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Old 02-13-2013, 07:15 PM   #1 (permalink)
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Default American Airlines- US Airways Merger is a 'Go'

American Airlines, U.S. Airways Merger Agreed To; Boards Set To Vote: Report

Read it and weep guys!

American Airlines and US Airways have agreed to terms for a merger, pending board approval tomorrow which, is expected to be a unanimous 'Yes'.
The picture is an advertisement I just created with Flight Simulator X, and using the slogan from the TransWorld-American merger back in 2001...

Thoughts?
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Old 02-13-2013, 08:08 PM   #2 (permalink)
 
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Default Re: American Airlines- US Airways Merger is a 'Go'

U.s. Amairican?
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Old 02-13-2013, 08:17 PM   #3 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

flyAmerican...Very nice image! It is a done deal. Voting was today and the announcements will be made tomorrow am.
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Old 02-13-2013, 08:27 PM   #4 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

No surprise, but I am still sad. Hopefully American can become a great airline again (Although, I still always like them no matter what...)
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Old 02-13-2013, 08:34 PM   #5 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

World's Largest Airline Born After Merger Deal.

American Airlines, US Airways Boards Approve Merger, Deal To Be Announced Thursday: Sources


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Old 02-13-2013, 09:00 PM   #6 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

jetbluefan...We always want the airlines of the United States to survive just
like we always want the Pats, Sox, Celts, Revs and Bruins to win .
AA is one of those airlines who will survive. The shareholders will make sure of that.
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Old 02-13-2013, 10:13 PM   #7 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

Meh, doesn't do much for me as I don't ever fly these two brutal airlines.
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Old 02-14-2013, 12:14 AM   #8 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

Quote:
Originally Posted by flyAmerican View Post
American Airlines, U.S. Airways Merger Agreed To; Boards Set To Vote: Report

Read it and weep guys!

American Airlines and US Airways have agreed to terms for a merger, pending board approval tomorrow which, is expected to be a unanimous 'Yes'.
The picture is an advertisement I just created with Flight Simulator X, and using the slogan from the TransWorld-American merger back in 2001...

Thoughts?
Yeah, ask TWA how well that worked out for them.
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Old 02-14-2013, 06:08 AM   #9 (permalink)
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arctic9048...TWA's issues started long ago along with Pan Am's. Both airlines were really known more for their international routes and not domestic. Only feeders to their hubs in JFK. The gas and oil issues of the 80s kept Americans from flying overseas and that was the initial blow to them. Neither could survive domestically either after that. There is always a reason or reasons why things fail, or succeed.
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Old 02-14-2013, 06:09 AM   #10 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

finally. i wonder when US will leave star alliance now - will they wait for regulatory approval?

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Yeah, ask TWA how well that worked out for them.
very different scenario this time.
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Old 02-14-2013, 06:11 AM   #11 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

So as widely anticipated, the merger goes ahead. The merged entity will retain the American brand, the US Air CEO will chair the new company and AMR creditors will own something like 72% of the new company. If I were a US shareholder I'd be wondering WTF is going down ?
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Old 02-14-2013, 06:16 AM   #12 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

AnonCollector...Do you think that US will leave Star Alliance? What alliance is AA affiliated with?
Aren't they OneWorld? It will be interesting to see which one they would retain. It
is US management as the AA management is going bye bye by 2014.
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Old 02-14-2013, 09:10 AM   #13 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

I didn't want it to happen, they did all this rebranding just to do a merger? Wow, I don't like it at all but it can't be helped I guess.

According to their new video on their YouTube Oneworld is going to get stronger. I guess at least the American name is kept..get your shiny AA pics while you can!

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Old 02-14-2013, 09:40 AM   #14 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

As someone on A.net posted, I hope this is this signals the end of all the major mergers for a long time, and from here the industry can begin to grow again. I can only hope we can see a couple of new airlines at some point, as well as continued expansion for airlines like Jetblue, Virgin, Frontier, Allegiant, and Alaska. I used to be a major fan of the legacies, but I think I may be rooting for the little guys now!
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Old 02-14-2013, 10:03 AM   #15 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

USAirways lineage is interesting to follow through time, and all of these excluding Trump are pretty major mergers:

All American Aviation
Allegheney 1953
+Lake Central 1968
+Mowhawk 1972
=USAir 1979

+PSA 1988
+Piedmont 1989
becomes USAirways in 1997

+Trump Shuttle 1997
into America West 2005
into American 2013
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Old 02-14-2013, 10:13 AM   #16 (permalink)
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boiler0178....There is one airline they left out in the US Airways lineage. Empire became
Piedmont .
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Old 02-14-2013, 10:54 AM   #17 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

Blech.

I understand the motivation behind this - Doug Parker is literally single-minded about merging, merging, merging - but I really do think we've taken one step closer to de-facto regulation. And I think Doug Parker and Alfred Kahn will be mentioned in the same breath in the future, when we look back on an industry that has homogenized to the point of mess. And yeah - there's personal preferences here. In the case of American - I still personally despise them for their "move" on MAXjet.

But personal preferences aside, the problem is - you are essentially capturing 81% of the entire US market into 3 airlines - and how many of us seriously doubt we've seen the end to mergers? Maybe Delta and United pairing up - or Delta and AA (more likely) but is this the end of mergers for this industry? Not by a long shot. And all will be done in the name of "increased economies of scale" - leaving out the factor that you will no longer go to Orbitz to find competitive fares.

In short - I can see this adminstration rubber-stamping this and future mergers, largely under the guise of "improved economics" - but also (don't doubt it) because one or two large carriers will be easier to subject to Government regulation. So - I hate to say it: forget about all the different tails we all love to see at different airports - we are staring at the fact that soon, there will be an American "Aeroflot" - and at that point, where is the motivation to improve service/enhance experiences? There won't be any.
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Old 02-14-2013, 10:59 AM   #18 (permalink)
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boiler0178....There is one airline they left out in the US Airways lineage. Empire became
Piedmont .
Yes, and I think USAirways had something to do with the end of Midway (yellow-Raliegh) not nessicarily a take over but a purchase of assets or something? I can't remember exactly.
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Old 02-14-2013, 11:10 AM   #19 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

Jeff H...What do you mean by this....?

In the case of American - I still personally despise them for their "move" on MAXjet.
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Old 02-14-2013, 11:25 AM   #20 (permalink)
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MAXjet established service to Stansted UK from JFK - and was just beginning to break ground/make traction with reliability. If we'd survived past December 2007 - I could have seen the long-debated idea of splitting the cabin to become a 2-class carrier, and taking advantage of seat economics to lower the B/E on the aircraft (I was in the Finance Department, so I was close to all these figures).

Now - Stansted was NOT the Business Travelers destination of choice, even with the Stansted Express getting you into London within 50 minutes. If anything, I think MAXjet would have ultimately prospered marketing itself as a leisure carrier, giving the Premium Economy passenger a chance to enjoy a quasi-business class experience across the Atlantic. Never, in reviewing BTS data, did I *ever* get the sense that we were eating into the majors TATL traffic - if anything, we were likely generating additional leisure travel from May 2007 onwards - i.e. trips that people wouldn't have taken anyway.

American pulled 3 767-300's out of mainline, and attached them to a "new" (they had tried to serve Stansted before - but had pulled out years before MY/EOS, etc) JFK - Stansted service, launching it with steep discounts on Business Class seats and fanfare. They remained at Stansted until roughly 1 month or so after MY and EOS were gone - then bailed immediately and returned any focus to Heathrow.

So in short - like what happened with Legend - they threw in assets at a serious loss (and trust me - late 2007 - TATL costs were getting high) just to kill off a possible *future* competitor - in some ways, leaving their already established market to a new, unfamiliar and unnecessary one, in order to do so. And don't doubt it cost them - my Father took the flight from STN to JFK after we went Chapter 11 (I had booked them on MAXjet - but bailed them out once I knew what was coming) - and told me the plane was less than half full - he estimated 30% - while we used to run 62-63% loads on the same route. But they chipped away at our loads until we had nothing left but the courts.

In short - no - I don't like American, because they have a long, storied history of spending large amounts of money not on improving service or enhancing the experience, but by moving swiftly to kill off anyone who tries to change the game. Call that their right - but until we have only one airline in the U.S. - I will not fly them. I don't fly with those who don't play the game in at least a noble way.
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Old 02-14-2013, 11:27 AM   #21 (permalink)
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P.S. JeffinMass - go Sox.
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Old 02-14-2013, 11:30 AM   #22 (permalink)
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Jeff H....We hope that the new season will be a "Better Sox". As far as AA goes I respect your opinion, however, the new AA management team is from US. The AA team will be going bye bye by 2014. Not to worry.
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Old 02-14-2013, 11:35 AM   #23 (permalink)
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Well - that brings me to my next point: how long do you think goold ol' Doug is going to wait before making another merger move? Not much. I'm not kidding when I say we will have, by 2015 - one airline holding maybe 85-86% percent of capacity - while the balance is held by Tier 2/3 players? Hence my prediction of "American Aeroflot" - one airline. Mark this thread, and we can all see if I am right in a few years.

And hands down - everytime these mergers go through - the Airline benefits - the flyer does not. The Government will benefit - the flyer will not.
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Old 02-14-2013, 11:46 AM   #24 (permalink)
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I just don't see the government approving any other mega-mergers here in the US unless it has to do with jetblue/Spirit, Spirit/Frontier, Spirit/Virgin or jetblue/Virgin.
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Old 02-14-2013, 11:51 AM   #25 (permalink)
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I wish I could agree - but when it comes to this Government in particular - I think the selling point will be the idea that one or two entities will be easier to influence and tax. Less probability of loss = greater probability of tax revenue. Like I said earlier - this is essentially a return to de-facto regulation, but with fewer pieces than before: with very little Government effort required. It's got to be attractive to them.
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Old 02-14-2013, 11:52 AM   #26 (permalink)
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And - make you a bet right now: DL goes hostile takeover on JetBlue, sometime in the next year.
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Old 02-14-2013, 12:13 PM   #27 (permalink)
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Quote:
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Jeff H....We hope that the new season will be a "Better Sox". As far as AA goes I respect your opinion, however, the new AA management team is from US. The AA team will be going bye bye by 2014. Not to worry.
That's not entirely true. Our employee website has told us that senior management will be comprised of "the best from both American and US Airways." Tom Horton will remain as a non-executive chairman until the shareholders' meeting in 2014, and of course, Doug Parker will become the new CEO as soon as the merger is completed, though integration after that is going to take a long time. But who will be the senior vice presidents, Chief Financial Officer, Chief Commercial Officer, etc., etc. has yet to be determined.

It's not as if the folks in Tempe are just going to charge into the executive offices in Centreport and tell everyone there to clear off their desks and get out so they can take over.

For example, in my department at AA, Flight Service, our vice president, Lauri Curtis, is a former flight attendant herself, and she has been invaluable in the department because of her work experience and first-hand knowledge of the job. Her equivalent at US is Hector Adler, who has years of experience with AA, Pan Am, America West, and I believe Northwest. There will only be one vice president of Flight Service, and the board will consider which one is the best candidate for the position.
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Old 02-14-2013, 04:26 PM   #28 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

What about the livery? Who's livery will be retained?



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Old 02-14-2013, 04:51 PM   #29 (permalink)
 
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What about the livery? Who's livery will be retained?
Since American just unveiled its new livery AND since the merged carrier will use the American Airlines name, assume that the new American livery will be used on the combined fleet.

Of course, the merger must be federally-approved before any changes will be made.

Personally, I think this marriage was in the works for some time and that's why American's new livery features what resembles a U.S. flag on the tail of freshly-painted planes. The stripes represent the flag emblem of US Airways.
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Old 02-14-2013, 05:02 PM   #30 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

we had a sence this is coming...oh well its a done deal..so far at YYZ everything is calm the us airways boys will be still stationed at T1 while we are still be stationed at T3...
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Old 02-14-2013, 06:32 PM   #31 (permalink)
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AnonCollector...Do you think that US will leave Star Alliance? What alliance is AA affiliated with?
Aren't they OneWorld? It will be interesting to see which one they would retain.
the merged entity will be in OneWorld - there's never been any question about it.

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But personal preferences aside, the problem is - you are essentially capturing 81% of the entire US market into 3 airlines - and how many of us seriously doubt we've seen the end to mergers? Maybe Delta and United pairing up - or Delta and AA (more likely) but is this the end of mergers for this industry? Not by a long shot. And all will be done in the name of "increased economies of scale" - leaving out the factor that you will no longer go to Orbitz to find competitive fares.

In short - I can see this adminstration rubber-stamping this and future mergers, largely under the guise of "improved economics" - but also (don't doubt it) because one or two large carriers will be easier to subject to Government regulation. So - I hate to say it: forget about all the different tails we all love to see at different airports - we are staring at the fact that soon, there will be an American "Aeroflot" - and at that point, where is the motivation to improve service/enhance experiences? There won't be any.
I'm sorry, but I think much of this is misguided.

4 big airlines and a bunch of smaller ones is still pretty good competition.

This administration is less likely than others to approve mega-mergers because they'll be more worried about prices to the consumer than the stability of corporate profits. Your viewpoint here is odd to the point that you might be the only one on earth with it.

As it is, there is so little overlap between the US and AA route networks, there shouldn't be much trouble getting the regulatory approval. there is no 'rubber-stamping' here - it's just the right decision to approve this merger.

what does orbitz have to do with the merged airline's economy of scale? i don't follow that line at all.

as for motivation for improve service/enhanced experience: think through this. there was a heck of a lot more airlines around in the years when service levels really went down. what did that competition do for you there?

this is all down to the customer. if the customer wants the rock bottom fare regardless of service, that's what he'll get. if you're willing to pay for better, you'll get better. it's your choice to sit in economy, premium economy, or business. and as it is, I'd say service has gotten better in the last few years, with more wifi, live tv, AVOD, etc, though the US airlines do lag some international competitors. airlines which are broke because the market is overcrowded are not going to be able to fund those improvements.

and international-travel business class in 2013 is insanely better than it was in the 1980s. if you're willing to pay, then the airlines will compete on service.


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I just don't see the government approving any other mega-mergers here in the US unless it has to do with jetblue/Spirit, Spirit/Frontier, Spirit/Virgin or jetblue/Virgin.
Alaska, Hawaiian, jetBlue, Virgin, Spirit, Sun Country, Frontier. that's your list. one of the big ones (AA, DL, UA, WN) might eat one of these, or one of these smaller ones might merge with another smaller one.

There's also still some shaking out to go among the regional carriers.

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Old 02-14-2013, 07:03 PM   #32 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

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Originally Posted by JeffinMass View Post
Jeff H....We hope that the new season will be a "Better Sox". As far as AA goes I respect your opinion, however, the new AA management team is from US. The AA team will be going bye bye by 2014. Not to worry.

I have to agree with JeffinMass on this topic. Once Tom Horton leaves the new "mega" airline, most of the executive staff that were brought on by him at the old A&A, will be shown the door as well (if not = the writing will be on the wall for them = assigned new "dead-end" roles/reduced responsibilities/visibility). It only makes sense that Doug Parker surrounds himself with 'his' hand picked US Airways execs. at the new 'American Airlines'. He may keep a few execs from the 'old' A&A to keep the A&A employee moral up a bit. However, the majority of execs running the new 'mega' American Airlines will be from US Airways. I wish all the best to the world's larget airline! I will support them by purchasing American Airlines tickets in any future travel plans! Cheers! T7

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Old 02-14-2013, 07:37 PM   #33 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

Do any of you guys think that there's a possibility that AA will change their livery with the US Airways merger? The new livery is okay, but I'd like to see a new livery that still rings US Airways come out of this merger, like America West-US Airways merger and how US then changed all their planes white
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Old 02-14-2013, 07:41 PM   #34 (permalink)
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Do any of you guys think that there's a possibility that AA will change their livery with the US Airways merger? The new livery is okay, but I'd like to see a new livery that still rings US Airways come out of this merger, like America West-US Airways merger and how US then changed all their planes white
I have no idea what they will do, but I would prefer for them to slap the 'american' name on the current US livery, which is pretty classy - with a much nicer flag-tail than the new AA monstrosity. like what UA did.
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Old 02-14-2013, 09:08 PM   #35 (permalink)
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I have no idea what they will do, but I would prefer for them to slap the 'american' name on the current US livery, which is pretty classy - with a much nicer flag-tail than the new AA monstrosity. like what UA did.
Personally I'd like to see a combination of the old navy blue US Airways livery and the old AA (or maybe new AA) livery, i think that a combination like that would look pretty cool
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Old 02-14-2013, 09:09 PM   #36 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

American Airlines Airbus A319 Livery Aviation Design - Modified Airliner Photos

Something like this
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Old 02-14-2013, 09:27 PM   #37 (permalink)
 
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Default Re: American Airlines- US Airways Merger is a 'Go'

flyAmerican, you forgot the Greyhound logo on these! haha
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Old 02-14-2013, 09:49 PM   #38 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

I strongly prefer the post US-HP merger white, to the premerger blue body. I just think it's classy.
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Old 02-14-2013, 09:53 PM   #39 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

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flyAmerican, you forgot the Greyhound logo on these! haha
I think he omitted the 'greyhound' logo on purpose!
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Old 02-14-2013, 10:22 PM   #40 (permalink)
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I think he omitted the 'greyhound' logo on purpose!
You see right through me lol
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Old 02-14-2013, 11:56 PM   #41 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

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I have to agree with JeffinMass on this topic. Once Tom Horton leaves the new "mega" airline, most of the executive staff that were brought on by him at the old A&A, will be shown the door as well (if not = the writing will be on the wall for them = assigned new "dead-end" roles/reduced responsibilities/visibility). It only makes sense that Doug Parker surrounds himself with 'his' hand picked US Airways execs. at the new 'American Airlines'. He may keep a few execs from the 'old' A&A to keep the A&A employee moral up a bit. However, the majority of execs running the new 'mega' American Airlines will be from US Airways. I wish all the best to the world's larget airline! I will support them by purchasing American Airlines tickets in any future travel plans! Cheers! T7
Still, these decisions will be made by the new board, and 3 of the seats on the board will come from AMR. The majority of seats on the board, 5 of them, will be AMR creditors, and you have no idea who they will select. Any speculation on who will be what in the new company is pure fantasy right now, unless you're in a seat on the board in Ft. Worth.
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Old 02-15-2013, 12:09 AM   #42 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

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arctic9048...TWA's issues started long ago along with Pan Am's. Both airlines were really known more for their international routes and not domestic. Only feeders to their hubs in JFK. The gas and oil issues of the 80s kept Americans from flying overseas and that was the initial blow to them. Neither could survive domestically either after that. There is always a reason or reasons why things fail, or succeed.
Carl Icahn was the initial and lasting blow.

Regardless of why they failed, I think it is pretty lame to start the two great airlines, one great future garbage. That didn't happen.
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Old 02-15-2013, 12:19 AM   #43 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

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arctic9048...TWA's issues started long ago along with Pan Am's. Both airlines were really known more for their international routes and not domestic. Only feeders to their hubs in JFK. The gas and oil issues of the 80s kept Americans from flying overseas and that was the initial blow to them. Neither could survive domestically either after that. There is always a reason or reasons why things fail, or succeed.
Huh???

I think you need to do a little more research there, sport ! TWA had a good domestic network compared to Pan Am or any other U.S. carrier. TWA's troubles began with TW Corporation spinning off the airline after loading it with debt and the eventual takeover by Carl Icahn.
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Old 02-15-2013, 12:20 AM   #44 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

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finally. i wonder when US will leave star alliance now - will they wait for regulatory approval?



very different scenario this time.
Is it?

Get back to us in the next 2-3 years.
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Old 02-15-2013, 12:24 AM   #45 (permalink)
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I wish I could agree - but when it comes to this Government in particular - I think the selling point will be the idea that one or two entities will be easier to influence and tax. Less probability of loss = greater probability of tax revenue. Like I said earlier - this is essentially a return to de-facto regulation, but with fewer pieces than before: with very little Government effort required. It's got to be attractive to them.
Nope. Eventually, Delta will want to merge with United or American, then Southwest will merge with whoever it left. Then those carriers will eventually merge creating one giant U.S. carrier. At this point, the U.S. government will step-in to nationalize the airline 'in the interests of the American consumer'. Then, the carrier will bleed money for years and the U.S. government will use the ol' "too big to fail" line and we will have another Amtrak on our hands.

Ain't socialism great ???
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Old 02-15-2013, 12:28 AM   #46 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

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Carl Icahn was the initial and lasting blow.

Regardless of why they failed, I think it is pretty lame to start the two great airlines, one great future garbage. That didn't happen.
That's exactly what I was thinking.

My Dad was a pilot for TWA at the time of the merger and I remember baseball hats and decals with the 'AA & TWA: Two great airlines, one great future!' crap ! Man - what a joke that turned out to be !

I do predict that we will see an American 777 here in Phoenix as part of the P/R crap.
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Old 02-15-2013, 12:42 AM   #47 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

Guys I don't know what the difference is between AA and US from the back of the bus but I can assure you that from up front AA has the better product.The Exec Platinum service with AA is amazing and the first class seats are even more comfortable than on United. My hope is that US ups their game after the new regime takes over when it comes to premium business travelers. I was "1K" status with United pre-Continental. Jeff Smizek was wrong... I didn't like his changes and moved to American. Now if I don't like the US version of AA I will have to move to a Delta hub city. My wife has already been warned that this is a possibility.
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Old 02-15-2013, 02:04 AM   #48 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

I don't see them doing another whole new livery, this one will be the new one since they already have so much on it. I'm sure they already knew they were going to merge, which is probably why the new livery came into play, and what they might have been trying to hint at with "The new American is coming." I have always liked American Airlines...but I just don't know what is happening to the airline world anymore.....fly GA.
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Old 02-15-2013, 02:54 AM   #49 (permalink)
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Default Re: American Airlines- US Airways Merger is a 'Go'

In my opinion.... refresh the US Airways colours and use the American name and branding...

Of all the US carriers i like the US Airways colours best and to me it say USA more than the new American colours... with the styalised US flag on the tail and the stripe swoosh on the rear of the fuselage... plus red white and blue
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Old 02-15-2013, 06:22 AM   #50 (permalink)
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Is it?

Get back to us in the next 2-3 years.
I mean it's different in that this time, it's American that's the weak carrier.

the US CLT hub will definitely survive the merger - AA doesn't have anything that serves its function. I'm sure PHL will survive too, but I'm not sure how they'll balance PHL and JFK. PHX maybe gets reduced.
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