American-US Air Merger Would Bolster The Industry

[damajagua]

I'm sure ol' Duggie Parker would love to take a run at us like he did at Delta. Personally I think US is a crap operation and the merger would be a disaster for us. Despite our many challenges I think we are better off on our own.

Agree 100%

 

[Frank Szabo]

deleted

 

[RevThruster]

I'm sure ol' Duggie Parker would love to take a run at us like he did at Delta. Personally I think US is a crap operation and the merger would be a disaster for us. Despite our many challenges I think we are better off on our own.

Personally, I think if AA does enter into CH. 11 protection, one of two things will happen: (One), Doug Parker will jump in and USAIRWAYS will take AA over or (Two), Airlines like DAL and UAL will enter into DFW and MIA and start taking market share, in turn making it hard to emerge from CH. 11. AA is trying to compete in markets like JFK, ORD, LAX, (3 of the 5 "cornerstones") playing second or third fiddle while maintaining the highest costs - this does not a success make, and is very poor planning.

As much as you want to believe that US is a crap operation, US is not the one that is in trouble right now, US is profitable and AA is not. It does not take US standing in front of the mirror with you to see disaster. I have a feeling if you end up alone and on the same path as you are now, you will be no longer. It is similar to the "popular girl" syndrome, Just b/c you were the popular svelt one in High School, doesn't mean that it is still the case. You may have been able to take your pick from all the ponies in the stable during your hay day, but that is not the case today. I think there are 10's of thousands of servings of humble pie that need to be served at AA. The arrogance from AA employees is laughable. Reality is something that we all must deal with in our lives, and I think standing back and taking a look at the BIG picture will give people more clear answers.

 

[Frank Szabo]

I'm sure ol' Duggie Parker would love to take a run at us like he did at Delta. Personally I think US is a crap operation and the merger would be a disaster for us. Despite our many challenges I think we are better off on our own.

Flatline, this is the second post of yours in 2 months in which you actually made a little sense.

There may be hope for you yet.

 

[Frank Szabo]

Personally, I think if AA does enter into CH. 11 protection, one of two things will happen: (One), Doug Parker will jump in and USAIRWAYS will take AA over or (Two), Airlines like DAL and UAL will enter into DFW and MIA and start taking market share, in turn making it hard to emerge from CH. 11. AA is trying to compete in markets like JFK, ORD, LAX, (3 of the 5 "cornerstones") playing second or third fiddle while maintaining the highest costs - this does not a success make, and is very poor planning.

As much as you want to believe that US is a crap operation, US is not the one that is in trouble right now, US is profitable and AA is not. It does not take US standing in front of the mirror with you to see disaster. I have a feeling if you end up alone and on the same path as you are now, you will be no longer. It is similar to the "popular girl" syndrome, Just b/c you were the popular svelt one in High School, doesn't mean that it is still the case. You may have been able to take your pick from all the ponies in the stable during your hay day, but that is not the case today. I think there are 10's of thousands of servings of humble pie that need to be served at AA. The arrogance from AA employees is laughable. Reality is something that we all must deal with in our lives, and I think standing back and taking a look at the BIG picture will give people more clear answers.

You're conferring the attitude of the upper management on the rank and file employees.

All you speak of, while true in some cases, is not something we, the workers, are charged with but things we have to navigate on a daily basis just to get a simple job done. The ego and empires within the company are what's destroying it, not labor.

 

[RevThruster]

You're conferring the attitude of the upper management on the rank and file employees.

All you speak of, while true in some cases, is not something we, the workers, are charged with but things we have to navigate on a daily basis just to get a simple job done. The ego and empires within the company are what's destroying it, not labor.

Maybe not yourself, I have however seen many posts referring to the fact that AA will "buy" such and such airline, or acquire pieces of this operation, when in fact, AA is in the exact opposite position. AA will not be doing any buying, or acquiring, it will be the exact opposite. The reality that lies at hand is much different than the reality that comes from some individuals keystrokes.

 

[damajagua]

Maybe not yourself, I have however seen many posts referring to the fact that AA will "buy" such and such airline, or acquire pieces of this operation, when in fact, AA is in the exact opposite position. AA will not be doing any buying, or acquiring, it will be the exact opposite. The reality that lies at hand is much different than the reality that comes from some individuals keystrokes.

We rather be liquidated than to be associated with with USairways!!!

 

[TWskyliner]

We rather be liquidated than to be associated with with USairways!!!

Might this be a perfect example of the arrogAAnce of which RevThruster speaks? :huh:

 

[Maark767]

Might this be a perfect example of the arrogAAnce of which RevThruster speaks? :huh:

Nothing to do with arrogAAnce just very different companies that should stay apart.

 

[damajagua]

Nothing to do with arrogAAnce just very different companies that should stay apart.

Thank you Maark 767
There are many pundits out there salivating the dismise
of AA. We have not even gone thru bankruptcy once
and there are people out there talking like it was the end
of AA. Every major airline in the USA has gone thru bankruptcy at least once. In some cases two. The way I look at it even if we do go bankrupt AMR still has some value.
I personally never went around screaming "we are number one" when AA was the biggest airline in the world. So nothing about aarogance here. I just don't want anything to do with USairways. USAIR might be profabitable; but the one reason it is: it's because the employees have been subsidizing the company. The rate of pay at US is pathetic,
It baffles me that people works there.

 

[WorldTraveler]

US Airways largely rules out further industry consolidation

Posted on 4th November, 2011 5:21 PM

Just as fervor increases on calls for American Airlines and US Airways to merge, US Airways CEO Doug Parker announced at the carrier's quarterly results that consolidation opportunities had passed. His comments suggest he sees American Airlines and US Airways, the last two US legacy carriers not to engage in industry consolidation, remaining independent and on their own to battle their larger competitors.

All the changes that created the step change in the airline business in the last several years have created profitability even at high fuel prices and have all been accomplished, Mr Park said, adding that even consolidation is done.
“I’ve long been a proponent of consolidation but it has now largely happened,” he said. “We are down to four major, hub-and-spoke airlines and a few national low-cost carriers and Alaska which doesn’t fit either category. We have a much different industry today. When we started talking about it, one of the most important reasons for doing it it was to get the industry well. Now, the big strategic reason for consolidation doesn’t exist any more. It’s already happened.”
It was ironic Mr Parker made that statement just as a US Airways-American merger is being bandied about, albeit after American goes through bankruptcy. He did not address that and perhaps his comments reflected that he is not interested in such a union. But, having prompted the United-Continental and the Delta-Northwest mergers, that is highly doubtful, since he has previously said US Airways would likely participate in the next round of consolidation.

the ability to remain profitable in the midst of recessions and high fuel prices has been established through the most recent 3 mergers - DL/NW, UA/CO, and WN/FL but there is still a significant part of the value of mergers that is only now being unlocked and that is the pricing and marketing power that comes from a larger network. DL and UA have outperformed AA and US on RASM performance because they have the global networks under their own control (not just alliances) to pursue contracts and move business in ways that didn't exist before.
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It is true that AA and US could become niche players like AS but it is very likely that they will not be able to compete in the same way that DL and UA do. The fact that AA mgmt is pursuing virtually - if not entirely unlimited - domestic codesharing tells me they recognize their ability to survive is highly dependent on being able to offer a virtual network through partnerships where they cannot through their own network. Given that AA continues to lose a significant amount of money, it is a given that AA's network will continue to shrink and the only way to offset that is through the deepest possible alliances they can obtain.
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The difficulty AA has in pushing that strategy with its labor groups is that US isn't trying to be a global carrier in the way that DL and UA are now. Thus AA is trying to create a unique business strategy using employees that compare themselves to other network airline employees who have not been asked to give up what AA employees have been asked to give up.

 

[TWskyliner]

Nothing to do with arrogAAnce just very different companies that should stay apart.

That may be the case, but it won't be up to anyone who posts on Airlineforums to decide. I wish the best for everyone, it can be humbling and painful to be knocked off one's high horse...been there.

 

[Buck]

We rather be liquidated than to be associated with with USairways!!!

I am just happy to have a job, brother!

 

[JFK Fleet Service]

We rather be liquidated than to be associated with with USairways!!!

Maybe you haven't noticed but this isn't the AA of even five years ago. I don't think anyone over there is doing cartwheels at the prospect of hooking up with "Financially Troubled American Airlines" either.

As I've said before, if the powers that be decide that in they need the mass an acquisition of AA would provide in order to compete with the significantly larger United and Delta then we're along for the ride and having a stroke at the keyboard about it isn't going to change it.

 

[Maark767]

Maybe you haven't noticed but this isn't the AA of even five years ago. I don't think anyone over there is doing cartwheels at the prospect of hooking up with "Financially Troubled American Airlines" either.

As I've said before, if the powers that be decide that in they need the mass an acquisition of AA would provide in order to compete with the significantly larger United and Delta then we're along for the ride and having a stroke at the keyboard about it isn't going to change it.

Not concern with merging with USAirways. AA is buying 460 jets to grow from within. A319s are going to go into many new and old markets. We dont need US.