Run dont walk away from that train wreck.
AA and US Merge?
- Thread starter LUVJAMESC4EVER
- Start date
eolesen
Veteran
- Jul 23, 2003
- 15,959
- 9,374
I've met Bob. IIRC, his specialty is market analysis, and he's been a paid consultant to APA and ALPA on and off for decades. I've also known Darryl Jenkins for many years, and I'd take his opinions to the bank.
They're not financial analysts -- they're consultants, and work both sides of the fence between labor and management. Bob has traditionally done more union work, where Darryl's been more of an academic. He literally wrote the Handbook for Airline Economics (and had been working on the 3rd edition recently).
Bob's a really bright guy, and the research he did for us was good stuff. That said, he worked at AMR in the 80's, and isn't exactly a fan. At one point, he had a bigger chip on his shoulder about AA than Bob Owens does now.
If both these guys are saying it's unlikely, I'd bank on that.
Maybe pilots want it to get them out of the mess they created. As for being two different airlines, well, all airlines are different, never stopped mergers before.
Plus Parker used to work for AA, and probably has enough AArogance left to try to pull it off.
OP
LUVJAMESC4EVER
Member
- Apr 11, 2010
- 62
- 2
- Thread Starter
- Thread starter
- #64
http://www.fool.com/investing/general/2011/10/08/heres-how-amr-may-be-failing-you.aspx
Here's the current margin snapshot for AMR and some of its sector and industry peers and direct competitors.
Company
TTM Gross Margin
TTM Operating Margin
TTM Net Margin
AMR 21.7% 0.4% (2.9%)
Southwest Airlines (NYSE: LUV ) 23.9% 7.3% 3.7%
JetBlue Airways (Nasdaq: JBLU ) 30.8% 8.3% 2.3%
Delta Air Lines (NYSE: DAL ) 20.6% 6.4% 0.8%
Here's the current margin snapshot for AMR and some of its sector and industry peers and direct competitors.
Company
TTM Gross Margin
TTM Operating Margin
TTM Net Margin
AMR 21.7% 0.4% (2.9%)
Southwest Airlines (NYSE: LUV ) 23.9% 7.3% 3.7%
JetBlue Airways (Nasdaq: JBLU ) 30.8% 8.3% 2.3%
Delta Air Lines (NYSE: DAL ) 20.6% 6.4% 0.8%
I don't know one person at US praying for a merger with AA. We still haven't completed the first debacle and surely don't want another one right away. It appears our little dysfunctional airline is managing well enough on its own and we are happy to let those of you at AA solve your own problems before mixing them with ours.
cokeorsprite
Member
- Jan 22, 2004
- 54
- 3
I have to agree with rookie. I dont see anyone around here wishing/wanting/ or giving a damn if we merge with AA. First off, we know you dont want to be associated with us. Personally dont blame you but dont lose any sleep over it either. As said we will be our own little disfunctional airline. To many of us have been here to long and heard to many merger rumors through the last 20 years to even pay it any mind.
Oh I know a few people that think a merge with AA will solve all US problems.... Instantly becoming a much larger extensive network overnight. Isn't that what US is seeking??? Don't they need to make the leap from a low cost carrier to a major carrier??
johnny kat
Senior
- Oct 11, 2011
- 343
- 330
Maark,
The sad part for all the employees at AA is that your company USED to be a company that other airline employees admired and would have liked to have been associated with.
The employees at USAirways can sympathize with what you and the AA employees are facing. With that said I don't know of any employees at US that would like to combine and have AA's problems become US problems. The little ugly girl has enough problems to deal with. It seems AA has become the big ugly girl on the block. Good luck
The sad part for all the employees at AA is that your company USED to be a company that other airline employees admired and would have liked to have been associated with.
The employees at USAirways can sympathize with what you and the AA employees are facing. With that said I don't know of any employees at US that would like to combine and have AA's problems become US problems. The little ugly girl has enough problems to deal with. It seems AA has become the big ugly girl on the block. Good luck
Thank you and good luck to you guys as well. I think AA will turn around once these new jets come ,200 (737), 42 (787-9), 8 (777-300) and 260 (A319-321). Also getting OneWorld (BA,IB) fully implemented will make a big difference in the revenue area. All this doom and gloom is working very well for AA as there are 3 open contracts. It's old school negotiations in my opinion....AA still has cash and cash is king.
jimntx
Veteran
Just remember, most of the new a/c will never arrive unless the pilots get a new contract. They are refusing to talk pay rates for the new a/c outside the confines of a new contract. The company, of course, wants a side LOA with the pay rates established. Per their current contract, new equipment may not be brought on property until pay rates have been established for it. By their current contract, the definition of new equipment also includes the 737-800s.
My WAG is that they are playing the odds that a BK will let them have a Judge write the new rates. The other hope is that a clean sweep by the Republicans and a post PEB impasse will open the gates to the new Congress writing a new pilot contract and payrates. You know, to "help" all the little people held hostage by those "union" pilots. Even better with the perception that the pilots will be willing to furlough their own since the A320's are supposed to replace the retiring the B757's, Congress can write the contract and grandstand how they beat the evil union and saved jobs from sea to shining sea.
Well there is one person drooling over the thought of being the CEO of a large airline....
eolesen
Veteran
- Jul 23, 2003
- 15,959
- 9,374
Hopefully they'll manage to tax you guys into paying your fair share, and heck, start taxing per-diems while they're at it....
The last thing you want to do is have your contract settled by committee, let alone a committee made up of career politicians...
AA will settle with the pilots before the jets come, thats a given. There will be no LOA when it comes to rates of pay. Both sides know that will never happen.
Management will toy along until they absolutely have to sign.
I remember it differently. US made the leap from "major carrier" to low cost carrier. That's what saved US. That's why US isn't on the brink of bankruptcy and is doing fine as a stand alone. On a side note US is a "major carrier" even though it is a LCC. Admittedly a dysfunctional major carrier just the same.
