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Squawks & HeadlinesAmerican Looking at 5 Airlines for Merger Partner.

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American Looking at 5 Airlines for Merger Partner.

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American Airlines Is looking at 5 different airlines to see which one they would like to merge with. (www.chicagotribune.com) More...

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rebelx4xchrist
Paul Smith 3
If they were to go with US Airways, AA's management would be out the door and US Airways Management would be taking over which is why AA is trying to find someone else because they want to be in control even though their management team has proven oon many occasions to be incompetent.
dvbavcon
Dean Brossman 3
I do not believe any merger should be allowed. The airline industry in the US is controlled by 5 airlines, UAL, DAL, USA, AAL & SWA right now. Do we really want to make it 4 airlines?
rebelx4xchrist
Paul Smith 2
It actually does need to happen... Right now, DAL and UAL have a pretty big monopoly that no one else can compete with. If AA were to merge with someone else the competition would drive prices down at UAL and DAL. The reason they can provide competitive services is because they found ways to do it cheaper and since they are so big they cant really be touched but if AAL were to merge prices would drop, service would be better and more efficient, and you would see more routes that have dissapeared reappearing because the markets could now be served in a cost-effective manner.
dvbavcon
Dean Brossman 2
I am afraid we will have to agree to disagree on this point. I do not believe less competition will produce lower prices or better service.
rebelx4xchrist
Paul Smith 2
Ok, so what happens when DAL and UAL wipe out the other competition since no one can compete cost effectively? The prices start to rise... Unless there's a level playing field all around then there's is some sort of monopoly. For example one of the only electric companies here in NYC is Con Edison. They charge outrageous prices because they have effectively wiped out all other competition or they dont have the means to compete on their level. Point is competition is good, there's a better product when it's competitive and it has a better cost because it comes at some sort of sacrifice and you really have to work at it to sell it lol.
conmanflyer
connor oslie 2
Those five, other then US air, would look like take-overs rather then mergers.
preacher1
preacher1 2
My personal feeling is Jet Blue, although he might do US Air just to be able to personally fire Doug Parker for all the grief & aggravation he has caused him.
bishops90
Brian Bishop 2
I'm with Preacher. I see them coming out intact. With some refinincing and terms extensions until thwy can get their fleet upgraded and become more efficient (and hopefully into some better economic waters).
bishops90
Brian Bishop 2
Lol. Would love to be a fly on that wall.
preacher1
preacher1 2
me too. If you saw Parker's comment a few days ago, somebody had yanked his chain hard, as it was a 90 from where he had been.
rebelx4xchrist
Paul Smith 1
Lol, I hope you know Doug would be in charge if AA merged with US.... Thats the whole reason they are looking for other options since they want to avoid losing their power at all costs.
WALLACE24
WALLACE24 1
My two cents is that no matter who merges with who, you and I can expect our ticket prices to continue to rise.
rsantiago1221
Ryan Santiago 1
American airlines wanted me to pay 375 dollars to go to FLL. I paid 165 on united.... American airlines needs to take the merger with us airways to do what united has done... get into the smaller hubs, take out the full eating MD-80's and start using aircrafts that US airways has and you can make it a airline worth wild and keep your cost down and keep people fly and not charge 375 when another airlines is using the same aircraft type and is heading to the same place for half the price
qwertykal
qwertykal 1
I'm hoping for an independent American to emerge from bankruptcy, although a merger with Alaska or Virgin America would be interesting.
qwertykal
qwertykal 1
US Air wants to keep the unions (multiple, they'll be dealing with three if they merge) and give them all raises. Doesn't make sense when the labor costs are already through the roof, eh?
erp1530
Ethan Pressl 1
I think the smart choice would be US Air because that would improve not only their domestic activity but also their International activity because it might give them more destinations but also it'll give them more planes that they could use.
preacher1
preacher1 3
I'm kinda like a comment below here in that US would be more of a merger; the others being more of a takeover. Whichever way it goes, it bolsters my original theory that AA will come out of BR independent and either way, I think Doug Parker has a big target on his back. Horton is a pretty good shot too.It will all be interesting.
ltcjra
ltcjra 0
(Duplicate Squawk Submitted)

AMR to advance with merger review, source says 5 airlines eyed

A source familiar with the situation said AMR sees itself as an acquirer in potential mergers and at least five airlines -- US Airways Group Inc, JetBlue Airways Corp, Alaska Air Group, Republic Airways' Frontier Airlines, and Virgin America -- will be considered.



http://in.reuters.com/article/2012/07/11/amr-merger-idINL2E8IAD8320120711