Who wants a merger with US?

[BoeingBoy]

Hardly, IFRS (accounting standards used outside the US) is very similar in terms of revenue and cash recognition. Suppose you prepay Comcast (or anyother service provider) for a year of internet service they don't recognize the revenue upon receipt of cash, rather when they fulfill the service. This situation is no different, people book flights weeks and months ahead and although AA has received payment they can't acknowledge the revenue and related expense.

Josh

That is the answer in a nutshell. All U.S. airlines that operate under their own brand have a balance sheet line item called Air Traffic Liability. When a ticket is sold in advance, the fare goes into Air Traffic Liability instead of on the P&L statement under Passenger Revenue (there are restricted cash accounts for taxes/government, airport fees/etc). That money for the ticket increases cash on hand. When the transportation is provided, the money is moved from Air Traffic Liability to Passenger Revenue and becomes income. In that latest monthly report to the court, AA had $4.698 billion classified as Air Traffic Liability on Feb 29, 2012. At that time, AA had sold that value in tickets for future travel, with the cash sitting in a bank account.

Jim

 

[AAStew]

Those US contracts state that if there is a change in control. There won't be one. If the unions are negotiating, you can bet that part of the negotiations is the complete remove of all AMR Execs and BOD. The judge gave the unions and the UCC the power to accept a better offer. AMR has no idea what their restructuring is except to squeeze labor.
As for contracts, yes the AA flight attendants are better paid, but US has better workrules and almost double the vacation (even in the rejected TA). As for pay, the TA showed that US was taking them to the same level as us.
This ain't over until the fat lady sings...and she is warming up as we speak.

 

[robbedagain]

well Id be willing to bet the IAM would be willin to screw FSAs all over to try and help with a merger with AA but as for MGMT and BOD why do you think itd be US in charge instead of AA afterall they have the same thing in common.......screw all but themselves

 

[737823]

well Id be willing to bet the IAM would be willin to screw FSAs all over to try and help with a merger with AA but as for MGMT and BOD why do you think itd be US in charge instead of AA afterall they have the same thing in common.......screw all but themselves

Not according to 700UW the IAM always works with their members interests in mind...

Josh

 

[AAStew]

I "assume" this because AMR is in the vulnerable position. They wanted a 6 month extension to file their restructuring plan (nonexistent), but the judge gave the UCC the option of accepting any better offer which came along. Parker has stated that he wants to be in charge. Our unions have stated that our management is worthless. Our unions would not agree to anything that left our idiots in charge.

 

[wings396]

Im starting to like the sound of what I'm hearing.
So not everyone at AA is cold to the idea of hooking up with US

 

[700UW]

US is barely profitable and the reason they are is theyve slashed your pay, cut benefits, outsourced positions, and imposed work rules.

Josh

Wrong again, both IAM ramp and Mechanic and Related made gains in the transition agreements after the merger. And both groups are now in Section 6 negotiations, Mechanics at US are paid higher than mechanics at AA, gee and that was after two chapter 11 cases and AA hadnt been in chapter 11.

IAM ramp and maintenance have a defined benefit plan, no other unionized groups at US have it and AA is losing their to a freeze or termination.

Once again you make this way to easy.

And US has to keep 50% of overhaul in house per the CBA.

 

[robbedagain]

Josh for the FSA we are not kept up to date heck we havent even heard a whole lot as to whether or not they are actually negogiations are even going on. FSA have been kept in the dark our grievances are 4 plus yrs backlogged etc i hope it not half as bad at AA But Ill tell this much If US/AA were to combine There a boat load of work to be done by both sides and hope the anchors dont snap the boat in half

 

[Hopeful]

If ever.
I know I'd be reluctant to book on an airline thats in BK and looks like its headed towards the rocks with its labor groups. They may not liquidate but they may go on strike, legally or otherwise.




In other words its GAAP smoke and mirrors.

I can't speak for anyone else, but the only way I will strike is when the RLA has exhausted the entire process and we get released. I will not strike because somebody "believes" we are legal to do so in the event the judge abrogates our agreements. I can read and I can can read well...I am not sold on the fact that once our agreements are tossed out, we can strike.

Sorry Bob, I can't agree with you on this one......

Unless you and the TWU are going to pay all my bills and keep the roof over me and my familiy's heads...

And as for "WELL YOU SHOULD'VE HAVE BEEN SAVING FOR YOUR STRIKE FUND" bullshit, I will answer that remark before it is made,,

IN THIS ECONOMY AND WITH THE RISING COSTS OF EVERYTHING, THERE IS NO WAY TO SAVE FOR A STRIKE FUND AND FEED YOUR FAMILY AND KEEP THE HOUSE!


There will be no illegal job action by this mechanic.....Sorry!

 

[damajagua]

Im starting to like the sound of what I'm hearing.
So not everyone at AA is cold to the idea of hooking up with US

You might find one out every thousand that would support
such a disaster.

 

[wings396]

You might find one out every thousand that would support
such a disaster.

I doubt that statement. I don't believe that you personally know or have polled 1000 of your fellow employees either. Please don't overlook that you are already part of a disaster as well. I am starting to see that some, not all on here are being more open minded to the possibilities of a merger. I just read a good post over on Airliners, and it broke down the market share percentages of the legacy carriers. I don't have the exact numbers at hand, but it was something like this. UA at 23%, DL at 21%, AA at 13%, and US at 7%. IF, and I said IF AA and US do merge, that would give the combined carrier 20% placing them right inline with the top 2. Don't think for one minute that AA is going to achieve that 20% on their own. You know that DL & UA are certainly not going to lose any of theirs, and they may even gain some while AA cuts some capacity during BK. You need to take your blinders off and look at the big picture a bit more. We have 2 megacarriers, and then the rest of the airlines in their rear view mirror.

 

[FWAAA]

I "assume" this because AMR is in the vulnerable position. They wanted a 6 month extension to file their restructuring plan (nonexistent), but the judge gave the UCC the option of accepting any better offer which came along. Parker has stated that he wants to be in charge. Our unions have stated that our management is worthless. Our unions would not agree to anything that left our idiots in charge.

The court approved AA's motion for a six month extension to the exclusivity period:

http://www.amrcaseinfo.com/pdflib/1987_15463.pdf

 

[damajagua]

I doubt that statement. I don't believe that you personally know or have polled 1000 of your fellow employees either. Please don't overlook that you are already part of a disaster as well. I am starting to see that some, not all on here are being more open minded to the possibilities of a merger. I just read a good post over on Airliners, and it broke down the market share percentages of the legacy carriers. I don't have the exact numbers at hand, but it was something like this. UA at 23%, DL at 21%, AA at 13%, and US at 7%. IF, and I said IF AA and US do merge, that would give the combined carrier 20% placing them right inline with the top 2. Don't think for one minute that AA is going to achieve that 20% on their own. You know that DL & UA are certainly not going to lose any of theirs, and they may even gain some while AA cuts some capacity during BK. You need to take your blinders off and look at the big picture a bit more. We have 2 megacarriers, and then the rest of the airlines in their rear view mirror.

Well I have never ever flown with one flight attendant or a pilot that is interested on a merger with US.
Just because the combined carrier would have 20% market share doesn't nececessarly means it would
be successfull. How does a combined US/AA address the issue of asia? Or any other international
areas? US does not bring any significant international expansion to AA. I think the majority of AA employees
would rather finish the restructuring process alone. Come out of bankruptcy, try to do some organic growth
and if that does not work then explore other options. I don't understand what the obsession with a merger is
all about. Let AA do it's restructuring like everyone else did before us and we can talk later. It is obvious that
US has a business plan that is not sustainable. For the last ten years it seems all they have been trying to
accomplished is to merge with someone else. DL,UA now AA. There is a reason why at the end US will end up
alone. They do not bring anything of significance to a combined carrier with any of the above. Sorry this has nothing
to do with AArogaAAnce it's just a fact US doesn't bring anything of value. Good luck to all.

 

[WorldTraveler]

The court approved AA's motion for a six month extension to the exclusivity period:

http://www.amrcaseinfo.com/pdflib/1987_15463.pdf

Completely expected.
Which means that theoretically we shouldn't have to continue to discuss this issue because AMR is unlikely to entertain any offers from anyone for at least six months.
It also means that AMR will continue with its own restructuring, including the 1113 process - which means that US can't make any promises that they could stop or alter any of that process from happening. The 1113 process will involve AMR, its labor, and the court.
And it is highly likely that process, which is the most significant part of AA's restructuring, will be finished within six months.
.
It will then be much clearer what shape AMR is in as well as how expectations regarding the industry and overall economy are unfolding.
.
I'm sure some people won't let up on their efforts to push an AA-US merger - but everyone should remember it is still AMR's EXCLUSIVE right to develop its own restructuring plan.

 

[wings396]

First on the topic of Asia. NOTHING is going to enhance that for AA, with or without a merger. UA & DL have already got a stronghold on that, so all that AA can do is make an attempt to gain some marketshare on their own. There is no merger partner that will enhance Asia for AA.

I don't put much faith in what fellow employees say when taking shop either. Many just go with the flow to avoid confrontation. Everyone says
"Hell No" when it comes to a contract vote, yet they always seem to get voted in. When everyone that I'm working with says that something sucks, unless I'm a fool, I'm going to say it sucks too. Would you want to the the guy in a crew room, saying "I like the idea of a merger with XX"?
Although there may be others in the room that agree with you, they ain't going to say so. You and I both know that it works that way.
Have you spoken to any of the station agents that are going to have their jobs outsourced? Do you think they would favor a merger if the combination of AA & US at their location would enable them to stay at some point? Would they say no way to a merger, and pack up their family for a move to DFW or ORD just to prove a point? I don't think so, as I have spoken to some local AA people on this subject.