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US Airways Said To Be Making Offer To Buy Or Merge With American Airlines; Industry Is Changing

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Hoping to finally merge with someone, U.S. Airways is said to be putting together an offer to buy or merge with now bankrupt American Airlines. (www.thefloridanewsjournal.com) Mehr...

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tyketto
If this were to go through, AWE would definitely be leaving *A. There is no way that DAL/KLM/etc. will allow over half of the (what is left) legacy carriers to all be part of *A. There would be no OneWorld presence in the US, which I think would tick off a rather upset VIR.

As far as fleets go, this coudl cause AAL to cancel that huge A320neo order, as they'd be picking up A319s-A321s from AWE. How their B737NG(MAX?) order will unfold is another good question.

Bonus for them if they pick up CLT for a hub, giving them something between JFK and MIA. Once again, this brings into question DFW. It's still too early on how that will work out, but there has to be some anxiety down in Dallas right about now..
JD345
JD345 0
one way or another, we'd end up with three mega-legacies anchoring the three alliances.
preacher1
preacher1 0
I personally think it would be a disaster. See mine and some other comments below. It might work for a bit but I think in 2-3 years they'd be doing this same thing again.
JD345
JD345 0
There's this idea that they NEED to merge because everybody else is doing it... I don't see it happening in the near future at least. Again, if anything, I would expect it to be AA coming out of bankruptcy and taking over and obliterating US.
preacher1
preacher1 0
That may be what they are afraid of and trying to get them while they are down. Problem is, AMR ain't that far down.lol
JD345
JD345 0
like I said... a hot dog cart trying to "buy" Oscar Meyer...
hothand69
James Gargas 0
You people are clueless with your comments and most probably just spectators to the industry and do not even work it... FYI the pilot problem that exists at US is becuase of the East pilots being a bunch of babies and running away from various court rulings, and forming their own union seperating the West from any representation. Shocking, the USAPA union voted in is currently running on pennies and ran out of money in their last lawsuit - giving up. Unions are pointless today and the driving factor for bankruptcy. With regulations as they exist today and the changes in the workforce as the baby-boomers retire we will see pointless unions disappear.
preacher1
preacher1 0
You don't like checking profiles, but you need an ATP to be a part of that US crowd and yours says Commercial, so that tells me you are just bitter about something as, by your rating, you would not have a direct part in anything that went on over there.
preacher1
preacher1 0
34 years, and over 15000 hours in big iron, semi retired and still carrying an ATP does not make make me clueless or a spectator. Maybe you should check a profile every now and then before you lump everyone in the same bunch. Oh Yeah, I'm sorry, I'm also a vet to and I spent my time around 'Nam so you could make these comments.Have a nice evening.
hothand69
James Gargas 0
No need to check a profile when your-type are the post-vietnam, union-loving individuals that have made the industry what it is today, no ability to sustain itself. Individuals that want to do as little work as possible but still pull in over 150k a year... Times are changing, thank goodness.
preacher1
preacher1 0
Like I said, Have a nice evening. Oh by the way, you'll not find my name on a union roster anywhere. You really seem to like lumping everbody together, which is not real good. We do agree on the value of Unions but it appears that is all. Goodnight
kadriver
kadriver 0
Oh Wayne, please tell us you're not a scab!!!!!!!
preacher1
preacher1 0
Well, I guess I did belong to ALPA for a big part of the time, but I don't consider that a union. I was raised in a right to work state and Just never had the need of it during my career. Although big iron, it was all corporate, and I was on a first name basis with the CEO. I was fourtunate.
drdisque
Ben Deneweth 0
I doubt this will happen for a few reasons:

1. The AA pension holders hold a significant stake in the creditor board for AMR in the bankruptcy. They likely would not vote for this. US Airways would likely seek to shrink the former AA operation to only their DFW and MIA hubs.
2. AMR is financing their bankruptcy though cash on hand rather than DIP financing, meaning that there's no large financial institution that stands to benefit from this deal.
3. It's unlikely that anyone would give US Airways large enough line of credit to acquire AMR using cash and the prospect for the creditors of only receiving diluted US Airways stock for the company is likely unattractive.
4. The DOJ would likely have considerable antitrust concerns. If this merger were to go through you would be getting to the point where market share in the industry would be getting too consolidated - even though the industry is deregulated and anyone is free to start a new airline.
preacher1
preacher1 0
I agree with your assessment here. PanAm1971 made the comment up above here yesterday that US Air wanted to be the Union Pacific of the Airlines. When UP went on their merger/buying spree a few years back they were already the strongest rail line in the country. Lots of difference. I personally think AMR will come out as a stand alone and then probably mutilate them.lol
StymieHo
Chris Donawho 0
1. Merger instead of purchase, running on AA certificate.
2. All the more reason to attempt merger rather that buyout.
3. See #2.
4. Delta/NWA and UAL/CO - pattern?
R123154
RICK HUGHES 0
Piemont even approached Roanke,Va about being a hub one time.Well the answer to their thoughts is clear for they ended up in CLT.Yea GSO made more sense for they were based in Winston Salem NC.Go figure.All about concessions and tax breaks I guess.plus in Roa. the city would have had to spend millions to lenghten the runways.Not the best layout here for sure with the mountains and all.
travelczar
travelczar 0
Noooooooooooooo!!!
preacher1
preacher1 0
I really think that Horton is shaking his head and saying "why don't they just let us alone". AMR is in a whole lot better shape financially than any of the other legacy's were when they went into bankruptcy and should be strong enough to emerge as a stand alone, if left alone to work things out as they planned. It WOULD be a disaster if US tried to take them in. They are so weak, I am surprised THEY haven't been gobbled up. I do look for Eagle to be gone with those feeder routes going to contract, probably Mesa.Maintenance at Tulsa and at Ft Worth is a toss up.
JD345
JD345 0
I think you're right... US buying AA sounds like a NYC hot dog vendor buying out Oscar Meyer so he can put the Oscar Meyer logo on his cart and say, "Hey, look at how big and important I am!" Even with the bankruptcy, if anything I'd think AA would buy US, pillage it for CLT and some airplanes, and raze the rest of it. AA's route map sure doesn't look to me like it needs much help from US.

This appears to be more like US wanting to ride along with a future AA resurgence rather than one "fellow" legacy rescuing another from certain doom.

Details aside, in the abstract, it would be interesting to see how things work with the industry going from what it was 15 years ago to three mega-legacy carriers and Southwest. It would seem that all four would be more or less competing directly, head-to-head, everywhere, with four identical planes racing each other on every route...
preacher1
preacher1 0
You know, we all keep holding Southwest separate, calling the old ones legacy's and then SWA by name. When SWA started, that was probably true. Nowadays,SWA is not flying any International routes yet or part of any alliances, but other than that, they are flying everywhere. Why are we separating them? The others should take a look at what SWA is doing. I remember in the late 90's, while TWA was still in business, going thru Lambert. Seem like Pilots, after having a long final from halfway across Illinois, would land about halfway into the runway, dawdle to the end and all the way back to the gate. I have seen SWA flights land there just ahead of us and be turned back airborne by the time we got to the gate.
JD345
JD345 0
Airline nerds like separating SWA from everybody else, probably mostly because of the differences in the business model... but step back from airline nerd-dom for a minute and aside from not calling their hubs "hubs" there's far more IN common with the "legacies" than NOT in common with them.
preacher1
preacher1 0
That's what I mean, they are doing what the others need to be
s2v8377
s2v8377 0
I think you summed up the situation well.

[This poster has been suspended.]

hothand69
James Gargas 0
That is funny, unfortunately graduated with my BS in AFO at the conclusion of the September 11 catastrophe. Remained in college achieving a BS in Aviation Anagement with a concentrations in airline/airport operations. Obtained my MBA in Applied Management and another MBA in Aviation Professional Management; currently working to acheive my PhD in Organizational Leadership while working full-time at a legacy carrier as a senior manager in strategic planning/future schedule development. After September 11 I opted to not continue flying because of what the industry was turning into but still wanted to be a part of it in some way... So, no was not because I could not pass the written, just FYI...
preacher1
preacher1 0
Well, he didn't say that you were, just that you sounded like one. Go back and read your own posts. You really let a bitter streak come out there and are unfairly lumped a whole bunch of folks into a negative category. I guess if that is the way that you see things and your opinion, then you are entitled to it, just as we are entitled to disagree with it.Personally, if I felt that way, I'd get out of it completly and not be a drain on those remaining.
StymieHo
Chris Donawho 0
Must have gotten the Anagement degree at Univ of Phoenix.
StymieHo
Chris Donawho 0
I are smart. Wish I had all those acronyms to go wif em.
R123154
RICK HUGHES 0
I guess U S AIR will ruin another airline like they did with PIEDMONT.Watch your pensions for we sure lost ours with their poor management decisions.
preacher1
preacher1 0
You know what really gets me is why they wound up with CLT as a hub. GSO was already in hub mode with Piedmont. I never could understand all that. GSO has now bounced back but it sure took awhile.
ms06877
ms06877 0
It would be a disaster. Ask any east coast Us Air pilot about the last merger.
s2v8377
s2v8377 0
I agree with your comment. Also most forget AA already went through a merger just over 10 years ago with a bankrupt TWA.
panam1971
panam1971 0
USAir wants to be the Union Pacific of airlines. Anything with "Air..." in the name, beware!
s2v8377
s2v8377 0
pjshield
pjshield 0
Way to go Wayne! He's sounds like one of those DipS..ts that is struggling with that written...If he ever passes that, then the real flying is tested and there are no cajones there. Betcha he's still waiting for that callup to right seat by an over-grown bug-smasher 'airline'.
slgordon3
slgordon3 0
I live in the approach path for 9R at Philly, so some part of me can't help but root for the lowly US Airways. But still, i had the exact same thought as most people on here--this IS like a hot dog cart trying to buy Oscar Meyer. I mean, how many more flights a day does American have than US? How many more aircraft? This is like David trying to buy out Goliath. I can't see that this is anything more than a pipe dream.
preacher1
preacher1 0
There is defintely one thing about it; IF they were to find sombody that would extend that type credit to them, and IF the government were to allow it, they would be so highly leveraged that any excess money would go toward debt service and it would all blow up in their face after while, because the only way they could service that kind of debt would be to let the rest of it go downhill and then everybody would be out in the cold. I think it is a self protection thing, afraid that AMR will emerge as a stand alone and come after them in the end.
slgordon3
slgordon3 0
Exactly. US Air would have to borrow well more than their total amount of assets, i would think? I can't imagine that AMR would sell for that cheap! Cheap enough for US at least. Someone will come after US, and honestly i wouldn't mind. We'd definitely get less flights here but i think the demand would be strong enough that you could still get to all the major cities in the US, and probably a handful in Europe. Though we'd probably lose things like PHL-Brussels, i feel like our airport can't handle the traffic. To be sure, i'd hate to see anyone lose a job.

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