- Banned
- #61
Guess you havent seen US has been making record profits.737823 said:AA had a cost problem but has nearly completed a successful reorganization through chapter 11 to bring costs in line.
US on other hand HAS a revenue problem, largely a product of the markets they serve that are generally produce lower revenues (and lucrative premium O&D traffic) than AA's hubs, ie MIA.
US is profitable under a low revenue and low cost model. Put another way, 72% of the equity in the combined carrier is for legacy AA, remaining 28% for US. So at a time when AA is in the toilet, it is worth nearly 3x that of US at a (near) record high market capitalization.
Again I think all the proponents of this merger will quickly realize in 12-18 months what a disaster it is and the so called "synergies" will not materialize, certainly at the level DP and his team have been touting.
Josh
And AA is the #3 Airline in the US, and US Airways is #5, compare apples to apples not oranges.
And US has been out of bankruptcy for over eight years, cant say the same about AA, now can you?