Unsubstantiated rumor--merger talks in Dallas

[Smokin Cubans]

Talking with the "I.T." department today, there was a very "hush-hush" meeting in Dallas last week with big wigs from US and AA. They wouldn't reveal the topics discussed, but the entire "I.T" group is concerned. I'm sure what AA has for computer systems, but with Uncle Dougie being very vocal about mergers lately, somehting is happening at the sand castle. Besides, our stock has been going up. Anyone else hear anything different or new regarding this?

 

[BoeingBoy]

Besides, our stock has been going up.

That's a poor indicator of merger. Most of the legacy stocks have hit 52 week highs in the last week.

Jim

 

[FWAAA]

AA's hq is in Fort Worth, not Dallas. Southwest's hq is in Dallas. Maybe US and WN are doing a deal? 😀

 

[JAMAKE1]

Perhaps AA is being thrown into the mix to achieve a mutually beneficial slot swap transaction at LGA and DCA...

 

[bigbusboy]

Or, could be we are leaving Star Alliance and joining OneWorld...just my $0.02....assuming the OP is truthful and accurate....anonymously posting on a public message board. :unsure:

 

[wings396]

Something is going to happen when it comes to a merger, it's just a matter of who and when. So far UA and US are pro-merger, just not real specific about with who. UA is interested in CO, but CO isn't sure if they want to merge if UA or anyone else at this point. It's no secret that Doug wants to merge US with anyone that he can at any given point. I had always thought that US and UA would eventually hook-up, but that was prior to the UA/CO talks and the DCA/LGA slot swap with DL. At this point it appears that all is going well with the DL/NW merger, so look for others to jump on the merger bandwagon in order to be competititve with DL and their increased market share. I know all too well that those of, you from AA are dead set against a merger with US, but the ball is not in your hands when it comes to any type of a corporate decision such as this. IF UA&CO do merge, I can't see AA being left in a distant 3rd position for long. I don't want to open the flood gates of debate about what US does, or doesn't bring to the table for AA and so on. We have had that debate going on for some time already here on these boards. I personally would prefer to go with UA myself, but it's not up to a peon such as myself either. Only time will tell what will or won't unfold in this industry, but I would expect the ball to start rolling sometime this year 🙄

 

[Smokin Cubans]

AA's hq is in Fort Worth, not Dallas. Southwest's hq is in Dallas. Maybe US and WN are doing a deal? 😀

You are correct about the airlines' HQ's; but the meeting was in Dallas for a reason. It was keeping the AA people away from speculation. That's what we are being told. The meeting was in Dallas and not DFW.

 

[jimntx]

Do you know for a fact that the meeting was about a merger? For that matter do you know for a fact that there was even a meeting? Or, is this just what "someone in I.T. told me."

Are you aware that most US employees and customers who have to use your current computer system are unhappy with it? Are you aware that for several years AMR has had a new computer system under development to replace SABRE.

If you heard the rumor from your IT department, did you consider that the only reason they even heard of the meeting was that the topic of the meeting was computerized reservation systems? If it were a merger, seems to me the rumor would have come out of Finance or some similar department. From my years in IT, the IT department in any company is the last to hear of anything major unless it relates directly to IT.

Oh, wait. Maybe there's going to be a merger of computer systems and AMR will convert to your version of SHARES! Yeah, that's the ticket. 🙄

 

[Poug Darker]

AA hAAs a pAAcket of money AAvailable to them thAAt wAAsn't used to purchAAse JAL.
AAs I hAAve posted before, I speculAAte thAAt LCC is positioning to merge/be aquired by AA.
AA is strong in BOS, LCC is pulling out.
AA is strong in NY, LCC is pulling out.
AA is weak in DC, LCC is strong and trying to get bigger there with the slot swaps.
AA has been searching for a SE hub to compete with DL, and CLT looks like a good fit, being a fortress hub for LCC and all.
And then there is the shuttle, which AA has expressed interest in previously.
What does not fit is PHX, since AA has a large presence in LAX.
So, what does AA get out of the deal? Northeast saturation, Southeast saturation, the Shuttle, and the nation's capital.
Can someone explain the often referenced AA 'exclusivity' agreement with Boeing?
Cheers

 

[usa1]

Today I noticed some changes in ato computers ... seems like I saw a new native sabre window that hasn't been there. All the managers flew out this morning to a meeting.

 

[FWAAA]

Can someone explain the often referenced AA 'exclusivity' agreement with Boeing?
Cheers

In 1996, AA and Boeing reached a 20 year agreement that AA would buy mainline airplanes exclusively from Boeing; later, so did DL and CO. In return, AA received very favorable terms, including pricing and production positions. When Boeing merged with M-D, the EU required that Boeing not hold any of the three to the exclusivity parts of their agreements. Of course, the EU can't make AA (or DL or CO) buy Airbus planes.

 

[jimntx]

AA hAAs a pAAcket of money AAvailable to them thAAt wAAsn't used to purchAAse JAL.
AAs I hAAve posted before, I speculAAte thAAt LCC is positioning to merge/be aquired by AA.

No, they don't. TPG has a packet of money. If they had wanted to give it to AMR for any purpose they would have done so long before now. They were only interested in getting a piece of AMR and OneWorld in return for helping OneWorld keep JAL. The money that AMR was going to put into the deal was minimal, relatively speaking.

AA is strong in BOS, LCC is pulling out.

Evidently, you haven't seen the various press releases from AMR--specifically, the AA member of the family--regarding their plan "going forward" to concentrate on their major "corner post" hubs (their term, not mine)--LGA/JFK, MIA, ORD, DFW, LAX--and reduce flying in the other "minor" major locations--such as SFO, STL, DCA, BOS, and RDU.

AA is strong in NY, LCC is pulling out.

Do you know for a fact that the slot swap between LCC and DL has been approved? Last I heard, the DOJ or the DOT was putting up some requirements that would make the deal less than attractive to DL if they have to be implemented.

AA is weak in DC, LCC is strong and trying to get bigger there with the slot swaps.

Just between DFW, ORD, MIA, and STL, AA has over 30 departures a day for DCA, and an equal number of return flights. If you add BWI and IAD to the mix, there is another 10 or more, and that is only mainline. We also have American Eagle flights to the three DC area destinations. And, instead of increasing these flights there is some talk of cutting back and utilizing the a/c on more lucrative destinations.

AA has been searching for a SE hub to compete with DL, and CLT looks like a good fit, being a fortress hub for LCC and all.
And then there is the shuttle, which AA has expressed interest in previously.

These rumors have been around for years. If that vaunted cash pile mentioned in your talking point #1 were real, don't you think that AMR would have established a SE hub long ago (assuming that they even want one. I've been here 10 years and I don't see that much fascination with the Southeast coming out of Centreport--HDQ).
And, yes there was some interest in the shuttle previously. The operative word being previously. There was some interest in Fokkers and Airbusses at AMR previously, but not anymore.

Can someone explain the often referenced AA 'exclusivity' agreement with Boeing?
Cheers

Beats the heck out of me, but do you see anything new being bought at AA that isn't made by Boeing?

 

[necigrad]

Talking with the "I.T." department today, there was a very "hush-hush" meeting in Dallas last week with big wigs from US and AA. They wouldn't reveal the topics discussed, but the entire "I.T" group is concerned.

Good for them. I have to ask though, if it was so "secret" and "hush hush" why do we know about it? The fact that this super secret meeting specifically relates to IT tells me it is either not secret at all, not important at all, or totally BS.

 

[FrugalFlyerv2.0]

So, what does AA get out of the deal? Northeast saturation, Southeast saturation, the Shuttle, and the nation's capital.

IMHO, AMR has its hands full with AA + AE alone, there is no need to add US-West, US-East and all the US-Express carriers. Sure AMR would love parts of US, but probably not the whole LCC as it is now. Go to the AA board and check out the 'love' there. Now imagine how much more love there would be once PHX, CLT and PHL are right-sized (or brought to AA 'standards') ... ... ...

 

[FWAAA]

Imagine how happy the US employees would be once AA finished STL-ing DCA, PHL, PHX and yes, even CLT. Probably as happy as those in PIT and LAS. AA wouldn't intend (at the time of the deal) to dismantle those hubs, but look at AA's track record with non-ORD/DFW hubs: SJC (twice), BNA, RDU and STL.