I guess in theory BA rescued USAir or maybe it was already USAirways......sorry it was a long time ago and my memory is getting shorter. I don't think that deal worked out too well for BA but who knows, it might work out well for AA.
Other suitors come out of the woods after AA
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SparrowHawk
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What surprises me is that it took this long for all the vultures circling the AA carcass to make themselves known.
I don't think Doug is going to be able to get AA for what he wants to pay. That's why I still think he should make a play for Frontier, buy the assets and not the people, close DEN, use MKE as US's Midwest hub and go about his business. IMO Frontier is headed for the dung heap and can be had for dirt. Fleet type is the same, not sure on power. Now you have an airline that is big enough to compete effectively. Apparently I'm a committee of one on this.
I don't think Doug is going to be able to get AA for what he wants to pay. That's why I still think he should make a play for Frontier, buy the assets and not the people, close DEN, use MKE as US's Midwest hub and go about his business. IMO Frontier is headed for the dung heap and can be had for dirt. Fleet type is the same, not sure on power. Now you have an airline that is big enough to compete effectively. Apparently I'm a committee of one on this.
Frontier brings no value what so ever to US . Last month Willie Walsh CEO of IAG had this to say .
In February, Willie Walsh, IAG chief executive, said Delta was likely to struggle to secure regulatory clearance to combine with American, because the merged entity would be so large.
However, a merger between American and US Airways, the fifth-largest US airline, would be “potentially a positive development”, Mr Walsh said. Such a combination would have a better chance of obtaining regulatory clearance than one involving Delta.
US Airways is a member of the Star global airline alliance, and if it did merge with American, some people close to the situation said the combined entity would probably choose to be a OneWorld member.
blue collar
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Funny. I remember the same being said about US. Maybe you and AAviator are more alike than you think
Well , I guess it does sound something like AAviator might say but What US needs is more international presence . Not a bunch Airbus aircraft .,Frontier does not provide that for US . We do not need a DEN hub . UA has that covered . WE need hubs where we are the no 1 carrier there . AA brings US a lot more value than FR. That is why US is actively persuing AA . Does US bring value to AA ? In the past I am gonna say no . But now I think it does . It will help make AA a huge player in the US airline landscape . Giving them the east coast presence they need and having being able to compete effectively with DL and UA . One can argue that JetBlue can provide that. I believe they can but does Jetblue want to be a part of AA is the question . You just never know in this industry . None of us know what these CEO's are planning behind closed doors. Its sure if fun to speculate and argue about it though lol!
crazystnic
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There will be many twists and turns and many suitors. Patience. Bottom line no labor support from us without a solution to all our problems. Senority and contract
USA320Pilot
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In my opinion, IAG would like to have both AA and US in the oneWorld alliance. This would provide more code share opportunity and weaken the Star Alliance. Furthermore, IAG may be working with both AA and US to put together a deal.
Phoenix
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I just don't get it... in any prospective merger tectonic sums of money will shift and cause economic shockwaves into untold numbers of vendors, leasers, labor groups, pension funds, unemployment lines, and the taxpayers.... why do folks parrot such sugar coated terms as "work together".
I think because "we are going to bend you over a barrel and screw you right through your corduroy pants" tends to be offputting to some although it is more likely the truth in many mergers.
Perhaps, who knows what goes on in the head sheds, but BA didn't really feel the love the first time around with US, did they?
Phoenix
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Yeah, I get why the talking heads use obscured platitudes, but I don't get why those wearing corduroy pants parrot the talking heads... but then our most prolific pollyanna poster wears corduroy pants and has always styled himself as a talking head.
wings396
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I don't know for certain, but seem to think the the Wolfe Pack may have put an end to it. I don't recall the years that US was hooked up with BA anymore....
Phoenix
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BoB Crandall Interview
Is AA gonna have to accept the idea of joining with LCC or other suitors? An interview with Bob Crandall adds to the mix...
Bob Crandall and Peter Greenberg talk with Charlie Rose about the Airline Industry, and of course American comes up… BoB Crandall Interview
A couple highlights of the interview..
-- Crandall thinks AA declared bankruptcy 8-10 years too late (let the competition get too far ahead)
-- and have suffered enormous, unbearable cost disadvantages
-- lost about $1B a year
-- in order to compensate for the cost disadvantage with their competitors they had to retreat from many of their routes in which they could not compete well….
Charlie Rose asks, Can they survive as a standalone?
Greenberg says, "They have been at an incredible disadvantage for the last eight or nine years. I think the answer is, no."
Crandall says, "I am inclined to think American can if it does the right things. The big problem is they have lost so much money and route structure in the last ten years, the real question is do they have enough financial vigor to go forward and remain competitive… I certainly hope they will."
The Pied Piper has a big bill due…. and (big surprise) it exceeds the combined value of the labor pensions.
The real question... is there enough fat to be trimmed and enough opportunity for revenue growth inherent to a revised AA system in order for it to catch up on its own? Bob Crandall hopes so.
Is AA gonna have to accept the idea of joining with LCC or other suitors? An interview with Bob Crandall adds to the mix...
Bob Crandall and Peter Greenberg talk with Charlie Rose about the Airline Industry, and of course American comes up… BoB Crandall Interview
A couple highlights of the interview..
-- Crandall thinks AA declared bankruptcy 8-10 years too late (let the competition get too far ahead)
-- and have suffered enormous, unbearable cost disadvantages
-- lost about $1B a year
-- in order to compensate for the cost disadvantage with their competitors they had to retreat from many of their routes in which they could not compete well….
Charlie Rose asks, Can they survive as a standalone?
Greenberg says, "They have been at an incredible disadvantage for the last eight or nine years. I think the answer is, no."
Crandall says, "I am inclined to think American can if it does the right things. The big problem is they have lost so much money and route structure in the last ten years, the real question is do they have enough financial vigor to go forward and remain competitive… I certainly hope they will."
The Pied Piper has a big bill due…. and (big surprise) it exceeds the combined value of the labor pensions.
The real question... is there enough fat to be trimmed and enough opportunity for revenue growth inherent to a revised AA system in order for it to catch up on its own? Bob Crandall hopes so.
