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US(eless) Airways gearing up for a takeover of American

T_R_Oglodyte

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US Airways makes move to take over American

US Airways (LCC) has filed an 8K with the SEC to begin the process of a takeover of American Airlines, which is currently in Chapter 11 bankruptcy.
--snip--
A letter to employees by US Airways CEO Doug Parker reads in part:

Today, we filed a statement (a form called an 8-K) with the Securities and Exchange Commission disclosing that we have signed agreements with the three unions that represent nearly 55,000 American Airlines employees. These unions are the Allied Pilots Association (APA), the Association of Professional Flight Attendants (APFA) and the Transport Workers Union (TWU), which represents all of American Airlines' mechanics and fleet service employees. Shortly after our disclosure, these three unions issued a public statement announcing their support of a US Airways-American Airlines merger and that they have agreed to terms that would govern collective bargaining agreements for their members at the merged airline. I want to explain to you why we have done this and what it means.

First of all, today's news does not mean we have agreed to merge with American Airlines. It only means we have reached agreements with these three unions on what their collective bargaining agreements would look like after a merger, and that they would like to work with us to make a merger a reality. To get to an actual merger, many more things must happen including gaining the support of AMR's creditors, its management team and its Board of Directors. But this is obviously an important first step along that path and we are hopeful we can all work together to make this happen.

The agreement with American's three labor unions and the 8K filing with the SEC are the first major steps in a potential hostile takeover bid. It is hostile in the sense that if the merger were to happen -- and that's still a big if -- it would happen without the agreement of American's leadership.

Thus far, American CEO Tom Horton has resisted merger overtures and so going directly to unions is an end-run around AMR management, which would be forced out if the effort is successful.

In a letter to American Airlines pilots the president of the Allied Pilots Association, Dave Bates, wrote: "The combined carrier will be branded American Airlines, based in Fort Worth Texas and headquartered at CentrePort. It will be comparable in size and scope to Delta and United."

A joint statement issued Friday by The Transport Workers Union (TWU), the Association of Professional Flight Attendants (APFA) and the Allied Pilots Association (APA) read in part:

"A merger between American Airlines and US Airways is the best strategy and fastest option to complete the restructuring of American Airlines, enabling it to exit the Chapter 11 bankruptcy process..."

According to the labor group statement, the merger "provides the best path for all constituencies, including employees of both American Airlines and US Airways."
 

Rent_Share

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USless Airline employees are hostile to their customers why wouldn't the attempt a hostile takeover.

Will be a strange market with American, Continental, Northwest completely out of the Picture

The weak shall inherit the girth
 

dougp26364

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For us this is bad news. AA had been one of our more favored airines while we've avoided USAirways as much as possible for the last 10 years or so.
 

pedro47

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USAirway is the only airline we have avoided for the past 12 years. " very poor service."
 

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US Air had to file the 8K because it was required of them to do so when they communicated with American's Unions.

The reason we avoid US Air is because the employees feel the same way about their management as American employees feel towards their management the only difference is that US Air employees pass on their feelings to the customer.

Nothing is going to happen until AMR files its reorganization plan with the Court and that won't be till the end of the year. I doubt US Air has the financial ability to pull off a merger with American. Prior to its filing American placed a large order with Boeing and Airbus that will make the American fleet the newest in the industry. Those orders were confirmed with bridge financing after the bankruptcy filing and I don't think the creditors will agree to a merger with US Air.

What many lose sight of is that American Airlines represents less than 25% of AMR's assets and less than 40% of it's revenues. All the attention is given to American but AMR is the bigger picture. Should AMR surrender American to US Air then all US Air gains is the oldest fleet in the industry and the highest paid employees in the industry.

If I were AMR I would give up American in a heart beat, take American Eagle and rebrand it as a international rather than a regional carrier and give the new aircraft to Eagle. Eagle employees are younger and their wages are already competitive or less than Delta and United. US Air / American would be history within five years.
 

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US Air had to file the 8K because it was required of them to do so when they communicated with American's Unions.

The reason we avoid US Air is because the employees feel the same way about their management as American employees feel towards their management the only difference is that US Air employees pass on their feelings to the customer.

Nothing is going to happen until AMR files its reorganization plan with the Court and that won't be till the end of the year. I doubt US Air has the financial ability to pull off a merger with American. Prior to its filing American placed a large order with Boeing and Airbus that will make the American fleet the newest in the industry. Those orders were confirmed with bridge financing after the bankruptcy filing and I don't think the creditors will agree to a merger with US Air.

What many lose sight of is that American Airlines represents less than 25% of AMR's assets and less than 40% of it's revenues. All the attention is given to American but AMR is the bigger picture. Should AMR surrender American to US Air then all US Air gains is the oldest fleet in the industry and the highest paid employees in the industry.

If I were AMR I would give up American in a heart beat, take American Eagle and rebrand it as a international rather than a regional carrier and give the new aircraft to Eagle. Eagle employees are younger and their wages are already competitive or less than Delta and United. US Air / American would be history within five years.
 

Twinkstarr

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USAirway is the only airline we have avoided for the past 12 years. " very poor service."

If I haven't had issues with Useless Air myself, I follow a bunch of NASCAR writers/tv personalities who either live in Charlotte or the Northeast on Twitter who every week have a :eek: story about that airline.
 

Pat H

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For us this is bad news. AA had been one of our more favored airines while we've avoided USAirways as much as possible for the last 10 years or so.

Ditto, plus I have lifetime Gold on AA and I'm sure that will go away.
 

x3 skier

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Nooooooooooooooooooooooooooooo.:eek:

Cheers
 

x3 skier

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Ditto, plus I have lifetime Gold on AA and I'm sure that will go away.

I have over 1MM on both of them. I wonder if that will make me Lifetime Platinum. :shrug:

OTOH, the last time I flew Useless was back in the 90's IIRC.:rolleyes:

Cheers
 

Kauai Kid

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It appears the earliest I can get to Lihue using American from Texas is 756 pm

US Air's connection arrives Lihue at 512 pm

I'd rather fly US Air and get to my favorite place on earth 3 hrs sooner.:cheer:

I have no issues with US Air except your frequent flyer miles expire.

Sterling
 

x3 skier

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It appears the earliest I can get to Lihue using American from Texas is 756 pm

US Air's connection arrives Lihue at 512 pm

I'd rather fly US Air and get to my favorite place on earth 3 hrs sooner.:cheer:

I have no issues with US Air except your frequent flyer miles expire.

Sterling

I didn't know Useless flew to Hawaii. Is it actually a code share with United?

Cheers
 

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On a recent trip with USAir my husband and I were shocked when a stewardess answered my husband's question with, "Dah." We never were treated with such disrespect by an airline employee. All the flight attendants looked and sounded as if they did not like their jobs nor people in general!
 

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Of course, USeless Air's Parker also tried to take over Delta out of bankruptcy and that did not work out. Actually, I wish it had as that would have put both of the anti-customer dogs of airlines in the same kennel and kept them off the backs of decent airlines.

AA's alliance partner, British Airways has said it will put some money into AA to help head off a US takeover. Of course, there is a limit to how much of AA they could legally own.
 

MichaelColey

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I've flown extensively on both, and had top tier status on both (US Airways Chairman's Preferred and AA Executive Platinum) a few years ago. I'm currently Lifetime Gold and less than 100k away from Lifetime Platinum on AA.

There's a world of difference in service between the two. American is top notch. US Airways is one of the worst in the industry. Experience in First Class is similarly lopsided. US Airways doesn't even serve meals in First Class unless a flight is over 3.5 hours (and very few of theirs are).

I find their frequent flyer programs to be a bit more equal. AA has more seats up front for upgrades, one way redemptions, lifetime status, and slightly better redemption options. US Airways has free upgrades (only AA EXP is free, the others need earned/purchased stickers) and free companion upgrades, which we always loved.

I would prefer that AA remain independent, but the rumor is that the AA name, programs and policies would be the ones kept so a merger might not be as bad as we would imagine. Most people on FT seem to think that AA miles and even lifetime status would continue.

Lots of hurdles (the Boeing orders as pointed out by Hobo, BA intervention as pointed out by Carolinian, Delta opposition, bankruptcy court approval, etc.) that they need to go through. It's certainly nowhere near a done deal.
 

Carolinian

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Every recent airline merger / takeover has brought a huge downgrade of the ff program, KLM & AF, DL & NW, and UA and CO. Now AA has the only decent ff program left. I would hate to see it on the merger chopping block.
 
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