What should US do (if anything) if the DOJ kills the AA merger?

Discussion in 'US Airways | Dividend Miles' started by daninstl, Aug 30, 2013.  |  Print Topic

  1. daninstl

    daninstl Gold Member

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    What's your thoughts. Should US Air doing anything if they can't merge with AA. I would like to see them buy or merge with Frontier or Alaska and then expand to more international destinations. I think there is some room for them to gain market share on Hawaii routes if they could manage to offer a better product there but I'm not sure that is a profit maker anyway.

    Any other ideas?
     
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  2. MX

    MX Gold Member

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    I agree - let them take over Frontier. That's enough. :p
     
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  3. LETTERBOY
    Original Member

    LETTERBOY Gold Member

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    I'd suggest they fire Dougie and get a CEO who will not make decisions based on his ego. As far as merging with AS or F9, I think they need to finish the merger with America West before they think about merging with anyone.
     
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  4. eponymous_coward
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    eponymous_coward Gold Member

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    I see zero chance that AS management is remotely interested in a merger with US, and AS management is well-positioned to make a case to their shareholders that their management of AS has resulted in superior performance to anyone in the industry in terms of return on invested capital- so why throw them overboard for a merger with an airline that has a history of divisive labor-management disputes, second-tier hubs, and second-banana position in Star Alliance behind UA (without any of the antitrust protection for TATL/TPAC UA has).

    The only airline I see AS ever possibly merging with has a widget on the tail (and even then I think it's a remote possibility). ;)
     
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  5. MSPeconomist
    Original Member

    MSPeconomist Gold Member

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    Cease operations?
     
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  6. Gtitan
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    Gtitan Gold Member

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    Were that the case, the DOJ would not have likely stepped into the fray. Parker's quip about having a successful business model regardless of merger did the merger no favors.
     
  7. Mirror74

    Mirror74 Gold Member

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    Stay in *A... ;)
     
  8. Mike Reed

    Mike Reed Gold Member

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    I still think a simple move to OW and broad code sharing makes much more business sense, especially when being able to codeshare with AS and B6 becomes an option. US/B6 code sharing in OW would be an incredible competitive tactic.

    Sent from my iPhone using milepoint
     
  9. LETTERBOY
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    LETTERBOY Gold Member

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    It would definitely make sense, but would Dougie's ego/pride be able to stomach that? I simply can't see him going to AA and asking if US can join OW if he's not going to be running the show. I'm not even sure that he'd listen if AA invited US to join OW. OTOH, this assumes he's still in charge at US. My comment above about him being fired was/is more wishful thinking than actual prediction, and I have no idea what his standing with the US BOD would be if the merger fell through.
     
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  10. eponymous_coward
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    eponymous_coward Gold Member

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    Why should Parker be fired? US is making money, first time in a long while.

    And it's not about ego, it's about what's good for the company you're running. A tight partnership with AA and B6 and some OW love would be better than being the red-headed stepchild of *A in the USA, even if it's not the merger they desire.
     
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  11. Pizzaman
    Original Member

    Pizzaman Co-founder

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    I say this having no idea what the answer is. I wonder if US can leave Star Alliance without penalty if they DON'T merge. As in, does their contract with Star have a clause that doesn't allow them to leave without penalty except for certain events? That wouldn't surprise me.
     
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  12. Gtitan
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    Gtitan Gold Member

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    Answer is yes it does. :)
     
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  13. Pizzaman
    Original Member

    Pizzaman Co-founder

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    Any idea the penalty?
     
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  14. US should simply go on as they have before. I have no complaints. They are no better or worse than the others.
     

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