4 Responses

  1. ALCO
    ALCO at |

    I agree that a merger with US would be a disaster, and that any short-term gains in planes/capital injection/etc. would only postpone the inevitable.

    For the reasons you stated, AS isn’t likely to step in and assume AA’s liabilities. From a purely hub, route-map, and equipment standpoint, AS makes the most sense as a merger partner, but it doesn’t make economic sense.

    Like I said yesterday, I think AA lost out on the game of merger musical chairs. They didn’t get a seat at the table, and UA and DL are now poised to eat their lunch. AA isn’t the largest carrier at most of its hubs, and simply doesn’t have the international reach (outside of Latin America) of its primary competitors.

    I think a merger with US would create a toxic mess, eventually doomed to fail, and anything short of a merger with AS (and perhaps a strong codesharing agreement with B6 at JFK and BOS to drive feed) will leave AA at a competitive disadvantage. Since that sort of outcome with AS and B6 is highly unlikely, I think AA will (absent a merger) slowly retrench and stumble slowly towards an eventual demise. Some other airline may eventually purchase the remnants of a greatly diminished AA (as AA did with TWA, somewhat ironically).

    Just my 2 cents.

  2. Spirit launches salvos against American Airlines - The Wandering Aramean

    […] Some more thoughts on today’s bAAnkruptcy filing […]

  3. An interesting view on bAAnkruptcy from the NY Times - The Wandering Aramean

    […] Some more thoughts on today’s bAAnkruptcy filing […]

  4. American Airlines announces updates to long-haul fleet - The Wandering Aramean

    […] Some more thoughts on today’s bAAnkruptcy filing […]