Delta Supports US AA Merger?

[AAviator]

The synergies are the same. Only an AA/US combo can compete effectively with UA and DL. You may be in denial but most airline industry analysts agree.

Solid...

We may take a look at history and recognize the fact that UAL and DL both passed on merging with LCC and are in superior shape because of those choices.

Sure there are analyst out there that stand to profit handsomely iF AA and LCC merge, but the bigger questions, those that go beyond liberal use of terms like "synergies" and "cost savings", are things nobody has been willing to talk about. Everyone keeps raising the "synergy" flag...

Sure. I've looked at all the power points, and data our union has available. There's all sorts of authors, hired guns, internal analysis.. But you know whats missing in EVERY one of them? The post merger network picture.

Parker has said every base/hub will remain in the network. And, how many of you believe that? How durable is a PHL international hub with JFK a stones throw away? CLT's Caribbean network with MIA 30% under capacity.. (Whoops, there's that underutilized asset thats a slot machine stuck on 777)

Once you start pecking away at any hub LCC has, the LCC network loses money generating capability.

Sure, Parker has said "I will not attempt a hostile take over again", but we all know better... right? 🙄

An AA+LCC merger will put a world of hurt on AA employees when an integration is complete.

B6 is the better choice for AA.

 

[AAviator]

Delta doesn't want American emerging with it's current management in place. Their plan will not only put AA back into eventual bankruptcy, it will also damage the industry as a whole. AA with Parker in charge would be a stronger competitor, but they know he will act responsibly and won't engage in a race to the bottom. Well.....unless it's a race to the bottom for pilot wages🙂

Bean

Bean, the last thing DAL wants is an AA that continues to raise revenue in the largest markets. DAL has a fleet replacement problem brewing. Post BK, a stand alone AA with lower costs, with the youngest most fuel efficient fleet in the industry, and the freshest product is what DAL is concerned with.

I'm surprised of your comments about damaging the industry as a whole.. What has LCC done to pilot wages and the industry as a whole with your continued buffoonery? The industry, and pilot wages in particular would look quite differently today if you guys weren't such and anchor to the profession.

Your thoughts?

 

[luvthe9]

Post BK, a stand alone AA with lower costs, with the youngest most fuel efficient fleet in the industry, and the freshest product is what DAL is concerned with.

Your thoughts?

And that is exactly what IS going to happen.

 

[firedougparker]

Of course Delta supports a US/AA combination, because it will reduce the supply of seats in the market, after the combined networks are rationalized (I.e. the redundancies eliminated). This shrinkage happened with DL/NW and UA/CO, and it will happen with your merger, too.

The reduction in the overall supply of seats is what caused yields to rise recently. A continuation of that trend would be a good thing.

GF
Delta

Right! And yet somehow Parker keeps selling his line that there won't be any "redundancies". Eliminating jobs and hubs is half the point of an airline merger. And yet so many of my colleagues have fallen for this hook, line and sinker.

 

[PITbull]

http://www.thestreet...solidation.html

This article does not IMO, give any kind of notion that DL is supporting a merger between AA and US. In fact, DL clearly states that they have no intentions of giving up any market share in Latin America as result of any merger.

The only support I see DL giving for a merger between AA/US is one that the CEO is probably thinking, but would never admit...that this type of consolidation whould be the demise of AA and US....

therefore, there is no threat to DL having to compromise any market share.

 

[wings396]

The demise of AA & US, really get serious already. It will hand Richard a stronger competitor to deal with. He would be a fool to give up anything as would any other airline.

 

[777 / 767 / 757 Love]

Delta (and UA) would probably love nothing more than for AA to become entangled in a merger with US. Sometimes competitors root for the competition to make foolish mistakes and this would be one of those times.

+1000000000

 

[777 / 767 / 757 Love]

The synergies are the same. Only an AA/US combo can compete effectively with UA and DL. You may be in denial but most airline industry analysts agree.

Most analysts don't know sh*t about anything..... What makes them an analyst? I spent many years on Wall Street and can tell you many so-called "analysts" are dumb as bricks.

Delta and NW were sick with no identity. US doesn't help AA get back to dominating NYC, nor does it help expand in Asia or South America.....it gives it PHX (oooooohhhhhhh, so attractive----note sarcasm) and the southeast (which in fact would be great). But it adds more old planes and makes many service initiatives by AA to take a back seat for half a decade while they try to organize their fleet and such. A new AA is meant to revolve around industry leading service and amenities like it used to be in order to attract more high value customers (like a 110, 3-class seat A-321 for transcons), and merger with US derails that.

This merger only happens if US comes up with enough money to get Management and the UCC of AA to throw common sense out the window as they ride off into the sunset with their fat pay-day.

If US was such a great asset why has every girl she asked to the prom gone with someone else.

Cheers,
777 / 767 / 757

 

[FlyUs]

You're right, 777. Not a lot of glamorous additions to the AA route structure from US but CLT(the South East) and lots of market share from many NE cities will make it competitive with a new UA and DL.

 

[wings396]

A bit of knowledge about the situation with DL may shed some light on this for you. While some will argue with me on this, DL was already working on their merger plans with NW behind the scenes when Parker came a knocking on thier door. We all know that Anderson from NW showed up shortly afterwards. A takeover by US obviously would have put an end to their plans.
Now on to UA. From what I understand, on paper US had to takeover UA in order to sidestep the US pilots COC contract language. The UA board became uncomfortable with some of the issues related to this, and passed on the deal. Had UA not had another option with CO, the outcome very well may have been different.

 

[wings396]

+1000000000

But they both survived the entanglement of a merger, didn't they?

 

[777 / 767 / 757 Love]

You're right, 777. Not a lot of glamorous additions to the AA route structure from US but CLT(the South East) and lots of market share from many NE cities will make it competitive with a new UA and DL.

AA doesn't need help in the NE, it needs help in NYC, something the merger simply doesn't do.

Cheers,
777 / 767 / 757

 

[777 / 767 / 757 Love]

But they both survived the entanglement of a merger, didn't they?

What on earth does them surviving the merger have to do with US-AA surviving? As I have pointed out both were in crisis with no identity.

Sorry, US just makes the AA fleet older, too diverse (see MUCH HIGHER maintenance costs), derails any and all planned service upgrades and destroys a brand (sorry, even DP knows AA is a stronger brand). Finally, UA/CO may have survived, but their service issues have driven countless of their top tier FF to switch to AA EXP program. So that merger has not gone as well as some would like to argue.

Bottom line, US has been thru 2 bankruptcies and needs AA more than AA needs US, that is of course unless half of the US fleet is grounded, half her employees are let go and basically AA just takes over.

Cheers,
777 / 767 / 757

 

[johnny kat]

777/767/757 Love,

We sure are gonna miss you. Maybe DL or UA or WN will provide you with the pampering you are so deserving of.

So once again we sure are gonna miss you and hope you will come back real soon.

Bye bye now, run along.

 

[wings396]

AA doesn't need help in the NE, it needs help in NYC, something the merger simply doesn't do.

Cheers,
777 / 767 / 757

You mean in NYC where it GAVE AWAY plenty to B6? Merge with them, so you can get back what you handed them on a silver platter, Yea that sounds like a plan.