created by: Merger Mania | Jan 14, 2013

Airlines

63 votes

Would AA sell LAX ops to a west coast carrier to finance a US merger?

Click on an option to vote

  • YES - but who? VX, F9, AS, others
  • NO - never
  • Well that would allow them to control US
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1 - 20 of 25 Comments Last updated Jan 23, 2013
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Merger Mania

Ballwin, MO

#1 Jan 14, 2013
AMR owns AA, AA might be more value in pieces.

Since: May 08

Santee CA

#2 Jan 14, 2013
LAX is a stronghold of the cornerpost system AA intends to use as a stand alone.... Based on what it did to SJC with Reno Air and STL with TW it would have no problem giving PHX to SW or anyone else who wants it. Crowded and high priced LAX is a better business option overall
Merger Mania

United States

#3 Jan 14, 2013
Well I may be mistaken but it seems to me AMR wishes to remain independent or at least in control of a merger.

Guess they have got to figure out a way to get the financing to do this.

Since: May 08

Santee CA

#4 Jan 15, 2013
Merger Mania wrote:
Well I may be mistaken but it seems to me AMR wishes to remain independent or at least in control of a merger.
Guess they have got to figure out a way to get the financing to do this.
I see a merger after BK... Horton talks a mean game in the press, but look at his track record. He left AMR (even after all those retention bonuses). He went to AT&T as CFO. Became CEO restructured it and sold it to SBC. He then became CFO at AMR.. Led the coup on Arpey to become AMR CEO and took it straight into BK. My guess is next move is a sale.(See AT&T). This will occur after BK because then the courts and creditors don't have thier fingers in the pie too. The size of the pie in finite. The less people wanting a slice means more pie ($$$$$$$) for you.

Since: Apr 08

Tulsa, OK

#5 Jan 15, 2013
Prost wrote:
<quoted text>I see a merger after BK... Horton talks a mean game in the press, but look at his track record. He left AMR (even after all those retention bonuses). He went to AT&T as CFO. Became CEO restructured it and sold it to SBC. He then became CFO at AMR.. Led the coup on Arpey to become AMR CEO and took it straight into BK. My guess is next move is a sale.(See AT&T). This will occur after BK because then the courts and creditors don't have thier fingers in the pie too. The size of the pie in finite. The less people wanting a slice means more pie ($$$$$$$) for you.
Here's my two cents worth of commentary:

My farfetched vision: AMR/AA will be profitable and successful enough to go after USAir and become the parent.

Ditch the unnecessary routes/hubs, aircraft, and maybe personnel.

Donít F__k this one up like they did with Air Cal, Reno Air, and TWA!

Since: May 08

Santee CA

#6 Jan 15, 2013
tulaaretired wrote:
<quoted text>
Here's my two cents worth of commentary:
My farfetched vision: AMR/AA will be profitable and successful enough to go after USAir and become the parent.
Ditch the unnecessary routes/hubs, aircraft, and maybe personnel.
Donít F__k this one up like they did with Air Cal, Reno Air, and TWA!
You were doing great until the last point. Let's see who is in charge when all is said and done.... then we can either cheer or cringe
Airline freak

Johnson City, TN

#7 Jan 15, 2013
Only Delta could afford to pay the price that would allow AA to buy US. They are extremely disciplined however. Question is how much would they be willing to pay. They've been very aggressive in large business markets. Don't know if AA would allow them the west coast competitive advantage.
Merger Mania

United States

#8 Jan 15, 2013
http://aa.innosked.com/ (S(ovcn1o45ksuavn55bg5xsnqu))/ default.aspx?lang_id=EN

London, and a few Asian routes are all that are there. STL, BNA, BOS, SJD, Hawaii, are not really strategic to LAX and can be better crewed through existing AA hubs and additional Asia and LHR routes can be funneled by future PHX expansion to keep that flying efficient.

LAX is just not much of an operation as stand alone.
Merger Mania

United States

#9 Jan 15, 2013
Delta though my be interested in the international routes, but are all the same a bit orphaned in LAX just as AA is.
Merger Mania

United States

#10 Jan 15, 2013
http://aa.innosked.com/ (S(ovcn1o45ksuavn55bg5xsnqu))/ default.aspx?lang_id=EN

Here is a route map of AA for SFO... kind of the direction AA is most likely going in LAX.
HAL

United States

#11 Jan 16, 2013
Cannot see why HA could not due to the mainland using Los Angelese and AA's operations there much like Alaska has done to the lower 48 using Seattle.

Especially with the new engine 321 Fleet

HAL

Since: May 08

Santee CA

#12 Jan 16, 2013
Merger Mania wrote:
http://aa.innosked.com/(S(ovcn 1o45ksuavn55bg5xsnqu))/default .aspx?lang_id=EN
London, and a few Asian routes are all that are there. STL, BNA, BOS, SJD, Hawaii, are not really strategic to LAX and can be better crewed through existing AA hubs and additional Asia and LHR routes can be funneled by future PHX expansion to keep that flying efficient.
LAX is just not much of an operation as stand alone.
Tell that to the current management team.... Ask them about the cornerstone strategy of the turnaround plan. LAX due to grow after BK
Real US Airways - AWA

Phoenix, AZ

#13 Jan 16, 2013
PROST-

Here is a little insider information from someone who started his Career at LAX... the 2 hangars that AA currently has there presently (one from TWA, other was AA) are most likely going to get torn down to allow room for new runway, additionally Continental(United)Hangar is also likely to join that same scenario.

LAX world airports is in the process of re-branding/remodeling itself and does want to have Super Hangars taking up valuable real-estate. it wants to only move traffic/passengers through its airports (LAX,ONT,VNY). They want to be like LAS airport.

In short More gates space/slots in lieu of Hangar space equals more Take off / Landing Fee $$$ revenue.

So I see PHX growing due to lower operational cost versus LAX down sizing due to higher operational cost. AA has about 300 Mechanic's and US Airways PHX has about 400+ mechanics who are experienced on both Boeing and Airbus aircraft; where AA mechanics are not due to being mainly Boeing Fleet.

in the end we'll know soon enough how the lay of the land will be set.
Prost wrote:
LAX is a stronghold of the cornerpost system AA intends to use as a stand alone.... Based on what it did to SJC with Reno Air and STL with TW it would have no problem giving PHX to SW or anyone else who wants it. Crowded and high priced LAX is a better business option overall

Since: May 08

Santee CA

#14 Jan 16, 2013
Real US Airways - AWA wrote:
PROST-
Here is a little insider information from someone who started his Career at LAX... the 2 hangars that AA currently has there presently (one from TWA, other was AA) are most likely going to get torn down to allow room for new runway, additionally Continental(United)Hangar is also likely to join that same scenario.
LAX world airports is in the process of re-branding/remodeling itself and does want to have Super Hangars taking up valuable real-estate. it wants to only move traffic/passengers through its airports (LAX,ONT,VNY). They want to be like LAS airport.
In short More gates space/slots in lieu of Hangar space equals more Take off / Landing Fee $$$ revenue.
So I see PHX growing due to lower operational cost versus LAX down sizing due to higher operational cost. AA has about 300 Mechanic's and US Airways PHX has about 400+ mechanics who are experienced on both Boeing and Airbus aircraft; where AA mechanics are not due to being mainly Boeing Fleet.
in the end we'll know soon enough how the lay of the land will be set.
<quoted text>
I don't disagree with you.. LAX has outgrown itself, and there is room in PHX.. A compelling arguement that I'm sure Doug Parker is making to AA creditors.. What I'm telling you from my insider info (26 years on the ramp for AA), is that Management has been shoving the corner post strategy down our throats for years.. up to and including during BK.... That said, to me and many economists it makes no sense.. If you lack market share you cannot control pricing. AA owns DFW, is a huge player in MIA. They are so so on the east coast and split ORD. They are a mid level player in LAX. With a merge AA/US would own PHX and increase the east coast foot print. A modified corner post strategy as it were. The downfall of PHX is the lack of International partner service AA is relying heavily upon.. One BA flight, no JAL, Qantas, or Cathay.... I see AA keeping PHX and maybe growing it for it's own needs, but without the OneWorld assist any transition out of LAX would be a long time coming.
Real US Airways - AWA

Phoenix, AZ

#15 Jan 18, 2013
PROST-

I see your points... funny things is that I was in LAX just yesterday on company business, that said TWA hangar is currently being leased to Quantas and saw their B747 and A380 parked there... word on the street is that all the Hangars (TWA,AA, & Continental) are all going to be gone....and LAX did give Quantas permission to build a hangar of their own, they want to bump up there daily flights to 15 a day. hangar will be behind the REMOTE area. Now the Rumor is that LAX did extend permission to AA to build a new hangar, but I was unable to get any conformation.. while it is known that LAX world airports has been denying other Air carriers to build hangars of there own, in short AA will always have a great presence at LAX, questions is that I see it being more of a big Line Station if no new hangar is built. if a new hangar is built then who knows what will happen to PHX... I know regardless of that the NEW AMR will have a Bigger presences in PHX and would not want to surrender that market share to SWA (LUV) due to its a growing market and AA and SWA love for one another, though-out history... LOL.

Prost I wish nothing but the best for all employee's of both Air Carriers...
Prost wrote:
<quoted text>I don't disagree with you.. LAX has outgrown itself, and there is room in PHX.. A compelling arguement that I'm sure Doug Parker is making to AA creditors.. What I'm telling you from my insider info (26 years on the ramp for AA), is that Management has been shoving the corner post strategy down our throats for years.. up to and including during BK.... That said, to me and many economists it makes no sense.. If you lack market share you cannot control pricing. AA owns DFW, is a huge player in MIA. They are so so on the east coast and split ORD. They are a mid level player in LAX. With a merge AA/US would own PHX and increase the east coast foot print. A modified corner post strategy as it were. The downfall of PHX is the lack of International partner service AA is relying heavily upon.. One BA flight, no JAL, Qantas, or Cathay.... I see AA keeping PHX and maybe growing it for it's own needs, but without the OneWorld assist any transition out of LAX would be a long time coming.

Since: May 08

Santee CA

#16 Jan 18, 2013
Real US Airways - AWA wrote:
PROST-
I see your points... funny things is that I was in LAX just yesterday on company business, that said TWA hangar is currently being leased to Quantas and saw their B747 and A380 parked there... word on the street is that all the Hangars (TWA,AA, & Continental) are all going to be gone....and LAX did give Quantas permission to build a hangar of their own, they want to bump up there daily flights to 15 a day. hangar will be behind the REMOTE area. Now the Rumor is that LAX did extend permission to AA to build a new hangar, but I was unable to get any conformation.. while it is known that LAX world airports has been denying other Air carriers to build hangars of there own, in short AA will always have a great presence at LAX, questions is that I see it being more of a big Line Station if no new hangar is built. if a new hangar is built then who knows what will happen to PHX... I know regardless of that the NEW AMR will have a Bigger presences in PHX and would not want to surrender that market share to SWA (LUV) due to its a growing market and AA and SWA love for one another, though-out history... LOL.
Prost I wish nothing but the best for all employee's of both Air Carriers...
<quoted text>
That was Crandall and Herb... The new AA is nt agressive.. Look where SW is now in BNA and STL.. AA gave those up. AA has let JetBlue take transcons and SJU... AA has lost it's killer instinct in favor of corporate wealth.. condo in London amoung others that didn't make the media.. Would love to see AA/US expansion in PHX.. That mean I get a job back in SAN
JetBlast

Birmingham, MI

#17 Jan 18, 2013
RealUSAir..

There is no possible way that the AA/CO hangars are being razed to make room for a runway. That area would be unusable for a runway. The only possible use for that land would be for additional passenger terminals.

The only space available for construction of an additioinal USABLE runway is south of 24L and that would require the removal of Terminals 1,2,3 and Bradley gates 119-123B.

Face it...LAX is very near max capacity in good weather and it's far over capacity in IFR weather. Due to noise abatement restrictions and the fact that the morons in El Segundo and Westchester built their dream homes within feet of the airport boundary, LAX has no reasonable options to increase aircraft ops. The increased mix of weight classes make it even less efficient.

Since: Apr 08

Tulsa, OK

#18 Jan 18, 2013
Prost wrote:
<quoted text>That was Crandall and Herb... The new AA is nt agressive.. Look where SW is now in BNA and STL.. AA gave those up. AA has let JetBlue take transcons and SJU... AA has lost it's killer instinct in favor of corporate wealth.. condo in London amoung others that didn't make the media.. Would love to see AA/US expansion in PHX.. That mean I get a job back in SAN
PROST - How can one forget the Air Cal debacle and giving SW its now OAK Hub and the remainder of the West Coast.

Since: May 08

Santee CA

#19 Jan 18, 2013
tulaaretired wrote:
<quoted text>
PROST - How can one forget the Air Cal debacle and giving SW its now OAK Hub and the remainder of the West Coast.
I was only on a year then.. didn't know as much as I do now.... I new we got and gave up the west coast twice... I thought we'd get HP before US did Tradition you know haha
Real US Airways - AWA

Phoenix, AZ

#20 Jan 22, 2013
Jet Blast,

When I speak of Runway I mean a connection from one side to the other side of the airport... your are correct that LAX is at capacity and Hangars can only be built back towards romote area like I stated before. person who is on the leadership oversight team for remodel of LAX world airports -stated those hangars are coming down and LAX wishes to build more gates because that =$$$ in take off / landing fees.

also the old Bradley gates are in the process of being torn down, I have no reason not to trust this source who in employed by LAX world airports, nevertheless time will tell.

and I agree with you with regards to people living within a stones throw of one of the busiest airports in the world...:)
tulaaretired wrote:
<quoted text>
PROST - How can one forget the Air Cal debacle and giving SW its now OAK Hub and the remainder of the West Coast.

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