This guy is a Delta hack who could give a rat's booty about American. Take his word for what it's worth.
AA and US merger?
- Thread starter LUVJAMESC4EVER
- Start date
This guy is a Delta hack who could give a rat's booty about American. Take his word for what it's worth.
Here's a pretty good write up of how LCC is of NO BENEFIT to AA.
http://www.aviationplanning.com/Images/AMR%20Bankruptcy%20-%20Time%20For%20Reality.pdf
The above write up is nothing but another analyst sharing his point of view. No employee of ether airline knows or has any pull in what's going on . If the AA shareholders see that merging with US will make the company stronger and more competitive in the market place they will tell Horton to get it done. I personally think that if it does happen it will be a friendly mutually agreed upon transaction . Arpey was against BK and a Merger. I believe that the new plan was presented to Arpey and he wanted no part of it so he left . Horton on the other hand has a different perspective on things. Remember that he left AA for a while to go to a company named MA Bell and merged it with AT&T . So he has experience with Mergers .Also (not that it matters ) He and Parker both worked at AA at the same time in the same office together so they have a relationship . There is nothing we can do but just sit back and let it play out. And WT, seriously buddy your bashing against US is getting a little old. Go worry about your little Delta which they say that a combined US/AA will leap frog if they combine . If it were up to you ,you would love to see both US and AA fail so that D E L T A could rule the world . Buah Ha, Ha,Ha .. EEW scary !!
jimntx
Veteran
The shareholders have no say whatsoever in bankruptcy. They are unsecured creditors--just like the employees. The current stock will be nullified, and new stock will be issued to secured creditors. In the end the current shareholders will get nothing--just like the employees.
signals
Veteran
You should hear him when it comes to WN! Yes he is so full of Delta, I can write a sitcom about him and Delta titled The Adventures of Delta and Archie Pellago
Mergers have nothing to do with strategic value, common sense, or business sense. They have to do with making a couple of rich people richer and if you can screw a bunch of loyal employees in the process that is an added bonus.
Regards,
Bob
jimntx
Veteran
Can I have an AMEN from the choir?
What he meant to say was, "my motive for arguing against a US acquisition of AA is the same as why I have been critical of AA for quite some time - because it isn't in the best interest of Delta people.
Regarding WT, I was just wondering why the histrionics now? This process will take a year or more. Yet here we are, a week into it, and some entities, not known to be involved, are screaming "dumb, idiotic, never happen, no way, stupid". Well, if it's really that dumb, it won't happen, so why the full court press?
However, I can think of a reason AA management might be interested: I don't think they want to be a distant third forever.
However, I can think of a reason AA management might be interested: I don't think they want to be a distant third forever.
Think B6.
Given the baggage LCC would bring, and its -profitable only at bottom of the industry compensation packages network- there's no way AA would be interested. If they were, it would have been done a long time ago. If the markets were so prime, WN would be in them, and others launching new service.
Fact checks: AA's proposal to APA was looking for domestic code share with LCC on the shuttle only. (NYC business travelers)
Of the three Global alliances, AA NEEDS to be bigger in NYC to be competitive with STAR and SkyTeam. LCC just bailed from NY LGA. B6 has a strong position in NYC and owns slots AA needs to grow. So if AA NEEDS anyone, B6 fits the bill more so than LCC.
A couple of weeks ago, I came across some charts that showed a daily cash burn to zero, no income value for the US carriers. It was dated September 2011 if I recall. AA had 74 days of available cash, and LCC had just 42 days. I'll see if I can dig it up.
Have a look at this while you're at it.
http://www.fool.com/investing/general/2011/11/30/will-us-airways-hit-an-air-pocket.aspx
Better yet, lets do a deal today so we can get the judge to park you tomorrow!
What he meant to say was, "my motive for arguing against a US acquisition of AA is the same as why I have been critical of AA for quite some time - because it isn't in the best interest of Delta people.
Touche. What a pompous sounding phony.
Hey man for every obscure stat that you may find opposing a potential deal there are others supporting it. You are in Chapter 11 right now. You have no control, no idea of what's gonna happen in the next 15-18 months. Start channeling more energy into accepting your new reality than in bashing US. It may be jetBlue, or Alaska, or Allegiant or whomever. You may remain independent. Or it just may turn out to be US. Whatever happens they're not coming to you for your advice or approval. As someone who's been there I'd counsel you to use those new grey hairs to focus on those issues that you have reasonable control over during this process and let the other crap go. Including listening to the pompous pontificators who post on here who know no more than you or I. And find a new outfit because AArogance in Chapter 11 doesn't fit very well.
US merger is definitely IMO not in AMR's interest. Looking through the pilot proposal, Crandall statements and other industry "experts", I think AMR's current growth plan is best best for AMR. The building blocks are all there.
Stay independent, smaller mergers or expamded domestic codeshare to address specific network deficiencies (Alaska, JBLU), code share on the shuttle all would allow AA to win back some of the higher yield business traffic long enough for the airline to GROW organically. AA will have replaced its entire domestic fleet in just a few years, plus with the 773 and 787 will be in a great position to take back the transcon markets and grow internationally. Add to this the additional options for 465 airplanes. Our competitors will be years behind refitting their fleets.
The JV agreements with JAL/BA/QA all should provide huge payback especially if they can do one more to get a footprint into domestic China, and (sorry for LCC followers) will leave US as the domestic carrier with little future, and that is likely why US will come knocking--then can't survive without an AA tie up. AA's best defense will be the superior value of the capital infusion an IPO would provide to help keep the refinancing debt down.
Stay independent, smaller mergers or expamded domestic codeshare to address specific network deficiencies (Alaska, JBLU), code share on the shuttle all would allow AA to win back some of the higher yield business traffic long enough for the airline to GROW organically. AA will have replaced its entire domestic fleet in just a few years, plus with the 773 and 787 will be in a great position to take back the transcon markets and grow internationally. Add to this the additional options for 465 airplanes. Our competitors will be years behind refitting their fleets.
The JV agreements with JAL/BA/QA all should provide huge payback especially if they can do one more to get a footprint into domestic China, and (sorry for LCC followers) will leave US as the domestic carrier with little future, and that is likely why US will come knocking--then can't survive without an AA tie up. AA's best defense will be the superior value of the capital infusion an IPO would provide to help keep the refinancing debt down.
While a merger might or not happen; I do agree with what I have been reading from many analyst.
A merger of AA/US would immediately make US a global carrier. Which is the reason why it would
benefit US so much. AA would not gained much from US with the exception of DCA.
AA would benefit more from a merger with JetBlue and Alaska then adding the headache of US.
How long has it been since US and America West merge and they can't finish the merging process?
How can US come and try to make a bid for AA when it can't handle it's own mess. Until US cleans
house and put its own house in order; it will continue to be the ugly and undesirable girl that might
look ok because it's been on a severe diet(paying wages and benefits way below industry standards)
I know the US promoters are going to jump on the wagon and say wait till the bankruptcy judge is done
with AA. Well I do believe that it will be ugly but I expect the result would be more close to DL and UA
then US. The fact that most people at AA do not want a merger with US has nothing to do with
arrogance or anything against the US people, am sure most US employees are great people,
But the reality is that a merger of this two company would greatly benefit US while the benifit to
AA or it's creditors would be almost next to none. Good luck to all.
A merger of AA/US would immediately make US a global carrier. Which is the reason why it would
benefit US so much. AA would not gained much from US with the exception of DCA.
AA would benefit more from a merger with JetBlue and Alaska then adding the headache of US.
How long has it been since US and America West merge and they can't finish the merging process?
How can US come and try to make a bid for AA when it can't handle it's own mess. Until US cleans
house and put its own house in order; it will continue to be the ugly and undesirable girl that might
look ok because it's been on a severe diet(paying wages and benefits way below industry standards)
I know the US promoters are going to jump on the wagon and say wait till the bankruptcy judge is done
with AA. Well I do believe that it will be ugly but I expect the result would be more close to DL and UA
then US. The fact that most people at AA do not want a merger with US has nothing to do with
arrogance or anything against the US people, am sure most US employees are great people,
But the reality is that a merger of this two company would greatly benefit US while the benifit to
AA or it's creditors would be almost next to none. Good luck to all.
