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Why American Airlines appears ripe for acquisition

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As American Airlines seeks to slash jobs and pensions to help steer its way through bankruptcy reorganization, rival carriers are eyeing it, looking at whether they should buy the struggling airline. (travel.usatoday.com) More...

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s2v8377
s2v8377 4
This is a tough one for me. I really hope that the American Airlines brand isn't lost in a merger, however perhaps a merger is for the best? Sadly no matter what the future holds for this great airline the employees will suffer the most.
BlakeMyes
Blake Myers 2
i fly for them those sobs
preacher1
preacher1 1
Just curious. How do you fly for an airline not having an ATP. Your profile says commercial. Just Curious
BlakeMyes
Blake Myers 1
sorry i dont my dad does he is a
FO on the 767 and 757
Nrice91
Noah Rice 1
Why would DL dehub SLC? if they were going to do that, I don't they would've made the investment in the new SLC terminal that is slated to begin in 2018
COFF
Actually, if you look at http://www.slcairport.com/cmsdocuments/TRP-1-17-12.pdf (page 29 of the PDF), you will see that DL does not have a commitment in place yet. It may have a LEASE, but leases can be rejected in bankruptcy for a 15% penalty...
preacher1
preacher1 1
What I have never figured out, I guess it was in the bankruptcy, is why they dehubbed KDFW. They were there from day 1 I think, and I really think that they are making a mistake in not trying to keep the old NWA hub at KMEM alive as opposed to try and shovel all into KATL which is at capacity. AA is already making inroads now from KDFW to KATL and doing pretty good with it although the arrival of SWA will be interesting. The measure on it all will be how much is local and how much is connector. Either way it goes, I don't see DAL dehubbing SLC, BUT, anything is possible
Nrice91
Noah Rice 1
It wouldn't make sense for DL to dehub SLC when it's there only hub in western United States. Delta may have a lot of flights into LAX but it isn't a hub according to their website http://news.delta.com/index.php?s=18&cat=47 but I can see CVG going away since they JFK ATL MSP and DTW in the area. I misspoke on DL at SLC, sorry about thanks for the correction. I doubt the AA brand is going anywhere and I doubt AA is going anywhere, I think they'll come out on top but they'll have to make some serious changes.
preacher1
preacher1 1
CVG is pretty much gone. It is not a shadow of it's former self, as is KMEM. If it wasn't for FedEx, KMEM would be dead. ComAir killed CVG when they thumbed their nose at Furloughed DAL pilots during the bankruptcy and ASA has reaped the rewards.
preacher1
preacher1 1
As I have said before and you all have, it will be very interesting.
COFF
Let DL buy US. AA will buy the US Shuttle ops (to satisfy antitrust concerns). DL can then dehub CLT, PHL, LAX & SLC, keeping NYC, DCA, ATL, DTW, PHX & MSP. DL & WN will go head-to-head at ATL & PHX; that keeps them honest. AA & UA go head-to-head at ORD and in Texas (DFW vs IAH); that keeps them honest. Everyone (except WN) fights in NY. Everyone (except DL) fights in LAX. AA & UA have LatAm; DL & UA have NRT; everyone has an alliance to Europe.
preacher1
preacher1 1
You know, what is puzzling to me, and they just may not have gotten to it yet other than some aircraft types, but that is the fact that nothing has been said or done with Eagle yet. I would have figured that it would have been among the first things to go and a contract put in to replace the routes.
BlakeMyes
Blake Myers 1
my dad got an email that says eagle is supposed to get e175s all that is doing is taking flying away from the american pilots.
preacher1
preacher1 1
Well, it will if they put them on any of the AA routes but it shouldn't if they leave the route stucture intact as you have more capacity on the big iron and they have already done enough route realignment and flight cutting to max out capacity on most lanes. I was doing some fill in for Eagle and the weekend prior to the bankruptcy, pulled a KATL turn from KDFW on one of the 80's for AA. Haven't done anything since then as so many retired and furloughed guys are out there. They have to run the whole roster before they can even look outside. I'm not really wanting to jump in that mess right now anyway. My sympathy is with your dad and those others as who knows what is going to happen. Hopefully, with all the retirement he will be able to go ahead and advance to Captain and hang on until they come out on the other side
canuck44
canuck44 1
Interestingly enough, one possibility has never been suggested, but might be considered. American has well developed international routes to the Caribbean and South America plus Europe and a few to China and Japan plus descent service to Hawaii. This is most likely the most profitable segment of the company.

If as rumored Southwest really were interested in developing internationally this would be an opportunity to pick up the most profitable part of AA and gain an instant well experienced international presence while feeding it from an equally well developed domestic network. No hub problems and no anti-trust issues with compatible equipment and headquarters in the same county.

This is not likely to happen but would be fun to watch as cultures clashed.
preacher1
preacher1 2
I tell you what would really be fun to watch here. The Cities of Dallas and Ft Worth own KDFW. Dallas alone owns KDAL and after them just spending big bucks remodeling KDAL, I wonder which would win out.LOL
Dubslow
Dubslow 1
I see why no one's suggested it. I agree though, it would be fun to watch. (I imagine it'd crash and burn. Various companies have tried low-cost internationals, but none have really "taken off" [hehe].)
WALLACE24
WALLACE24 1
John didn't mention low cost. Who says SWA wouldn't have the balls to charge what AA was charging if indeed it was profitable. Why cut price if you don't have to. Just saying, since we're playing the what if game.
canuck44
canuck44 1
You are absolutley correct, James, and we must look at the other side of the coin. Is Southwest really a "low cost" airline? I contend they are moderately priced, but they just sell off their estimate of what would be "consolidator" or "agency block" to the legacy airlines. When you add up the prices on longer haul, the savings are minimal or non-existent. Whether that will work on international is the question, but the advantage of picking up existing routes into different cultures is worth a lot of money if there is any real intention to provide those services and be successful.

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