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American Merger Decision Promised “Within Weeks”

American Merger Decision Promised “Within Weeks”

According to a memo from American chief Tom Horton to employees, published in the Houston Star-Telegram, the airline’s decision on whether to support or oppose a merger with US Airways will be made “within a matter of weeks.”

That’s support or opposition at the level of American’s top management.

The unions representing the airline’s flight attendants and pilots have already come out in favor of a tie-up with US Airways, which would create the world’s largest airline traffic-wise.

Although Horton’s memo makes reference to the airline’s customers, his focus is clearly elsewhere: “Our objective is unchanged — to create the most value for our owners and the strongest possible American going forward.”

After waiting for more than a year for clarity, American’s customers won’t have to wait much longer to see how their interests fare amid the competing priorities of American’s owners, managers and workers.

Reader Reality Check

Merger or no merger … how would you vote?

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  • JetLad

    I hope there is no merger.  I’m afraid of what changes might come from a merger (e.g., devaluation of elite levels, worsening of upgrade situation, etc.)

  • Kris Caluwaerts

    I see 2 options for AA.  1) A merger to be able to compete with it’s main competitors, in that case they can continue offering their service without much differentiation.  2)  From the recent marketing initiatives I had the impression they wanted to offer a different, more luxurious experience.  If they still plan on doing that I wouldn’t merge with US.  I think in the long haul plan 2 is the best plan.  Less competition in USA in that segment.
    I’m afraid both plans will include some devaluation for current customers.  With plan 1 the devaluation is obvious.  Plan 2 will slightly involve an increase in the fares so probably the value of our miles will decrease.

  • Michael Acevedo

    I agree with JetLad. There would be way too many elites if the merger went through, which would lessen my chances of upgrades/elite privileges; which will in turn probably have me turn to UA.

  • Adam Levy

    No merger, no merger, no merger.  US Airways still hasn’t fully recovered from the AW merger – they are just a mess of an airline, which AA really doesn’t need any spillover from.  It would be an unmitigated disaster if the two airlines came together.  I would really, really hate to see it.

  • Janet Doe

    There is no Dallas Star-Telegram.  It’s Dallas Morning News or Fort Worth Star-Telegram.

  • Patbb Brendan Patman

    Merger or not, I would like to see USAirways leave Star Alliance to join OneWorld, which would make my BA Avios more useful! I live in Charleston SC, which has no AA flights to points north.

  • zoomer602

    Living in NH and flying either MHT or BOS – a merger would be great because the opportunities would increase greatly. AA pulled out of Manchester many years ago – so flying US and connecting in Miami or Dallas would make a lot of flights better for us. One example I can think of is Kingston, Jamaica which is serviced by AA or JetBlue but not US. So I need to commute to Boston for decent flights – a merger would allow AA to MIA and then US to MHT….nice!