A Couple Of Thoughts On Recent AA Merger Discussions

This news is a couple of days old, but AA has announced they are open to discussing a merger during bankruptcy.

I especially like the quote, “To be clear, American has committed to work in collaboration with the (creditors) committee to develop only potential consolidation scenarios and this agreement does not in any way suggest that a transaction of any kind or with any particular party will be pursued.” from AMR.

They reference “members of the creditors committee” campaigning strongly for AA to consider a merger.  What they don’t say is that it appears the only members of the creditor committee pushing hard for this are the unions.  We already know some members of the creditor committee, like Boeing, are in favor of AA being allowed to reorganize without interference and try to stay independent.  It really strikes me as disingenuous that some of the unions refuse to negotiate in good faith with AA on a new contract and then use their spot on the creditor committee to try and push their agenda in contradiction with the direction of the bankruptcy judge.

This article states the obvious, that in light of the fact that US Airways doesn’t really have an integrated seniority list now (a source of frustration for the airline 7 years after the merger), it’s unlikely going to be easy to integrate the seniority lists of US and AA in any way that actually comes close to satisfying the whole group.

It really does shock me that the unions feel US Airways is going to give them a better deal when US can’t even get it’s own house in order.  Talk about being careful what you wish for.  History is doomed to repeat itself if the unions keep on insisting on rolling over for US Airways.

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