American Airlines: No 'plan B' if US Airways merger fails

Discussion in 'American Airlines | AAdvantage' started by uggboy, Aug 22, 2013.  |  Print Topic

  1. uggboy
    Original Member

    uggboy Gold Member

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  2. ChrisUNC

    ChrisUNC Silver Member

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    Shut the front door! :p
     
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  3. Aktchi
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    Aktchi Silver Member

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    As others have pointed out, AA has a Plan B, but can't talk about it till Dec 13. On the other hand, I can easily believe that US does not have a Plan B. :)
     
  4. redbroccoli

    redbroccoli Silver Member

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    What kind of business doesn't have 'plan B' for a project that is as big as a merger with regulatory approval?
    Does he know he sounds hugely incompetent by saying that?
     
  5. tstephens

    tstephens Member

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    There is a plan B. Take the Justice Dept. to court. There is no reason why it should not be approved. Look at all the recent large mergers that went uncontested.
     
  6. brodyf

    brodyf Gold Member

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    I think that is Plan A.
     
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  7. Mike Reed

    Mike Reed Gold Member

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    Which is what the DOJ is arguing - AA/US is too late now that DL/NW and UA/CO have merged. Further consolidation is unwarranted, so they argue.

    Sent from my iPhone using milepoint
     
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  8. Pizzaman
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    Nor am I sure US "needs" a plan B. I think most folks are in agreement that US and AA combined make a formidable opponent for DL and UA. But, US is profitable now. They might want to be bigger, but my guess is they could still survive without the merger. AA likely can as well, though they may cause more trouble if they try to get really big really quickly.
     
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  9. garyst16
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    garyst16 Silver Member

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    If the merger does not proceed, my guess is AA could survive if they shed all of their less than and borderline profitable routes until they gain some cash... then start expanding... as an AA loyalist, I would prefer they move forward without US if at all possible....
     
  10. HeathrowGuy
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    HeathrowGuy Gold Member

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    AMR has already shrunk every chronically unprofitable aspect of its operation except Eagle. If AMR can emerge bankruptcy without getting into a POR fight that would erase some of the financial gains from reorganization, the carrier will be poised for rather aggressive growth through the end of the decade -- a reality that I know for a fact worries both United and (especially) Delta.
     
  11. Mike Reed

    Mike Reed Gold Member

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    American doesn't need to shed anything - they had quite a lot of cash on hand before entering bankruptcy. The US merger was always more about providing a growth plan for US, who's currently stuck in an unenviable position in Star, and US co-opting American's name and brand image to dump their own hot mess of an image.

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  12. Pizzaman
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    Yeah, AA still has tons of cash. Each day that goes by without progress on the merger makes me a bit more hopeful AA will emerge from BK on its own. Maybe that will ultimately be their downfall. The unions all thought they were getting big pay raises from Doug so they may turn into UA/CO bitter. Other than that, though, most obstacles seem like they can be overcome by a smart leadership team with new planes and cash.
     

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