US-AA Merger Articles (Merged Topics)

[AAviator]

Thar he blows!!

IF Parker has the best plan, then he has the best plan...
Allowing the process to proceed as determined by code, he will get his chance to sell the deal.

Why is he pulling out the stops, i.e. screaming from the roof tops that LCC has the best solution when he hasn't seen AA's yet?

I think he's scared.

Going forward, in the global economy, LCC brings little beyond a few destinations served in the EU that AA doesn't already serve. Destinations made possible by affiliation with Star.

Strategically, AA would still trail in the North Atlantic, and have virtually no change to the problems in the Pacific.

LCC would bring hubs that trail the industry revenue generating capability by 16% though....

IF Parker fails here, LCC's days are numbered. He'll get his day in court... His sniveling is a bit of a surprise.

 

[brokenwrench]

Thar he blows!!

IF Parker has the best plan, then he has the best plan...
Allowing the process to proceed as determined by code, he will get his chance to sell the deal.

Why is he pulling out the stops, i.e. screaming from the roof tops that LCC has the best solution when he hasn't seen AA's yet?

I think he's scared.
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Hit the nail on the head!

Can anyone remember another scenario like this?
True the combined US/AA would be more competitive together then apart. But Parker knows that if AA emerges independent odds are AA pursues a hookup with Alaska and or JetBlue.
If and it's a big if that Alaska can be persuaded to hookup, that combined carrier in addition to AA JV with BA and JAL would be a very competitive carrier.

In the AA emerges independent scenario where would that leave US?
Yes. That first thought that popped into your head after reading that question is correct. That is why Parker is yelling from the rooftops to anybody who will listen that this deal is a must do. He is worried. Delta rejected is credit card, United played him to get Contintntal to say yes. AA is the last partner at the dance.


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Going forward, in the global economy, LCC brings little beyond a few destinations served in the EU that AA doesn't already serve. Destinations made possible by affiliation with Star.

Strategically, AA would still trail in the North Atlantic, and have virtually no change to the problems in the Pacific.

LCC would bring hubs that trail the industry revenue generating capability by 16% though....

IF Parker fails here, LCC's days are numbered. He'll get his day in court... His sniveling is a bit of a surprise.

 

[PITbull]

nothing really US will keep on though maybe the wifi on the the lav truck or whatever it is you're driving will quit and you'll just go away

If I didn't work for either company I wouldn't care less what they did, you have shown you have some sort of hidden agenda when it comes to US. I don't really care what or why that agenda is but it pretty much renders your opinions useless

Why is it when posters have a different opinion, and shed some light to think outside the "box", folks think there is a some "up-to-no- good" menacing agenda.

You have to give folks some credit here...they wouldn't be able to post if they had absolutely no knowledge on the subject.

Agree to disagree and don't take offense. Add some logic and rational, fact based or speculation to the discussion and be a little open... it may surprise you.

 

[FWAAA]

Thanks for the info but what happens if Horton and the BOD do not agree to this? Can US proceed without AMR's input?

AA has said that it will cooperate with US in preparing the premerger notification documents under HSR.

Wouldn't it be funny if US proceeds to get DoJ approval for a merger yet the creditors don't side with Parker but instead back Horton and a stand alone plan? Parker's actions now look like a teenager who is reserving a limo and hotel room, making dinner reservations and buying prom tickets plus flowers all in hopes that the girl who has so far shunned him eventually gives in on the day of the prom and says she'll be his date.

 

[FWAAA]

From Ted Reed's daily mergerporn article about US merging with AA, quotes of Doug Parker at the US annual meeting of shareholders:

He said US Airways has figured out that the way to make money in the airline business is to fly into markets where you are the No. 1 carrier. For this reason, 99% of all US Airways flights serve Charlotte, Philadelphia, Phoenix and Washington Reagan National. AMR, he said, does not seem to have reached this conclusion. Rather, he said, "They have announced they will grow in markets where they are the weakest, not the strongest." Additionally, he said, AMR "is not getting its costs in line with its revenue generating capabilities."

There are several issues with this paragraph. First of all, US has not generated an aggregate net profit since the merger of US and HP. Sure, it has reported profits in some of the years since 2005, but its net losses overshadow the profits by more than a billion dollars. So Parker's statement that US "makes money" by being number one in CLT, PHL, PHX and DCA is misleading. The fact is, US hasn't "made money" since the merger even though it is number one in each of its four "cornerstones." And last year's profit was a mere $100 million on $13 billion of revenues. UA and DL turned in much higher profit margins, and they aren't number one in CLT, PHL, PHX and DCA.

Secondly, AA has announced plans to grow in the key business markets where O&D (high fares compared to connecting fares) is highest, like NYC, ORD, LAX along with its fortress hub of DFW (AA's version of DL's ATL) plus its unique Latin America gateway of MIA (where AA dominates). Since the UA and DL mergers (with CO and NW, respectively), UA and DL have strengthened in NYC, LAX and ORD, all key markets where AA must grow. And if AA does not strengthen in those key business markets, might as well liquidate now and get used to a duopoly in legacy air travel, at least until someone at the Justice Dep't decides to "break up" the "too large" UA and DL (ala AT&T).

Third, Parker's comments about AA not getting its costs in line are ridiculous given his promises to the AA unions to not cut their pay as much as AA management is doing now. To get AA's unions to support him, he promised them smaller reductions now plus faster raises after bankruptcy. Funny how he hasn't increased the pay of his own pilots in the seven years since US and HP got together yet he's offering raises to the most expensive airline workforce in order to sway them to his side.

The bottom line is that a merger of US and AA brings no additional strength in CHI or LAX. It brings no additional Asian presence. Thanks to the LGA slot giveaway, it brings only a marginal increase in NYC business. Like AA, US has contracted in BOS, so not much addtional strength there. US does bring some second-tier European cities plus some Latin America flights (and one flight to Rio) along with strength at PHL and DCA. Nearly everyone who boards a US plane at CLT is a connecting passenger, so that brings relatively little high fare revenue.

The merger will probably happen, and the executive suites in ATL and CHI will host parties, confident that Parker will not threaten their profitable businesses.

 

[DCAJet]

From Ted Reed's daily mergerporn article about US merging with AA, quotes of Doug Parker at the US annual meeting of shareholders:



There are several issues with this paragraph. First of all, US has not generated an aggregate net profit since the merger of US and HP. Sure, it has reported profits in some of the years since 2005, but its net losses overshadow the profits by more than a billion dollars. So Parker's statement that US "makes money" by being number one in CLT, PHL, PHX and DCA is misleading. The fact is, US hasn't "made money" since the merger even though it is number one in each of its four "cornerstones." And last year's profit was a mere $100 million on $13 billion of revenues. UA and DL turned in much higher profit margins, and they aren't number one in CLT, PHL, PHX and DCA.

Secondly, AA has announced plans to grow in the key business markets where O&D (high fares compared to connecting fares) is highest, like NYC, ORD, LAX along with its fortress hub of DFW (AA's version of DL's ATL) plus its unique Latin America gateway of MIA (where AA dominates). Since the UA and DL mergers (with CO and NW, respectively), UA and DL have strengthened in NYC, LAX and ORD, all key markets where AA must grow. And if AA does not strengthen in those key business markets, might as well liquidate now and get used to a duopoly in legacy air travel, at least until someone at the Justice Dep't decides to "break up" the "too large" UA and DL (ala AT&T).

Third, Parker's comments about AA not getting its costs in line are ridiculous given his promises to the AA unions to not cut their pay as much as AA management is doing now. To get AA's unions to support him, he promised them smaller reductions now plus faster raises after bankruptcy. Funny how he hasn't increased the pay of his own pilots in the seven years since US and HP got together yet he's offering raises to the most expensive airline workforce in order to sway them to his side.

The bottom line is that a merger of US and AA brings no additional strength in CHI or LAX. It brings no additional Asian presence. Thanks to the LGA slot giveaway, it brings only a marginal increase in NYC business. Like AA, US has contracted in BOS, so not much addtional strength there. US does bring some second-tier European cities plus some Latin America flights (and one flight to Rio) along with strength at PHL and DCA. Nearly everyone who boards a US plane at CLT is a connecting passenger, so that brings relatively little high fare revenue.

The merger will probably happen, and the executive suites in ATL and CHI will host parties, confident that Parker will not threaten their profitable businesses.

Another post that ignores the facts and blathers on, like you know anything. Did you remember the price the oil in 2008 that caused 500 plus million in loses? Really, why do you bash the flying that we flight attendants and pilots fly to Europe, RIO, etc. What do you want us to fly? Its profitable flying so don't bash it. So what, our passengers connect. Big deal. What difference does that make Mr. Analyst.

Since you're spouting AMR's talking points - you missed some key points. AMR is not number one in any of the three regions in the US -- on the east, the mid, and the west. Yes, some great cities like MIA have prosperous operations...that's a great thing. But do you ignore that AMR is in Chapter 11 for a reason, they are/were losing money and lots of it. And not because of flight attendants and pilots and labor. They don't generate the kind of revenue that United and Delta do, thats the point of the merger. You say we are second fiddle, and AMR is not competing well either. The fix is the merger. You don't provide a solution, just a gripe session and a poor one at that.

 

[wings396]

AA has said that it will cooperate with US in preparing the premerger notification documents under HSR.

Wouldn't it be funny if US proceeds to get DoJ approval for a merger yet the creditors don't side with Parker but instead back Horton and a stand alone plan? Parker's actions now look like a teenager who is reserving a limo and hotel room, making dinner reservations and buying prom tickets plus flowers all in hopes that the girl who has so far shunned him eventually gives in on the day of the prom and says she'll be his date.

Should he sit back and do nothing? Taking these and any other steps to move things along certainly can't hurt anything. I realize that his actions don't guarentee any given outcome, but he is wise to move forward in any way possible.

 

[PITbull]

Another post that ignores the facts and blathers on, like you know anything. Did you remember the price the oil in 2008 that caused 500 plus million in loses? Really, why do you bash the flying that we flight attendants and pilots fly to Europe, RIO, etc. What do you want us to fly? Its profitable flying so don't bash it. So what, our passengers connect. Big deal. What difference does that make Mr. Analyst.

Since you're spouting AMR's talking points - you missed some key points. AMR is not number one in any of the three regions in the US -- on the east, the mid, and the west. Yes, some great cities like MIA have prosperous operations...that's a great thing. But do you ignore that AMR is in Chapter 11 for a reason, they are/were losing money and lots of it. And not because of flight attendants and pilots and labor. They don't generate the kind of revenue that United and Delta do, thats the point of the merger. You say we are second fiddle, and AMR is not competing well either. The fix is the merger. You don't provide a solution, just a gripe session and a poor one at that.

Hey Newbie (you just never do go away...talk about calling out the kettle :angry2

I see they still have you on payroll. Go back to your managment hole where you belong. You still have the same mentality that bigger is better, and somehow its going to cure all the woes at U. You still can't finish merging america West after 7 years, what makes you now think you have the acumen to take on AA???????

Stupid is as Stupid still does!

 

[700UW]

Jerry Jerry

 

[FWAAA]

Another post that ignores the facts and blathers on, like you know anything. Did you remember the price the oil in 2008 that caused 500 plus million in loses? Really, why do you bash the flying that we flight attendants and pilots fly to Europe, RIO, etc. What do you want us to fly? Its profitable flying so don't bash it. So what, our passengers connect. Big deal. What difference does that make Mr. Analyst.

Since you're spouting AMR's talking points - you missed some key points. AMR is not number one in any of the three regions in the US -- on the east, the mid, and the west. Yes, some great cities like MIA have prosperous operations...that's a great thing. But do you ignore that AMR is in Chapter 11 for a reason, they are/were losing money and lots of it. And not because of flight attendants and pilots and labor. They don't generate the kind of revenue that United and Delta do, thats the point of the merger. You say we are second fiddle, and AMR is not competing well either. The fix is the merger. You don't provide a solution, just a gripe session and a poor one at that.

Wow.

Thank you for the insult-filled, content-free post.

I had forgotten that some US employees have very sensitive feelings that are easily bruised by a frank discussion of the shortcomings of US Airways. Unfortunately, some employees' feelings of self-worth and self-esteem appear to revolve around their employer and criticism of that employer, objective as it may be, is viewed as an attack on them personally. I apologize for hurting your feelings by objectively discussing US and what it doesn't bring to the table in a proposed merger with AA.

 

[PITbull]

Wow.

Thank you for the insult-filled, content-free post.

I had forgotten that some US employees have very sensitive feelings that are easily bruised by a frank discussion of the shortcomings of US Airways. Unfortunately, some employees' feelings of self-worth and self-esteem appear to revolve around their employer and criticism of that employer, objective as it may be, is viewed as an attack on them personally. I apologize for hurting your feelings by objectively discussing US and what it doesn't bring to the table in a proposed merger with AA.

FWAAA,

Just ignore the man behind the curtain. It's the wizard from mangement blathering again....blah, blah, blah...

You just step over him and post your opinions, our curious minds do want to know what you have to say and what you want to share. I happen to share some of your sentiments on the subject.

 

[700UW]

The person you are talking about is more than likely a "consultant" for US not an employee.

 

[FWAAA]

I assumed it's Doug Parker's wife. No doubt she really wants to see him succeed this time - she does not want a repeat of the Delta rejection fiasco.

 

[USA320Pilot]

I assumed it's Doug Parker's wife. No doubt she really wants to see him succeed this time - she does not want a repeat of the Delta rejection fiasco.

This is exactly why I desire to participate in a Proposed Merger Only News topic and will suspend my news reporting for the reasons described in the hyperlink below:

http://airlineforums...20pilot-thread/

Regards,

USA320Pilot

 

[FWAAA]

So put me on ignore, Captain. I couldn't care less. But to blame me and other posters for the absence of your valuable news links? Really?