Is AA-US Airways Merger Really Imminent?

Reuters is reporting things are progressing, but this is my take on why it's not a merger until the fat lady signs (or signs).

American-US Airways Merger Negotiations: Major Issues Yet to be Overcome

Past Attempts to Merge Recall That Nothing Is Final Until the Fat Lady Sings

Reuters is reporting that American Airlines and US Airways are in the final stages of negotiating a merger, although the two issues that have yet to be resolved are somewhat thorny.

Reuters cites four sources that report that the final price and the merged company’s management structure have yet to be resolved. If the two sides come to terms, a merger could be announced within two weeks, the people said.

The two open issues, however, are fraught with contention and have been sticking points since the beginning....

Great two terrible airlines merging to make one huge terrible airline!

With airlines it's all relative. American has treated me very well as a multi-year exec platinum just as United did when I was a multi-year global services flyer with that airline. Flyers without much in the way of status don't make out so well with most of the US majors, that's not in dispute, but credit where it's due and for me American has been pretty good. With that said, I'm not particularly happy about the proposed merger as I've long considered US Airways to be one of the poorer US majors.

I have flew both, they're decent not that terrible IMO. Services were okay but they did concerned about my comfort. It's that all I asked for anyway. One time they overbooked and put me into first class. No complain there.

Originally Posted by swajames

With airlines it's all relative. American has treated me very well as a multi-year exec platinum just as United did when I was a multi-year global services flyer with that airline. Flyers without much in the way of status don't make out so well with most of the US majors, that's not in dispute, but credit where it's due and for me American has been pretty good. With that said, I'm not particularly happy about the proposed merger as I've long considered US Airways to be one of the poorer US majors.

+1

Multiyear EXP here too. Actually 24k to date this year (!!!!)

A good friend went through the United merger, and it was horrendous....

I expect the same when AA gets stuffed into US Airs' 'mindset'

A

I hope so. I'm looking forward to extended cities in Europe for my AA miles. Service is not important to me, but getting me there and back safely is.

Originally Posted by swajames

With airlines it's all relative. American has treated me very well as a multi-year exec platinum just as United did when I was a multi-year global services flyer with that airline. Flyers without much in the way of status don't make out so well with most of the US majors, that's not in dispute, but credit where it's due and for me American has been pretty good. With that said, I'm not particularly happy about the proposed merger as I've long considered US Airways to be one of the poorer US majors.

+1 Another EXP here and I fear a merger between these two for the same reasons; US is abysmal. I read one article that said one condition of the merger was that US management wanted to be in charge of the new airline. Ugh. It seems like AA is on a good run of re-inventing itself with the increased leg room in parts of coach, new planes, new fare structure, etc. I would just hate to see any of the recent gains wiped out.

To play to your point Dave, the condition of some US plane interiors is so poor that I did wonder about my safety on more than a few of them!

a merger between these two losers is inevitable. it's just a question of time.

The US airline industry needs to consolidate and I have a hunch that the merger will eventually happen.

I don't fly US carriers as a lot (I always opt for the foreign airlines internationally), but I've been okay with US Airways for shorter flights along the east coast. Plus I'm close to CLT which is US Airways' hub so fares and destinations are plentiful, plus I like the fact they fly a predominately Airbus fleet. I haven't flown on AA or Delta in over a decade; US Airways provides an acceptable level of service for me.

I suspect a 95% probability this merger will fly.

Mergers suck beyond belief for passengers and employees. Given that US Airways still logistically functions with separate operational structures for legacy US and legacy America
West, the infusion of yet another difficult culture will be problematic.

This may prove far more confounding than United/Continental and Delta/Northwest.

As an AA frequent flyer since 1985, this got to be good for me...

Instead, passengers on the newly merged airline will be able to fly across a vastly expanded map that would likely include US Airways' East Coast hubs of Charlotte and Philadelphia and American's strong international presence across the Atlantic and in Latin America. The combined carrier will also likely stick with American's frequent-flier program, the industry's oldest and one of its most popular.

"In the short term, frequent fliers will benefit from more routes and more choices, and a management that will likely want to reassure them that the benefits they're used to won't change,'' says Gary Leff, co-founder of the frequent-flier community