Could US Airways Take Over American?
- Thread starter USA320Pilot
- Start date
The talk your coworker's AA friend in MIA hears is probably all regurgitated rumors that have been running amuck on this forum, flyertalk and airliners.
AWA320
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Its fun to watch all you dime store hedge fund managers talk about what will and will not happen in the financial world. One thing is certain, if you knew you certainly wouldn't be on this forum talking about it...
AWA320
AWA320
Phoenix
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- Apr 16, 2003
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Can you imagine the Brits considering how to avoid the dreadful thought of having to listen to a bunch of yanks from Arizona claiming that they saved USAir and then still had enough money left over to save half of the OneWorld alliance!? The Queen will be expected to visit Phoenix to show her gratitude, but hopefully the yanks will graciously allow her to delay until the outside temperature is below 80 degrees. Its unbecoming for the Royals to be seen perspiring. Oh, never mind, I just saw who started this thread. Sorry for the alarm.
Phoenix
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Yes, out of the blue. We always have plenty of rumors that never materialize but the real deals come from out of the blue. With the United/USAir merger attempt in 2000 the AA rumors were the hot topic but just one casual associate confidently told me "Its gonna be United, in less than a week." and just five days later a $60 dollar offer became public. I sold all my U stock by 1100 AM and wished I had bought 50K of options!
Your first sentence is dead on. There were plenty of rumors leading up to the US-UA merger announcement, as well as the US-DL announcement. Those rumors were true even if the actual mergers never became reality.
And, I hate to break it to you, but investors (i.e the OWNERS of the airlines) really don't care much for the employees. It's pure numbers and future, educated, ROI predictions.
What IS good for the employees is continued employment even if it means, heaven forbid, taking a pay cut to be in line with their peers. It's likely that both US and HP employees would have all been collecting unemployment in 2006 if this merger didn't happen.
autofixer
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- Aug 20, 2002
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What IS good for the employees is continued employment even if it means, heaven forbid, taking a pay cut to be in line with their peers. It's likely that both US and HP employees would have all been collecting unemployment in 2006 if this merger didn't happen.
Just one major correction and a comment. USAirways employees are not paid "in line" with their peers, they are at the bottom of the barrel. As far as unemployment is concerned, that is like proving a negative, you can't. Who knows what would have happened? Perhaps the law of "creative destruction" would have occurred had U and AWE tanked? Thence, some other entity would have filled the void and thus needed employees and suddenly you have a new and better job. I know of many pilots who went to Jet Blue whilst furloughed, did not return to USAirways and now they are vastly better off.
Just one major correction and a comment. USAirways employees are not paid "in line" with their peers, they are at the bottom of the barrel. As far as unemployment is concerned, that is like proving a negative, you can't. Who knows what would have happened? Perhaps the law of "creative destruction" would have occurred had U and AWE tanked? Thence, some other entity would have filled the void and thus needed employees and suddenly you have a new and better job. I know of many pilots who went to Jet Blue whilst furloughed, did not return to USAirways and now they are vastly better off.
SparrowHawk
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That means nothing. AA is in bad shape. A big jet order does not say different. I am no saying that AA will file tomorrow or next month .They still are a ways away from filing due to their cash position on hand .But if they keep losing cash the way they are ,they will have no choice but to file and I guarantee US will be waiting to pounce .
Phoenix
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This is not old news . This is a whole nother wave of merger speculation that is very possible.This is old news. I heard this rumor in 2000!
SparrowHawk
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Possible? Like it's "Possible" that US Airways covered up Scott Kirby's conduct unbecoming?
Or do have a specific plausible scenario in mind that would put AA in the hands of all that scary talent on Rio Salada?
You Have absolutely no idea of what your talking about and I will leave it at that. No sense in waisting my time with you .
SparrowHawk
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BTW it's "Wasting" not "waisting". You must be a writer for US. They have this feature called spell check.
On a more serious note. Everyone says that AA would need to go into BK for US to have a chance at acquiring the airline. Not being even a novice when it comes to how aircraft are financed, Assuming that AA gets these 250 planes financed wouldn't that make it harder for another airline to pluck AA out of BK and make it more likely that AA would emerge stand alone with reduced wages and debt?
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