PLEASE, TELL ME WHY?

[777 / 767 / 757 Love]

As the title indicates, I'm tired of seeing anaylists who claim to be "experts" make claims without the basis of fact.

I want a non-emotional argument using FACTS, as to what US brings to AA that she needs. Then please explain how these necessary additions will out weigh the costs. DO NOT make the argument of bigger is better, without being ready to explain how Southwest and B6 manage to compete in the U.S. with the bigger boys.

Sorry, but as I look at this merger, and talk of using one management team or the other, I can't help but sit here and think, "Has everyone lost their minds?". Its almost like everyone is forgettting to look at the facts, and I keep seeing arguments that fly opposite of the facts.

Please, no emtoion, just facts.

Cheers,
777 / 767 / 757

 

[700UW]

Do we really need another thread discussing this?

 

[TWU informer]

Capacity and Competition reduction may be of value.

 

[wings396]

Please tell us why you are personally concerned about this possible merger? By admission, you don't work for the company, so what gives? Is a relative that once worked for AA really behind your motivation? A possible change in your FF bennies? Some current top brass ay AA getting ousted that you are cozy with?
Are you claiming to be superior in industry knowledge than some of the so called experts? Financial backers?

 

[johnny kat]

A revenue bump of aprox. 14 billion dollars. No matter how you slice it, 14 billion dollars, irregardless of how much more outlay it takes to achieve it, is still enough to put AA in a position to begin the long catch up process with the megas.

So, either get the revenue gap closed in a matter of months, or spend years just trying to get to the point of competing with DL and UA.

This nonsense of thinking that AA will make it because of a big airplane order or past reputation is hogwash. Money talks and bull$%it walks.

Any other questions?

 

[jersey777]

I think there are plenty of facts in the analysts reports. You just choose not to see them and come on here with your "Keep AA my AA" nonsense.

 

[wings396]

Sad thing is, that's It's not his AA.........

 

[FA Mikey]

I think the U employees quote BS and offer no answer. Did we expect anything out of the ordinary.

 

[wings396]

Great comeback Mikey-poo. Is that all that you've got? I read in another post that you left your beloved AA, is this true. If so, move along and enjoy life instead of wearing AA on your sleeve. They pretty much forced you out, so it should be clear just how much you meant to them. Wake up, and see large corporations for what they truely are today. Most employees realized this long ago, and are only onboard for a paycheck regardless who it comes from. Are the industry experts and financial people US employees? I guess that you prefer that Horton and his boys collect their payouts upon exit of BK.

 

[N288AA]

Its all about capacity restraint and pricing controll. This industry will go into another tailspin with 20% capacity being asded back in from the tomb stone markets.

 

[FA Mikey]

AA gets 70% of its revenue from 25% of its passengers. Or better put they get 30% of there revenue from 75% of the passengers. Given the choice who would you taylor an airline around?

There is no need to fly everywhere in order to gain market share like usair. It would be better served flying to the premium destinations where business people go or need to go. There are the facts.

 

[700UW]

US Airways nor any airline flies to everywhere, thats a fact!

According to another website, AA is pulling down LHR.

In APR BOS-LHR ends for at least three months.

 

[FWAAA]

US Airways nor any airline flies to everywhere, thats a fact!

According to another website, AA is pulling down LHR.

In APR BOS-LHR ends for at least three months.

That's made possible because of the profit-sharing joint venture between AA and BA for all Transatlantic flights. Parker would like in the UA/LH Star joint venture, but so far has not been invited.

 

[Bob Owens]

As the title indicates, I'm tired of seeing anaylists who claim to be "experts" make claims without the basis of fact.

I want a non-emotional argument using FACTS, as to what US brings to AA that she needs. Then please explain how these necessary additions will out weigh the costs. DO NOT make the argument of bigger is better, without being ready to explain how Southwest and B6 manage to compete in the U.S. with the bigger boys.

Sorry, but as I look at this merger, and talk of using one management team or the other, I can't help but sit here and think, "Has everyone lost their minds?". Its almost like everyone is forgettting to look at the facts, and I keep seeing arguments that fly opposite of the facts.

Please, no emtoion, just facts.

Cheers,
777 / 767 / 757

A merger would probably present more of an opportunity for the shareholders to recover their losses, thats why the so called "Analysts" are pushing for it. As an employee there really isnt any benefit. Have you ever heard from an employee at any carrier (except perhaps AirTran) who was glad that his company merged with another?

For us the only positives are that it could provide us an opportunity to get out of the ten year deals that were rammed down our throats and that those who did this may be gone.

 

[WorldTraveler]

Bob,
are you sure the FL employees are excited about being part of the WN merger? They were pretty fiercely independent before and many of them will never enjoy the fruits of the WN labor experience. Some will, sure, and will be better off than they were as FL employees but the number of those who are better off will be much less than the total number of FL employees before.

That's made possible because of the profit-sharing joint venture between AA and BA for all Transatlantic flights. Parker would like in the UA/LH Star joint venture, but so far has not been invited.

The JV provided a means to address the problem that AA had the lowest average fare among the operating carriers on the route, including the new entrant US carrier that got into the market because of the slots that were made available.

Given that AA was using 757s that had an inferior product to the widebody offerings of other carriers, it isn't surprising.

Undoubtedly what the announcement of AA's pulldown of BOS-LHR leads to is that AA will use the 757 for new flights to new markets where AA will be able to offer a true unique service, even if on the 757. Whether it happens by the summer of 2013 will be the question but AA/BA will finally use the slot advantage they have to start new service - perhaps to cities like BDL and CLE and others.

With the prospect of another JV involving LHR, AA/BA has to start moving - and that kind of competition is good for everyone.

As for the whole topic of AA/BA, after the number of mergers that the airline industry has seen, any employee should view them highly skeptically when it comes to employee benefits. Sure, capacity comes out of the system - but that is a very euphemistic way of saying jobs will be cut in order to force up yields; only if employees really beneft more than they would have otherwise do mergers help employees. Investors benefit for sure which is why Parker continues to press for the deal.... he knows who pays HIS check.

But people should also write out the list of all the promised benefits of the AA/US merger and realize there are far more promised benefits than their are resources to obtain those benefits... and the only way AA/US' list of benefits can be achieved is if AA/US both significantly start taking revenue from other carriers - something neither carrier has done for years independently. The only carrier where they have a decent chance of doing that is against UA - but UA is quickly turning their own problems around and it will take years for AA/US to be in a position to act jointly... so the promises of growing revenues by taking revenues from other carriers should be very carefully scrutinized