LCC & AMR Market Action

[USA320Pilot]

In early morning trading on the NYSE at about 10:00 am US Airways' stock is up over 20% at $5.35 per share and American's stock is up over 20% at $9.17 per share.

Delta is trading down at 1% at $9.34 per share, Continental is trading up 2% at $17.08 per share, and United is trading up 2% at $9.30 per share.

Regards,

USA320Pilot

 

[a320av8r]

In early morning trading on the NYSE at about 10:00 am US Airways' stock is up over 20% at $5.35 per share and American's stock is up over 20% at $9.17 per share.

Delta is trading down at 1% at $9.34 per share, Continental is trading up 2% at $17.08 per share, and United is trading up 2% at $9.30 per share.

Regards,

USA320Pilot

AMR is raising $2.9B and restructuring their system. Part of that is dropping flying at STL and RDU. Some of those routes being dropped are STL - CLT/PHL and RDU - DCA, our only competition on these routes. We are dropping RDU/NYC. Coincidence or are legacy carriers finally concentrating on making money instead of killing each other? Paradigm shift?

 

[hp_fa]

Link to the American financing deal.

Link.

 

[700UW]

Talked to a reliable source in PHX, UA executives been at Tempe for the past three weeks, Kirby flew to ORD yesterday and big meeting in PHL on budget cuts for all stations and departments.

 

[hp_fa]

When is the PHL meeting?

 

[gaucho99]

How long until someone starts another merger rumor?

 

[700UW]

PHX Management flew to PHL yesterday morning.

 

[Be Careful What You Wish For.]

How long until someone starts another merger rumor?

Already started,... yinz!

http://www.usaviation.com/forums/index.php...st&p=707801

 

[SS255]

AMR is raising $2.9B and restructuring their system. Part of that is dropping flying at STL and RDU. Some of those routes being dropped are STL - CLT/PHL and RDU - DCA, our only competition on these routes. We are dropping RDU/NYC. Coincidence or are legacy carriers finally concentrating on making money instead of killing each other? Paradigm shift?

They're also adding service to AVP and ABE, which is sure to steal market share from US (and UA).

 

[AirbusAVE]

How long until someone starts another merger rumor?

h34r:


I think it's good to finally see airlines focusing on their core markets. Which is what both US and AMR are doing. (US with the Delta/US gate swap.)



United needs to focus on their strengths also. And DIA ain't one of them... At least I think not.

 

[USA320Pilot]

In today's Airline Industry market action both AMR and LCC out performed the competition. AMR ended up $1.45 cents or 19.73% to close at $8.80 and LCC ended up 75 cents or 17.12% to close at $5.13 while every other major airline closed down.

As noted above American announced $2.9 billion in financing and a hub/route restructuring.

During his August 18 Crew News Session Doug Parker alluded that US Airways was negotiating new financing with its business partners, which if I had to make a guess could be the reason(s) for today's big move in LCC's security price action.

I do not know if there are any merger or other corporate transaction discussions being held, what United representatives may or may not have been doing in Tempe per 700UW's comments, or if there any discussions being held with American. As readers know I have long suspected a merger would occur with United for many reasons. And, earlier this year Scott Kirby told Flight Attendants at a Crew News session that once United and Continental received anti-trust approval for their alliance US Airways and United would become "deeply embedded."

Regards,

USA320Pilot

 

[curious1]

Well with the demise of the STL hub this is the perfect time for US to start STL-DCA. They announced MIA but STL-DCA is a better option since AA will leave that route eventually since neither DCA nor STL are hubs.

 

[tadjr]

We used to do DCA-STL back in the early 90s? and it didnt do too well. Of course we were competing against TWA on the route then too and they had a ton of flights vs our 2 or 3. Might be a good fit to the DC route network now.

 

[Dont call me Shirley]

We used to do DCA-STL back in the early 90s? and it didnt do too well. Of course we were competing against TWA on the route then too and they had a ton of flights vs our 2 or 3. Might be a good fit to the DC route network now.

Saw on a.net (so take it for what it's worth) that AA is planning another dramatic downsizing of STL, with a number cities being dropped (not DCA).

 

[Hawkhunter]

In today's Airline Industry market action both AMR and LCC out performed the competiton. AMR ended up $1.45 cents or 19.73% to close at $8.80 and LCC ended up 75 cents or 17.12% to close at $5.13 while every other major airline closed down.

As noted above American announced $2.9 billion in financing and a hub/route restructuring.

During his August 18 Crew News Session Doug Parker alluded that US Airways was negotiating new financing with its business partners, which if I had to make a guess could be the reason(s) for today's big move in LCC's security price action.

I do not know if there are any merger or other corporate transaction discussions being held, what United representatives may or may not have been doing in Tempe per 700UW's comments, or if there any discussions being held with American. As readers know I have long suspected a merger would occur with United for many reasons. And, earlier this year Scott Parker told Flight Attendants at a Crew News session that once Uninted and Continental received anti-trust approval for their alliance US Airways and United would become "deeply embeded."

Regards,

USA320Pilot

I think his name is Scott Kirby. Scott Parker is Dougs Uncle. Good ole Uncle Scott. What airline is "Uninted"?