AA and US merger?

[Hopeful]

I heard a rumor that golden monkeys were going to fly out of my dog's arse this morning. All I've seen so far are turds.

It seems that these rumors are stemming from a few analysts who see this as a "next" step with US employees feeding into it. AA is still the 3rd largest carrier with both a substantial domestic and international presence. I can't for the life of me see any benefit to a merger with US. A few west cost cities? Does AA really need PIT in its mix? Maybe the rumors are in response to AA potentiall grounding a slew of aircraft...Who knows..

But rumors are all it is right now.

 

[RevThruster]

I don't know what you guy think but it sound they talking...


"Ray Neidl, an analyst with Maxim Group LLC, said US Airways would also add bring more aggressive management to the combined company, "which American would need to regain its proper place in the industry."


http://finance.yahoo.com/news/American-bulk-US-Airways-apf-3248294088.html?x=0

I was responding to FAMikey's post - I think that a US/AA tie up is highly likely - FAMikey seems to think AA is still the hot girl on the block, however, and that AA is untouchable. I think, He has a VERY rude awakening coming.

 

[Rookie Jr]

Industry consolidation resulting in fewer planes in the sky .... that's what its all about now. A bad thing if you don't make the cut .... but a good thing if you do. As pricing power returns labor will be able to forge better deals in future contracts ... once it plays out.

There will soon be fewer planes in the sky but that will have nothing to do with mergers. Sorry to say but I think this Ch 11 will be swift and painful. Despite the rhetoric about US employees hoping for a merger with AA most of us at US want nothing to do with another merger. Been there. Done that.

Good luck to all.

 

[wings396]

I was responding to FAMikey's post - I think that a US/AA tie up is highly likely - FAMikey seems to think AA is still the hot girl on the block, however, and that AA is untouchable. I think, He has a VERY rude awakening coming.

He has always been Anti-US, so nothing new here. When and if anything does happen, he will be the first on my list to Welcome Aboard....
He as well as many others overlook the good hard working people still employed at US, with many dating back to PI that knew what good service was all about. Not everyone working at US echoes the same words posted on here by a select few. Most are still willing to make a good effort as long as it isn't for a losing cause. Considering the beating that we have all taken since the early 90's, I think that it is impressive that we can function at all. Those at AA are just going to realize what we have been going thru for years.

 

[AAviator]

Industry consolidation resulting in fewer planes in the sky .... that's what its all about now. A bad thing if you don't make the cut .... but a good thing if you do. As pricing power returns labor will be able to forge better deals in future contracts ... once it plays out.

Which is why JBLU is such a better option for AA IF there's consolidation resulting from AA's trip to BK.

What is clear here is that AA has far more options going forward than LCC.

 

[WorldTraveler]

It seems that these rumors are stemming from a few analysts who see this as a "next" step with US employees feeding into it. AA is still the 3rd largest carrier with both a substantial domestic and international presence. I can't for the life of me see any benefit to a merger with US. A few west cost cities? Does AA really need PIT in its mix? Maybe the rumors are in response to AA potentiall grounding a slew of aircraft...Who knows..

But rumors are all it is right now.

and "analysts" wanting to see their investment in LCC soar at least long enough to cash out.
Not unlike what some US employees want - which is to take advantage of AA's current revenue generating capacity to improve their own salaries...I'm not hearing much "we'd like to integrate AA into US to give them a brighter future".. instead it's about what can we take from them to brighten OUR future.

 

[texflyer]

Which is why JBLU is such a better option for AA IF there's consolidation resulting from AA's trip to BK.

What is clear here is that AA has far more options going forward than LCC.

How do you figure? Unless AA has a sugar daddy waiting to buy a huge chunk of the airline, I do not see AA stopping US from making a bid the creditors will be crazy to walk away from. Do we think Doug didn't learn a thing from the Delta bid?.......I would love for AA to emerge a stronger,slimmer airline, but from US point of view, its too good of a deal to pass up.............And when US does make a move it will be after BK has done all of the hard work of slimming down AA's costs and debt....If Doug does not make a move on AA then he should be fired as CEO.

 

[MCI transplant]

<_< ------- This is what bankruptcy is all about people! AA is no longer in "control" of their destiny! They are definitely in play!!! Like it, or not! It well be an interesting, and for some, a painful ride!------- Good luck to all! http://www.wfaa.com/video?id=134824733&sec=552927

 

[usa1]

and "analysts" wanting to see their investment in LCC soar at least long enough to cash out.
Not unlike what some US employees want - which is to take advantage of AA's current revenue generating capacity to improve their own salaries...I'm not hearing much "we'd like to integrate AA into US to give them a brighter future".. instead it's about what can we take from them to brighten OUR future.

No .... it's about we (airline labor) are sick and tired of working for piss poor wages so you can have a cheep ### ticket. And what ever turns the table is fine by me!

 

[WorldTraveler]

No .... it's about we (labor) are sick and tired of working for piss poor wages so you can have a cheep ### ticket. And what ever turns the table is fine by me!

except that you just want to take the money generating capability of AA from ITS employees so you can have it....
how about US figure out how to make the same kind of money with its own resources and pay its people industry average wages?
.
again, I was sure that if we pushed the topic far enough, the truth would come out.... You and your boss and a whole lot of other people see AA as the financial solution to YOUR problems when the reality is that AA is and will be focused on fixing ITS problems.. and the creditors are not going to be interested in any gimics that cover up the reality of what US and its leaders want to accomplish at the expense of AMR's creditors and employees

 

[texflyer]

except that you just want to take the money generating capability of AA from ITS employees so you can have it....
how about US figure out how to make the same kind of money with its own resources and pay its people industry average wages?
.
again, I was sure that if we pushed the topic far enough, the truth would come out.... You and your boss and a whole lot of other people see AA as the financial solution to YOUR problems when the reality is that AA is and will be focused on fixing ITS problems.. and the creditors are not going to be interested in any gimics that cover up the reality of what US and its leaders want to accomplish at the expense of AMR's creditors and employees

WT, if US comes up with an impressive bid (even now, financing will be availible) why, outside of Boeing would the creditors not jump at it?..............I would truly like AA to stay independent but if AA recovery plan gives a creditor 20 cents on the dollar but a US bid 40 cents, its over.

 

[WorldTraveler]

WT, if US comes up with an impressive bid (even now, financing will be availible) why, outside of Boeing would the creditors not jump at it?..............I would truly like AA to stay independent but if AA recovery plan gives a creditor 20 cents on the dollar but a US bid 40 cents, its over.

the point is simply that the likelihood is very high 1. that the creditors stand a better chance of recover if AA stays independent after it gets the cuts it needs and 2. because all the Dougie talk fails to consider that if Dougie makes a move, there will be all kinds of bidders for AA or its assets. The notion that Doug Parker can decide he wants AA and succeed without a huge financial fight is delusional at best.
It is because of number 1 above that creditors really do not want to get involved in a merger in BK if there is a chance of turning the company around... their interest is recovering as much as they can... adding a merger - which are notoriously risky and long drawn out processes (how long ago did HP and US merge and it's still not done?) adds risk that the creditors know full well could sink the enterprise and their chance of recovery.
Add in a company like US that really doesn't have a great track record with flawless mergers and the creditors are all the more skeptical.
.
It ain't gonna happen unless AA can't restructure... it's that simple

 

[FWAAA]

The odds that Parker's plan of reorganization for AA offers creditors a better dividend than Horton's plan are extremely slim.

A US takeover of AA offers far more to the shareholders and current creditors of US than it will offer to the AA creditors. Adding the low-yield hubs of PHL, CLT and PHX to the mix won't improve the value to AA's creditors.

In addition, even bankruptcy concessions won't bring AA's pilot costs down to match the US costs, so a combination between US and AA would mean adding costs to the already low-yield, second-tier airline that is US. Where would US get the money to pay the US East pilots the same money as AA pilots earn? The AA revenues, you say? Someone explain how that maximizes the value to the AA creditors.

 

[usa1]

except that you just want to take the money generating capability of AA from ITS employees so you can have it....

You are so wrong ..... the government with the support of people like you have trashed this industry as a career .... I just attended a company class were they pointed out that an airline ticket in 1946 was only 20 bucks cheaper than the same ticket today. Compare that to today's price for everything else ....... how do the airlines give you your cheap ### ticket .... we pay for it, it's out of our pockets .... how do the airlines stay in business .... through BK court, with the governments blessing.

That's okay, your turns coming when the middle-class is gone and the entire economy comes crashing down around you ..... and your money is worthless. It's coming! Bud!

 

[RevThruster]

You are so wrong ..... the government with the support of people like you have trashed this industry as a career .... I just attended a company class were they pointed out that an airline ticket in 1946 was only 20 bucks cheaper than the same ticket today. Compare that to today's price for everything else ....... how do the airlines give you your cheap ### ticket .... we pay for it, it's out of our pockets .... how do the airlines stay in business .... through BK court, with the governments blessing.

That's okay, your turns coming when the middle-class is gone and the entire economy comes crashing down around you ..... and your money is worthless. It's coming! Bud!

Bingo!