US Airways-AA Merger set for Mid-December

[serfty]

Seems like the DoJ may have succumbed to political lobbying.

Originally Posted by FWAAA
...
Why did the DoJ cave? They'll deny it forever, but when nearly 100 members of Congress, mostly Democrats, plead with the President to call off the dogs and let two companies merge, and when the unions representing almost 90,000 employees at the combined airline lobby and plead for the merger, it was bound to happen.

The actual agreement between the ailines and the DoJ is a crock.

If you look at the actual language...it isn't worth the paper/pixels it is printed/displayed on. AA can use any minor deterioration in the financial viability of a hub to begin dehubbing it.

Rises in fuel prices, increases in employee wage rates, beginning of a recession. The settlement is as soft as jelly. Indeed. The "settlement" is a toothless surrender document from the DOJ.

Almost anything that doesn't deliver to the merged AA's satisfaction can be cut -- including hubs and routes specified in the agreement - even if profitable. No waiting for up to 5 years required.

The biggest loser in US Airways-American deal? You. - The Term Sheet: Fortune's deals blogTerm Sheet

... "The settlement allows the New American to break its promise to maintain service levels at its hubs and cancel those flights to smaller cities if it feels that there has been a material adverse change, "in demand, the competitive environment, or New American's cost to comply." This so-called MAC clause is extremely vague and can be triggered at the sole discretion of management. So say oil prices go above $100 a barrel -- that could possibly be a trigger as it impacts the "cost to comply." Say Southwest starts a new route to Phoenix -- that could constitute a change in the "competitive environment" of the entire hub."

 

[cove]

AAMRQ:US shares have moved from sub 40 cents to almost $12 now so the proposed merger and release from bankruptcy has added some value to American Airlines company valuation.

 

[smit0847]

US Airways will leave *A on 1 March 2014 and join OW one month later - US Airways to Leave Star Alliance March 1, Join Oneworld One Month Later | Frequent Business Traveler

That seems fair warning - 3 months is plenty of time to plan last minute *A bookings.

 

[Foreigner]

US Airways will leave *A on 1 March 2014 and join OW one month later - US Airways to Leave Star Alliance March 1, Join Oneworld One Month Later | Frequent Business Traveler

That seems fair warning - 3 months is plenty of time to plan last minute *A bookings.

'on or about 1 March' - would like to see official proclamation from the partners.

I would also like to see another bonus offer to enable me to book *A flights.

 

[drron]

Well I will be taking up the US offer in the expectation of them becoming AA miles.I find AA miles easy to use.I seem to get more availability using an AA award on QF than mrsdrron through QF.
And one big plus for next year.I can book two Awards on QF 24 ex-BKK and not have to show a CC at QFs BKK office.All done on line.

 

[davem]

Does AA charge fuel surcharges on QF flights?>

 

[markis10]

Does AA charge fuel surcharges on QF flights?>

I don't believe so, J BNE SYD BKK is $160 in "charges"

 

[Happy Trails]

I don't believe so, J BNE SYD BKK is $160 in "charges"

I paid USD84.50 (billed as AUD96.20) for J PER-SYD-BKK, booked in August.

 

[serfty]

Interesting post on FT:

Originally Posted by tt120 So based upon the US website, you can't book flights on a STAR (United, LH, etc..) partner after Feb 28th. I guess US doesn't think people book flights 3 months out? ...

Is this indeed the case?

 

[turtlemichael]

*Better placed in a different thread.*

 

[Danger]

Judge Gives Green Light for American Air Exit from Bankruptcy and Merger with US Airways | Frequent Business Traveler

http://www.dallasnews.com/business/...s-airways-to-merge-dec.-9-after-judges-ok.ece

 

[Oneworldplus2]

Just got an email from US Airways.

Sorry, can't quote on this smartphone (don't know how to)

============================

Dear Oneworldplus2,
Today is a big day for American Airlines and US Airways.

Our merger has legally closed, which means we're taking an exciting step toward building the new American. We're combining to form a stronger airline with an extensive network, greater schedule options and a modern, fuel-efficient fleet.

It's important to note that there is no impact to any existing reservations you may have with American Airlines or US Airways at this time, and any mileage balance or elite status you have earned in either frequent flyer program is completely safe. You can continue to earn miles through existing Dividend Miles participating companies – including the US Airways MasterCard® and US Airways Visa® credit cards – and redeem those miles for the same great awards.

We'll continue to function as two separate airlines for quite some time and very few changes will happen immediately. For now, you won't see any changes to your travel experience as we will be focusing completely on delivering a superior operation during the busy holiday travel season. But beginning in early January, we'll announce exciting new benefits such as the ability to earn and redeem miles on both carriers and reciprocal lounge access.

We're excited to share that we plan to join the oneworld® alliance on March 31, 2014, which means our Dividend Miles members can look forward to mileage earning and redemption opportunities, reciprocal elite benefits and lounge access on oneworld carriers.

We'll exit Star Alliance on March 30, 2014 and, as of today, we'll no longer offer codeshare flights for sale on United Airlines. Rest assured any reservations you may have with United Airlines and other Star Alliance partners are safe, and you'll continue to earn miles and receive benefits until that time. Learn more about our journey to oneworld, as well as new codeshare opportunities coming soon by visiting usairways.com/arriving.

Your continued loyalty is very important to us and we will be working hard in the coming weeks and months to deliver a world class travel experience. Look for additional communications from our new American team on these and other benefits headed your way. You also can stay up-to-date on the latest developments by following our social channels.

I'm excited to start this journey and look forward to building a stronger airline for you.

 

[Foreigner]

A new beginning!

We've full three months (until March 30) to use DM miles for *A bookings, which can be up to 12 months ahead. Glad I've banked all those DM over the last two buy/share promotions.

 

[smit0847]

We've full three months (until March 30) to use DM miles for *A bookings, which can be up to 12 months ahead.

And that is the only thing I care about right now.

 

[drron]

We got a welcome to the "new"AA yesterday.

 

[Foreigner]

We got a welcome to the "new"AA yesterday.

Likely as you already have been with AA program. For those who don't belong, so far, they likely won't receive any communication until the database of each program is merged.

 

[serfty]

Likely as you already have been with AA program. For those who don't belong, so far, they likely won't receive any communication until the database of each program is merged.

I think drron's welcome was in person from someone such as an AA FA on an AA flight.

 

[drron]

Serfty is right.It was FA Paul who we have flown with before who welcomed me as flying on the first day of the finalised merger.

 

[Foreigner]

I think drron's welcome was in person from someone such as an AA FA on an AA flight.

Got it...misunderstood drron.

 

[drron]

And from my email today from US-

We plan to continue relationships with the following airlines, so you can continue to earn and redeem Dividend Miles on these select partners even after we've exited Star Alliance: Aegean, Air China, Air New Zealand, Avianca, Ethiopian Airlines, Eva, Shenzhen Airlines, Singapore Airlines, South African Airways, TAM, TAP and Turkish Airways.

Very interesting.I wonder if this will continue once Dividend miles and Aadvantage are merged.