American Airlines-U S Airways Merger Creates World's Largest Airline

[webfact]

American-US Airways Merger Creates World's Largest Airline

WASHINGTON, February 15 (RIA Novosti) American Airlines and US Airways announced Thursday plans to merge in an $11 billion deal that would create the world's largest airline, and according to some industry analysts, make airfares take off.

newsjs

"You're going to be paying more, in general, for your airline tickets," airline analyst Rick Seaney told WFAA television.

"Even though people say this particular merger of US Airways and American Airlines isn't going to raise ticket prices, I don't believe that one bit," said Seaney, who founded the travel website FareCompare.com.

“Consumer harm is the norm with recent mergers,” Charlie Leocha director of the Consumer Travel Alliance told the Dallas Morning News. “While the airline management rakes in merger bonuses, consumers are the ones who bear the brunt of post-merger integration service problems.”

The merger is expected to be finalized later this year, the companies said, with plans to rebrand under the American Airlines name.

Full story: http://en.rian.ru/bu.../179471955.html

-- RIA NOVOSTI 2013-02-15

[webfact]

American Airlines, US Airways merge to become world's biggest airline

2013-02-15 09:37:41 GMT+7 (ICT)

FORT WORTH, TEXAS (BNO NEWS) -- AMR Corporation, the parent company of American Airlines, Inc., and US Airways Group, Inc. on Thursday announced both companies have approved a definitive merger which will create the world's biggest airline by passenger numbers.

The combined airline, which will operate under the American Airlines brand and have its headquarters in Fort Worth, Texas, will offer more than 6,700 daily flights to 336 destinations in 56 countries. It is expected that the new airline will maintain all hubs currently served by American Airlines and US Airways.

"The combination of American and US Airways brings together two highly complementary networks with access to the best destinations around the globe and gives us a strong platform to provide our customers the most connected, comfortable travel experience available," said Tom Horton, Chairman, President and CEO of American Airlines.

The $11 billion deal is expected to generate more than $1 billion in annual net synergies in 2015, including $900 million in network revenue synergies, primarily from increased passenger traffic, taking advantage of the combined carrier's schedule and connectivity, as well as its mix of high-yield business.

Both airlines expect that the regional carriers they own - AMR Corporation's American Eagle and US Airways' Piedmont and PSA - will continue to operate as distinct entities.

The merger was unanimously approved by the boards of directors of both companies and the deal is expected to close in the third quarter of the year. With the transaction, AMR's bondholders will own 72 percent of the new company while US Airways shareholders will hold 28 percent.

In February 2012, American Airlines announced it would cut approximately 13,000 employees as part of a five-year business plan which sought to improve finances by more than $3 billion by 2017, including $2 billion in cost savings and $1 billion in revenue enhancements. That announcement came just months after parent company AMR filed for Chapter 11 bankruptcy protection.

-- thaivisa.com © BNO News All rights reserved 2013-02-15

[sstuff3]

Combine two sub-standard airlines to create an even larger sub-standard airline that will continue to charge sky-high prices with nil customer service. No wonder the economy in America is in distress.

[Chicog]

Combine two sub-standard airlines to create an even larger sub-standard airline that will continue to charge sky-high prices with nil customer service. No wonder the economy in America is in distress.

And of course several thousand more middle class workers will lose their jobs. Obviously Obama's fault.

[Sing_Sling]

Proof yet again that bigger is not better and biggest is not best.

What ever happened to the much vaunted idea in the land of competition to drive prices down and service up? Easy to talk the talk but not as easy to walk . . .

[Chicog]

Proof yet again that bigger is not better and biggest is not best.

What ever happened to the much vaunted idea in the land of competition to drive prices down and service up? Easy to talk the talk but not as easy to walk . . .

CEOs and shareholders do not like competition. Ask Apple.

[zydeco]

The last time I was on AA it was from DFW to LA. They wanted $10, credit card only, for a sandwich. The flight attendant was so elderly, I thought that if there was an emergency, then she would be the one who needed help. Bad airline, bad service, rude people. The entire thing deserved to go under.

[skippybangkok]

The largest crappy service would be a better statement. Avoid flying US based carriers if u can

[stoli]

Combine two sub-standard airlines to create an even larger sub-standard airline that will continue to charge sky-high prices with nil customer service. No wonder the economy in America is in distress.

Where do you draw the logic that American Airlines is the reason for America's economy being in the dumps? They are a pretty good airline, and US Airways has always provided bad service, but your conclusion is based on what? They aren't Congress!

Edited February 15, 2013 by stoli

[stoli]

Combine two sub-standard airlines to create an even larger sub-standard airline that will continue to charge sky-high prices with nil customer service. No wonder the economy in America is in distress.

And of course several thousand more middle class workers will lose their jobs. Obviously Obama's fault.

How do you draw Obama into this? Oh yes, you think he is the best, and you love him. Stay on subject.

[lovetotravel]

The largest crappy service would be a better statement. Avoid flying US based carriers if u can

Right on. I've had much better service with the Indian, Chinese, Russian, etc airlines.

And don't get me going on the LCCs in Europe. Talk about hidden charges.

[Sing_Sling]

Combine two sub-standard airlines to create an even larger sub-standard airline that will continue to charge sky-high prices with nil customer service. No wonder the economy in America is in distress.

And of course several thousand more middle class workers will lose their jobs. Obviously Obama's fault.

How do you draw Obama into this? Oh yes, you think he is the best, and you love him. Stay on subject.

He's being facetious - perhaps you should lighten up a bit . . . but I do like your forceful top-down management style in telling him to 'Stay on subject'. Very impressive

[Sing_Sling]

The largest crappy service would be a better statement. Avoid flying US based carriers if u can

Right on. I've had much better service with the Indian, Chinese, Russian, etc airlines.

And don't get me going on the LCCs in Europe. Talk about hidden charges.

You're quite right - compare India, Russia and China to the US in this instance . . . oh, and European LCCs . . . that makes sense.

Oh, it doesn't. A better comparison would be to Singapore Airlines, QANTAS, Lufthansa, JAL, ANA, MAS even, Cathay etc . . .

Doesn't look so rosy then, does it.

Instead of getting defensive, why not look at facts . . . two bad airlines combine to be the biggest airline. Look at the ramifications . . . did they combine to offer better service? Lower prices? Add employees?

Combine two sub-standard airlines to create an even larger sub-standard airline that will continue to charge sky-high prices with nil customer service. No wonder the economy in America is in distress.

Where do you draw the logic that American Airlines is the reason for America's economy being in the dumps? They are a pretty good airline, and US Airways has always provided bad service, but your conclusion is based on what? They aren't Congress!

It's quite a good comparison, actually. The banks and investment houses were in cahoots to maximise their profits by any means and their primary objective wasn't towards their customer base, but rather towards their shareholders. The parallels are certainly there.

A point well made, I'd say

[sstuff3]

Combine two sub-standard airlines to create an even larger sub-standard airline that will continue to charge sky-high prices with nil customer service. No wonder the economy in America is in distress.

Where do you draw the logic that American Airlines is the reason for America's economy being in the dumps? They are a pretty good airline, and US Airways has always provided bad service, but your conclusion is based on what? They aren't Congress!

I did not say that American Airlines is the reason for America's economy being in the dumps (are you related to my ex-wife? She had a way with twisting words too). My point was pretty simply stated. Many obviously do not share your conclusion that they are a pretty good airline but I do respect your opinion. Different people have different experiences and standards.

Possibly this merger will place them on the government's "too big to fail list" entitling them to government bailouts in the future to compensate for poor management.

[lovetotravel]

Combine two sub-standard airlines to create an even larger sub-standard airline that will continue to charge sky-high prices with nil customer service. No wonder the economy in America is in distress.

Where do you draw the logic that American Airlines is the reason for America's economy being in the dumps? They are a pretty good airline, and US Airways has always provided bad service, but your conclusion is based on what? They aren't Congress!

I did not say that American Airlines is the reason for America's economy being in the dumps (are you related to my ex-wife? She had a way with twisting words too). My point was pretty simply stated. Many obviously do not share your conclusion that they are a pretty good airline but I do respect your opinion. Different people have different experiences and standards.

Possibly this merger will place them on the government's "too big to fail list" entitling them to government bailouts in the future to compensate for poor management.

Sorry, but I also read your post the same way. The American economy is doing fairly well. Not great, but about the same as most large economies around the world, maybe a bit better? Many Asian economies are doing quite well.

It' hard to compare a "for profit" airline like AA to one like Singapore Airlines. If I am not mistaken, many of the better airlines in the world are either owned or sponsored by their host countries? So they can focus more on quality as opposed to their stockholders. Who are more interested in a return on their money. Which is fair.

[sstuff3]

Combine two sub-standard airlines to create an even larger sub-standard airline that will continue to charge sky-high prices with nil customer service. No wonder the economy in America is in distress.

Where do you draw the logic that American Airlines is the reason for America's economy being in the dumps? They are a pretty good airline, and US Airways has always provided bad service, but your conclusion is based on what? They aren't Congress!

I did not say that American Airlines is the reason for America's economy being in the dumps (are you related to my ex-wife? She had a way with twisting words too). My point was pretty simply stated. Many obviously do not share your conclusion that they are a pretty good airline but I do respect your opinion. Different people have different experiences and standards.

Possibly this merger will place them on the government's "too big to fail list" entitling them to government bailouts in the future to compensate for poor management.

Sorry, but I also read your post the same way. The American economy is doing fairly well. Not great, but about the same as most large economies around the world, maybe a bit better? Many Asian economies are doing quite well.

It' hard to compare a "for profit" airline like AA to one like Singapore Airlines. If I am not mistaken, many of the better airlines in the world are either owned or sponsored by their host countries? So they can focus more on quality as opposed to their stockholders. Who are more interested in a return on their money. Which is fair.

Large mergers such as this are not good for the economy. There undoubtedly will be consolidation, which means fewer jobs, less competition, and higher prices for consumers for the same poor quality service. American-based airlines receive many “benefits” from the government in terms of tax breaks and other support. There is NO excuse for the poor service from any of these airlines especially when their rates are equal (most time higher) than their global counterparts.

[lovetotravel]

Large mergers such as this are not good for the economy. There undoubtedly will be consolidation, which means fewer jobs, less competition, and higher prices for consumers for the same poor quality service. American-based airlines receive many “benefits” from the government in terms of tax breaks and other support. There is NO excuse for the poor service from any of these airlines especially when their rates are equal (most time higher) than their global counterparts.

Not sure if US airlines are more expensive. I fly quite often to the US and 75% of the time the US airlines are cheaper than other alternatives. Though I will go with a more expensive fare to avoid 8 hour layovers.

Poor quality. Absolutely. Cheaper fares? Many times, yes.

[geriatrickid]

The 2 airlines that I avoid combine. I don't care. I avoided them. . Poor service, bad prices.

I am delighted by the prospect of US Airways leaving star alliance. I haven't flown on AA in years. Miserable experiences and US Airways is just plain horrible.

[scorecard]

The 2 airlines that I avoid combine. I don't care. I avoided them. . Poor service, bad prices.

I am delighted by the prospect of US Airways leaving star alliance. I haven't flown on AA in years. Miserable experiences and US Airways is just plain horrible.

Certainly agree about AA.

On last flight to US I had to use AA from Tokyo to US and return because of project policy. The aircraft was simply dirty, everything was dirty, especially the toilets. The galley area was dirty and a total mess. Food service was unbelievably slow and sloppy. I asked for some wine (which comes in small individual bottles), to have with my meal. Response: 'we're very busy today I doubt whether my colleagues in the galley can service you today'. I insisted, the wine came about 30 minutes after I finished my meal and was total crap, I took one mouthful only. The check-in lady on return flight was simply obnoxious. AA never again.

[Sing_Sling]

The 2 airlines that I avoid combine. I don't care. I avoided them. . Poor service, bad prices.

I am delighted by the prospect of US Airways leaving star alliance. I haven't flown on AA in years. Miserable experiences and US Airways is just plain horrible.

Certainly agree about AA.

On last flight to US I had to use AA from Tokyo to US and return because of project policy. The aircraft was simply dirty, everything was dirty, especially the toilets. The galley area was dirty and a total mess. Food service was unbelievably slow and sloppy. I asked for some wine (which comes in small individual bottles), to have with my meal. Response: 'we're very busy today I doubt whether my colleagues in the galley can service you today'. I insisted, the wine came about 30 minutes after I finished my meal and was total crap, I took one mouthful only. The check-in lady on return flight was simply obnoxious. AA never again.

Typical of a moaner . . . a whiner . . . a malcontent.

You are asking these people to serve you. DURING THEIR WORKING HOURS.

I'm guessing you are one of these arrogant prats who expects some sort of service for money paid.

Pffft . . .