🌟 Exclusive Amazon Black Friday Deals 2024 🌟

Don’t miss out on the best deals of the season! Shop now 🎁

US Airways seen buying American

Network Synergies

If the creditors think that the value of a larger network that would result from a combination is greater than the cost, and a willing partner emerges, wouldn't any creditor's committee consider this added value?

My impression is that the industry still considers the value of an expanded network to be significant, considering the perceived success of UA/CO and DL/NW. But each deal is different. Both AA and US are significantly smaller than their competitors.

I haven't heard of discussions of network synergies this time. Maybe it's just a phrase that any proponent of a combination would use and any detractor would not use.

When we start hearing that, then maybe something is in the works.
 
Let's look at previous mergers:

NW/DL
Northwest brought in Asia
Delta brought in Europe and significant presence in Latin America

UN/CO
United brought in Asia
Continental brought in Latin America and Europe

AA/US
American would bring Latin America
Usairways brings nothing.
How is this a good match?
 
I wouldn't characterize US as "Bringing Nothing" to any potential combination with AA.I think PHL (Which US has forced WN to scale back at), DCA and CLT are hardly nothing.We aren't the AA we were even five years ago, I really wish people would take off the rose colored glasses and SEE what this place has turned into.We're last in almost every performance metric,we've lost billions in the past decade and we're friggin' bankrupt FFS!

Personally I think it is only a matter of time until they let the cat out of the bag.Hell, they might even wave enough cash at Bethune to come in for a few years and kick the combined entity into shape.

Lord knows this thing masquerading as AA needs it.
 
I wouldn't characterize US as "Bringing Nothing" to any potential combination with AA.I think PHL (Which US has forced WN to scale back at), DCA and CLT are hardly nothing.We aren't the AA we were even five years ago, I really wish people would take off the rose colored glasses and SEE what this place has turned into.We're last in almost every performance metric,we've lost billions in the past decade and we're friggin' bankrupt FFS!

Personally I think it is only a matter of time until they let the cat out of the bag.Hell, they might even wave enough cash at Bethune to come in for a few years and kick the combined entity into shape.

Lord knows this thing masquerading as AA needs it.

And what does US HAVE to bring to the table? Dougie wants to run the airline and if he can come to the party with some ideas and cash then the creditors may just let it happen. AA's shareholders just want to be profitable regardless of the route to get there. US Airways extensive regional market will supplement a new and reformed AA.
In the new AA, they can compete extensively with Delta at LGA, and have a monopoly at DCA. Maybe not a lot of synergies but AA is really going to have to do something special to stay single. Dougie wants a date to the dance.
 
I wouldn't characterize US as "Bringing Nothing" to any potential combination with AA.I think PHL (Which US has forced WN to scale back at), DCA and CLT are hardly nothing.We aren't the AA we were even five years ago, I really wish people would take off the rose colored glasses and SEE what this place has turned into.We're last in almost every performance metric,we've lost billions in the past decade and we're friggin' bankrupt FFS!

Personally I think it is only a matter of time until they let the cat out of the bag.Hell, they might even wave enough cash at Bethune to come in for a few years and kick the combined entity into shape.

Lord knows this thing masquerading as AA needs it.

Good post.......
 
and have a monopoly at DCA

If the DOT didn't allow the US/DL slot swap as initially proposed why would anyone think they'd allow US/AA to keep all their combined DCA slots? Much more likely is that a combined US/AA would have the same number of slots as US has today.

Jim
 
Back
Top