Merger talks could resune in 2009

[leprechaun]

Why would AA spend $848 million (US's current market cap) to purchase US's stock, assume all it's debts (billions)

Cause me and that gnome chick from Wendy's are worth it baby!

 

[IberiaMAL]

In an American Airlines/US Airways merger, American would easily dominate DCA, LGA, and Boston. Chicago, Philadelphia, NYC, Boston, LA, Dallas, Miami, and Washington DC are some nice O&D markets to dominate.



I'm a visual person, so, here's some visuals of the markets where the big 3 airlines would dominate should they merge. I only marked where a airline dominates or is virtually tied. Hence why I didn't mark DCA, LGA, BOS, SEA, and LAX for Delta. Nor Milwaukee.

American airlines (Plus US Airways) I guess you can take LAS off the list. Southwest clearly dominates.



Delta


United (And Should Continental merge)

 

[BobbyBuckInAtlanta]

Very true on all counts.

I know a number of US employees and while, as the other posters in this thread, they claim hatred of AA, they always seem to bring up the possibility of a merger.

Funny, I never hear my AA friends talking about that possibility.

US, indeed, has few prospects as a standalone carrier.

HMM..I've been flying for US for 20 and a 1/2 year's and i have'nt heard of this HATRED for AA. I certainately abhor the way the TWA people were treated, and i don't relish the idea of an unlikely hook up with them, but HATRED is an awfully strong word here..

 

[ChockJockey]

HMM..I've been flying for US for 20 and a 1/2 year's and i have'nt heard of this HATRED for AA. I certainately abhor the way the TWA people were treated, and i don't relish the idea of an unlikely hook up with them, but HATRED is an awfully strong word here..

As long as the paychecks keep coming I don't care what logo I have to wear. Beyond that there is very, very little I or any other front line employee can do about this besides bracing for impact.

 

[aafsc]

Again, an AA US merger or acquisition would be of no benefit to AA or it's employees at all. US would bring nothing but problems. AA does not need another TWA.

 

[LGA Fleet Service]

AA isn't doing anything with anyone while all three of it's labor contracts are careening towards mediation.

 

[jeffster]

IF AA were interested in any US assets, the prudent move would be to let it die on the vine and then pick up the assets in auction, much as UA did with PA's South American authorities.

 

[gaucho99]

The only problem with that option is US is not dying anytime soon. We'll survive as a stand-alone carrier if no merger offers come about. I for one think a US-AA merger is a long shot but I do think it is something that both carriers would look into if UA-CO end up merging.

 

[wings396]

Agreed, if UA teams up with CO you will see more consolidation. It may not be who is the biggest, but lagging behind DL/NW and UA/CO in marketshare does matter to AA.

 

[aafsc]

Agreed, if UA teams up with CO you will see more consolidation. It may not be who is the biggest, but lagging behind DL/NW and UA/CO in marketshare does matter to AA.

If in fact market share is so important to AA, then they can expand organically or buy Airtan. Another possibility is they could get Frontier's hub in DEN if Frontier goes Tango Uniform. It would be better starting a DEN hub from scratch by bringing back planes from the desert and recalling/hiring off the street. If they were to buy Airtran, they would acquire new planes and the 717s would be the 100 seater that AA so desperately needs. AA DOES NOT NEED an airbus fleet whose interiors are held together by duct tape. Also, hubs in the desirable cities of DEN and ATL would allow AA to "keep up with the Joneses". Airtran would be rather easy to integrate into AA; as to where US would be cancerous to AA and it's employees.

 

[wings396]

I must disagee with you about the DEN Hub. If DEN were all that great of a Hub and O&D market. Bethune would have kept it a CO Hub. While Airtran may be somewhat attractive, they have nothing on the East coast in comparison to US. While I did say that marketshare is an issue, the main thing that is still hurting the industry is overcapacity. Airtran is operating in some very competitive markets, and all are being done so at LOW fares. Given that their operating costs are much lower than those of AA, trying to operate in their markets with AA's costs wouldn't be a good thing.

 

[ebwgs]

It really doesn't matter what labor or industry pontificators think about an AA-US hookup. The board rooms won't be calling either of them. And what may be cancerous to aafsc about a merger with US is that the labor groups are now legally precluded from arbitrarily stapling the labor groups at US to the bottom of the seniority lists. A law made necessary by their woefully unfair treatment of TWA. Thank God for McCaskill-Bond

 

[jeffster]

It is still my opinion that the US employees keep talking about a hook-up with AA because it is, in fact, their secret wish that it happens.

I don't have a horse in this race. Just stating my opinion based on what I have read here, and from friends who work for both carriers, and relations who work for AA.

AA would be making a major mistake to acquire US with its employees. US brings nothing to the table.

 

[NoMoreKoolAid]

I would rather get Herpes and a Staff infection at the same time, then die of malnutrition. Don't speak for this 19 year stew! AA = NO WAY! Rather work at BJ Wholesale as a jr salesperson.

 

[ebwgs]

It is still my opinion that the US employees keep talking about a hook-up with AA because..........

And that's all it is. Your opinion. Until you have some scientific polling information then you're merely pontificating here. I don't have scientific information, but I do have boots on the ground info, and AA is the one carrier most of the folks I'm acquainted with here with would NOT want to merge with. Trust me!