# American Airlines Terms for USAir Merger



## Talent312 (Nov 15, 2012)

(Dallas Morning News) -- 
The CEO of American Airlines’ parent, AMR Corp., says that if his airline merges with US Airways, AMR creditors should get most of the new airline’s stock, according to people familiar with the situation.

CEO Tom Horton said Wednesday that AMR creditors should get considerably more stock in a combined airline than US Airways has so far proposed... US Airways is pushing for a merger that would create a company roughly the size of United Airlines, the world’s biggest carrier, and led by US Airways executives.
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## Rent_Share (Nov 15, 2012)

Talent312 said:


> (Dallas Morning News) --
> The CEO of American Airlines’ parent, AMR Corp., says that if his airline merges with US Airways, AMR creditors should get most of the new airline’s stock, according to people familiar with the situation.
> 
> CEO Tom Horton said Wednesday that AMR creditors should get considerably more stock in a combined airline than US Airways has so far proposed... US Airways is pushing for a merger that would create a company roughly the size of United Airlines, the world’s biggest carrier, and led by US Airways executives.
> ...


 
Doug Parker is not qualified to run a bus company


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## timeos2 (Nov 15, 2012)

Mr Horton should have stuck to donuts  (Oh, not the same Tim Horton? Never mind)


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## persia (Nov 15, 2012)

And will they call the mergered airline PanAm?   Frankly how American and USAir manage to survive in the face of Southwest, Virgin America and JetBlue I just don't know, unless somehow worse service at a higher price is something airline passengers prefer...


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## timeos2 (Nov 15, 2012)

Perhaps THDA "Tim Horton's Doughnut Air", with motto
"We give you the hole experience!"


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## Carolinian (Nov 15, 2012)

persia said:


> And will they call the mergered airline PanAm?   Frankly how American and USAir manage to survive in the face of Southwest, Virgin America and JetBlue I just don't know, unless somehow worse service at a higher price is something airline passengers prefer...



Because AA can get you a lot of places in the world those airlines cannot.


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## x3 skier (Nov 15, 2012)

At least Spirit isn't in the mix for a merger with AA:rofl:

Cheers


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## post-it (Nov 15, 2012)

I'm not sure the timing of this merger, but I still have a lot of AA FF miles to use.  Should I be concerned for the immediate future?  I wasn't planning on booking my miles until next summer for our 25th Anniversary in 2014.  Please give me some hope here.


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## timeos2 (Nov 15, 2012)

post-it said:


> I'm not sure the timing of this merger, but I still have a lot of AA FF miles to use.  Should I be concerned for the immediate future?  I wasn't planning on booking my miles until next summer for our 25th Anniversary in 2014.  Please give me some hope here.



Usually the miles are grandfathered but may lose some value. You should be ok.


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## Talent312 (Nov 17, 2012)

From the date a merger goes thru, it'll be 18 months to two years before they combine FF programs. There should be plenty of advance notice of any changes in how they're used.

United's merger with Continental was approved in 2010.
Their FF programs merged in March of this year.
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## Laurie (Nov 17, 2012)

Talent312 said:


> From the date a merger goes thru, it'll be 18 months to two years before they combine FF programs. There should be plenty of advance notice of any changes in how they're used.
> 
> United's merger with Continental was approved in 2010.
> Their FF programs merged in March of this year.
> .


How long does it usually take for a merger to go thru? I already have plans for my AA miles for Oct 2014, so I hope it takes 6 months or more to complete any merger.


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## x3 skier (Nov 17, 2012)

Laurie said:


> How long does it usually take for a merger to go thru? I already have plans for my AA miles for Oct 2014, so I hope it takes 6 months or more to complete any merger.



A merger can be agreed to between the parties almost immediately. Then the Government reviews for at least six months and up to two years and then the parties have to implement the actual merger which can take a minimum of three years and maybe never. 

*IF* there is an agreement between AA and US, I would not expect ANY change for 3-4 years from any agreement.

Don't worry. 

Cheers


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## Talent312 (Nov 17, 2012)

Officially, it only took United and Continental a 22 months to go from announcement to merger of operations. But if you add in their mating dance... They'd been "talking" off+on  for about two years.

Timeline from seekingalpha.com and unitedcontinentalholdings.com ...
May 2008 - Continental and United briefly held negotiations for a possible merger.
June 2008 - Continental announces it will switch to United's Star Alliance.
July 2009 - DOJ gives Continental+United antitrust immunity on international flights.
July 2009 - Continental and United announce sharing technology in the Star Alliance.
July 2009 - United announces it will switch auditors to Continental's public auditor.
April 2010 - After United flirts with USAir, Continental re-enters merger talks.

May 2010 - Agreement to merge announced.
July 2010 - Clearance from the European Commission
Sept 2010 - Department of Justice Completes Antitrust Review
... Continental and United Shareholders Approve the Merger
... Continental and United Announce New Ticker and Stock Exchange
October 2010 - United and Continental Close Merger
March 2012 - Operations and FF programs Merged
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## Carolinian (Nov 17, 2012)

Talent312 said:


> From the date a merger goes thru, it'll be 18 months to two years before they combine FF programs. There should be plenty of advance notice of any changes in how they're used.
> 
> United's merger with Continental was approved in 2010.
> Their FF programs merged in March of this year.
> .



But they often start devaluing the ff programs earlier than when programs are merged.  But mergers always seem to mean ff programs getting seriously whacked, so we can hope this one never happens.  With BA willing to front some cash to help AA, hopefully AA will be able to stave it off.

The unsecured creditors will end up as the new stockholders, and it looks like many of them have no use for Dougie Parker and his antics.  This statement from Horton reads like he is letting those future shareholders know that Parker is trying to buy them on the cheap to help put the brakes on the lilkihood of a merger.


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## scotlass (Nov 18, 2012)

My main concern on this merger would be that AA allows booking one-way FF tix and US does not.  Which one would prevail?  This is huge for getting tickets as soon as they are available 331 days out.


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## Judy (Nov 18, 2012)

post-it said:


> I'm not sure the timing of this merger, but I still have a lot of AA FF miles to use.  Should I be concerned for the immediate future?  I wasn't planning on booking my miles until next summer for our 25th Anniversary in 2014.  Please give me some hope here.


If you've ever tried to book an award ticket on USAirways, you know there's reason for concern.  USAirways has an award system similar to Delta's


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## Carolinian (Nov 18, 2012)

Actually, I would like to have seen USAir successful in its takeover bid for Delta.  Those two deserve each other.

Now, hopefully RyanAir will consider a takeover move on USAir.  It looks like the EU Commission will shoot down their attempt to take over Aer Lingus.


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## colatown (Nov 21, 2012)

THe merged airline (if there is one) will be called American Airlines and will be part of OneWorld. US FF users may have bigger changes especially when using partner airlines.


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## Talent312 (Nov 21, 2012)

colatown said:


> THe merged airline (if there is one) will be called American Airlines...



What? No more "US Air begins with U?"
I'm shocked and dismayed. 

_... I know they haven't used that in a while._ 

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## T_R_Oglodyte (Nov 21, 2012)

Talent312 said:


> What? No more "US Air begins with U?"
> I'm shocked and dismayed.
> 
> _... I know they haven't used that in a while._
> ...



And no more "What US Air does ends with 'U'".


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## Kauai Kid (Nov 21, 2012)

*AA vs USA*

Our last trip to Hawaii on AA was a mess. Leave  Sat 3 Nov Return Fri-Sat 16 & 17 Nov

Originally leave TX 730 am arrive LIH 230 pm w one change of planes

AA Modification at last minute 730 am departure 930 pm arrival

After passing out,  AA got us into LIH at 430 pm, 3 plane connections via HNL.

Return flight originally one change of planes with morning arrival in TX 

AA Modifications required three different planes and arrival 330 pm in TX after a red eye to LAX.  Equipment change at LAX required every single passenger to be re-seated.:annoyed:

US Airways to Hawaii is TX-Phoenix-LIH or OGG.  Worst delay was 25 min in Phoenix to change a landing gear tire on one occassion.

My experience with US Air has been far superior to AA on the TX-HI routes.


Sterling


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## Ron98GT (Nov 21, 2012)

colatown said:


> THe merged airline (if there is one) will be called _American Airlines_ and will be part of OneWorld. US FF users may have bigger changes especially when using partner airlines.



And where did you read about this


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## x3 skier (Nov 21, 2012)

Kauai Kid said:


> Our last trip to Hawaii on AA was a mess. Leave  Sat 3 Nov Return Fri-Sat 16 & 17 Nov
> 
> Originally leave TX 730 am arrive LIH 230 pm w one change of planes
> 
> ...



I can give lots of great and lousy personal experiences on just about any major airline (except SWA which I have never flown). The most "interesting" was losing a major piece of a flap on a BAC-111 over Pennsylvania on the predecessor of Useless Air. 

It's pretty much a c*** shoot on any flight except Spirit, the Greyhound of the air where definitely get what you pay for while they remain obscenely profitable for an airline. 

Anything good or bad can happen on any airline although it is more likely on Useless Air in my traveling experience. 

Cheers


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## x3 skier (Nov 21, 2012)

Duplicate, sorry

Cheers


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## Talent312 (Nov 21, 2012)

x3 skier said:


> I can give lots of great and lousy personal experiences on just about any major airline (except SWA which I have never flown).



I've had some good experiences with SWA, but this one stands out:

We took a short-haul between JAX and FLL. It was 'sposed to be a 45-min flight.
A storm closed the FLL airport, so we circled over the Bahamas for 90 minutes.
FLL opened, but the plane was low on fuel, and so it was diverted to Orlando.
It took us over 2 1/2 hours to fuel up and get to FLL.

When we arrived, there were no gates available, so they kept us parked on the
plane for another hour. This little 45-minute flight took a total of five hours.

_The weather wasn't SWA's fault, but ground coordination could'a been better._

As mentioned, no airline is immune from unpleasant experiences which usually
begins with an unforseeable issue, but is exacerbated by a poor response to it.
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