Possible American Airlines Merger?

[Arubalisa]

Delta, US Airways PG Assessing Bids for American Airlines Parent, AMR - WSJ.com

[MarcioCampos]

Can't read the whole article, but the Financial Times has the same news. I don't know how it could affect the passenger -- maybe AA would have to leave OneWorld to join SkyTeam or Star Alliance (depending on who buys the company), forcing a chance in mileage programs.

All the best from Brazil

Marcio

[Glenn]

Whenever I hear about mergers in the airline industry, I'm always concerned about changes in the level of service, especially to smaller and medium-sized cities.

We'll just have to wait and see, I guess.


Glenn

[Arubalisa]

Glenn, they did a piece on the local TV news here in Atlanta last night about a Delta/American merger. They basically said it goes both ways. It would open more slots for their flights from the west and mid-west through Dallas, but where there is no competition, of course, the prices would go up.

Right now with the merger of Air Tran and Southwest and Southwest's entry into the market here in Atlanta, we have already seen some flight prices come down. Delta has been competing with Air Tran. All good in my mind

[SanNic44]

Sad to see American Air's decline. However, in bankruptcy, I find their service to be better than USAir, which is akin to riding in an old school bus. Depending on these mergers and such, my loyalties may have to shift.

Oh well.

[~Amy~®]

Originally Posted by SanNic44

Sad to see American Air's decline. However, in bankruptcy, I find their service to be better than USAir, which is akin to riding in an old school bus. Depending on these mergers and such, my loyalties may have to shift.

Oh well.

I have to agree with that! Only time I use USAir is when I have enough frequent flyer miles for First Class. But even then, Delta's (which we fly the most out of MSP for work/vacation) First Class is FAR superior to USAir's First Class. It's like apples and oranges as far as service and amenities.

[Chadd]

There is zero chance of American merging with Delta or United. The combined size and assets would create major problems in a number of markets. Those airlines would be interested in certain assets and selling off or shutting down the rest of the company.

My belief is that they will emerge as a stand-alone carrier possibly managed by TPG. I would rate a merger at less than 50%, but it would almost certainly be with US Airways, if it were to happen. The labor groups are on the creditor committee and I can't see them approving any deal that results in massive layoffs.

[ryanaruba920]

I'm curious about the effects of a US-AA merger on Aruba, especially from the Boston/New York markets. I feel like a combined carrier like that has the opportunity to compete vigorously with JetBlue, which is clearly dominating both of those markets right now. I'm from Boston and would LOVE if somebody came in and offered a nonstop to compete with JetBlue. Prices would drop dramatically. I love JetBlue but without competition, their fares are through the roof.

[Chadd]

Both airlines have focused on routing flights through their hubs, so there's little reason to believe that they would add non stop flights to the islands from Boston. I also wouldn't expect either airline to start up flights knowing that Jet Blue would drop fares to the point where they aren't profitable again.