AA and US Merge?
- Thread starter LUVJAMESC4EVER
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LUVJAMESC4EVER
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http://finance.yahoo.com/news/American-Airs-parent-AMR-rb-1525845764.html?x=0&.v=1
Looks more and more like US is going to buy AA!!! I hear very soon ......
LUVJAMESC4EVER
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this one
http://seekingalpha.com/article/300743-is-bankruptcy-the-best-solution-for-amr?source=yahoo
http://seekingalpha.com/article/300743-is-bankruptcy-the-best-solution-for-amr?source=yahoo
I'm hearing AA/US/B6 by next year. Where US would run all three.
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Please identify B6?
Judge Smails
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Well in BK I think US would try and take AA to make US whole. Other than that I see no connection. Now B6 is another situation. AA/B6 would be a great marriage in every way.
Frank Szabo
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Does anyone think there might be room at this "merger" (Mazola) party for SWA to join in the festivities?
They may not be done growing yet.
They may not be done growing yet.
Apparently, you underestimate the importance of a gigantic low-O&D connecting hub in the nation's 33rd largest metro area (CLT) and a hub/gateway in the nation's 5th largest metro area that is unfortunately hemmed in and delay plagued, as well as being just a short train ride south of NYC. Without CLT, how will AA ever hope to connect low-fare Florida traffic from the northeast US? Not to mention that beautiful hub just 375 miles east of LAX - the one with the dependably good weather. 😀
Agreed, but I expect Parker to make a move on AA if (when) AA files the Ch 11 petiition. Just like he did with DL.
BoeingBoy
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I know you're kidding, but I actually think CLT might be the only US asset (if you can call leased gates/facilities an asset) that AA might find usuable. With AA's current system, anyone located between central Florida and the WAS/PHL area and west to nearly the Mississippi has to go the wrong way to connect to anywhere else in that broad region. Wanna go from MEM to MCO - connect in MIA/DFW/ORD/NYC. Need to go from CHS to CHA - connect in MIA/DFW/ORD/NYC. Hey marine - wanna go from Jax NC to Jax FL, connect in .... well you get the idea.
As for DCA, I would strongly suspect that the DOT wouldn't approve a merger between US and AA that resulted in having more slots than US will have if the US/DL slot swap goes through. I guess US' LGA slots would be a plus - with DL becoming such a dominant carrier there after the slot swap the DOT probably wouldn't object too much.
Jim
AA is not interested in low fare florida north/south market. AA feeds from the north to our MIA hub ( Cornerstone Strag ).B6 has the looooow fare market all wrapped up. PHX ...... NOT something AA is interested.
This merger is about consolidation, and pricing power. The combined AA/US would have improved pricing power to the Caribbean for example. Consolidation would also produce better yields in the Florida north/south market.
It takes me to long to explain my view point on past "government over site" of this industry. But from 1980-2000, the bottom line is the industry was forced to compete at ridiculous levels, until labor was beaten into the ground in the name of cheap tickets. That is now complete and the Government has started allowing long over due consolidation.
In the end there will be fewer planes, fewer empty seats and higher airfares.
It takes me to long to explain my view point on past "government over site" of this industry. But from 1980-2000, the bottom line is the industry was forced to compete at ridiculous levels, until labor was beaten into the ground in the name of cheap tickets. That is now complete and the Government has started allowing long over due consolidation.
In the end there will be fewer planes, fewer empty seats and higher airfares.
