. But, never say never...
 

Insp4

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May 27, 2016
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Who would you put merging with AA? Or even UAL?? Or would a Delta/SWA merger be easier as they are the two strongest as far as balance sheets and available $$$ to do the mergers???
I still just don't think the regulators would like it and still say they would more than likely request way too much dumping of routes, flights, and other assets to make it doable for 2 of the big 4 to combine. But, never say never...
Who said anything about a "merger"?
 

swamt

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Oct 23, 2010
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Who said anything about a "merger"?

Really?
The article YOU posted mentions it, discusses it, and even list AA and UAL as the two main ones. Here are some para's from YOUR posting that mention merger/consolidation, mash together, combining ect...


Airline mergers aren’t easy. Unionized workforces that rank pilots based on seniority, for example, make it hard to mash companies together. And competition regulators don’t like it when too much power ends up in the hands of too few players, though U.S. antitrust authorities have permitted some industries, such as mobile telephone operators, to concentrate to just three players.

But consolidating makes financial sense. Most other countries have a single flag carrier implicitly or explicitly backed by the state. America doesn’t, but pandemic bailouts have made the Big Four quasi-government-owned, giving the public a stake in their future. And merging hasn’t worked out too badly for consumers so far. Ticket prices adjusted for inflation have halved since 1995, when America’s skies were awash with carriers, according to the Bureau of Transportation Statistics.

American, which has lapped up $13.5 billion in taxpayer cash, is in the worst position. United is next but with debt levels only half as daunting.

A deal may be better for taxpayers than restructuring. One between American and a rival might mean ditching routes. Shareholders of the healthier partner may balk at taking on added problems. But cheap government funding could help.

And regulators also have a history of turning blind eyes to competition concerns during a crisis, such as in 2008 when JPMorgan bought Bear Stearns and Bank of America scooped up Merrill Lynch. If the alternative is bankruptcy, a merger stamped by the government can’t be ruled out.

Bolding highlighted by me.
 

Insp4

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O.K. But as someone who worked for two different Airlines, I think I understand about mergers! Been there!
 

dfw gen

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Dec 1, 2011
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I do not believe the govt would allow DL UA or AA to merge. May be some of the smaller airlines will.
i agree. its a pickle they allowed who is too big to fail? piece out? will be interesting how it plays out over the next few years. Americans debt and pension liabilities lend a new dimension (pun intended) since uniteds pension have already been dumped and aa's hasnt if they liquidate wil the government be willing to take it over? will they allow a mega merger? or will things turn around?
 

swamt

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Oct 23, 2010
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O.K. But as someone who worked for two different Airlines, I think I understand about mergers! Been there!

Never said you didn't, and not implying as such.
I just answered your question about who said anything about mergers.
Been thru a couple myself, really don't want to go thru another one at this time, but I have no control over that.
My kinda whole point on these rumors and merger talks is that they are starting ti pick up a bit in the news media now...
 

swamt

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Well well, and now we have a decision about AA and JB tie up. The first step hurdle is cleared for take off. Could this be a jump start for a possible AA JB meger? The article says they agreed to give up some slots but doesn't say how many and/or if it includes other airports besides JFK. Interesting. This was filed for back at mid 2020. SWA and Spirit were the 2 most outspoken against this tie up so curious to what they had to give up. Anyone in the JFK area have more details???

https://www.google.com/url?rct=j&sa...VuOlVT&usg=AFQjCNG6X8CjjSFaUsBVysVa0z5Ce2ls4w
 

V.O. Reason

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May 3, 2019
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Well well, and now we have a decision about AA and JB tie up. The first step hurdle is cleared for take off. Could this be a jump start for a possible AA JB meger? The article says they agreed to give up some slots but doesn't say how many and/or if it includes other airports besides JFK. Interesting. This was filed for back at mid 2020. SWA and Spirit were the 2 most outspoken against this tie up so curious to what they had to give up. Anyone in the JFK area have more details???

https://www.google.com/url?rct=j&sa...VuOlVT&usg=AFQjCNG6X8CjjSFaUsBVysVa0z5Ce2ls4w


I know AA gave up some LGA and JFK slots this is curious but it is a part of lowering cost for AA and shrinking somewhat.
AA is going to concentrate on DFW and CLT to grow over this year and next
International traffic isn’t going to come back this year so domestic as well as some island leisure traffic is where the focus has to be