Chances of WO Merger
#1
Chances of WO Merger
Been hearing rumors about this here and there so what better place to ask what people think than on the APC forums?
What are the chances of AA needing this to happen and what are the advantages/disadvantages?
What are the chances of AA needing this to happen and what are the advantages/disadvantages?
#2
I’m not sure AA “needs” wholly owned s at all. Clearly there are lots of non wholly owned regionals that AA can and does farm the work out to. But they do bring in money to the AAG certainly ( over a fifth the total profit last time I checked preCOVID, and there might be some economies of scale in combining them and ending duplicative functions. Conversely, having three wholly owned plus Mesa, Skywest, Republic, and everyone else to play off against the others to keep wages as low as possible is ALSO an advantage for AA. I mean, that’s sort of why there ARE regionals.
#5
Thanks for the replies! I heard from people in training they are not being assigned bases and they think it's because there is some sort of announcement coming.
I don't think a merger would happen over night so that probably doesn't have to do with it but it is interesting as to why.
I don't think a merger would happen over night so that probably doesn't have to do with it but it is interesting as to why.
#6
Line Holder
Joined APC: Jan 2021
Posts: 59
Thanks for the replies! I heard from people in training they are not being assigned bases and they think it's because there is some sort of announcement coming.
I don't think a merger would happen over night so that probably doesn't have to do with it but it is interesting as to why.
I don't think a merger would happen over night so that probably doesn't have to do with it but it is interesting as to why.
#7
Gets Weekends Off
Joined APC: Jul 2018
Posts: 449
Thanks for the replies! I heard from people in training they are not being assigned bases and they think it's because there is some sort of announcement coming.
I don't think a merger would happen over night so that probably doesn't have to do with it but it is interesting as to why.
I don't think a merger would happen over night so that probably doesn't have to do with it but it is interesting as to why.
#8
Gets Weekends Off
Joined APC: Feb 2016
Posts: 469
#10
Don’t make this too complicated. Our profit margins are some of the lowest in the industry. Leadership was focused on expansion the last few years, now they will focus on costs until a normal market returns. We saw the redundant training center closure last week, only time will tell if redundant regionals will merge. Regional flying is vital to our model so it won’t go away, but it’s a fair question to ask when we have 3 and the rest of the industry has no more than 1 per company.
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