JetBlue playing hard to get?

[Hopeful]

http://finance.yahoo.com/news/jetblue-shuns-amr-merger-talks-040100628.html

 

[wings396]

Seems like they are flat out just not interested just like AS. If you are playing hard to get, there would at least be some flirting going on.

 

[Hopeful]

Seems like they are flat out just not interested just like AS. If you are playing hard to get, there would at least be some flirting going on.

Yes, but it seems obvious that US is not the preferred partner. JetBlue gives AA a stronger presence in JFK. Actually makes more sense.

 

[wings396]

Really, and do you forsee a merger with B6 saving any mtc jobs at all? US isn't the preferred partner because your leader, Mr, Horton won't be able to fill his wallet following BK if US takes control. You do realize that Tommy Boy does have interest in US, but wants to purchase them, and in that case EVERYONE will be stuck living under your BK contract for 6 years...
Think first, post second....

 

[Hopeful]

Really, and do you forsee a merger with B6 saving any mtc jobs at all? US isn't the preferred partner because your leader, Mr, Horton won't be able to fill his wallet following BK if US takes control. You do realize that Tommy Boy does have interest in US, but wants to purchase them, and in that case EVERYONE will be stuck living under your BK contract for 6 years...
Think first, post second....

I got news for you...US air alleged proposal to the TWU TEMPORARILY saved jobs.
Right, Parker will shut TULE so quick after the 2 year so called "PROMISE.", your head will spin.

I could picture it now....the former AA guys having a frozen pension working alongside the US guys with a terminated pension.

How long before Parker takes yet another trip to the BK court to remedy that?

Your opinion and prediction is no more or less valid than mine or anyone else's.

 

[DCaf]

Jetblue may fear the staple. Junior workforce. AA would love to merge with them.

 

[WorldTraveler]

B6 isn't interested for some very basic reasons... they have a business model that works and that is distinctly different from the other network carriers. B6' board and investors would be taking a very big risk to take on a company that - even if it worked well - works very differently than B6' business model.

But the reality is that AA doesn't work well - and that is even more risk for B6.

B6 probably would be interested in acquiring parts of AA that are small enough relative to B6 today so that B6 could control the outcome.

A merger between AA and B6 is just not in the cards, regardless of who does the buying and is in control long-term.

 

[Hopeful]

Whether or not it's in the cards, I am sure AA is exploring all possible merger prospects. Of course most will not bear fruition.

 

[1AA]

B6 isn't interested for some very basic reasons... they have a business model that works and that is distinctly different from the other network carriers. B6' board and investors would be taking a very big risk to take on a company that - even if it worked well - works very differently than B6' business model.

But the reality is that AA doesn't work well - and that is even more risk for B6.

B6 probably would be interested in acquiring parts of AA that are small enough relative to B6 today so that B6 could control the outcome.

A merger between AA and B6 is just not in the cards, regardless of who does the buying and is in control long-term.

Inside information says otherwise. A meeting between the company and the pilots union a week or so ago discussed having similar contractual issues as Jetblue. I think they called it parity. JetBlue is a stronger argument than USAir. Less complications to deal with and it would be less of a hurdle to get approved by the DOT or DOJ or whoever has their say. Seniority issues will probably be a dovetail. It seems to be the norm these days.

 

[WorldTraveler]

It's not a labor issue... it's a business plan issue.
As much as you or anyone else want to argue otherwise, B6's business plan has been more successful over the past 10 years than that of any of the network carriers.

I am sure AA mgmt would like to think they can make it all work - they have been competitively backed into a corner competitively and are looking for some solution to get back into the game after fighting w/ labor for a decade while their competitors have moved forward.

But it doesn't change the fact that some of the best options for AA - AS and B6 - are independent companies that do not want anything to do with mergers with ANYONE - and they have ample evidence that their boards have looked at to come to that conclusion.

Unless AA wants to engage in hostile takeovers - which never turn out well in a customer service industry - they have to work w/ carriers that are are open to merging with AA.

 

[wings396]

I got news for you...US air alleged proposal to the TWU TEMPORARILY saved jobs.
Right, Parker will shut TULE so quick after the 2 year so called "PROMISE.", your head will spin.

I could picture it now....the former AA guys having a frozen pension working alongside the US guys with a terminated pension.

How long before Parker takes yet another trip to the BK court to remedy that?

Your opinion and prediction is no more or less valid than mine or anyone else's.

Will JetBlue save any TWU jobs?

 

[eolesen]

Really, and do you forsee a merger with B6 saving any mtc jobs at all?

Actually, yes, I do. AA has in-house capability, and B6 never did. Most of the facility is a sunk cost, and with the right cost structure for labor, it might make sense to do some of the current off-shore overhauls on their A320 fleet in TUL.

The business models are different, but JetBlue has been converging towards the legacy carriers for a while. They just added a tier structure to their FFP, and the growth opportunities have pretty much leveled out. They're boxed in at JFK by slots, pretty much at max in LGB, and like VX, moving into Flyover Country means competing head to head against the hub carriers.

In some ways, it would complete the "B6 is PE" prophesy, in that they'd be gobbled up by a legacy carrier who tried hard to compete against them and eventually just bought them out...

Biggest risk would be the corporate culture. If there was a way to bring B6's culture to AA? It might work. And B6 has a pretty strong leadership team. If replacing AMR's leadership buys union peace, B6 is still the better choice. It provides reasonable growth in critical markets, and has benefits for both enterprises.

 

[Hopeful]

Will JetBlue save any TWU jobs?

I don't know...This whole topic is about AA and potential merger partners. All I said is that Jetblue would give AA a bigger presence in JFK....
But having said that. a merger with US would simply satisfy unhappy AA employees. That's all I see. I see nothing good for labor either way.

 

[wings396]

But your primarily concerns are lost TWU jobs correct?

 

[FWAAA]

Hopeful is capable of speaking for himself, but having read his posts for nearly a decade, I don't think his primary concern is saving maintenance jobs. He's an AMT in NYC, not Tulsa or Fort Worth. Higher wages for maintenance personnel and a stronger AA are probably higher on his priority list.

In any event, hats off to Hopeful for beginning a discussion that isn't centered solely on mechanics.