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American Airlines: No 'plan B' if US Airways merger fails

American Airlines has no "Plan B" should its merger with US Airways fall through. That's according to American Airlines general counsel Gary Kennedy. ( More...

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PhotoFinish 1
Exactly! Before the merger agreement, AA vowed to remain independent, and had submitted a plan to the bankruptcy court to that effect.

If the DOJ suit is successful in blocking the merger (stranger things have happened), then AA need only dust off their original reorganization plan and resubmit it to the court. The only difference is that the possibility of a potential merger with US Airways won't be lingering and clouding people's judgement.
PhotoFinish 2
Maybe Plan B could be an independent AA that does something more interesting like pursue a merger with Akaska.

If the merger is successfully blocked by the DOJ, then it would be a race between US and AA, to court and get hitched to Alaska.

Alaska would be my Plan B. However, I wouldn't broadcast that to anyone. American would be best positioned. They've already negotiated code-shares between AA and Alaska. Also AA is adding international service from Seattle on the strength of Alaska's local route network at the airport, as well as adding frequencies to AA's other hubs.

In the wnd, it may work out much better for American with Alaska, rather than with US. Seattle seems like a better strategic match, as it would complement either US or AA's network. And there wouldn't be a messy 5 hub overlapping monstrosity on the east coast, as well as the close geographical proximity between Phoenix and LAX.

But Alaska should be both US or AA's Plan B, but don't expect them to shout it from the rooftop of a terminal. Plus, neither airline wil want anyone to believe that they could exist without the merger until AFTER it's defeated.

Let the race begin for Plan B


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