U.S. air deal seems unlikely

[bigjets]

US Airways Merger Wouldn't Help AMR, Transportation Expert Says



http://www.thestreet.com/story/11779680/1/us-airways-merger-wouldnt-help-amr-transportation-expert-says.html?puc=yahoo&cm_ven=YAHOO

A significant group of financial creditors of bankrupt American Airlines said it would​

support a stand-alone carrier after bankruptcy only if there were to be a new board of directors - and key stakeholders, including labor, were part of the selection.​

http://www.philly.com/philly/business/breaking/20121130_American_Airlines_creditors_call_for_replacing_board.html

 

[jersey777]

This sentence from the article pretty much sums up the "expert's" bias..........."Gellman has consulted for AMR in the past."

 

[bigjets]

I agree with the fact that USair doesn't offer much to AMR except Philly, Charlette, and PHX. I believe the real addition to AA is Jetblue with their routes in JFK, BOS, FLL, Long Beach, and SJU.

I'm not sold on USair's management, they can't come up with an agreement with their own unions and yet they are making promising to our unions, and 7 years later they are still not integrated with America West.

What happens when the APA and USair pilots union try to hammer out a contract?

 

[FWAAA]

Today, AA and the UCC filed a joint motion to extend AA's exclusivity period to file a plan of reorganization to March 11 and for solicitation of acceptance of the plan to May 10:

http://www.amrcasein.../5479_15463.pdf

US would give AA a lot of strengh in PHL and DCA. What the "AA must merge with US to survive" crowd never mentions is how DL is thriving despite having no strength in PHL or DCA. How does UA thrive despite having no strength in PHL or DCA (UA does have a hub in the suburbs at IAD).

And the chorus typically asks how AA will thrive if it cannot connect those numerous RIC-JAX customers? Well, how does UA thrive without a southeast hub? UA's closest hubs are IAD, ORD and IAH, with a huge gaping hole in the southeast. How does UA survive without a CLT-like hub?

 

[WorldTraveler]

and UA's IAD has 85 mainline flights scheduled today; of that number a very high percentage compared ot other hubs are int'l flights.

But UA does its codeshare abilities on US to fill its presence in the SE just as CO used DL until DL decided that it was hurting DL's business in NYC to allow CO to codeshare in the SE on DL.

No region of the country is immaterial but I would dare say that AA's greatest needs are beefing up its presence on the Atlantic and Pacific far more than increasing its presence in the SE. In a number of east coast cities that are neither AA or US hubs, AA has a larger presence than US.

 

[AAviator]

fingers crossed

 

[Slopoke]

Stand alone, now that is the ticket.

 

[Frank Szabo]

Today, AA and the UCC filed a joint motion to extend AA's exclusivity period to file a plan of reorganization to March 11 and for solicitation of acceptance of the plan to May 10:

http://www.amrcasein.../5479_15463.pdf

US would give AA a lot of strengh in PHL and DCA. What the "AA must merge with US to survive" crowd never mentions is how DL is thriving despite having no strength in PHL or DCA. How does UA thrive despite having no strength in PHL or DCA (UA does have a hub in the suburbs at IAD).

And the chorus typically asks how AA will thrive if it cannot connect those numerous RIC-JAX customers? Well, how does UA thrive without a southeast hub? UA's closest hubs are IAD, ORD and IAH, with a huge gaping hole in the southeast. How does UA survive without a CLT-like hub?

Methinks this is a case of spouting the same crap often enough that it'll be believed.

The primary issue is to get one's employees behind the "management" - you know, the "most important asset"? So far, that's not been a priority of Horton's and not doing so increases the probability of his failure to maintain control.

Unfortunately, his ego won't allow him to do anything else.

 

[robbedagain]

the question should be this: lets say amr emerges from ch11 and then post a few more heavy losses how long til they are right back in ch11 crying wolf how they need to rape the employees more for lower costs and cost and everything else?????

 

[TWU informer]

What the US/AA merger offers is reduction in capacity after overlap elimination.

Keep the capacity as it is as someone will return to BK court soon.

Elimination of available seats is what needs to happen and always has been the issue.
Given the Government Corprate Welfare Bailouts and the BK law this isn't an industry operating in a Capitalist Society, it is some form of hybrid BS.

Merge, remove the capacity, and every airline will be better off, including AA.

 

[AAviator]

the question should be this: lets say amr emerges from ch11 and then post a few more heavy losses how long til they are right back in ch11 crying wolf how they need to rape the employees more for lower costs and cost and everything else?????

How about give the stand alone plan a shot? What if AA doesn't lose money, but makes money?


Its not like Parker will ever say no to a merger with AA at a later date..... Like he's going anywhere.....

 

[FWAAA]

Its not like Parker will ever say no to a merger with AA at a later date..... Like he's going anywhere.....

Don't you remember a few months ago when Parker said that if AA didn't merge with US soon, US wouldn't wait around forever and that if AA waited too long, US might hook up with (imaginary) Prince Charming? 😀

 

[johnny kat]

Ha Ha, now wouldn't that be a laugh. AA emerges as a stand alone. US is then split between UA and DL. I've seen this play out sooo many times before. Anyone remember when DL imagined itself hooking up with CO, NWA was everyones step child no one wanted to touch, then all of a sudden NW is history and merged with DL. Then there was CO who touted itself as being the top airline for service and laughing as UAL went through BK. Puff...all of sudden UA and CO are married.

The moral of story here is US may not be the prettiest but she may make great soup for the right partner. More than a few analysts have suggested that UA and DL still have room to grow through a merger. And if that happens want that be a laugh for AA? Or, maybe not. Laugh all you want but US is still a very valuable franchise regardless of the outcome.

 

[MCI transplant]

Everyone talks of US, and even Jet Blue, but what about little ol' Alaska Air? -------Nothing?

 

[WorldTraveler]

AS does nothing to solve the strategic needs AA has except for on the west coast. Given that DL has built an int'l hub on top of AS' SEA domestic hub, it is likely DL put in place protections sufficient to ensure DL's continued feed or require AS to pay significant penalties.

Besides, AA is a very expensive airline due to their strong financials. They are worth over $2.5B which is about 40% of the market value of WN and about 30% of the market value of DL which is the US airline with the highest market cap.

AS' high market cap probably means it will never be bought out by anyone else and will only merge when its current plan no longer works.

They are a very long ways from that happening.