UA/CO............ AA ?

[eolesen]

Are you kidding me? Have you been reading the news? Yes UA & CO are haggling over the valuation, but they are inching closer.

As for the rest it's already been decided. UAL will be the surviving name, headquarters will stay in Chicago, CO CEO runs the show, Tilton becomes chairman of the BOD. Even the pilots have publicly come out and said we stand ready to work with management to support the merger.

United's pilots support this because they see stability.

The CO pilots haven't commented from what I can tell. They're also in negotiations, and they're more contentious than AA & APA's if you can believe it.... I don't expect them to rubber stamp this one.

 

[777 fixer]

Once and for all(Finally) buy Alaska/Horizon !
SEA is a nice "locale" in my opinion, and could serve a multi-purpose.

Why, so AA could have the market cornered on remote Alaskan fishing villages? Alaska has nice little niche that seems to work for them but I don't really see how it would benefit AA. Besides, AA has tried twice buying west coast airlines with primarily north/south routes.

 

[BoeingBoy]

Why, so AA could have the market cornered on remote Alaskan fishing villages?

Actually, those "remote Alaskan fishing villages" are a pretty big factor in AS' financial performance since air or barge (coastal villages in summer only) is the only way to get to/from them, and why I personally think any "lower 48" carrier buying AS would probably screw the AS operation up inside a year. Between carrying passengers and cargo to/from those "remote fishing villages, AS has both carved out a successful niche for itself and made SEA a successful hub (along with ANC). Take away those "remote fishing villages" and you're left with just a mainly N-S airline with an out of the way hub for a lower 48 carrier. Another PSA or AirCal, in other words, and we know how they ended up..

Jim

 

[mrman]

If the trend of consolidation continues its been the little guys eating the big. See HP-US, Republic-Midwest-Frontier, even today it looks like CO with control CO-UA. Even back in the day it was Texas International that ate CO

 

[777 fixer]

Actually, those "remote Alaskan fishing villages" are a pretty big factor in AS' financial performance since air or barge (coastal villages in summer only) is the only way to get to/from them, and why I personally think any "lower 48" carrier buying AS would probably screw the AS operation up inside a year. Between carrying passengers and cargo to/from those "remote fishing villages, AS has both carved out a successful niche for itself and made SEA a successful hub (along with ANC). Take away those "remote fishing villages" and you're left with just a mainly N-S airline with an out of the way hub for a lower 48 carrier. Another PSA or AirCal, in other words, and we know how they ended up..

Jim

That's kind of what I was trying to get at. Alaska has a niche that works for them, those remote villages being an important part. But, and you seem to agree with me, it really would not benefit either AA or AK for them to merge.

P.S. Years ago I flew on Alaska out of one of those villages. Not many people on board but I'm sure they had the cargo pits packed.

 

[QQ3270]

That's kind of what I was trying to get at. Alaska has a niche that works for them, those remote villages being an important part. But, and you seem to agree with me, it really would not benefit either AA or AK for them to merge.

P.S. Years ago I flew on Alaska out of one of those villages. Not many people on board but I'm sure they had the cargo pits packed.

Alaska made money the first quarter and its been a while but anyways the only way this merger would work would be if Alaska's ceo took the # 1 job at the combined carriers because AA chief is an idiot.I fly them all time and live in the state of Alaska we have the highest fares and yields in the country or maybe the world and Alaska makes the money of the back of Alaskans to subsidize the west coast operation just look at the fares from Anc to sea 3 hrs flight then look at lax-JFK plus look at Alaska's stock price.All intrastate runs are subsidized by the state of alaska remember Juneau is the capitol can only get there by boat or airplane so Anc Jun by the legislators or FAI only by air for state business plus they get to keep those miles its crazy how muchAlaska Airlines makes money up here. I would love to see AA buy AS but only if AS management runs the show not AA's

 

[floatingon9]

Alaska made money the first quarter and its been a while but anyways the only way this merger would work would be if Alaska's ceo took the # 1 job at the combined carriers because AA chief is an idiot.I fly them all time and live in the state of Alaska we have the highest fares and yields in the country or maybe the world and Alaska makes the money of the back of Alaskans to subsidize the west coast operation just look at the fares from Anc to sea 3 hrs flight then look at lax-JFK plus look at Alaska's stock price.All intrastate runs are subsidized by the state of alaska remember Juneau is the capitol can only get there by boat or airplane so Anc Jun by the legislators or FAI only by air for state business plus they get to keep those miles its crazy how muchAlaska Airlines makes money up here. I would love to see AA buy AS but only if AS management runs the show not AA's

I agree with you. AA management is a bunch of idiots with no clue how to operate a successful airline. I wonder if a 3 way merger could go down with AA/AS/US???

 

[767jetz]

If the trend of consolidation continues its been the little guys eating the big. See HP-US, Republic-Midwest-Frontier, even today it looks like CO with control CO-UA. Even back in the day it was Texas International that ate CO

Not to split hairs, but CO is not "eating" UA. It is a stock swap with UA being the surviving airline and paying CO share holders with UA shares. CO's CEO stays in place (thankfully) at his new HQ in Chicago with the rest of the management team being a mix from both companies.

 

[eolesen]

Not to split hairs, but CO is not "eating" UA. It is a stock swap with UA being the surviving airline and paying CO share holders with UA shares. CO's CEO stays in place (thankfully) at his new HQ in Chicago with the rest of the management team being a mix from both companies.

Jetz, that's not what I'm hearing from people well connected @ WHQ tonight.... Yes, it's a stock swap, and Jeff's the CEO, but the definition of HDQ may not be what you think it is....

 

[damajagua]

I remember about 25 years ago when I started working on the airline industry
that eventually it would be three big airlines in the United States.
Delta, United and American. It seems like its beginning to look that way.
I do not think AA needs to merge with anyone to be a survivor. I do agree
that a new management at the top might be helpful. But I do not see AA
merging with usairways. Maybe jetblue if AA really got serious about
becoming the number one airline at JFK. But AA is big enough
that if it chose too it can just grow the airline internally and avoid
the whole mess of a merger. TWA was a disaster. Why make the
same mistake with usairways.

 

[Maark767]

I remember about 25 years ago when I started working on the airline industry
that eventually it would be three big airlines in the United States.
Delta, United and American. It seems like its beginning to look that way.
I do not think AA needs to merge with anyone to be a survivor. I do agree
that a new management at the top might be helpful. But I do not see AA
merging with usairways. Maybe jetblue if AA really got serious about
becoming the number one airline at JFK. But AA is big enough
that if it chose too it can just grow the airline internally and avoid
the whole mess of a merger. TWA was a disaster. Why make the
same mistake with usairways.

I agree... No need to merge. Let the others have the headaches. We have been there and done that. B6 will eventually feed our JFK growth and AA will hire off the street with lower labor costs and no senority drama. AA is big enough to play with the big guys just by itself. Mergers are just a big mess and it takes years and years to heal the wounds. No thanks !!!

 

[TWU informer]

I agree... No need to merge. Let the others have the headaches. We have been there and done that. B6 will eventually feed our JFK growth and AA will hire off the street with lower labor costs and no senority drama. AA is big enough to play with the big guys just by itself. Mergers are just a big mess and it takes years and years to heal the wounds. No thanks !!!

This plan work if we get a real business manager at the top and replace the consulting firm guru.

 

[wings396]

AA would dismantle AS's operation so fast your head would spin.

Moot point though, they aren't buying as much as a cup of coffee while crying poverty in mediated negotiations with all three unions.

Its' a shame that most of you over at AA view any/all mergers as an opportunity do dismantle the airline that you paid Millions to purchase. Maybe AA should try to capitalize on what they buy instead of ruining it. We can all see how well that has lead AA to profitability over the years. DL has been thru several mergers over the years, and have manged not to dismantle the airlines that they purchased. Not saying that some pruning didn't have to be done, but destroying what you buy is pure stupidity on AA's part.

 

[JFK Fleet Service]

Its' a shame that most of you over at AA view any/all mergers as an opportunity do dismantle the airline that you paid Millions to purchase. Maybe AA should try to capitalize on what they buy instead of ruining it. We can all see how well that has lead AA to profitability over the years.

It's a shame that most of you at other airlines think you know exactly how we at AA view anything.We know the history of this company with acquisitions being dismantled, we've had front row seats for the dismantling.

Speaking of dismantling, how is PSA these days? Oh right, my bad, I forgot you turned them into a commuter airline. :/

 

[wings396]

It's a shame that most of you at other airlines think you know exactly how we at AA view anything.We know the history of this company with acquisitions being dismantled, we've had front row seats for the dismantling.

Speaking of dismantling, how is PSA these days? Oh right, my bad, I forgot you turned them into a commuter airline. :/

Never said that I agree with what took place with the PSA operation. It was a stupid move, and I will be the first to admit it. That took place almost 20 years ago by a completely different management team, and airline for that matter. Just seems to me that AA folks assume that AA will dismantle this and that if they merge with anyone today. How have their past practices worked for them? Alaska has a good operation, and if AA would be foolish to buy and add it to their list of destroyed airlines it would be a huge mistake. It is very obvious that AA hasn't discovered a way to bolster their operation with assets that they have spent cash to purchase.