TheManager

AMR? Really? And they would want US for......what exactly?

A) They dont have the $$$$$$$$$ now to do it.

B) US has nothing geographically or strategically they need.

C) You should know what Dougie wants. Its $$$$. His window is closing. He will chop it up if needed. Probabley not good if the East bases are fragmented when there is a disputed list.

KillingMeSmalls

A) For a merger?
B) Agreed. The move would be to just increase their presence up to the other two guys again. More flights=happy business fliers=$.
C) He does want money but I think you just want LCC to be chopped up more than you realistically think it's going to happen. He still wants to be a CEO of an airline.

Justdoinmyjob

Don't feel bad for the AA guys. APA would steamroll USAPA.

captfred

Anyone would steamroll USAPA. They are the gang that can't shoot straight.

Justdoinmyjob

In any merger with one of the big three, there is no way Parker would be CEO. He would get paid to go away.

KillingMeSmalls

When is the last time the smaller airline's CEO kept his job...

RedeyeAV8r

When USAir and America West Merged.
When UAL and CAL merged.

Justdoinmyjob

That's cause Tilton has wanted out of the airline business for a long time now.

zaxyy

I’m impressed about your infinite wisdom not to mention your highly brilliant grammar and spelling!! You must be the type of pilot that if you spoke your mind while flying you’d be crashing airplanes.
First here in American we are most definitely interested in LCC for many reasons:
First: Attrition of 300 pilots per year due to retirements. That would bring most of our furlough pilots back in property sooner and quicker upgrades.
Second:US Airways Group (NYSE:LCC) EPS is expected to grow 13.8% year-over-year, better than the company's long-term growth rate of 3%. Based on the forward P/E of 5.3x its PEG ratio is 1.76, which signifies a premium valuation given for growth.
Third: Group’s 12 months Total Revenue increased from $10.458billion in 2009 to $11.908billion in 2010. Its Net Income rose from a Net Loss of $205million for 2009 to a Net Income of $502million for 2010. Shares of US Airways Group, Inc. (NYSE: LLC) increased from as low as $2.04 per share during July 2009 to over $11.70 during 2010.

texaspilot76

First, I will respond to comment B).

It makes a lot of sense. Take a look at the positioning of the hubs. If Airways can complete the DAL slot swap, Airways will control DCA and PHL. American has a huge LGA and BOS presence. A merged company would dominate the northeast. Also, Airways lacks a midwest hub, while AA has ORD and DFW. AA lacks eastern and western connecting hubs, yet Airways has PHX and CLT. The new network would rule.

Comment A).

Youre right in the fact that AA is running out of money and is bleeding fast. They are continually losing money. They couldnt afford to merge or buy another company. If AA and Airways merge, it would be because Airways bought AA. Airways has been profitable for over a year now and has the cash. My guess is that AA will enter bankruptcy and Airways will jump in while AA is in BK.